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Arkansas Public Service Commission Grants Rehearing - Another AEP Transmission Project Bites the Dust

6/9/2014

5 Comments

 
Arkansans are celebrating today's ruling by the Arkansas Public Service Commission granting rehearing of its prior Order granting a permit to AEP's SWEPCO subsidiary for a 345kV transmission line on new right of way through the scenic and beloved Ozarks.

What WERE you thinking, AEP? 

The Eureka Springs Independent continues its excellent coverage with this breaking story:
A long-anticipated decision was handed down late Monday afternoon granting a rehearing on the 160 ft. tall, 345 kV power lines that Southwestern Power Company (SWEPCO) insisted were needed for additional electricity. The power lines were to transmit electricity to other states, not Arkansas, and would transect Carroll County and Eureka Springs. The APSC wrote that insufficient evidence for need of the transmission line was presented.

“This is what we were looking for,” Pat Costner, director of Save the Ozarks, said. “We did a solid job. This is a first in Arkansas, no one has ever challenged these lines on basis of need and brought the project to a halt.”
The Commission had previously approved the project with a route that sent the majority of the project over into neighboring Missouri.  Of course that wasn't workable, and Missouri and its elected officials jumped all over rejecting the idea.  AEP didn't like that "solution," and tried to attempt a "do-over" from the PSC.

Well, AEP has once again received just what it wished for!  Only this time, the PSC is sending a different message:
“Considering all the evidence provided to date, the Arkansas Public Service Commission found that while some transmission development in the area appears warranted, the record is presently insufficient to determine: the need for the particular 345 kV project that has been proposed, whether that project is consistent with the public convenience and necessity, and whether the project represents an “acceptable adverse environmental impact, considering… the various alternatives, if any, and other pertinent considerations.” Accordingly, the Commission grants rehearing for consideration of additional evidence on the need for, and the potential environmental impact of, the proposed 345 kV project, The parties should provide additional testimony and more recent, comprehensive evidence on whether the proposed 345 kV project is needed, whether transmission requirements in the region might be met by alternative options, such as expanding, upgrading, or building lower capacity facilities, including 161 kV lines, and if not why not, the comparative costs associated with the options, the environmental impact of the options, and the long term sufficiency of the options.
“The Commission also grants rehearing for consideration of additional evidence on the routing of the proposed transmission line. The parties should provide additional evidence on SWEPCO’s proposed routes. If SWEPCO chooses to propose or modify a route, it should submit proof that all landowners have received the statutory notice.
“With regard to routing, the parties should provide evidence whether existing 161 kV lines could be upgraded or existing rights-of-way used or expanded so as to limit adverse environmental impacts.
“Because the Commission grants rehearing for consideration of additional evidence, the prior grant of the CECPN for Route 109 is vacated. Whether a CECPN for transmission facilities should be granted and, if so, along what route will be determined after consideration of all the evidence.”
Got it this time, AEP?  You should be very familiar with this game.  It's the same one you ended up playing with the PATH project, except in that instance it was rival Dominion that did the right thing and undertook a rebuild that obviated AEP's project.

Maybe a rebuild isn't what AEP had in mind, but it seems that it's what the PSC has in mind for the Ozarks, so it's time for AEP to fall on its sword and make a compromise.

Don't you just love when this happens?
5 Comments

Why Long Distance Transmission is Not Reliable

6/8/2014

6 Comments

 
Just one more example of the fragility of our ever-expanding high voltage transmission grid, this time from Idaho:
The entire Wood River Valley and south as far as Shoshone, west to Fairfield and east to Carey lost power at 2:40 p.m.
    Lynette Berriochoa, Idaho Power communications leader, said the outage could have been a deliberate act of vandalism.
    “After 13 hours of repairs overnight to a damaged line northeast of Shoshone, Idaho Power crews discovered that the broken wire that fell to the ground may have been weakened by a gunshot,” Berriochoa said. “It’s rare, but we have seen this kind of unfortunate vandalism before. It’s very costly and a huge inconvenience.”
Who's protecting the thousands of miles of high voltage transmission in remote areas?

Nobody.
6 Comments

Beware the Hurtado! and Other "Clean" Fairy Tales

6/8/2014

5 Comments

 
Our friends at Clean Line have been as busy as a nasty nest of yellow jackets this past week, while I was tied up with other things.  So, on this beautiful Sunday, let's hunker down around the campfire and catch up on some scary stories...

My multilingual, Arkansan friend, Doc, alerted me to an interesting discovery this week.  Clean Line's project manager for its Plains & Eastern "Clean" Line, slated to plow through Arkansas like Godzilla on his way to Tokyo, is a Mr. Mario Hurtado.  In the Spanish language, the word "hurtado" means "to steal."  So, Clean Line is sending out some guy named "to steal" to... ummm... steal land from Arkansans.  Brilliant!  Perhaps Clean Line watches too many old movies and expected its opponents in Arkansas to behave like movie characters...
...and not like multilingual PhD's.

So... Arkansas... Beware the Hurtado!

My friend Doc says he looks like this:
Meanwhile, in other "Clean" news from Arkansas...
"Clean" Line has submitted a second application for negotiated rate authority from the Federal Energy Regulatory Commission.

I guess their first one wasn't good enough, since they didn't even bother to mention it in their new filing.  So, inquiring minds want to know... is "Clean" Line just stupid, or are they trying to pull something on FERC?

Negotiated rate authority is no big thing, though.  It simply bangs out a plan for the company to negotiate rates with potential customers in a fair and non-discriminatory fashion.  It doesn't get them any customers.  It is not an "approval" of the project.  FERC's only authority over this project is ensuring its rate structure is fair.  FERC has no authority over the siting and permitting of this project.  Big deal, Mr. To Steal.

And, news from Missouri...

"Clean" Line has been quoting industry-influenced WHO studies as "proof" that their transmission projects will have no health effects on nearby residents.  However, a well-respected, local physician has been compiling and reviewing medical research on the health risks of the proposed "Clean" Line.  The Moberly Monitor did an indepth report about what Dr. Smith has found.  Shocking and dangerous!  Dr. Smith's findings are a MUST READ for every person in proximity to one of these "Clean" Lines.

Other news outlets have also picked up on Dr. Smith's EMF research, and the truth is spreading like wildfire!  SeeABC News, the News Democrat, and about 18 other major news outlets.

"Clean" Line needs to finish watching the movie that they've been using as the basis for their arrogant expectations of the intelligence and cunning of their local opposition.  They must not have watched far enough to see this scene yet:
5 Comments

Get Your Own Potomac Edison "Must Read" Order!

6/6/2014

0 Comments

 
Good news, FirstEnergy customers!  If you're one of the thousands of customers whose electric meter is only read every other month (or longer interval), there is now a quick and easy solution to your problem!

Simply pick up your phone and call the customer service number on your bill and "inquire" about it.  Then do it again the next day.  (Like those instructions on your shampoo bottle -- lather, rinse, repeat).

According to the voice message I now have recorded on my answering machine from FirstEnergy escalation specialist (or other fun job title) "Kim" (employee number 30111):
Any time there is a bill inquiry on the account more than one occasion we do send out to verify a check reading..."
Kim was explaining why I received a "special" actual reading after my May bill was estimated.

Except I haven't made any bill inquiries since January.  So, be aware that there may be a 4 month delay in your own "special" meter reading.

My May bill was estimated on May 15, as scheduled.  Kim and her co-workers informed me that on May 16, a "must read" order for my account was issued from the company's billing office.  This delayed my bill, waiting for the "must read" to occur.  On May 27, 12 days AFTER the estimate was first calculated, FirstEnergy sent me an estimated bill anyhow.  It was actually pretty accurate this month (yay!)  The very next day, May 28, a meter reader made a special trip all the way out here just to "must read" my meter.  The "must read" was not reflected on my bill, because the company had already sent me an estimated bill the day before.

My June bill is scheduled to be an actual read, along with all the other customers in my neighborhood.  What was the purpose of the May 28 read?  Did FirstEnergy just need to waste some meter reader time coming all the way out here for nothing?

As usual, FirstEnergy's right hand doesn't know what its left hand is doing.

The effect of FirstEnergy's "must read" to make sure my bill was accurate this month served only to delay my bill by 12 days.  It did not make it any more accurate.

The company did some fine dancing and singing about what alignment of the moon and stars made its billing department roll out of bed one morning and decide to put a "must read" on my account.  It finally settled on the excuse that my multiple billing inquiries last year and early this year needed to finally be acted upon.  You da' man, FirstEnergy!

Unless, maybe, that "must read" came from somewhere else in the company and was supposed to simply shut me up until the Commission issued its Order in the meter reading & billing case?  Hmm... perhaps I should consult an att........ oh, *shhhhhhhh*

Who else has made multiple inquiries about their bill in the past and recently received a "special" extra read in an estimated month?  Anyone?
0 Comments

CFRA Does Not Represent the People

6/3/2014

0 Comments

 
The Center for Rural Affairs has pissed off a whole new bunch of people, this time in Wisconsin, by sending out a "red alert" telling them this is their "last chance" to comment on the Badger-Coulee transmission project.  Of course it's not their "last chance"!

Carol Overland, who has been fighting the legal fight against unneeded transmission for many years, tells CFRA what the people REALLY think:
I'm disturbed to see that you're regarding Lu Nelsen and Center for Rural Affairs as a primary source.  Center for Rural Affairs is not an intervenor in this project.  Center for Rural Affairs is a paid transmission advocate, through the RE-AMP program, it is paid to to promote transmission.

A CfRA Director also sits on the RE-AMP Steering Committee.   It's unfortunate that these facts are not included in your article -- this interest should be disclosed, because they are neither objective nor representing public interests or farmer interests.  If their paid advocacy was not disclosed to you, that's an even more significant problem.
Read more about transmission toadie CFRA here, and check out the organization's source of funding.  It is receiving grants from entities I like to call "the environmental 1%" -- super rich, super clueless, city folk whose environmental tyranny is not a compliment to rural interests.

CFRA does not represent the people, although they are being paid well to pretend that they do.  Tell them they don't represent you!
0 Comments

WV PSC Punishes Customers With Rate Increase in FirstEnergy Billing & Meter Reading Investigation Order

5/28/2014

24 Comments

 
The West Virginia Public Service Commission finally issued an Order in its General Investigation of FirstEnergy subsidiaries Potomac Edison and Mon Power today.  The investigation was initiated a year ago at the urging of citizens' groups and legislators, and was to examine the billing, meter reading and customer service practices of Potomac Edison and Mon Power.

However, instead of punishing the company for its transgressions, the PSC has decided to punish the customers!

The PSC has ordered Potomac Edison and Mon Power to increase meter readings from bi-monthly to monthly no later than July 1, 2015.  However, the company's customers will pay for the cost of increasing the frequency of meter reading.  FirstEnergy has estimated that monthly reading would increase yearly costs by five million dollars ($5,000,000.00).  The PSC has directed the company to recover the increased cost from you by amending its recent request for a 15% rate increase to add the additional costs for monthly meter reading.  The PSC estimates that this will add another half a percent to the upcoming rate increase, to make the total rate increase more than 16%.
Converting from bimonthly to monthly meter reading in the territory of both FirstEnergy operating companies in West Virginia will require a transition period that allows FirstEnergy time to procure additional  equipment, hire and train new meter readers and make any necessary changes to its billing platform. Therefore, the Commission will require that FirstEnergy implement monthly meter reading as quickly as possible, and no later than July 1, 2015. The Commission will monitor the transition as part of the adjustment to its metrics discussed below. The Commission will be watching for continued improvement and consistent performance. The handling of current annual read customers will also be discussed in the relevant section below. FirstEnergy should file amendments to the tariffs of each West Virginia operating company that provide for monthly meter reading and billing for residential customers. Finally, FirstEnergy may request to amend its filings in the pending general rate proceeding and provide evidence of the reasonable increase in the estimated cost of service.
Over the year long course of this investigation, customers made many constructive and useful suggestions on how FirstEnergy could improve.  The Coalition for Reliable Power and the NAACP suggested that FirstEnergy (AT ITS OWN EXPENSE) be ordered to read meters every month for one full year in order to acquire accurate readings on which to base future estimated bills.  The West Virginia Consumer Advocate Division recommended that FirstEnergy be ordered to read meters monthly for one year without addressing who would pay for it.  The WV PSC staff recommended that FirstEnergy be ordered to read meters monthly only if other recommendations for improvement were not successful.

NOBODY RECOMMENDED THAT THE COMPANY BE ORDERED TO READ METERS MONTHLY, INDEFINITELY, AND AT THE CUSTOMERS' EXPENSE.

But the PSC batted aside every constructive suggestion, in addition to your calls that the company be punished for its willful violation of its tariff.  Instead, it rewarded FirstEnergy with another $5M rate increase!

The bi-monthly meter reading system of the former Allegheny Power worked fine for many years.  It was only AFTER Allegheny Power was acquired by Ohio utility holding company FirstEnergy that the problems started.  The PSC admits that the transition to FirstEnergy business practices, in addition to poor decision making, caused the problems.  The switch to monthly reading can therefore be easily tied to the ill-advised FirstEnergy merger.  The PSC and FirstEnergy promised us that customers wouldn't have to pay higher rates as a result of the merger.  Once again, the PSC has failed us.

To add insult to injury, the PSC and FirstEnergy are in cahoots to spin this as a victory for the customers in the press.  The PSC is crowing about how they have ordered FirstEnergy to read meters monthly, without mentioning who is going to pay for it.  You are!  They must really think you're stupid.  Don't fall for it!


West Virginia electric customers have now been punished for speaking out about the abuse heaped on them by Ohio-based FirstEnergy.  It's going to cost us at least $5M.

This is the clearest example of regulatory failure I've ever witnessed.
24 Comments

FirstEnergy Acting From Management Greed

5/28/2014

7 Comments

 
Ever stop to think about the people who keep your lights on?  Who are the people that have to get out of their nice, warm beds in the middle of the night to make sure that you stay warm?  They're union workers, and FirstEnergy wants to add a few pennies on the old quarterly dividend by forcing them to work at the company's pleasure, on demand whenever, no matter what.  This means that these professionals are not allowed to have a life like you and me.  They can't plan anything outside their work life, whether it's attending a child's ball game, or a simple date night with their spouse.  Would you want to be enslaved to your employer like that?  Or would you look for better opportunities elsewhere?

Ever since FirstEnergy bought the former Allegheny Power companies, its management has been intent on busting up its union work force.  Unhappy and unskilled workers directly translate into more frequent and prolonged power outages for customers.

Below is a letter from the spouse of one of FirstEnergy's union workers.  She's writing anonymously, to prevent retribution from FirstEnergy's management.  Show your support for union workers by leaving a message for FirstEnergy management in the comments.  Tell FirstEnergy you want them to negotiate a fair contract with their workforce!
FirstEnergy, the parent company of West Penn Power and the employer of 695 workers in the several local unions in the area, is engaged in a contract negotiating process right now.

As FirstEnergy moves to negotiate, it’s clear that they are fully invested in reforming the way that the former Allegheny Energy has done business and they are fully invested in bargaining for a contract that favors only one side.  The company is now proposing sweeping changes in every aspect of ‘work life’ for their union employees.

Previously employees in the bargaining unit were afforded the ability to work hard and be rewarded for that work.  These are men and women with families who have spent time in the classroom and they’ve spent countless hours learning and relearning safety procedure after safety procedure.  They’ve moved up from one job to another to secure the job they have now.  They have earned the privilege of seniority, providing the company with an extremely valuable experienced, safe and dedicated work staff. 

FirstEnergy would like to modify the job requirements effective immediately.  Employees who’ve worked hard to put themselves in positions with set schedules would be subject to working at the will of the company.   Jobs which have weekends and nights off now – jobs that these men and women have competed for – will be scheduled by shifts or even worse with no considered pre-planning.  Workers will be forced to work a 16 hour shift and told to not report the following day, with no predictability and not a dime of overtime pay, effectively eliminating their ability to plan quality time with their families and completely discounting the effort, time and planning that it’s taken these employees to put themselves in these positions.

I fully support the company’s right to efficiently and effective manage and schedule their staff.  They do have obligation to make the company profitable and provide a decent return on investment.  I do find it hard to believe that the best solution for all is to put the burden on the people who come to work, learn their job, put themselves in harm’s way and earn their wage in the field.  I believe, however, that it is the easiest way to do it and the way that is the least painful for the upper levels of management.  It’s the way that keeps their salaries intact.  It’s the way that does not force them to review efficient conduct of business logistics, from inefficient orders and computer systems that don’t make sense to a top heavy management structure. 

 I just don’t see how the public can continue to believe that the company tasked with keeping our lights on is continuing to act from any other motivation than management’s greed.

7 Comments

Potomac Edison & Mon Power "Status" - FUBAR

5/25/2014

9 Comments

 
Of course FirstEnergy had to have the last word in the WV Public Service Commission General Investigation into its billing, meter reading and customer service practices.

FirstEnergy's latest attempt to pretend there's no problem was entitled "Status Report."  ???  Is there some legal requirement for a "status report" in a general investigation that's waiting for an order that nobody but FirstEnergy knows about?  Or maybe it's just cover for the PSC to also pretend that nothing's wrong so they can dismiss the investigation, after wasting everyone's time for the past year?

FirstEnergy's "Status Report" is a rendition of all the super-de-dooper changes the company has made to the crappy way they treat you, the customer, ever since the PSC started giving them the hairy eyeball.  Let's see if this makes people who receive gigantic bills they can't pay feel any better:
Added messaging informing customer as to payment options when an actual bill is received (after multiple estimates) if the bill is > 25% than the customer's prior year bill informing customers of some payment options at receipt of the bill reducing dissatisfaction with catch-up bills.
There, all better.  FirstEnergy will give you some "options" to prevent that kick in the gut feeling you get when opening an electric bill hundreds or thousands of dollars more than you expected.  You still have to pay the bill, but reading some canned message in tiny print should make you feel all warm and fuzzy and avert the panic attack.  Right.

This list of FirstEnergy's "accomplishments" is crap.  Most of it is old stuff they already "accomplished" that either didn't do anything, or screwed things up even further.  Customers STILL received huge bills they couldn't pay this spring, just like last year. 

FirstEnergy's plans for future improvements include more tiny print "messaging" on your bill.  Because, don't you know, the whole problem all along has been that you're just stupid, and FirstEnergy has done nothing wrong. 

FirstEnergy also promises to continue to screw around with its estimation algorithm.  *NOOOOOOOOOOOO!*

I have a couple of "improvements and evaluations" for FirstEnergy that might actually make a difference.  They're really quite simple.

1.    Apologize.
2.    Accept responsibility for your actions.
3.    Make amends to your customers.

But I don't see that ever happening.... because the WV PSC probably wants to pretend there is no problem just as badly as FirstEnergy does.  Once again, the customer gets tossed under the regulatory bus.

Did any of these chuckleheads pause to consider the effect of an unsatisfactory conclusion to the general investigation on the FirstEnergy base rate case?  The hoi polloi haven't had an opportunity to get over the billing & meter reading issues before they got hit with a gigantic rate increase.  What do they see?  They see FirstEnergy being rewarded for complete and utter failure.

FirstEnergy better get comfy curled up in the fetal position.  It's going to be a rough year.

9 Comments

PJM Market Levelizes Prices

5/25/2014

0 Comments

 
Well, they've finally done it.  The cost of electric capacity is now the same in Washington, D.C. as it is in the poor, southern West Virginia coal fields.  This is what PJM's markets have been shooting for -- to make everyone pay the same price for energy, no matter which community shoulders the biggest burden to produce it.

PJM looks at it as sufficient generating capacity being available where it's needed, whether through physical location or with the help of new high voltage transmission.

PJM shared the results of its annual base residual auction for 2017/18 on Friday.  The annual auction secures needed capacity three years in the future and determines the price winning generators will receive just for existing.  Bids are stacked by price until the capacity target is reached, and the highest bid in the stack is the common price all winning generators will be paid.

New this year is a common RTO-wide price, except for the PSEG zone in New Jersey, which is still "constrained" and must run higher priced generators to meet capacity.  For many years, other east coast locations also separated at a higher price because they were "constrained" and "needed" to import "cheaper" generation from places like West Virginia.

The RTO-wide price for 2017/18 is $120 MW-day, and the PSEG price is $215 MW-day.  The PSEG price really didn't change from the prior year, but the RTO-wide price doubled.  So now most of the RTO can pay more.

I'm not going to hyperventilate over incumbent generator manipulation of the market with new regulation in order to raise prices.  I think that part has been covered elsewhere, ad nauseam.  Big deal.

Most of this report is about as exciting as watching paint dry.  I did find it interesting that PJM applied a capacity factor of only 13% to land-based wind resources bid into the auction.  That means wind is counted on to actually generate when called at a rate of 13% of its maximum available capacity.  How many wind farms would be needed to produce a reliable, base load resource when they can only be counted on at 13% of their name plate capacity?  Big wind is not the answer.

Solar fared much better, with a 38% capacity factor.  *hint, hint*

Blah, blah, blah.

Oh, but wait....  The DC Appeals Court dropped a turd in PJM's punchbowl on Friday, vacating a FERC Order regulating demand response.  Demand response was one of the capacity resources that cleared in PJM's auction.
*PJM is evaluating a May 23 appeals court ruling vacating FERC Order 745 in its entirety. This ruling could affect how demand response resources are able to participate in PJM’s markets in the future. Since the court has not issued a mandate requiring FERC to take action pending appeal of its ruling, there are no immediate impacts on the current base residual auction results.
Well, ut-oh.  Just one more day in the regulatory cesspool.
0 Comments

Barclays Says Don't Bet on Electric Utilities

5/25/2014

1 Comment

 
Barclays downgraded the entire electric sector this week.  The bank's reasoning?  Traditional electric utilities are on their way out.

As I've been pointing out for the last two years, and joined by electric sycophant Edison Electric Institute last year, consumers are remaking the electric industry by becoming producers.

Investment houses are getting nervous, and making reference to other industries that went the way of the dinosaur in the face of a technical revolution that they chose to ignore.
Electric utilities… are seen by many investors as a sturdy and defensive subset of the investment grade universe. Over the next few years, however, we believe that a confluence of declining cost trends in distributed solar photovoltaic (PV) power generation and residential-scale power storage is likely to disrupt the status quo. Based on our analysis, the cost of solar + storage for residential consumers of electricity is already competitive with the price of utility grid power in Hawaii. Of the other major markets, California could follow in 2017, New York and Arizona in 2018, and many other states soon after.

We believe that solar + storage could reconfigure the organization and regulation of the electric power business over the coming decade.

We believe that sector spreads should be wider to compensate for the potential risk of regulator missteps and/or a permanent change in the utility business model.

Whether because of biases or analytical complexity, the market (and its constituent prognosticators) has tended to be late in pricing technology-driven shifts, particularly in industries that have had stable operating models (such as telcos and airlines).
It's high time for traditional electric utilities to get over their fear of the future and embrace the brave new world by making themselves relevant in this new paradigm.  Regulatory campaigns to secure a revenue stream for stranded investment will only be successful if they are based on reason and fairness, and if the utility makes an honest transition.  Building more centralized infrastructure in the face of today's reality shouldn't be supported.

Likewise, distributed energy producers also need to base their regulatory arguments on reason and fairness.  If your generator is going to be connected to the grid, you need to pay for it.  Pretending that your net metering arrangement that may add up over time to net zero means that you shouldn't pay any of a utility's costs to maintain its infrastructure is unreasonable.

The real challenge here is putting the brakes on continued investment in centralized generation and transmission, and successful negotiation of a fair transition plan.  Entrenchment and pitched battles over cost responsibility is just a waste of time.  Let's get with it people... the future is here!
1 Comment
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    About the Author

    Keryn Newman blogs here at StopPATH WV about energy issues, transmission policy, misguided regulation, our greedy energy companies and their corporate spin.
    In 2008, AEP & Allegheny Energy's PATH joint venture used their transmission line routing etch-a-sketch to draw a 765kV line across the street from her house. Oooops! And the rest is history.

    About
    StopPATH Blog

    StopPATH Blog began as a forum for information and opinion about the PATH transmission project.  The PATH project was abandoned in 2012, however, this blog was not.

    StopPATH Blog continues to bring you energy policy news and opinion from a consumer's point of view.  If it's sometimes snarky and oftentimes irreverent, just remember that the truth isn't pretty.  People come here because they want the truth, instead of the usual dreadful lies this industry continues to tell itself.  If you keep reading, I'll keep writing.


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