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Get Your Clean Line Plains & Eastern EIS Comments In!

1/17/2015

2 Comments

 
In setting national environmental policy to improve and coordinate Federal plans, functions, and programs, Congress recognized that each person should enjoy a healthful environment and that each person has a responsibility to contribute to the preservation and enhancement of the environment.

The policies and goals of National Environmental Policy (42 U.S.C. § 4331, Congressional declaration of national environmental policy) are intended to:
(1) fulfill the responsibilities of each generation as trustee of the environment for succeeding generations;

(2) assure for all Americans safe, healthful, productive, and esthetically and culturally pleasing surroundings;

(3) attain the widest range of beneficial uses of the environment without degradation, risk to health or safety, or other undesirable and unintended consequences;

(4) preserve important historic, cultural, and natural aspects of our national heritage, and maintain, wherever possible, an environment which supports diversity and variety of individual choice;

(5) achieve a balance between population and resource use which will permit high standards of living and a wide sharing of life’s amenities; and

(6) enhance the quality of renewable resources and approach the maximum attainable recycling of depletable resources.

The intent of Congress seems to have been lost in the creation of the Plains & Eastern Draft Environmental Impact Statement.  Consideration of these goals should be evident, but the closest the Statement comes to evaluating these issues is in Chapter 3, Section 3.5, Environmental Justice. However, that section simply consists of bureaucratic “box checking” with its tables of racial and economic statistics and finding of “no significant impacts.”

What our federal government failed to consider in its study are the very real impacts the Plains & Eastern project (P&E) will impose on one segment of society for the sole benefit of another.  That the beneficiaries of the Plains & Eastern project are intended to be economically advantaged and politically influential eastern cities with a “green” conscience, and that the ones who must make the social and economic sacrifice to meet this need are rural landowners without political clout does not seem to have been of moment in the study.

Rural landowners and farmers have been fulfilling their responsibilities as trustees of the land that feeds us all for generations.  P&E will interfere with their responsibilities.  In addition, P&E will also interfere with their ability to make a living, bisecting small farms that provide income and/or real estate investment wealth to those who depend on their land for economic purposes.

P&E will preclude the ability of rural landowners in Oklahoma and Arkansas to live in safe, healthful, productive, and esthetically and culturally pleasing surroundings as unsightly, gigantic transmission lines may endanger their well-being and interfere with their productivity and sense of place. 

P&E is not without environmental effect.  Weighing the destruction of one part of the environment to benefit another is not a matter of simple trade offs when there are other options available that are not as damaging to the environment.  P&E has not been determined needed to meet any identified public policy goal by any authority tasked with planning the electric grid.  P&E has no customers.  Other options exist for eastern cities, such as offshore wind, local solar, or other local and regional renewable energy projects that provide local jobs and economic stimulation.  Americans are not being given a choice, where market forces determine their best option.  Participation in P&E by the Department of Energy is a top-down, government-forced “solution” to a problem that does not exist.

P&E will affect the historic, cultural and natural aspects of the rural environment, causing rural landowners to sacrifice for the needs of eastern cities.  There is no balance here, all the sacrifice is coming from one segment of society, while all the benefits flow to the other.  What are eastern cities willing to sacrifice for their “green” conscience?  Atlantic offshore wind has been struggling to be built for years, but rejected time and again for esthetic or cost reasons.  When eastern cities are faced with having to live with the infrastructure that supports their habits, they reject it in favor of other solutions.  When those solutions remove the sacrifice, but not the benefits, to rural landowners in other states, the intent of national environmental policy is forgotten.  This paradigm has existed for decades, where Ohio Valley residents have sacrificed their health, environment and economic interests to mine and burn coal that is turned into electricity and transmitted to eastern cities.  P&E is just more of the same sacrifice of one segment of society for the needs of another.

There is no balance to be found between population and resource when the needs of the many continually override the needs of the few.  No Americans are disposable at the whim of others, no matter the color of their skin or their economic position.  Wide sharing of life’s amenities requires that each person accept responsibility for their own needs.  If eastern cities require cleaner energy, they have the ability to create it themselves, and in fact, many already are doing so.  Top down government solutions, such as P&E, are inconsistent with individual choice.

Rural America is a finite resource that is fast disappearing and must receive careful consideration in DOE's EIS.

I believe the underlying mission of the federal government has been forgotten in the preparation of the EIS and, instead, a blinders-clad bureaucracy has simply proceeded through the motions of preparing it without considering its purpose.  P&E is asking the federal government to wield the sledgehammer of eminent domain to force its project on a rural America that has rejected P&E.  Integral to the big picture is the fact that P&E is nothing more than a business plan, an idea for profit, and does not fulfill any identified reliability, economic or public policy need.  There is no amount of sacrifice that is acceptable for the pecuniary interests of private investors.

Don't forget to file your EIS comments here!
  Deadline is March 19!
2 Comments

Transmission Politics

1/8/2015

1 Comment

 
Coming across common themes over and over tells me something... maybe I should write about it?

I've seen a whole bunch lately about the politics of transmission line proposals, more precisely how politics affects the state public utility commission process.

This morning, I read something that pushed the issue into blog post status.

Iowa Governor Terry Branstad has warned his state legislature not to interfere in the business of the Iowa Utilities Board.
Branstad, who appoints the members of the utilities board, warned against "political interference" into the administrative review process by which a pipeline carrying Bakken crude oil and a transmission line transporting wind-generated electricity could be approved.

"It would be mistake to get politics into this," Branstad said. "We should abide by the processes that have been put in place."
Maybe Branstad doesn't understand those "processes?"  Our government is separated into three branches:  The Executive Branch carries out existing laws and recommends (but does not alone create) new ones.  It administers our government.  The Legislative Branch makes laws, at the will of the people it represents.  The Judicial Branch interprets existing laws.  Branstad is a member of the executive branch.  The Iowa legislature is a member of the legislative branch.  The IUB is a member of the judicial branch, although unlike a regular court, a utility board can make up copious rules about how they're going to carry out the laws made by the legislative branch.  Trying to figure out which one is more powerful is an exercise in futility... and politics.

Branstad, as Governor, appoints the members of the IUB.  This is a political process.  A member of the executive branch will appoint those he believes will carry out his mission.  Once appointed, IUB members are supposed to serve independently as they interpret utility laws, however, a crafty governor can control this process by allowing appointments to expire while the incumbents continue to serve at the daily whim of the governor, who can remove the incumbent and replace him at any time.  I have no idea if this is the situation in Iowa, but I have seen just this situation perpetuate in several states.  When it happens, the judicial branch comes under the thumb of the executive branch and can be easily influenced to make certain decisions on a political basis in order to remain in place.

The legislature makes the laws that direct the actions of an independent, quasi-judicial utility board.  The judicial branch cannot create laws, but receives its marching orders from the legislative branch.  If the legislature is displeased by the actions of the Board, it can make new laws to shape the decisions of the Board.  In this way, the legislature can influence the judicial branch.  However, there's more protection on this side of the coin, because the legislative branch is operating at the will of the people, and must obtain consensus from many to create new laws.

I don't know why Branstad believes it's not already "political."  The state utility board process is about as political as it gets.  While he warns the legislature not to get involved in a situation he controls, what the legislature eventually does will be political.  It's all political!

So, if you want to influence your state utility board process, you must engage in politics.  You can talk to your legislators to gain their support to make new laws that guide the decisions the utility board makes.  You should probably talk to your governor about refraining from getting involved in the utility board processes.  Branstad has it completely backwards!

Politics is described as:
the activities associated with the governance of a country or other area, esp. the debate or conflict among individuals or parties having or hoping to achieve power:
Companies proposing new transmission projects hope to influence the judicial process as much as individuals or groups opposing the transmission project.  In order to do so, they push the legislative or executive branch to shape the judicial decision.  Despite plenty of denial, the judicial processes of a utility board are heavily influenced by politics.  It's the reason transmission developers spend so much lobbying your representatives to support their projects AGAINST YOUR WISHES!

Public opinion drives political decisions.  A legislator is carrying out the will of the people.  If enough people become involved in a utility board process, they can shape the process through their legislators, who may be more interested in their duty to the people than the free lunches and campaign contributions transmission corporations provide.  The bigger the public push back, the better your chances.

Transmission developers also court other groups and individuals to take a position supporting their proposal.  Sometimes a quid pro quo situation develops.  This happens because a utility board is unlikely to approve even the best project if it is under political fire not to do so, therefore the transmission developer needs allies to create, at least, an appearance of support.

So, can a large, loud uprising of the people affect the decision of a utility board?  You bet'cha!  But don't get confused by the difference between public opinion and public comment.

Public opinion is an aggregate of public comment.  The public comments citizens make to a utility board, in isolation, rarely drive the decision of the Board because they are typically not based on legal arguments about the laws the Board must follow in its findings.

Utility law guru Scott Hempling recently pondered the effectiveness of public comments in his monthly essay.  This month, he featured several questions that he will use as projects for his utility law students.  Here's one:
Engaging the public:  Candor requires an admission:  The lay citizenry's views do not count as "substantial evidence," required by courts to sustain agency orders.  Does that fact make public hearings (i.e., the non-technical hearings) shams?  If not, then what is the value of public participation?  What are ways to create that value, at reasonable cost?   Traditionally, agencies announced public hearings in the newspaper's "legal notices."  How useful is that approach today?  What are an agency's responsibilities to educate the public and seek its views?
The "substantial evidence" Hempling mentions must come through the legal process, either through an attorney or individuals acting pro se.  While a utility board's decision is politically-driven, it must back up its decision on a legal basis.  The utility provides its proposed legal basis for approval through the evidentiary hearing process.  Opposition must therefore provide its own legal basis for denial in this same venue.  The utility board, thus armed, can choose from whichever body of evidence it needs to to back up its decision (and hopefully make it stick.)  It's pretty hard to make a decision that's not legally sound stick through appeals.  It would be doubly-hard for a utility board to make a decision that denies evidence of future reliability issues coming from a supposedly independent third party, such as a regional transmission organization.  Therefore, a utility or RTO may choose to find new information upon which to withdraw its proposal, instead of forcing a utility board into a denial.  But, again, this is a political process that takes place that allows utilities to withdraw and save face (and money, but that's another story).

So while your own individual comment may not carry much legal weight, when combined with the comments of thousands of others, it is a very powerful, political tool!

If Branstad truly wants to keep "politics" out of utility board decisions in Iowa, he should start a little closer to home.  The legislature, as the body tasked with making laws, can make any laws it chooses, whether Branstad likes them or not.  Sure, he could veto a new law, but doing so to a new law widely supported by the people would come at his own political peril.
"Never doubt that a small group of thoughtful, committed citizens can change the world;
indeed, it's the only thing that ever has."
- Margaret Mead
1 Comment

"A Significant and Unwarranted Intrusion"

12/31/2014

1 Comment

 
Just one more post about Requests for Rehearing of the Illinois Commission's issuance of a conditional permit for the Rock Island Clean Line.

The Illinois Landowners Alliance not only reiterates the arguments put forth by ComEd and the Illinois Farm Bureau, but adds a stylish lambasting of the Commission for permitting "a significant and unwarranted intrusion upon landowners."
ILA’s witnesses and its many other members have expressed repeatedly their uniform opposition to the Project, routing and treatment of landowners and their concerns. The Order’s granting of a CPCN to Rock Island will permit Rock Island to force its way onto landowner property to “make land surveys and land use studies” (220 ILCS 5/8-510), a significant and unwarranted intrusion upon affected landowners for a project that is so speculative and tenuous.
Although the ICC significantly conditioned RICL's permit before any actual construction begins, and denied them eminent domain authority at this time, the ICC also allowed RICL immediate access to private property to conduct its "surveys."

It's a powder keg.  Let's hope it doesn't explode before the ICC reconsiders its misguided decision to order the trespassing and destruction of private property by a company with no financial assets.  The landowners don't seem to have changed their opinion about RICL and probably aren't going to welcome them to their properties with open arms and a forgiving attitude.  I hope the ICC thinks this though...
1 Comment

Promises, Promises

12/31/2014

0 Comments

 
More bad decision-making on the part of the Illinois Commerce Commission brought to light, this time courtesy of the Request for Rehearing filed by Exelon subsidiary ComEd.

Because nobody trusts Clean Line Energy Partners to actually remain a merchant project, the ICC conditioned its recent approval on Clean Line having to come back before the ICC for approval before the cost of RICL can be allocated to Illinois ratepayers, either through PJM or MISO's planning process.

(Raise your hand if you suspect Clean Line is approaching the permitting and cost allocation process backwards -- getting its state permits first before approaching PJM and/or MISO to have its project added to the regional plan and cost allocated to consumers).

The allocation of transmission costs to ratepayers is a FERC-jurisdictional process.  It is not decided by individual states (except it may be addressed through the RTO planning process, but good luck there, Illinois, if RICL gets included in a regional plan).

ComEd has taken issue with this stipulation:
Throughout this proceeding RI has claimed that Illinois customers will not pay the
Project’s costs. Because this fact is critical not just to protect customers, but also underlies RI’s economic case, the Order includes a condition stating that RI must seek Commission approval “prior to recovering any Project costs from Illinois retail ratepayers through PJM or MISO regional cost  allocation[.]”  While ComEd agrees fully with the Commission’s intent, this condition cannot be relied upon to protect customers, for several reasons.

FERC has exclusive authority over  transmission rates under federal law. It is far
from clear that FERC or a federal court would find that Illinois can require an applicant to waive the ability to petition FERC to approve any specific type of transmission rate, or could enforce such a waiver against a FERC finding that it was “just and reasonable” to pass costs on to customers. 

Even if the Commission could void the CPCN if RI (or a successor) made such a request to FERC, it is not clear what effect that “remedy” would have on customers’ rates. By then, the costs would be incurred and the line would be transmitting power in interstate commerce.

The Order’s condition does not apply to other parties (e.g., generators, shippers) who
could ask FERC to modify the rate to shift costs to customers, even if RI never did.

Similarly, the Order does not limit the  authority of FERC itself, which could sua
sponte revise RI’s rates, either in a RI-specific or a more broadly based investigation
proceeding. FERC has the power to “determine the just and reasonable rate … to be
thereafter observed” (16 U.S.C § 824e (2012)) in response to such a complaint or
upon its own motion, not just a filing by RI.

At a minimum, given the critical importance of shielding Illinois customers from Project
costs, the viability of this condition as a means of protecting customers – and potential
alternatives including financial security – warrants deeper examination on rehearing.
In other words, the ICC has been had by empty promises.  FERC can order Illinois ratepayers to pick up the RICL costs and there's nothing the ICC can do about it, except be sucked into a prolonged legal battle at FERC. 

Meanwhile, the ICC's condition does NOTHING to protect ratepayers in other states from having the cost of RICL foisted upon them.

Let's hope the ICC thinks this one through a little more.
0 Comments

How Transmission "Competition" Hurts Reliability and Costs Consumers More

12/31/2014

3 Comments

 
FERC is in love with the idea that "competition" between transmission developers will result in lower costs for consumers, but that's not necessarily true.  While competition between developers for a project identified in a regional plan could provide lower cost projects, it completely fails when developers create and submit projects before any need for them is independently recognized by the RTO, or when merchant developers propose transmission projects outside of regional plans.

Hopefully we've seen the last of the transmission projects designed simply to increase profits for a vertically integrated utility that is conceived before the RTO determines a "need" for it.  In this cart before the horse scenario, the RTO will create a smokescreen of need for an unneeded project and "order" it to be built.    These projects usually fall apart when they are examined with any amount of sincere effort.  When this happens, the RTO will cancel the project, but not before millions are spent for a transmission project that will never be built. 
When an RTO "orders" a project, its cost is allocated to ratepayers in the region.  How much are ratepayers paying each year for cancelled projects resulting from bad planning?

But an even more serious problem is developing as a result of merchant projects proposed outside the regional planning process.  These projects are never submitted into the regional planning process, therefore there is no need for them, either reliability, economic or public policy.  The only review they get from regional planners looks at how their interconnection will affect reliability.   These projects are not "ordered" to be built by regional planners. They are constructed at the expense and initiative of their owners, who recoup their costs through charging negotiated rates for transmission service.  The only goal of merchant lines is to make money.  If they aren't economically feasible, they won't be built.  The choice to build them lies entirely with their owners, even after they have a permit in hand.

But a merchant project proposed outside the regional planning process is never "ordered" and must prove itself "needed" to state and federal regulators in order to receive necessary permits or eminent domain authority.  In that instance, the state or federal regulator is stepping into the regional planning position to determine the need for a transmission project.  State and federal regulators are ill-equipped to make such a determination because they lack the kind of expertise found at an RTO.  The best a regulator can do is rely on the evidence submitted by experts in the case.  Merchant transmission developers can afford any number of experts who will say whatever they're paid to say.  Regulators can only afford in-house expertise, or rely on the experts hired by other parties. The decision is not based on any inherent knowledge, but on expert testimony.

So, what happens when a state finds a merchant transmission project serves some purpose and issues it a conditional permit to construct?  Now we've got two competing regional transmission planners with different projects in their plan.  The RTO version of the plan includes projects it has ordered that it has determined are needed for reliability, economic or public policy purposes, and these projects are being paid for by ratepayers.  The state uses the same plan, but it also includes the permitted merchant project, that doesn't serve any RTO-identified need.  Isn't this too much transmission?

What happens to the ordered regional plan if the merchant project is constructed?  Sometimes this effect is modeled into the plan so that other "ordered" projects may not be needed after all.  A permitted merchant project could cause cancellation of transmission projects in the regional plan before they are completed (but long after they start collecting their costs from ratepayers).  But, remember, a merchant project that has not been "ordered" by a RTO may never be built.  So, if a merchant project causes the cancellation of one or more RTO projects, it could jeopardize reliability if it is suddenly abandoned by its developers before being built.

Dilemma!  Perhaps FERC should take notice of the mess it has created and find a remedy.  I would suggest that projects must be part of a regional plan (whether RTO/ISO or other existing planning authority), and that unneeded merchant projects be prohibited.

Think I'm just nuts?  The Illinois Commerce Commission's recent conditional approval of the Rock Island Clean Line merchant transmission project is already causing doubt about other regionally planned transmission projects that are currently before the ICC.  As the Illinois Farm Bureau pointed out in its recent request for rehearing of the RICL decision, the RICL order is already having "a negative impact on consumers."  The IAA says that the RICL approval is having an immediate effect on two other transmission projects currently before the ICC, a MidAmerican project and an Ameren project, where the ICC staff has suggested that RICL's approval draws into doubt whether these two projects are needed.  And who pays for the other two regionally planned projects if they are cancelled by RICL?  Consumers.
As multiple intervenors have pointed out in this docket that Rock Island’s failure to produce a needs analysis from PJM and/or MISO hurts all of the stakeholders, it seems like this problem could have easily been avoided. The absence of this global analysis produces increased unpredictability and either slows or jeopardizes other legitimate transmission projects. This risk to the consumers could have easily been prevented.
In addition, the IAA points out that there has been no comparative analysis by the ICC as to which of these projects are necessary to promote the development of an effectively competitive electricity market that operates efficiently, are equitable to all customers, and are the least cost means of satisfying those objectives.  Regional planners say that the MidAmerican and Ameren projects are the best options.  The ICC has determined that RICL is the best option, without any attempt at making a fair comparison.

So, what shall it be?  Should we cancel regionally planned projects that conflict with merchant plans and hope the merchant projects are eventually built?  Will the lights go off if none of them get built?  We simply cannot have it both ways. 
Now, other potentially viable and successful transmission projects will have to wait on the sidelines to see if Rock Island can get its act together by, among other things, finding money, qualified employees, suppliers, and numerous regulatory approvals. None of this benefits Illinois consumers, the market, or the reliability of the electric system. Instead, it puts everything at greater risk.
Independent transmission projects based on greed are now actively hurting consumers.  This game must stop.
3 Comments

How Deep is the Clean Line Corruption at the U.S. Department of Energy?

12/15/2014

5 Comments

 
Get out your hip-waders, folks, it's going to get pretty deep!

According to this article, in 2011 former Secretary of Energy Steven Chu appointed Lauren Azar to a position at the DOE in order to carry out the administration's political agenda. 
Chu's selection of Azar was largely seen as a sign of the Obama administration's intense interest in expanding the grid to support renewables and tackle climate change, sources said.
Azar got the finger pointed at her as the impetus for a controversial memo that urged federal power marketing agencies (PMAs) to use their authority to help get privately funded transmission projects built.
As laid out in the memo, she also championed Texas-based Clean Line Energy's application to partner with DOE through its never-before-used authority under Section 1222 of the Energy Policy Act, which would allow a PMA with federal authority to site the line and overcome state opposition.
It's not about reliability or economics of the grid, it's about federal support for certain companies with personal ties to the DOE:
Jimmy Glotfelty, founder of Clean Line Energy Partners and a former senior electricity adviser for President George W. Bush, said Azar should be remembered for trying to build infrastructure and integrate renewables in a thoughtful and cooperative manner.

"The customers of PMAs are pretty protective, and if you ask a lot of people who have been in her shoes -- including myself -- it's not uncommon to get into debates with customers of PMAs," he said. "They're tough negotiators."
Clean Line, with its DOE-connected "vice president," became the only transmission company to take advantage of Sec. 1222 of the Energy Policy Act of 2005 during a very convenient RFP process run by the DOE in 2010.  But the pre-Azar DOE just wasn't aggressive enough:
Azar brought that same spirit to DOE. She helped bring together the "federal family" in 2011 -- nine agencies key to streamlining federal permitting of major new power lines that could have taken up to 15 years to garner approval (Greenwire, Oct. 5, 2011). DOE already had existing authority to do so under 216(h) of the Energy Policy Act of 2005, language that allows the agency to coordinate federal and environmental reviews.

"DOE, until I got there, implemented [the rule] in somewhat of a tepid manner," she said. "I came in like gangbusters as I always do and not only helped to lead the rapid respond team for transmission but helped DOE draft some rules for 216(h), negotiate with the nine agencies."
Shortly after Azar was appointed, Clean Line submitted an "updated" application under Sec. 1222 in order to use the federal power marketing agencies to take land for its private gain and override state denials.
The Honorable Lauren Azar
Senior Advisor to the Secretary
U.S. Department of Energy
1000 Independence Avenue SW
Washington, D.C. 20585

August 17, 2011

Dear Lauren,

With development efforts well under way, the Plains & Eastern Clean Line is positioned to
help meet President Obama's call for 80% clean energy by 2035. The Plains & Eastern Clean Line will provide affordable, renewable power to millions of customers in the  southeastern United States. Regulatory and permitting approvals at the state and federal levels are the critical path items. Since submitting a proposal in July 2010, the Plains & Eastern Clean Line has made substantial development progress, strengthening the case for a partnership with the Department of Energy (DOE) and Southwestern under  Section 1222 of the Energy Policy Act of 2005.

The attached document provides an update on our efforts, including the widespread support the project has received from a diverse group of stakeholders. It also supplements the original application with respect to how the project is necessary to accommodate the increase in demand for transmission capacity and how the project is consistent with needs identified in transmission plans or otherwise by the appropriate transmission organization.
Projects like the Plains & Eastern Clean Line have the potential to return the United States to a global leadership position in clean energy. The private sector has the resources and the desire to invest in our aging infrastructure and we respectfully ask that the DOE exercise its authority to make it possible. We  appreciate the attention you are giving the Plains & Eastern Clean Line. We will be in Washington, DC regularly in the coming months and would like the opportunity to sit down with you and your team to review the project materials and respond to any  questions.
Magically, the DOE entered into an Advance Funding and Development Agreement with Clean Line in early 2012, despite the fact that Clean Line did NOT meet all the statutory criteria in Sec. 1222.  Sec. 1222 requires that a project:
2) is consistent with--
(A) transmission needs identified, in a transmission expansion plan or otherwise, by the appropriate Transmission Organization (as defined in the Federal Power Act [16 U.S.C. 791a et seq.]) if any, or approved regional reliability organization
Clean Line's projects are not a part of any transmission expansion plan, therefore they cannot be "consistent with" a plan that does not include them. 

Instead, the DOE relied on:
DOE has emphasized the need for additional high voltage transmission capacity to deliver renewable resources from transmission-constrained areas, stating in its "20% Wind Energy by 2030" Report that "If the considerable wind resources of the United States are to be utilized, a significant amount of new transmission will be required."
GRID2030 is probably the highlight of Clean Line "vice president" Glotfelty's career at the DOE.  And then Glotfelty leaves the DOE after setting the stage, and personally invests in Clean Line Energy Partners? 

Clean Line brags:

Jimmy worked for George W. Bush, for almost eight years, at both the gubernatorial and presidential levels. He led the Bush Administration’s efforts on electricity issues with Congress and the electric utility industry.  In this capacity, he founded Office of Electric Delivery and Energy Reliability at the Department of Energy (DOE) and served as its first Director.
Let's see... which office is undertaking DOE's consideration of Clean Line's application under Sec. 1222? 
The Department of Energy’s (DOE) Section 1222 Program is administered by the Office of Electricity Delivery and Energy Reliability (OE).
Wow!  What a coincidence!  A DOE appointee uses his office to set up a scheme whereby private investors can override state authority and regional transmission planning processes, and then leaves his position to personally invest in just such a scheme?  And the office he "founded" is now in a position to approve his financial scheme?

Something stinks here...

Maybe this guy should investigate and clear up the appearances of federal actions undertaken for private profit?

Whether the department will take the same approach under Chu's successor, MIT nuclear physicist Ernest Moniz, remains unclear.
I don't think that Moniz has a clue what his underlings are up to, but that's no excuse to let this federal land-taking scheme continue.

Clean Line's plans are a for-profit initiative masquerading as a political agenda.  And DOE's political agenda is favoring corporate interests over the interests of the citizens and consumers it is supposed to serve.  Let's clean the stink out of our federal Department of Energy!
5 Comments

Clean Line's Grain Belt Express Welcomed to Illinois

12/3/2014

7 Comments

 
Clean Line's Texas hucksters showed up in Illinois last night, and the citizens were there to meet them.
Outside the Church of the Nazarene Fellowship Hall, members of a grassroots protest group gathered to tell landowners of their opposition to the project. Inside the hall, company officials told of its benefits.
Which group do you think was telling the truth?  Hint:  One group was paid to be there by Clean Line, the other was there voluntarily.

Apparently there was lots of "misinformation" afoot, but only one group whined about "misinformation."  Guess which one?  It might be the one laboring under the misapprehension of the information deficit model.

The accompanying picture is a classic:  crowds of disenchanted landowners, some with arms folded, staring down the "clean" employee performing a song and dance in front of a company poster at an "information station."

The divide and conquer routine isn't working, Clean Line.  These folks got the jump on you.

Silly Clean Line routed their project through land owned by a local attorney.


"They are filing for expedited review with the (Illinois Commerce Commission) which provides for limited time for landowners to object and even shorter filing periods, which constrains ability to have fair and full hearings insuring that due process rights of each landowner are protected," Probst said.
"Our firm is looking into calling a meeting of landowners and invite other interested parties to discuss what options are available to the landowners of Shelby County," the lawyer added.
Ooopsy, Clean Line!  Why the hurry?  Hoping that you can ram this project through approvals at the ICC before the landowners organize enough to seek legal counsel?  Too late!

Bravo to the citizens of Illinois who have worked so hard to prepare for Clean Line, as well as to all the experienced Clean Line opponents who traveled to the meeting to help out.  What an auspicious beginning!
7 Comments

The Bluff and Bluster of Clean Line's Fantastical Business Plan

12/2/2014

3 Comments

 
Finally got around to reviewing the Illinois Commerce Commission's 200+ page final Order on Clean Line's RICL project.  Imagine my shock and horror to find that the actual Order bore no resemblance to the posturing Clean Line did for the media immediately following the Commission's vote.

Clean Line is nothing if not optimistic about its business plan to construct nearly 2000 miles of new "merchant" transmission lines across eight Midwestern states.  However, Clean Line's claims rarely comport with reality.  Isn't it odd that Clean Line had a press release ready to go the second the Commission voted?  It's all about pretending the Commission's decision "marks a critical milestone needed to deliver low-cost wind energy to Illinois and [those mysterious, unnamed] states farther east," no matter what the actual Order said.

And the press ate it up.  Shame on them!  The rest of us have been snickering at how much egg ended up on Clean Line's face for running with a media fantasy, and now the REAL story shall be told.

The ICC's Order issued a CPCN for the proposed business plan, finding it would be "needful and useful to promote competitive electricity markets in Illinois" if it ever gets built.  However, the Commission also found that RICL is not necessary to provide adequate service to customers, and that is is not necessary.  In addition, the Order requires Clean Line to jump some pretty high hurdles to make its business plan actually happen before it can build anything.
  A couple of conditions the ICC attached to the CPCN require that the company make a compliance filing demonstrating that it has funds available to construct the entire project before beginning any construction.  The ICC also attached a stipulation making the CPCN null and void if Clean Line attempts to allocate costs of its project to Illinois ratepayers through regional cost allocation administered by regional transmission organizations and FERC.  And, all this must happen within 2 years from the date of issue.  Tick-tock, Clean Line!

Oh... where to begin?  Let's talk about that financing stipulation.  In order to convince lenders to pony up the money to build the project, Clean Line must demonstrate an income stream.  It needs to have signed contracts with shippers or end users.  It has no end users.  The proposed shippers have not even been constructed yet.  In order to construct these mythical shippers (wind farms), the wind farms also have to borrow money to construct their projects.  In order to receive financing to build, these shippers must also demonstrate an income stream via signed contracts with purchasers.  It's a headache-inducing string of dominoes fraught with risk.  Utilities hate risk.  If utilities need to purchase renewables, there's plenty of EXISTING renewables available at concrete prices.  Since none of Clean Line's shippers exist, none of their proposed prices can be negotiated into signed contracts.  Remember... only two years to get this done!  And if you think it's going to happen, I'm a fairy princess.

Because the ICC did not find the project necessary under Sec. 8-503 of the PUA, Clean Line's CPCN only authorizes the company to build on voluntarily-negotiated easements.  The easements Clean Line has managed to sign with landowners are few and far between.  The rest of the landowners have rejected Clean Line's efforts and may continue to do so.  Clean Line was so certain that it would be granted eminent domain authority to take property that it has disrespected landowners with fantastical claims that bear no resemblance to reality
, along with underhanded tactics and empty promises.  You've got to get up pretty early in the morning to fool a farmer.  Nobody's buying it.  And since Clean Line has already ruined any possible cordial relationship with landowners, it is unlikely to regain what has already been tossed away.

And that brings us to the match tossed into the powder keg...  the CPCN issued by the ICC:


The Commission also observes that the approval of a line route as part of this Certificate Order should facilitate negotiations with landowners, and that the issuance of the Certificate will enable Rock Island to gain access to the property to conduct surveys and related activities, which are steps characterized by Rock Island as important ones in which to engage in the near future.
That's funny.  The Commission was so uncertain about this company's financial resources that it required it to have financing in place before beginning construction, but yet this same company can now enter upon and damage private property to conduct its surveys, without the demonstrated financial resources to guarantee that landowners will be compensated for damages.  What happens when Clean Line's surveys damage private property and the company refuses to make landowners whole?  Where's the remedy for landowners?  Will the ICC be policing Clean Line's survey activities?  Will landowners be left swinging in the wind with only a civil remedy?  And, I don't think Clean Line barging onto private property and leaving a mess behind will "facilitate negotiations with landowners."  Call me jaded...

So, Illinois landowner groups now have been handed the task of figuring out how to protect their interests all on their own.  And they will.

Two years, remember that.

And, in addition, RICL has just barely begun the permitting process in Iowa, where thousands of landowners have joined forces as the Preservation of Rural Iowa Alliance, and hired counsel and witnesses to participate in the Iowa Utility Board's review of RICL.

Two years.

I'm thinking that this thing is NEVER going to happen.  The ICC Order requires Clean Line to perform in accordance with its fantastical business plan to get all this accomplished in two years.

So, despite sweeping bluster like
“The ICC approval is a great step forward for the Rock Island Clean Line project and brings Illinois one step closer to creating a cleaner energy future,” said Michael Skelly, President of Clean Line Energy. “We are grateful to the Commission for their careful consideration of our application and proposed route. By approving game-changing projects like the Rock Island Clean Line, Illinois will benefit from access to low-cost clean energy and job creation in the construction and manufacturing sectors.”
the Order doesn't actually move RICL closer to reality.  It simply starts the clock.  Tick-tock.

Todd Maisch, President of the Illinois Chamber of Commerce should be eating the words Clean Line put in his mouth:

Companies like Clean Line that propose electric transmission projects are forced to meet a high threshold to prove that their energy project serves the public need and benefits consumers.
...because Clean Line didn't actually meet the ICC's high threshold to be found necessary, and therefore has to make its plan a reality before it could be granted the authority to build the project and take land from unwilling owners.

Michael Cornicelli, Executive Vice President of the Building Owners and Managers Association of Chicago, or BOMA/Chicago also had some inapt words:
This project should demonstrate that independent, investor-driven transmission infrastructure can become a viable business solution in a traditionally utility-driven arena.
...but only if it can make its fantastical business plan into reality.   I think the ICC's Order demonstrates that merchant transmission projects undertaken outside the traditional regional planning process cannot succeed, but time will tell.  Two years.

Clean Line also makes fantasy claims about its ability to reduce carbon emissions:
The wind energy delivered by the Rock Island Clean Line will allow other generators to run less and burn less fuel by eliminating the need for the equivalent amount of energy to come from fossil fuels, thereby reducing pollution. More than 1.4 million homes will be powered by the renewable energy generated as a result of this project.
Because it is an intermittent resource, baseload fossil fuel generators will be required to run constantly to back up Clean Line.  The ramping up and down of baseload plants actually produces MORE emissions than running at a constant rate.  Clean Line's insistence that its transmission line will reduce fossil fuel generation on a basis equal to its production is unrealistic fantasy. 

And, we'll end with this:

Developing a project of this scale is a long-term undertaking...
Yes, indeed.  Two years.  Tick-tock!
3 Comments

Landowners Prevail Over Rock Island Clean Line Eminent Domain Scheme

11/26/2014

0 Comments

 
You won't be seeing variations of the word "approve" in my headline.  That's because the Illinois Commerce Commission decision yesterday was not a pivotal moment that sealed the project's success.

Far from it.

Although the actual Order has been withheld from the parties and the general public for the time being, I've been able to piece together a general idea of its contents from various news stories, along with knowledge of what was in the proposed order issued by ALJ Larry Jones several months ago.

Clean Line applied to the ICC under two separate statutes.
Rock Island therein requests an order granting it a certificate of public convenience and necessity (“CPCN” or “Certificate”), pursuant to Section 8-406 of the Act, authorizing it to operate as a transmission public utility in the State of Illinois and to construct, operate and maintain an electric transmission line (“Project”); and authorizing and directing it, pursuant to Section 8-503 of the Act, to construct the proposed line. 
News reports say that the Commission granted the CPCN under Section 8-406, but did NOT order it to construct the line under Section 8-503.

Sec. 8-406 makes it technically possible to construct the line, if it can acquire VOLUNTARY easements from all affected landowners. 

Only under Sec. 8-503 may the company be granted the authority to take property through eminent domain condemnation.  An order under 8-503 would set the company up to effect takings through mere procedural steps.  But the ICC DENIED Clean Line's application under Section 8-503.  Therefore, Clean Line would have to come back before the Illinois Commerce Commission with a second application for an order under Sec. 8-503 at some point in the future, with likely similar results.

ROCK ISLAND CLEAN LINE HAS BEEN DENIED EMINENT DOMAIN AUTHORITY TO TAKE PROPERTY IN ILLINOIS!

Big win for landowners!


Know this -- the ICC would never grant Clean Line eminent domain authority to take the majority of its route.  Usually, holdouts in transmission line cases that actually end up being taken via eminent domain are few and far between.  There's strength in numbers.

Feel free to say "no."  Isn't it ironic that a company that has been telling regulators and the media how well it has been "collaborating with landowners" would now actually have to... well... collaborate with landowners?  Perfect!  However, Clean Line's lies and underhanded tactics have inspired massive distrust by landowners.  And every farmer knows... you reap what you sow.
0 Comments

Do not underestimate the power of a large group of people with a common goal

11/20/2014

1 Comment

 
Read the Preservation of Rural Iowa Alliance's letter to the editor of the Des Moines Register.

Opposition to Clean Line's projects is now active and collaborating in seven states, and numbers in the thousands
.

Ut-oh, Clean Line!

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.

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