StopPATH WV
  • News
  • StopPATH WV Blog
  • FAQ
  • Events
  • Fundraisers
  • Make a Donation
  • Landowner Resources
  • About PATH
  • Get Involved
  • Commercials
  • Links
  • About Us
  • Contact

How Much Does a "Clean" Line Cost?

6/19/2016

1 Comment

 
At the beginning of the month, Clean Line issued a press release touting a "contract," or "agreement" with some Missouri municipal electric providers.  But Clean Line neglected to share this wonderful agreement.

Here it is.

What's in the agreement?

Up to 200 MW of transmission service from Clean Line's proposed southwestern Kansas converter station to a proposed DC/AC converter station in Ralls County, Missouri, available in 2 separate, differently priced 100 MW tranches.  Or even any other amount of transmission between 0 and 200 MW.  That's right, zero.  Because this isn't a firm contract at all.  Customer (MJMEUC) can change its mind at any time up to 60 days before "the date on which the Project begins commercial
operations and is capable of providing [...] Transmission Service" and elect not to purchase any transmission at all.  None.  Zero.

Price for transmission service from Kansas to Ralls County, MO: 
$1,167 per MW/month, escalating at 2 percent (2%) annually beginning as of the  Commencement Date for the first 100 MW tranche.

$1,667 per MW/month, escalating at 2 percent (2%) annually beginning as of the Commencement Date for the second 100 MW tranche.
That's $1.167 per kwh, and $1.667 per kwh.  Per month.  With a guaranteed 2% price increase each year.

But that's not all the contract proposes to sell to MJMEUC, if its future "Notice of Decision" is to proceed with the contract.

The contract also proposes that MJMEUC will purchase up to 50 MW of transmission service between Ralls County, Missouri, and Clean Line's proposed converter station in Sullivan, Indiana (in the PJM RTO electricity market).  What is MJMEUC going to be loading onto this "clean" line to sell to customers in PJM?  Will it be "clean" electrons? 

Price for transmission service from Ralls County, MO to PJM:
$2,500 per MW /month.  For the first two years, after which time the contract may be extended for a period up to 26 years.
The contract also requires MJMEUC "to file an
intervention and comments supporting FERC's acceptance of Transmission Provider's FERC [compliance] filing without modification or condition."

As well
the Parties shall cooperate with
each other to obtain all Governmental Approvals that are required for Transmission Provider to construct and operate the Project and put this Agreement fully into effect, including making any filing in support of another Party's application for any such approval as requested by the Party
seeking such approval. From and after the Execution Date, the Parties shall not take any action, or seek any relief, before any other Governmental Authority that is inconsistent with the terms and conditions of this Agreement.
Be a good witness.

So how much would it cost to transmit electricity all the way from Kansas to PJM on a "clean" line?

Add it up.

There is no actual electricity priced in this contract.  Customer shall enter into a separate power purchase agreement with a third party vendor at some future date.  Clean Line cannot sell electricity.
1 Comment

Clean Line "Disappointed," Then Has a Public Tantrum

6/15/2016

4 Comments

 
Arkansas News reports that Arkansas Rep. Steve Womack's APPROVAL Act bill passed out of the House Committee on Natural Resources today and is headed to the full House of Representatives.

Clean Line is "disappointed," reports Arkansas News.
Picture
Clean Line's "disappointment" manifested itself in a whiny litany of all the doom and destruction that is going to befall, not only the State of Arkansas, but the entire country, just before it takes over the world and ends existence as we know it.
“If a bill like this were to become law, it would kill jobs by creating significant barriers to the many businesses in Arkansas, and other states, that build American infrastructure, as well as raise electric power costs. Denying American consumers access to the lowest-cost clean energy resources is never good policy,” the company said.
Puh-leeeze.  Killing jobs?  How can it kill jobs Clean Line has yet to create?  Significant barriers to Arkansas businesses?  What about all the farm and other small businesses that your eminent domain right-of-way takings will demolish?  That's some significant job-killing barriers right there!  And what about all those current jobs creating energy in Arkansas that will be KILLED if the state imports electricity from another state?  Are we going to pit workers at "American" electric generation facilities against workers building "American" infrastructure?  Who's got more American flags behind their podium anyhow?

There's absolutely no truth to your claim that a failure to build a "Clean" line will raise electric power costs.  That's the biggest bunch of poppycock ever!  How much more will I pay if Plains & Eastern fails?  How about if Plains & Eastern and Grain Belt Express fail?  What if Plains & Eastern, Grain Belt Express AND Rock Island Clean Line fail?  What if Michael Skelly drowns in his own spit?  How much more will I pay?

Clean Line wouldn't know what "good policy" was if it bit them on the rear end.  The only thing Clean Line knows is disappointment.

Clean Line also claims:
“The project has received supportive comments from thousands of Americans, including more than 3,000 Arkansans. Over 200 organizations and associations … have embraced the Plains & Eastern Clean Line because it will create jobs, provide low-cost energy, and result in cleaner air,” the company said.
Oh, right.  We remember.  The infamously desperate Change dot org petition.  But guess what?  I'll see your three thousand NIMBY "supporters" duped into signing something they didn't understand that puts energy infrastructure into someone else's backyard, and raise you more than 10,000 angry landowners who have no intention of signing voluntary right-of-way agreements for a "Clean" line.  As well, we all know that your "organizations and associations" are bought and paid for, or mistakenly believe there's a pile of gold for themselves to be had by tossing their neighbors under the bus.

But, you know what?  Somehow Arkansas News simply forgot to ask for any opposing views. 

Maybe they simply ran out of time.  It can't be that Arkansas News believes that the Sierra Club speaks for the public, can it?  The only thing more revolting than Clean Line's comment is Glen Hooks' blathering.  "Fundamental fairness," Glen?  Really?  What's fair about working your whole life to achieve the American dream of owning and enjoying property, only to have the rug yanked out from under you when a for-profit enterprise decides they want to use your property for their energy infrastructure project?  An energy infrastructure project for which there is no reliability, economic, or public policy need?  One premised on simple market speculation?  That is fundamentally unfair, Glen.  Nobody really cares if anyone is "fair" to a for-profit corporation.  Corporations aren't people.  Who cares how much investor money Skelly and his buddies have wasted trying to make their business model work?  Should ordinary folks just scratching by really care that super rich, silver spoon boys like Michael Zilkha and the Ziff brothers might lose a tiny part of their vast fortunes because it's not "fair" to deprive them of the right to condemn and take property in the name of the Federal government without state approval?

It's not "blatantly unfair" to the economy of the State of Arkansas to make a Texas for-profit owned by a handful of guys richer than Croesus have to negotiate for land rights in an open market without the threat of eminent domain.  That is blatantly unfair to the good people of Arkansas, your friends and neighbors.  Get your head out of some environmental dream world and take a look around, Glen.

Soooooo.....  thanks to Rep. Womack for doing something good for the people of Arkansas.  The people that elect him.  The folks he serves.

End:Public Tantrum.  But mine was much more entertaining, I'm sure.
4 Comments

R.I.P. Big Transmission, We Hardly Knew Ye

6/2/2016

1 Comment

 
I'm late for the funeral!  Ran across this article yesterday when searching for something totally unrelated, but it speaks so much truth, I couldn't dismiss it.  Back in September of last year, utility rag Fortnightly ran an article headlined, "The Rise and Fall of Big Transmission:  The alternatives may make more sense."  Author Steve Huntoon chronicles the big transmission building phase that was created by Congressional action to provide incredible financial incentives for Big Transmission.  In the Energy Policy Act of 2005, Congress tasked the Federal Energy Regulatory Commission with creating a system to award incentives to transmission builders, such as double digit returns, the ability to collect project costs in rates during construction, guaranteed recovery in the event a Big Transmission project was abandoned, and many more (I'm not going to list them all here because only utility rate geeks would understand them all without lengthy explanation).  Creating incentives to build more transmission was a Congressional knee-jerk to the 2003 northeast blackout.  Nevermind that a complicated, expansive transmission system was to blame for the blackout, industry lobbyists spun the blackout its clients created through mismanagement into a huge financial windfall.  And the Big Transmission building boom began.

Huntoon walks the reader through the bad ideas that sprang from utility greed, analyzes why many of them failed, and applies his analysis to the remaining Big Transmission bad ideas to demonstrate why they, too, must fail.

And he does it in an entertaining and easily understood fashion.  Big Transmission becomes a proper noun, a name for an entity that took on a life of its own for a brief period in utility history.  But, in the end, Big Transmission had to die.
Picture
The author explains six points that make Big Transmission fail:
Big Transmission never did and never will make sense. Let’s look at a half-dozen reasons why: 1) the laws of physics, 2) higher reliability risk, 3) stricter contingency limits, 4) lumpiness and investment risk, 5) rigidity of source and sink, and 6) better alternatives.
 Concise explanation of each point is in the article, so I won't belabor them here.

But the purist in me simply can't overlook a couple of glaring errors.  First, the Figure 2 national transmission overlay map is mislabeled.  Existing and New 765kV transmission have their colors reversed.  The Existing 765 system is red on the map, and the New 765 system is green (the legend in the upper right is incorrect).  It makes a great, big difference when studying the map to figure out which lines are new Big Transmission and which lines are incremental existing builds.  Second, the author places the PATH project on the wrong line in the Figure 1 Project Mountaineer Map.  He says, "PATH was essentially the western half of the #2 project in the overall Project Mountaineer plan."  No, PATH was the western half of the #3 project in the Project Mountaineer map.  PJM's original Project Mountaineer called for a Big Transmission line from the John Amos power station to the Deans substation in New Jersey.  PJM combined several proposals into the Frankenstein monster that became PATH, and then cut it off at Kemptown, with plans to build a separate Big Transmission project from Kemptown to Deans at a later date.

But, other than those two mapping boo-boos, the article gets the demise of the PATH project exactly right.  The demise of PATH has been wrongly portrayed by many people, with claims covering everything from reduced demand to coal plant retirements.  In his note 29, the author correctly notes that the demise of PATH was a combination of factors:
It is difficult to apportion the demise of PATH among reduced load growth, the Mt. Storm-Doubs alternative, new generation, and sophisticated statelevel opposition. However, it is fair to observe that reduced load growth had only postponed PATH in the past (three times). What was different in 2010 was the emergence of the Mt. Storm-Doubs  alternative, and the focus of a state regulator on that alternative.
That's right... every factor, except Mt. Storm-Doubs, simply delayed the PATH project.  Mt. Storm-Doubs, and the "sophisticated statelevel opposition's" overwhelming support of this alternative to change the political climate supporting the PATH project, is what killed PATH.  Better, cheaper alternative that the people support?  It's the winning PATH of least resistance!

The realities of the "need" for PATH, and its opposition, merely delayed the project long enough for Dominion Virginia Power to step onto the stage with its proposed rebuild.  But even that wasn't simply about a better idea... the Mt. Storm Doubs line's existing towers were built out of a certain kind of steel that had not stood the test of time.  The tower bases were deteriorating and patchwork fixes were no longer effective.  The towers needed to be replaced before they started falling down.  And while they were replacing the towers, everything else got an upgrade that increased the line's thermal capacity 65% (allowing it to carry more power).  Dominion smartly took advantage of the PATH debacle to get its line rebuilt with minimal opposition, and even the outright support of affected landowners.

Would this situation repeat itself to kill other Big Transmission proposals?  Probably not.  But it does support the idea that incremental transmission projects and rebuilds are much easier to build than Big Transmission.  So, why does the utility industry continue to propose and/or support Big Transmission?  Because it comes with Big Profits and they're willing to risk protracted planning and permitting processes in order to increase their profits.  It's not about building reliability, economic benefits for consumers, or even "cleaner" power...  and all the risk of Big Transmission ends up on the backs of consumers.  What's not to like for them?  The facts in this article -- Big Transmission must fail.

There's even some hard truth about the last of the Big Transmission projects that have yet to realize they're dead.  Clean Line Energy came up with its idea to build thousands of miles of Big Transmission to ship renewables from coast to coast in 2009, when Big Transmission was in its heyday.  But, unlike utility proposals where risk and cost is shouldered by ratepayers, Clean Line has spent millions of dollars of private investment cash to keep its idea alive.  Once Clean Line gives up, its investors lose everything.  There is no federal guarantee to recover sunk costs on speculative, market based Big Transmission.  And Clean Line, itself, will die along with its projects, and its executives currently living high on the hog of private investor cash, will be in the unemployment line.  This is what keeps Clean Line on life support long after it's been pronounced brain dead.  And here's why Clean Line will never happen:
But certainly when Big Transmission is dependent upon market conditions the lumpiness and risk factors are all the more daunting. Big Transmission somehow needs to bring together generation resources and market demand – to the exclusion of alternatives – to forge a level of commitment that will last for many years. That’s a prerequisite for financing. So the entities at each end need to perceive such a compelling business proposition that they will forego other alternatives and cast their fate with Big Transmission. That’s a tough sell.

FERC requires that utilities interconnect all new generation. So a new generator is assured of being able to interconnect its project to the utility serving the territory it is located in; the issue is solely how much money and time it will take for the interconnection. Given this legally assured ability to access the grid through the resident utility, market-based Big Transmission is effectively competing with that utility and thus must offer substantial value added.
And there is no value added by a Clean Line.  Clean Line stupidly demonstrated just this point to the City of Hannibal, Missouri, earlier this year with its chart of wind options for the city.  The Clean Line prepared (and tweaked) chart showed that wind delivered over the existing incremental transmission system was just as cheap as wind delivered over a "clean" line.

Why would any company buy capacity from a risky new transmission line when existing lines are just as cheap?  This probably explains why Clean Line has no customers.  And without customers, Clean Line's Big Transmission will also fail.
1 Comment

Inappropriate Statement:  Is There a Therapist in the House?

5/28/2016

4 Comments

 
This.
Picture
Poor, sick bastard.  Does anyone know why transmission pushes Michael Skelly's debauchery button this way?  Moreover, why would he brag about his sick, sick turn on in public this way?

So, here's the sound track playing in Skelly's head when he gets his sexy on with transmission towers
And here's what the rest of us hear
Dude, get some therapy.  You're sick!
4 Comments

Clean Line Has An Imaginary Friend

5/24/2016

0 Comments

 
...errr, customer.  This morning, Clean Line Energy Partners had an imaginary customer.
Utility Energy has agreed to purchase 500MW of power from Plains & Eastern via an intermediate converter station in Arkansas. It is not immediately clear where the balance of the line’s capacity will be sold.
So reported "Recharge News," which bills itself as "the multi-platform news service for senior professionals in solar, wind and related sectors. It balances in-depth coverage of wind and solar with relevant news from the wider global renewables industry."

Balance?  Recharge News thought this article was "balanced?"  It only tells one side of the story... Skelly's side.  Apparently the reporter did absolutely no fact checking.

"Utility Energy" doesn't exist.  There's no company named "Utility Energy," therefore it has not agreed to purchase 500 MW of power from Plains & Eastern.  Or maybe the reporter MEANT to report that "Utility Entergy has agreed to purchase...".  But that would also be untrue.  Neither Entergy nor Clean Line's imaginary friend, Utility Energy, have agreed to purchase so much as a glow stick from Plains & Eastern.

Coulda, woulda, shoulda.

It's pretty doubtful that Clean Line will "begin construction on Plains & Eastern next year."  It's pretty hard to construct a transmission line on land you don't own.  What Recharge News fails to report is that landowners are refusing all Clean Line's advances.
Picture
Get yourself one of these nifty signs from Golden Bridge, LLC!
Are you directly or indirectly affected by Clean Line Energy Partners' "Plains and Eastern" HVDC transmission line project? Don't want to talk to them? Members of Golden Bridge don't have to.

Our Mission:
The LLC will educate members and other interested parties on our issues regarding the Plains & Eastern project, condemnation (eminent domain), and landowners' rights, especially as they affect property values and agricultural/recreational operations.

The LLC will take those steps necessary to help protect property owner interests, including but not limited to addressing environmental, economic and health impacts, and helping to protect and improve landowners' property rights, including the mitigation of potential liabilities.

Our Objectives:
To evaluate ALL options available to address the potential impacts from the Project, including, but not limited to:
- Legal action in defense of landowner rights
- Negotiation of the right-of-way easement terms that benefit landowners now and in the future

We are still accepting memberships. To find out more information:

Visit: www.GoldenBridgeAR.org

Contact Us Directly: [email protected] or (479) 214-0799

Please share this post to help us inform our friends and neighbors along the route.

And guess what?  Clean Line does NOT have eminent domain authority, nor authority to enter private property along the route.  No "studies."  No "surveys."  No land agent visits or calls.  Landowners can simply tell Clean Line and its contractors to go away.  And they are.  They certainly are.  It's not looking like Clean Line is going to have any land rights for its project by next year.  Because the only way Clean Line can get land rights from resistant owners is to ask the U.S. Department of Energy to use its authority to condemn and take their land.  And the U.S. DOE agreement stipulates that Clean Line must have firm, contracted customers, not just imaginary friends, before DOE will even consider getting involved.  And even if they do, DOE must start all over again attempting to negotiate with the landowner.  Think all this can be accomplished by next year?  Not.  It's going to take YEARS and YEARS, if it ever happens at all.

And there Skelly stands, waving his hands around and making up imaginary customers, like "Utility Energy."  He doesn't have any real customers.  And he won't have any real customers, because all the good imaginary customers will only "...commit once they see the project meeting critical milestones towards the start of construction."  But Clean Line won't be meeting any milestones until it has land rights.  And it can't get land rights until it has customers.  Chicken, egg.  Rock:Clean Line:Hard Place.

Skelly needs to quit making crap up.  And the trade press needs to stop reporting made up crap.

Imaginary friends are only cute when you're five.
0 Comments

Dear Mayberry:  You Aren't "Really Living"

5/17/2016

6 Comments

 
Rural America has had enough urban arrogance.  But that doesn't stop these small-world buffoons from pontificating arrogant theories that disparage rural America.  Perhaps we need to start arranging some rural summer camp experiences for urban energy planners with really crazy ideas about what happens beyond the city limits?  Get out there, urban dwellers, get out to the countryside, and find out how Mayberry lives!

In a recent article in The Atlantic about building a "nationwide" electric grid to be used as a quasi-storage device for renewable energy, David Byrne, manager of integrated planning for Tallahassee, Florida's, city electric system opined that Mayberry isn't "really living."
“The energy resources that we would like to have seem to be located in places where people really don’t live,” Byrne pointed out.
Well, isn't that parochial, David?  What makes you think that your little workaday city world epitomizes "living," and that Mayberry's daily struggle to eke out a living from the land they husband (for your ultimate benefit, I might add)  isn't "really living."  I think if you expanded your horizons a bit, you'd find that Mayberrians are the ones who are really "living," as nature intended.

Why not explore and develop "energy resources that you would like to have" in your own urban neighborhoods or region?  Is that because you're just a NIMBY at heart?  You want all the benefits of "energy resources," without any of the sacrifice that come along with them.  You want someone else to sacrifice their lifestyle to provide for your own?  Keep searching for that "miracle."  It's as close as your own backyard, Tallahassee!
6 Comments

Time Kills Bad Projects

5/17/2016

1 Comment

 
Well, hey there!  Renewable energy wonks have the same "saying" as transmission opponents.  It's about time we all got on the same page!

At a FERC Techincal Conference regarding interconnection procedures last week, Dean Gosselin, NextEra Energy’s vice president of business management, said:
“We have a saying in our world of development, which is ‘time kills all projects.’ The longer it takes, the more unlikely it is the project will be valid and go to fruition,” he said.
Right.  Projects that struggle for years to gain approval, financing, and customers aren't good projects that deserve to come to fruition.

So what in the world is Clean Line doing still trying to shove its projects through?  This company has been "developing" its projects since 2009.  That's 7 long years, and they're still no closer to fruition.  Even the Federal government won't undertake massive eminent domain condemnations for a project that has no customers, and for which no voluntary easements have been signed.

Time kills all projects, even yours, Clean Line.  You're like that slimy green stuff in the back of the vegetable drawer of project ideas -- so past its prime that it lacks physical substance and smells horrendous.  Clean Line is way past its expiration date.
1 Comment

Whose Good is Greater?

5/10/2016

0 Comments

 
To justify thousands of miles of new transmission "for renewables," NIMBYs often claim it is "for the greater good."  The NIMBYs who champion the use of eminent domain for renewable energy only support it because it is "Not In My Backyard."  They have all sorts of specious arguments to support their position, such as:
  • Landowners who object to new transmission receive electricity through transmission lines on someone else's property;
  • Climate change necessitates a major shift in power production that must be accomplished in a big, big hurry;
  • Local renewables are "too expensive";
  • It's for the "greater good" and therefore supersedes the right of individuals to own and enjoy property.
None of these arguments is effective to convince landowners to sacrifice themselves and grant easements for the "greater good" of others in far off places.

Our country was electrified through the use of eminent domain.  It was the only way to provide electric service to all who wanted it.  Now everyone has electricity, and those who want new service choose whether to pay the cost of extending electric lines to serve their property, or building their own generation onsite.  That is a simple economic argument -- would the cost of extending centralized generation to the property be more or less than building and maintaining distributed generation to serve the property.  In many parts of the world, distributed generation is the option that makes sense.

But utility eminent domain is no longer about providing individuals with reliable basic service.  It's now oftentimes used to provide lower cost electric service, or to provide a different "renewable" kind of generation required by public policies.  This is where utility eminent domain starts sliding down the slippery slope of "public use."  Can "the public" necessity for more economic or environmentally responsible electricity trump the right of the individual to own and enjoy property?  Where does the responsibility of "the public" to be responsible for their own footprint enter into the equation?

If the current electric supply for "the public" in one location is more expensive than electric supply for "the public" in another location, does that give utilities the right to take private property in order to levelize electric prices between localities?  In such a scheme, consumers enjoying cheaper electricity must sacrifice by paying more for their electricity in order that other consumers in a different region can enjoy cheaper prices.  And landowners in between these two regions must sacrifice their personal property to grant easements for new transmission lines to effect this economic benefit for one group of consumers.

The same argument can be made about transmission lines "for renewables" (as if transmission lines could segregate "clean" from "dirty" energy - it's all the same when it's transmitted).  Consumers who live in regions where renewables are cheap and plentiful enjoy lower electric prices.  When those renewables are exported to other regions where renewables have failed to properly and economically develop (notice I did not say regions where there are no renewables, because such places simply don't exist), it raises prices for consumers who previously enjoyed low prices because supply exceeded demand.  And it requires them to make a sacrifice so that consumers in other regions can enjoy the low-priced renewables they failed to develop themselves.

We get here because of electricity markets.  Electric markets are run by organizations who also control electric transmission.  Electric transmission is the only tool these organizations have to control their artificial electric markets by moving electricity around their own region, or to other regions.  Electric transmission organizations cannot order new generation to be built as a way to control their markets, lower prices, or support environmental "public policies."  Eminent domain cannot be used to force new generation, but it can be used to force new transmission.  This mismatch between the power of a "market" to force transmission, but not generation, makes no sense.

If a particular region needs renewable generation, or lower cost electricity, an unfettered market would force it to be built.  Instead, the current electric "market" forces transmission before market forces can be allowed to do their work to encourage new generation.  This isn't a true "market," it's top down force that causes unnecessary sacrifice on the part of individuals who will receive no benefit in order to provide for the needs of others.  If regions that have failed to develop their own renewable resources must pay more to develop them now, then that's the cost of environmentally-friendly consumption.  If regions with more expensive power need cheaper prices, then they should build cheaper generators, or change policies that suppress generation and drive up its cost.  Example:  The east coast cities have traditionally relied on coal-fired generators in the Ohio Valley to supply them with cheap electricity because their own environmental restrictions or costs imposed on coal-fired generators prevented them from generating economic coal-fired electricity in their own neighborhood.  The Ohio Valley destroyed its people and environment in order to ship cheap electricity east to serve the cities.  Now the cities don't want any more coal-fired power, but they have been trained to be helpless leeches, incapable of providing for their own electric needs.  Many of these NIMBYs continue to think that other regions enjoy sacrificing themselves for city needs.  They somehow think other regions enjoy some economic benefit from serving them.  One only need look at West Virginia as an example that any economic benefit from the sacrifice didn't flow to the people -- it went into the pockets of the out-of-state companies who exploited the state's natural resources for the last 100 years.

Climate change has happened gradually over hundreds of years of our industrial expansion.  It cannot be changed overnight.  The big rush to switch to renewables won't happen quickly.  And it certainly shouldn't be used as a basis to require sacrifice of personal property rights to allow new renewable energy projects.  Renewables will develop where they are welcomed by people who want to pay to use them.  Arguing that development of more expensive local renewables isn't worthwhile effectively rejects climate change arguments entirely.

And, again, we have another mismatch between generation and transmission when it comes to renewables.  The siting of renewable energy generators is an entirely voluntary process -- no eminent domain can be used to obtain land for wind farms, for instance.  In that case, renewable generation developers have to operate in a voluntary real estate market to acquire land for their projects.  These landowners are compensated at a rate that entices their voluntary participation, oftentimes receiving royalties and other long-term financial compensation for the use of their land.  But voluntarily-sited renewable generators may require new transmission lines to tap into existing transmission systems, and request the use of eminent domain to get there.  On the one hand, landowners hosting generators are well-compensated because their participation is voluntary, but on the other hand, landowners hosting the transmission lines that make generation profits happen are involuntarily forced to take one-time "market value" payments and sacrifice their property.  Everyone participating in the production of getting renewable generation to market is not compensated equally.

And here's another incongruity... when eminent domain is used to acquire land for transmission lines planned by regional organizations and cost allocated to all ratepayers in a region, the ratepayers realize the benefit of the cheaper land acquisition accomplished by eminent domain through "cost of service" transmission rates.  However, new "merchant" transmission projects proposed are not supported by cost of service rates, but by market rates.  A merchant project is financed wholly by its investors, not ratepayers.  It depends on market prices for transmission service in order to set its rates through a voluntary negotiation process.  The users of its line negotiate a price for service.  The merchant transmission owner can collect whatever rate it can negotiate in this voluntary market.  In that case, any lower land acquisition values created by eminent domain flow directly to the investors.  Eminent domain does not affect the market for transmission service -- that market remains unaffected whether land acquisition for transmission rights of way is voluntary or coerced through eminent domain.  The merchant transmission ratepayers do not realize any financial benefit from the use of eminent domain for land acquisition.  A merchant transmission project is a market-based endeavor -- it's success depends entirely on market forces.  Therefore, why isn't a merchant transmission project's land acquisition also subject to the same market forces?  A market-based merchant project should be required to negotiate land acquisition prices with voluntary landowners in the same free market in which it negotiates prices for its transmission with voluntary users.

Those who casually spout off that new transmission is "for the greater good" and therefore deserving of landowner sacrifice through the acquisition of rights of way through eminent domain aren't aren't dealing with a full deck.  It's all so much self-interested hogwash.  Who determines when transmission is "for the greater good?"  Not the folks who stand to benefit from it.  The "greater good" includes everyone.  Equally.

​
0 Comments

Who's a NIMBY?

4/21/2016

2 Comments

 
Depends on who you ask.  Corporations hoping to profit from building infrastructure on private property say that any one who opposes their plan in a "NIMBY" (Not In My Backyard).  It's nothing more than a stupid attempt at name-calling by the propagandist in order to paint anyone who stands in the way of corporate profits as selfish, uninformed and unacceptable in order to have others disregard their opinion quite apart from the facts of the matter.

The NIMBY label is nothing new.

What is new is the degrees of NIMBY-ism.  One of the arguments against NIMBY-ism is that the NIMBY will benefit from the infrastructure.  But what happens when infrastructure is proposed for the backyard of someone who does not benefit from it?  Are they still a NIMBY?

And what happens when a NIMBY who will benefit from the infrastructure objects, but insists on still receiving the benefits?

Enter the silliest academic "study" I've read in a long, long time.  Dr. Sanja Lutzeyer and Dr. Laura Taylor of NCSU, along with Dr. Daniel Phaneuf of the University of Wisconsin, recently released study called “The Amenity Costs of Offshore Wind Farms: Evidence from a Choice Experiment."

The study is the result of a survey of North Carolina beach vacationers.  It asked them if they would pay more to rent a beach house with a view of offshore wind farms.  No, they would not.  In fact, most of the beach tourists wanted a discount on their rental if they had to look at offshore wind farms, especially at night when they are lit up with red, blinking lights.  The study concludes that building wind farms off the shore of North Carolina will destroy its tourism industry.

The study also shared that the respondents generally supported wind energy, but Not In My Ocean View.

Where do these folks think wind energy they want to benefit from gets generated?  Is it supposed to be generated by wind farms in someone else's back yard who won't benefit from it?  Are others supposed to have their views, their night time skyline, their farm business, and their tourism destroyed so that these beach goers can have wind energy produced by wind farms that they don't have to look at? 

I'm sure this same attitude (or worse) would also be applied to huge, honking, new transmission lines proposed to transmit far away wind energy to the North Carolina beaches.  But, of course, nobody is stupid enough to propose a gigantic HVDC transmission line along North Carolina's coast.

But someone has been stupid enough to propose several enormous transmission lines on virgin land (known as "green field" projects) stretching through the back yards and working farms of thousands of folks in the Midwest for the benefit of those in Carolina beach shacks.

Here's the take away... if you like wind energy, put it in your own back yard.  If that costs a little more, then that's the price you pay to be "green."  Don't expect a whole bunch of folks who will receive no benefit to make a sacrifice for you.

Who's the ultimate NIMBY?
2 Comments

Another "Clean" Lie Bites the Dust

4/14/2016

0 Comments

 
What is it Clean Line Energy Partners says about the necessity for its transmission projects?
[C]ontinued growth of the wind energy industry depends on the expansion of the U.S. electric transmission grid. The United States has some of the best renewable resources in the world, but they are predominantly located far from large population centers. The challenge lies in connecting these rich resources to communities that need the power—a challenge Clean Line Energy is working to address.
Clean Line continually spins the yarn that wind energy will not develop in its "resource areas" without the construction of its "Clean" lines.

Here's a map of the "resource area" for Clean Line's Grain Belt Express project.
Picture
GBE's "resource area" roughly includes Ford and Clark Counties, Kansas.

Clean Line says no wind will develop there without a "Clean" Line to transmit it to population centers.

But it did.

Last Friday, a huge press conference was held to announce that the Cimarron Bend wind farm was fully subscribed and under construction in Clark County Kansas, just south of Ford County.

On its website, the developer initially proposed that Cimarron Bend is a "candidate" in GBE's resource area that may "connect" with GBE.
What transmission line does the project connect with?
Cimarron Bend Wind Project is expected to interconnect to the new ITC 345kV Clark County Substation located just a few miles north of the Cimarron Bend project boundary. The project is also a candidate to tie into a proposed Clean Line Energy DC transmission line that would export Kansas wind energy to the east.
However, GBE is still bumping along trying to get permitted in Missouri, after being denied last summer.  The developers of Cimarron Bend, however, moved on.

Customers of Cimarron Bend are the Kansas City, Kansas, Board of Public Works (200 MW) and Google (200 MW), who both signed bundled power purchase agreements for Cimarron Bend's 400 MW capacity.  Cimarron Bend didn't need GBE in order to be developed at all.  There's plenty of existing transmission to move the power to Kansas City and wherever Google plans to use it, and the project is expected to come online in early 2017.

Kansas wind energy from the GBE resource area CAN be developed without GBE after all.  And more importantly, it will be consumed by Kansans.  Grain Belt Express proposes to export 4,000 MW of wind energy from the resource area out-of-state, with none available for use by Kansans, who also like lower bills and cleaner energy.
But more importantly, he said the price BPU is paying over the course of its 20-year contract will make wind energy from Cimarron Bend nearly the cheapest electricity that BPU buys, almost equal to the price of energy from its own coal-fired power plant.

"When they told me the price, I just about fell out of my chair," Gray said. "I didn't realize that in this fairly short time period that the economics of obtaining wind energy is really showing itself. ... It's going to be one of the lowest-cost energy resources that we have in our generation mix."
Good for BPU, good for Kansas City, good for Kansans.

But not so good for GBE, whose resource area is going to be further developed for use by Kansans while the company remains stuck in permit hell.  The world doesn't wait for Clean Line, and every day that passes lessens the company's relevance.

So, why did Cimarron Bend initially think its project was a candidate for GBE, when plenty of opportunity to sell its energy to Kansans existed?  Because
The power produced from Cimarron Bend Wind Project is being marketed to Kansas electric utility companies, other utility companies located within the Southwest Power Pool regional transmission area, and also to customers in states further east.
Cimarron Bend needed GBE to market itself to a wider pool of customers, in order to maximize its profit.  "States further east" are participants in other, higher-priced electric markets, and GBE was convenient to get it there.  Of course, GBE also makes a profit by doing so.

GBE is nothing but a profit-making enterprise designed to profit off wind farms, who maximize their own profits by selling into higher priced markets.  GBE is not "necessary" to develop wind resources in Kansas, or anywhere else.  It's only necessary to increase wind energy profits for a select group of investors.

And utilities in those "states further east" aren't signing up to purchase expensive, imported wind power.  At a Transmission Summit earlier this month, Southern Company's Vice President of Energy Policy had this to say:
Edelston said the planning process isn’t the reason for the lack of interregional transmission projects.

“It’s whether there’s somebody who is benefiting from that line who’s willing to pay for it. … There are very few interregional lines that are going to be economic when you look at the alternatives available to the purchasing region —  the region that would be receiving the renewable energy. They often have local alternatives or closer alternatives that don’t require transmission fixes, and these long distance interregional lines can be very, very expensive — and as we’re seeing with the Clean Line Energy Partners lines up in Illinois — very, very difficult to build.”

“In our case, with the price of solar having come down so far, it turns out to be much more economic to build utility-scale solar within our service area than it is to build long-distance transmission to access wind in the Midwest. And I think that’s true for a lot of East Coast load centers. You also have the opportunity these days to buy RECs — or renewable energy certificates — to meet any renewable portfolio standards that you have.”

So, congratulations to Tradewind Energy for successfully developing its Cimarron Bend wind project for benefit of Kansans!

Just one more nail in Clean Line's coffin.
0 Comments
<<Previous
Forward>>

    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.


    Need help opposing unneeded transmission?
    Email me


    Search This Site

    Got something to say?  Submit your own opinion for publication.

    RSS Feed

    Archives

    August 2025
    July 2025
    June 2025
    May 2025
    April 2025
    March 2025
    February 2025
    January 2025
    December 2024
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    June 2024
    May 2024
    April 2024
    March 2024
    February 2024
    January 2024
    December 2023
    November 2023
    October 2023
    September 2023
    August 2023
    July 2023
    June 2023
    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    August 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    November 2015
    October 2015
    September 2015
    August 2015
    July 2015
    June 2015
    May 2015
    April 2015
    March 2015
    February 2015
    January 2015
    December 2014
    November 2014
    October 2014
    September 2014
    August 2014
    July 2014
    June 2014
    May 2014
    April 2014
    March 2014
    February 2014
    January 2014
    December 2013
    November 2013
    October 2013
    September 2013
    August 2013
    July 2013
    June 2013
    May 2013
    April 2013
    March 2013
    February 2013
    January 2013
    December 2012
    November 2012
    October 2012
    September 2012
    August 2012
    July 2012
    June 2012
    May 2012
    April 2012
    March 2012
    February 2012
    January 2012
    December 2011
    November 2011
    October 2011
    September 2011
    August 2011
    July 2011
    June 2011
    May 2011
    April 2011
    March 2011
    February 2011
    January 2011
    December 2010
    November 2010
    October 2010
    September 2010
    August 2010
    July 2010
    June 2010
    May 2010
    April 2010
    March 2010
    February 2010
    January 2010

    Categories

    All
    $$$$$$
    2023 PJM Transmission
    Aep Vs Firstenergy
    Arkansas
    Best Practices
    Best Practices
    Big Winds Big Lie
    Can Of Worms
    Carolinas
    Citizen Action
    Colorado
    Corporate Propaganda
    Data Centers
    Democracy Failures
    DOE Failure
    Emf
    Eminent Domain
    Events
    Ferc Action
    FERC Incentives Part Deux
    Ferc Transmission Noi
    Firstenergy Failure
    Good Ideas
    Illinois
    Iowa
    Kansas
    Land Agents
    Legislative Action
    Marketing To Mayberry
    MARL
    Missouri
    Mtstorm Doubs Rebuild
    Mtstormdoubs Rebuild
    New Jersey
    New Mexico
    Newslinks
    NIETC
    Opinion
    Path Alternatives
    Path Failures
    Path Intimidation Attempts
    Pay To Play
    Potomac Edison Investigation
    Power Company Propaganda
    Psc Failure
    Rates
    Regulatory Capture
    Skelly Fail
    The Pjm Cartel
    Top Ten Clean Line Mistakes
    Transource
    Valley Link Transmission
    Washington
    West Virginia
    Wind Catcher
    Wisconsin

Copyright 2010 StopPATH WV, Inc.