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Missouri Landowners Alliance Files FERC Protest and Missouri PSC Complaint Against Grain Belt Express

3/20/2014

2 Comments

 
The Missouri Landowners Alliance has retained excellent counsel to defend its interests against the intrusion of Texas-based Grain Belt Express.

After a long career with a big utility, attorney Paul Agathen brings a wealth of experience to the Alliance's legal team.  Paul has gone on the offensive with a Protest of the Grain Belt Express Application for Negotiated Rate Authority at the Federal Energy Regulatory Commission and a Formal Complaint before the Missouri Public Service Commission alleging that Grain Belt Express has violated and continues to violate the Commission's rules regarding ex parte communications.

First, let's take a look at the FERC Protest.  As a merchant (self-funded) transmission project, Grain Belt Express must concoct its own rate scheme to recover its cost of building and operating its proposed transmission line from customers.  GBE's rate scheme is under the jurisdiction of the FERC and must adhere to FERC's rules, including its non-discriminatory open access transmission rules.  GBE's rate scheme proposes that the company be allowed to negotiate rates with willing transmission customers in a open and non-discriminatory bidding process.  FERC's job is to review and approve GBE's proposed negotiation process BEFORE it occurs.

And, according to the protest, that's just the problem.  Although GBE hasn't "officially" initiated its "open season" for potential customers, GBE has already started soliciting interest from its preferred customers via a "Request for Information" directed solely toward wind project developers in Kansas.  Directing its solicitation to only wind developers discriminates against other forms of electric generation, such as solar or gas, that could potentially bid for capacity on GBE's transmission line.  This discrimination violates FERC's open access transmission rules.

GBE has been doing an elaborate fan dance with FERC, promising to provide access to all forms of generation, while touting its project as a "wind only" transmission line and soliciting interest from wind developers.

The Alliance's Protest asks that the Commission determine that GBE's proposed solicitation of customers is unduly discriminatory and dismiss GBE's application for negotiated rates.

Without negotiated rate authority from FERC, GBE will have no way to collect its cost of service.  No money, no GBE.

Moving on to the Missouri PSC Complaint, the Alliance alleges that GBE has been violating the Commission's ex parte rules.  Ex parte means "one side only" and refers to communication between the decisional authority and only one of two (or more) parties in a case.  It's like one person getting to have a private conversation with the judge in order to sway his opinion against the other person.

But that's not exactly the way the Alliance alleges GBE has violated this rule.  The ex parte rules state:
It is improper for any person interested in a case before the commission to attempt to sway the judgment of the commission by undertaking, directly or indirectly, outside the hearing process to bring pressure or influence to bear upon the commission, its employees, or the presiding officer assigned to the proceedings.
The Complaint alleges that GBE violated this rule through its extensive public relations campaign intended to influence public opinion through statements on its websites, the gathering of boiler plate letters of support for its project, public statements and media interviews, and meetings with local government officials.

The Alliance is not objecting to GBE providing legitimate information to the public:
The Alliance is not objecting here to  everything on the two Grain Belt websites.
It recognizes, for example, that it is perfectly acceptable for Grain Belt to provide  nonargumentative factual descriptions of the Line and its supporting towers; to include maps of the alternative routes of the Line; to provide information for potential suppliers of
component parts for the line; and to address any other matter which is not likely to be a
contested issue at the forthcoming  Commission hearings.
The Alliance is objecting to GBE's elaborate public relations campaign:
As is apparent from all of the above, Grain Belt has engaged and continues to engage in an elaborate PR campaign designed to sway public opinion on matters which it will litigate in the forthcoming Commission proceedings. Their campaign is extensive, it is expensive, and it is professionally managed in all of its various aspects. They have even incorporated Facebook and Twitter into their PR arsenal, and added links in their website to a number of video presentations.

For example, it its Application to the FERC for approvals regarding the proposed Line, Grain Belt refers to their video "that describes the need for the Project and how Grain Belt Express will bring significant economic benefit to states through much-needed transmission expansion for new wind energy projects .... " (Exh. 23, p. 8).

This description of the Grain Belt PR efforts is not intended in the pejorative sense at all. The Grain Belt publicity campaign is undoubtedly effective, and will no doubt accomplishing two of its principal goals: to sway public opinion on the Line in Grain Belt's favor, and to thereby convince members of the public to sign on to the computer-generated letters of support which Grain Belt will file with the Commission.

The letters may have no effect at all with the Commission. However, the ultimate impact of Grain Belt's efforts should not be the deciding question here. If Grain Belt has violated the Commission's ex parte rules, their conduct should not be excused by some sort of "no harm, no foul" escape clause.

We may never know how many people in Missouri were exposed to and influenced by Grain Belt's one-sided presentation on issues which they themselves will raise later at the Commission. Nor could the Alliance ever hope to present its own position to all of the people reached by Grain Belt. Grain Belt has been waging an extensive PR campaign for about four years, and will likely win that battle.

Just how Grain Belt has gone about doing so is illustrated in materials presented at a recent conference in Houston, where participants spent two days learning various techniques for "selling" a transmission project to the public.
A copy of the initial brochure for that  conference is attached here as Exhibit 18.
As noted on the first page, the conference was held this past January, and was to be
hosted by Grain Belt's parent company- Clean Line. As noted at page 3 of that brochure, the keynote speaker at the conference was to be the Executive Vice-President of Clean Line.

According to the brochure, this is a sample of what those involved with building and siting transmission lines were to learn in Houston:

• How best to utilize social media to "engage the public", including who you can expect to reach, and how to go about doing it. (Exh. 18, p. 4) Not surprisingly, an expert in social media from Clean Line was to be one of the two speakers on this subject.
• How to deal with people disparagingly referred to as "NIMBYs" and "BANANAs". Ironically, the audience at that session was also told that a driving force behind the emergence of community-based opposition groups has been the push to build more infrastructure to support more renewable energy. (Exh. 18, p. 4).
• In "Marketing to Mayberry" the attendees would learn, among other things, how to talk down to people in small town, rural America, by communicating with them "in a conversational tone rather than corporate tone ... "  Presumably, these techniques were designed with the citizens of rural northern Missouri in mind.
• "How to frame and 'sell' infrastructure projects ... ", and how to use "effective
strategies and tactics, and share in critique of on-camera training ... "
• How to deal with the media, including:  "Getting into a reporter's head"; "How to answer questions you don't want to be asked"; and how to "position" your message to the media. (Exh. 18, p. 6)
• Finally, the Executive Vice President from Clean Line was to explain "how to ensure that our stakeholders feel they are informed and part of the process". (
emphasis added). Apparently, it is not important to Clean Line that stakeholders actually be informed, or actually be involved in the process, so long as they are somehow made to feel that they are.

The Complaint asks the Commission to find that GBE violated the ex parte rules, order it to revise its websites to conform to the rules, "that the letters of support included by Grain Belt with its Application for
Commission approval of the Line constitute the fruit of a poisonous website, and be therefore stricken from the record in that case,"
and other just and reasonable relief.

Everyone needs to read this Complaint.  The uneven playing field on which transmission owners and the public who oppose them do battle has been clearly defined as unfair.  This is the new normal of transmission opposition, so transmission developers may as well get used to it and turn over a new leaf to play fair.
2 Comments

The Improbability of Rock Island Clean Line

3/18/2014

3 Comments

 
The filing flurry on RICL's Illinois Commerce Commission application has finally ended.  RICL didn't hold up very well under careful examination.  It's all a house of cards, a fantastical "business plan" that relies on speculation, or as counsel for the Illinois Landowners' Alliance phrased it, "bold, lofty aspirations."

ILA points out the fragility of this company's plan and the unlikelihood of its success by taking apart RICL's stack of Matroyshka dolls to reveal the true impossibility of RICL ever being built.
Rock Island wants this Commission to grant its requests for a CPCN and Section 8-­‐503 order despite, among other things, (i) not having any generation, or commitments for the development of generation, to connect to the western terminus of the proposed line; (ii) not yet having any commitments for shippers, or customers, to take service on the planned transmission line; (iii) not having commitments from any equity or debt
providers to construct the Project; (iv) and not having completed interconnection studies and agreements needed with MISO and PJM.
Despite RICL's "build it and they will come" game plan, ILA points out that a real business plan needs actual commitments, not simply a string of dominoes that may or may not fall in line when the first one is toppled.

RICL's possible future financing to build the transmission line is dependent upon it having committed customers, or shippers.  RICL supposes that as-yet-unbuilt wind farms will sign contracts to purchase capacity, creating a revenue stream for the company that will enable it to obtain financing to build RICL.  In turn, the potential wind farms must obtain their own construction financing before they can sign contracts with RICL.  In order to obtain financing, the wind farms must secure their own revenue stream by having committed customers sign agreements to purchase power. 

RICL is supposing that unidentified utilities will sign contracts to purchase power from unbuilt wind farms that will in turn sign capacity contracts with an unbuilt transmission line.  Never going to happen.  There's too much risk involved here for any investor's comfort. 

Utilities don't like risk.

3 Comments

Cheers for the Green Belt Express!

3/17/2014

1 Comment

 
Do you suppose our friend Mark Lawlor is humming the Cheers theme song this morning?

He should be, after a national news story about his transmission line project got the name of the project wrong.
Sometimes you wanna go...
Where everybody knows your naaaaaaaame
And they're always glad you caaaaaaaame...

Ain't that right, Waldo?
Check out one of the hundreds of identical AP stories that have been distributed coast-to-coast:  Wind Power Line Proposal Irks Some Midwest Farmers.

The story pits "Green Belt Express Clean Line" against "some farmers" that don't want the transmission line on their land.  But, it's more than that... the farmers hold title to the land "Green Belt" desperately wants, and they're not giving in.  This situation has resulted in an epic battle over a private company's use of eminent domain for its speculative, privately-owned, for profit project.  This isn't just "some farmers," but thousands of landowners all over the Midwest who are opposing all of the Clean Line projects.
Many along the route worry that a private company could simply take over land that in some cases has been in families for generations.

"We have sacrificed everything for this land," said Jennifer Gatrel, 33, who, along with her husband, Jeff, farms a 430-acre cattle ranch in western Missouri. "We don't go on vacation. We don't go out to eat. Everything we have is tied up in this land. The idea that somebody can come in and take it from us is appalling and it goes against what it is to be an American."

Lawlor said the company prefers not to use eminent domain and wants to reach agreements with landowners. He also cited studies showing that power lines and towers have no effect on property values.

"When they sit down and talk to us and get the information about the reality of the project, I think we're succeeding in clearing the air," he said.

Not as far as Gatrel is concerned.

"There are already significant barriers to farming," Gatrel said. "This would be another major barrier."
Lawlor is only kidding himself about succeeding in clearing the air.  Opposition to his project is growing by leaps and bounds and nobody seems willing to sit down with him in the first place.  Maybe he needs to offer some free ham?  Pulled pork?  The truth?

"Negotiating" with landowners while threatening them with eminent domain condemnation is not negotiation.  As the Illinois Farm Bureau stated in their ICC brief:
In addition, if granted § 8-503 relief, what Rock Island characterizes as “voluntary” easement negotiations with farmers will actually sound something like “Rock Island has been directed by the Commission to construct a transmission line on an approve[d] route, which crosses your land.” Characterizing the easement negotiations as voluntary under these facts is kind of like giving someone the option of jumping off of a cliff before you push them.
The AP reporter did about as good a job fact checking the snowstorm Lawlor dumped on him as he did listening to the name of the project.

But, all press is good press, and this story moves the struggle for landowner rights to the national stage, where the truth is revealed:
The biggest hurdle for these projects is their intent to use eminent domain for pecuniary gain. Traditionally, utilities have been bestowed with eminent domain to build transmission for reliability reasons. But these "renewable" projects are not necessary for reliability or economic reasons -- they are solely an attempt to increase the percentage of "renewable" energy consumed in far-flung areas remote from the generator. And further, these particular "Clean" Line projects are an attempt to corner the market on "renewable" energy so that urban communities are precluded from developing local renewables. Instead of investing in our own communities, "Clean" Line proposes that we send all our energy dollars to midwestern states and into "Clean" Line's pockets. "Clean" Line has publicly stated that its transmission line will add considerable cost to the energy delivered and has provided no proof that the energy it proposes to transport will be economic or competitive with local renewables in the east. Stating that "Clean" Line will "drive down electricity costs" is disingenuous when "Clean" Line has no idea how much its delivered product will cost. It is just as likely that "Clean" Line will drive up electricity costs. "Clean" Line calls itself a merchant transmission company. A merchant transmission company depends on the free market to make itself competitive. "Clean" Line is depending on eminent domain to keep its cost of building the project down (cost of project shows up in the cost of delivered energy) and on renewable portfolio standards in other states to force utilities to purchase its product at any cost. In addition, this company has made noises about passing the cost of its project on to captive ratepayers, or using federal eminent domain authority to override state authority to site and permit its projects. Not the actions of a company depending on fair market competition for its success or failure! Right now, there is no market for "Clean" Line. There are no generators, and no purchase agreements. Opposition to "Clean" Line by affected communities and elected officials is increasing, and with each new opponent, the chance of success decreases just a little bit more.
When is "Green Belt Express Clean Line" going to quit dumping its investors' money down this rat hole?
1 Comment

RICL's Rose Colored Glasses

3/11/2014

0 Comments

 
Oh, the lies these chuckleheads tell themselves...

Someone sent me their recently received issue of Clean Line Express, your direct line to Rock Island Clean Line updates.

It's a happy world of fantasy and denial at RICL!  In fact, I've been wondering if we're all speaking the same language.

The Clean Line Express tells me: 

An agreement was announced with a "preferred supplier" of transmission structures in Iowa.

The rest of the companies that build transmission negotiate supply contracts based on price, quality and suitability of the materials, not on how the geographic location of the factory influences the local political process.  Did RICL get the best price and quality of materials?  It must be pure serendipity that an Iowa company was making just what RICL needed at the right price!

The Clean Line Express tells me:

Two public hearings were held in Illinois and that "[t]he
Clean Line team listened to the diversity of perspectives
of community members and will continue to work with
the community to answer questions and address
concerns about the project. Click here for some of the
comments shared by attendees."

That's funny.  I heard that the Clean Line guy was slumping down in his seat feigning sleep/boredom and playing with his iPhone before leaving the auditorium to harass high school kids and go shopping for a chore coat.  No, I didn't click for "some of the comments."  I have a feeling mine aren't there and I have no urge to go read some of the canned speeches Amy Kurt was handing out to her orange-clad lemmings.  I can only conclude that the Clean Line Express reporter and I were at different ICC hearings last fall.

The Clean Line Express informs me that ICC decision is pending!  Yes!  But why wasn't there a link to briefs from Com Ed, the Farm Bureau, the Illinois Landowners' Alliance, or the ICC staff?  How come my only option is to click to see some "supportive comments from environmental groups, labor unions, and wind
energy groups"? 
Does RICL think that if they don't mention those other briefs that the ICC will simply ignore them?  Whoopsie!

RICL also thinks it participated in IUB-required landowner meetings "[a]fter more than three years
of working with stakeholders in Iowa to find the best route for the Rock Island Clean Line...
"
  Are landowners not considered "stakeholders" or something?  None of the landowners at the meeting had been aware of RICL for three years, nor were they consulted about the route before the meeting.  In fact, the landowners didn't seem happy about the whole idea of RICL.

The Clean Line Express also wants you to know that wind energy prices continue to drop and market continues to grow!  Except, the accompanying map graphic shows
why RICL will never be competitive or economic.  The price of wind in Iowa is $32/MWh, however, the cost of building RICL will add $25/MWh to the market price of wind delivered by RICL, for a total of $57/MWh, which is more than the average price of $56 for the Northeastern states.  The map did not show a price for RICL's target zone of the Southeast.  This proves... ???

Well, that was informative.  Now I know that RICL is best viewed through special rose colored glasses.  I hope its investors have some.

0 Comments

Greenwashing Transmission

3/1/2014

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"Big green" has been hoodwinked into operating under a misguided premise by "big wind."  Environmental groups that support certain transmission lines simply because they have been told the lines are "carrying wind power and clean renewable energy" have defined themselves as the biggest hypocrites.

When asked about transmission in a recent interview by E&E, the Environmental Law & Policy Center's Howard Lerner panned transmission lines "for coal," while promoting lines "for wind."
From an environmental group perspective we're very interested and supportive of those lines if they're carrying wind power and clean renewable energy, as some of them are saying that they're doing.
Lerner knows quite well that transmission must be "open access" for all types of generation.  Transmission lines can't segregate "green" electrons from "brown" ones.  There is no such thing as a transmission line "for wind."

To add to the hypocrisy, Lerner later talks up distributed generation:
Distributed generation, particularly solar, plays a vital role in terms of reliability, cleaning up the air and saving money for consumers. The efficiencies of solar panels are going up, the costs are coming down, and those entities that are getting behind it I think will be in good shape. People who are trying to stop the progress technologically when it comes to solar are going to be like the utilities that had landline telephones that tried to stop wireless telecommunications. It almost never works to stand in the way of technological progress.
Environmental groups that support new long distance transmission "for wind" are trying to stop the progress of distributed generation technology.  Of course, this effort to thwart technology won't be effective.  What if we poured all the money currently being wasted on centralized generation and transmission lines "for wind" into distributed solar instead?  How reliable and cost effective would that be?

Howard also demonstrates how hookwinked he is about the cost to ratepayers of new transmission "for wind."
Well, renewable energy wind power can bring costs down. Building new transmission of course passes costs on to consumers. Some of the transmissions being used for renewables, some of that transmission is being used for coal. So what you have to do is not look at it as one size fits all, but look at particular transmission lines and really say, No. 1, are the costs justified? Are the benefits greater than the costs, and therefore you can build a line? Or had the world changed in which a particular transmission line, and there are a number of lines that are being challenged on this basis, given the demand has gone down is there less need for the lines, they shouldn't be built? Secondly the question is is the line carrying renewable energy like wind power, or is it carrying coal and natural gas? The premise of what the Midwest independent system operator did is that these transmission lines, they call them the MVP lines, are supposed to be carrying wind power. Some of them do, some of them don't very much. And that's going to be an issue both before the regional commissions and also an issue before FERC.
So, in Howard's world, the cost argument is secondary only to determining if a transmission line is being used for renewables or for coal?  How does he make this determination?  Do his transmission developer friends tell him which ones are which? 

I don't think Howard cares how much transmission costs as long as someone tells him it is "for wind."  Environmental groups are not very good advocates for consumer prices, so maybe they should stop trying to influence transmission development to meet their environmental goals.  I'd feel a lot more comfortable if transmission was planned by grid planners, and not environmentalists, or politicians.  Let the grid planners plan the grid guided by what the users of the grid want, not by what is environmentally desirable, politically expedient, or profitable for private investors.

But being seen as hypocritical by the consumers who pay for it all doesn't seem to bother these folks, as I saw demonstrated during a recent "webinar" by Big Wind's Big Front group.  During the webinar, both the representative from regional grid planner PJM Interconnection, and the representative from the Rocky Mountain Institute, pointed out that the decision has not been made whether to pursue a big, new grid build out "for wind," or whether a localized, distributed generation future that does not require a whole bunch of new transmission would be more prudent.  In fact, their presentations proffered information that a distributed generation future is highly likely, and more cost effective.  But, never to allow reality to intrude on their fantasies, the environmental group and the "clean" transmission developer plowed presumptively right ahead with their "for wind" presentations, like the decision had already been made.

But, that's okay.  The ones who actually make the decisions don't listen to the environmental groups or the transmission developers, they just pat them on the head and carry on with business.  I think it might be pretty frustrating for the poor, little cleaniacs.

In the end, technology cannot be stopped by the financial wants of developers, or the pipe dreams of environmental idealists
.  Hold the line, transmission opponents, the future is bright!

0 Comments

Clean Line's Ties to Dirty Windward Iowa Front Group

2/25/2014

15 Comments

 
A mysterious, new group advocating for "more ways to send Iowa's wind power out of state" appeared on TV screens all across Iowa on Monday.  The mysterious group claims it includes "wind power activists, vendors and industry leaders" and that is it "neutral" about the Rock Island Clean Line.  How could a group advocating for transmission lines in Iowa not be for RICL?
The true purpose of this group was revealed later on in the interview, however:
The Rock Island Clean Line is one for-profit company proposing to ship wind power produced in western Iowa to the outskirts of Chicago. None of that power would stay in Iowa and a number of landowners along the proposed 500-mile-long transmission line route have opposed the plan. Some owners and farmers have expressed concerns about potential damage to land from transmission tower construction and the threat of eminent domain to push a route if enough willing sellers aren’t found.

 But Lang, and Mike Prior, interim director of the Iowa Wind Energy Association, hope the new organization could serve as a “go-between” to bridge some of the disagreements between land owners and the Clean Line developers.
"Neutral," my eye!

A front group is an organization that purports to represent one agenda while in reality it serves some other party or interest whose sponsorship is hidden or rarely mentioned. [or denied!] The front group is perhaps the most easily recognized use of the third party propaganda technique.
So, what are Clean Line's ties to the new Windward Iowa group?

Windward Iowa's web domain was purchased October 21, 2013 by Larson Shannahan Slifka Group, aka LS2Group.
Larson Shannahan Slifka Group (LS2group) is a bipartisan public relations, public affairs, and marketing firm that guides its practices with one goal in mind: what others may do, we strive to do better. We offer clients an unparalleled commitment to excellence and take pride in our consistent delivery of successful outcomes. Our strength lies in the diversity of our team and its determination to apply creative solutions and unique perspectives to clients' needs. We see possibilities others cannot and have a track record of helping our clients reach their goals.
Right.  I'm sure other public relations companies cannot "see" the wheels coming off the front groups they set up for their clients at roll out.  But, that's neither here nor there. 

Who are LS2Group's clients?
"LS2group has a thorough understanding of our needs and responds quickly to our requests, coupled with a vast network of strong relationships with key officials."
- Cary K., Director of Development, Rock Island Clean Line
Who are LS2Group's employees?  I saw this one minding the Clean Line information table at the first Mendota public hearing.  Others have reported seeing her at other Illinois and Iowa public events.
This same LS2Group employee is also the named company contact on a recent press release about the Rock Island Clean Line project.

The claims that Windward Iowa is not advocating for Clean Line's RICL project, and has nothing to do with the company, are beyond credible belief.


Windward Iowa incorporated as a non-profit Iowa corporation on December 12, 2013.  According to its Articles of Incorporation, its purpose is:
to promote social welfare by seeking to educate and encourage landowners to become familiar with wind energy production and transmission, and expand the wind industry in the state of Iowa to further the common good and general welfare of the people of Iowa and the Midwest.
According to its Articles:
no substantial part of the activities of the corporation shall be the carrying on of propaganda, or otherwise attempting to influence legislation, and the corporation shall not participate in, or intervene in (including the publishing or publication of statements) any political campaign on behalf of or in opposition to any candidate for public office
and must abide by the laws for a 501(c)4 corporation as determined by the Internal Revenue Service.  This also means that donations to this corporation are not tax deductible.

Donations?  Yes, that's one of the ways you can "get involved" with this group, in addition to "submitting a letter to the editor or opinion editorial; commenting online through Facebook, Twitter or LinkedIn, or on an article; commenting to the Iowa Utility Board; or contacting your legislator or local government official."  Hey, wait a tick, doesn't that last one violate the Articles' prohibition on attempts to influence legislation?  That's some pretty thin ice!

I also wonder what the legal implications are of this corporation involving itself in negotiations with property owners that eventually result in eminent domain takings?

Windward Iowa's Facebook page contains numerous links to stories about RICL.

Windward Iowa's website makes sweeping statements that it does not back up, such as:

"Experts predict the U.S. will soon be in the midst of a transmission crisis. It is important to be proactive in addressing the issue and developing new infrastructure. We cannot afford to wait another 60 years for wind energy development.
The country’s electric grid is outdated and in need of attention and upgrades. Projects that bring wind energy through new avenues are part of the solution to providing clean, dependable, and renewable power."


Who are these "experts" and where have they made these statements?  Or did the public relations firm just make it up out of whole cloth?

Compare this information to the signs of a front group here:

1.  The group does not report who they are really working for, who their members are, or the source of their funding.  The idea that three individuals spontaneously decided to start an advocacy group managed by a pricey lawyer and a public relations group defies belief.

2.  There is no physical address or list of staff on the website.

3.    The group claims neutrality on some hot button issue and appears to be making general arguments about a topic only marginally related to the issue, and yet they mainly focus on a “secondary” issue (RICL).

This is all so classic.  I've had experience uncovering and reporting on transmission company front groups in the past, and my opinion is that Windward Iowa is a front group being paid for by Clean Line Energy Partners.

Because RICL and Clean Line Energy Partners are no longer viewed as an impartial and trustworthy source of information in Iowa, the company and its public relations contractor have created a supposedly "neutral" third-party entity that will continue to advocate for its project under another name.  If you wouldn't believe a word RICL says, then don't believe anything the company tells you when it is wearing its "Windward Iowa" mask.

Windward Iowa only has the same amount of credibility as RICL, and should be treated accordingly by opposition, elected officials, and the media.  It's very disappointing that none of the reporters attending the group's "launch" yesterday had the curiosity to ask where this group is getting its funding.  That's the literal "million dollar question."
15 Comments

Does TVA Not Love Clean Line Energy Partners the Right Way?

2/23/2014

10 Comments

 
They're not alone!  Although Clean Line Energy Partners keeps touting some "desperate need" for its transmission projects by unnamed "states farther east," the company has yet to produce any evidence of any future customers for its transmission projects.

In the case of its Plains & Eastern Clean Line, a
recent article tells us "TVA still has no deal to buy Clean Line's wind energy."  The article makes an important distinction that Clean Line hopes everyone will ignore:
TVA is in final negotiations to allow a proposed $2 billion transmission line carrying wind power 700 miles from Oklahoma to connect to TVA's grid near Millington.

However, it will be another issue entirely whether Texas-based Plains & Eastern Clean Line LLC can send its wind-generated electricity into the TVA system, TVA spokesman Chris Stanley said Tuesday.

TVA policy requires the federal utility, which supplies electricity to MLGW in Memphis, only buy power priced competitively with other energy sources.

No consumer prices have been disclosed by the Houston firm.

"Inter-connectivity just allows Clean Line, in this case, to connect to our grid," Stanley said. "They do not, however, have the ability to inject any power into our system."

TVA is now waiting on Clean Line to request a "transmission study," he said.

"We had to do studies and make sure we have system reliability. That's all happened and we're in final negotiations with them about what that looks like going forward,'' Stanley said.

After the interconnection study is completed, a the transmission-service study will look at sending wind power into the electric grid.
Looks like Clean Line's much ballyhooed Memorandum of Understanding with TVA isn't proof that the TVA is willing to buy power from the project after all.

Clean Line has been pulling this same scheme with all of its transmission projects by pretending that there are some potential customers in "desperate need" of power supplied by the project, or that a regional grid operator, or federal entity like the TVA, has "approved" its project or contracts to purchase the electricity.  Nothing could be further from the truth!  The interconnection studies simply determine whether or not Clean Line would compromise system reliability if they interconnected, and also determine what alterations need to be made to the system to accommodate Clean Line's interconnection.  Clean Line is responsible for the costs of the studies and any system upgrades determined to be needed in the studies.

Clean Line is in a catch-22.  They can't negotiate prices for their transmission capacity until they have completed all permitting, siting, land acquisition, engineering, contracting, etc., and know exactly how much their project will cost to build.  The cost of the project will inform the amount of the capacity charge.  The capacity charge will be added to the price of the wind (or other) generation and then a power purchase agreement will be negotiated between the generator and the utility buying the power.  The generators don't exist.  The customers don't exist.  The transmission project doesn't exist.  Clean Line is nothing more than an overly-ambitious and fantastical business plan.  I don't believe it will ever happen.

But as long as Clean Line's "patient" investors want to continue to dump money down this rat hole, entities like TVA will continue to take their money and produce "studies".... because they have to.  State utility commissions also have to entertain Clean Line's permit applications, but they don't have to approve them.  And they certainly don't have to grant such a speculative venture utility status and its attendant power of eminent domain.

The TVA is currently working on its integrated resource plan (IRP).  An IRP is a long-range plan by a utility to determine the proper mix of resources that will serve its customers reliably and economically in the future.  The IRP will determine whether TVA will purchase huge quantities of wind from Oklahoma.  TVA's IRP won't be completed until 2015.  Although one of the stakeholder participants in the process recently asked the question, "Would it be appropriate to consider a scenario around grid/transmission expansion - for example, an HVDC line is built from the Midwest making lower cost wind energy available to the TVA?" it looks like this question was batted aside by the group think of the TVA's IRP process. 

Maybe Clean Line needs to do a little reading on the Delphi Technique?

It looks like Clean Line's business plan is nothing but a house of cards, and a big wind is starting to blow.
10 Comments

Iowa, Eminent Domain and NIMBYs

2/22/2014

3 Comments

 
Clean Line Energy Partners went into panic mode when dozens of landowners stormed the Capitol in Des Moines this week.  While legislation proposed to protect landowner rights under threat of eminent domain takings for the company's Rock Island Clean Line project passed out of committee, it failed to advance because Mother Nature intervened and turned the legislature dysfunctional at a crucial time.

However, all is not lost.  As Clean Line's snarky editorial tells us, "...it could come back as an amendment tacked onto another bill that's still alive."

And what's up with the name-calling in that editorial?  NIMBY?  Is that the best Clean Line could do to lobby for its project? 
But some people don't like the project, which is why the bill came forward. Landowners who are wary of eminent domain powers are speaking up against the project. In large part it has become an issue pitting pro-business groups and legislators against people who carry the NIMBY, or Not in My Backyard, mindframe.
Name-calling is one of the cheapest propaganda devices.  By placing opponents into unacceptable groups, the propagandist attempts to remove them from the argument before their positions can be logically considered.
Propagandists use the name-calling technique to incite fears or arouse positive prejudices with the intent that invoked fear (based on fearmongering tactics) or trust will encourage those that read, see or hear propaganda to construct a negative opinion, in respect to the former, or a positive opinion, with respect to the latter, about a person, group, or set of beliefs or ideas that the propagandist would wish the recipients to believe. The method is intended to provoke conclusions and actions about a matter apart from an impartial examinations of the facts of the matter. When this tactic is used instead of an argument, name-calling is thus a substitute for rational, fact-based arguments against an idea or belief, based upon its own merits, and becomes an argumentum ad hominem.
Clean Line is so frightened by the righteous concerns of landowners being asked to make a sacrifice for the pecuniary aspirations of a company from Texas, that they have resorted to cheap party tricks like "NIMBY."

News Flash:  Use of the "NIMBY" name in transmission battles is passe and ineffective.  The Alliance has already overcome that stereotype quite effectively.

And why shouldn't landowners be concerned or, as the editorial puts it, "not like the project."  The project is asking them to sacrifice their property, their business, their peace of mind and their physical well-being for the needs of some phantom others in "states farther east."  Who wouldn't resist it?  Would you resist a similar attack on your own home, income and way of life?

In addition, the "project" isn't even needed for reliability or economic reasons.  It's a scheme to make a lot of money supplanting existing generation in "states farther east" that have no desire for the power in the first place. 

While the financial windfalls may be shared with a handful of politically-connected landowners in NW Iowa who voluntarily host turbines, the buck stops there.  The Alliance landowners are being forced to take a one-time "market value" payment, not share in the wealth.  Their contribution to the effort is not being fairly recognized or compensated. 

While Clean Line's lobbyists hyperventilate that the legislation will "shut down this project as well as kill jobs,” the proposed legislation merely removed the company's threat of eminent domain against landowners who refused to go along.  As the Illinois Farm Bureau said in its Illinois Commerce Commission brief:
"In addition, if granted § 8-503 relief, what Rock Island characterizes as “voluntary” easement negotiations with farmers will actually sound something like “Rock Island has been directed by the Commission to construct a transmission line on an approve[d] route, which crosses your land.” Characterizing the easement negotiations as voluntary under these facts is kind of like giving someone the option of jumping off of a cliff before you push them."
If RICL is a viable and economic project, it shouldn't have any trouble compensating landowners to their satisfaction, and would not need the threat of eminent domain.  The use of eminent domain for private gain is the issue here, not jobs or economic development.  At what point does a person's right to own and enjoy property become less than another individual's desire to confiscate that property for his or her own pecuniary goals?  If you believe this is okay, as long as it's in someone else's back yard and you're sharing in the wealth, you're heading down a very slippery slope.  Because if you think it's okay in someone else's back yard, you are also saying it's okay in your own, and some day, the chickens are going to come home to roost and then you will be the "NIMBY." 

Why is Clean Line so scared? 
Think about it.
3 Comments

A Zacks Valentine to Electric Utilities

2/15/2014

0 Comments

 
Zacks Investment Research sent a love note to our favorite transmission-dependent electric utilities on Valentine's Day.

In a commentary about the utilities sector, Zacks advised transmission lovers that they're about to become obsolete:
The emergence of Microgrids for power generation could threaten the dominance of the age-old power distribution system in the U.S. Microgrids have evolved from simple power backup systems to small smart grids. The swift and cost effective installation of Micro grids could help distribute electricity among the masses. These rooftop solar systems meet the energy needs of the customers. In addition, the customers are allowed to sell excess power back to the utilities.
A report from American Society of Civil Engineers estimated that utilities need to spend $763 billion by 2040 to properly modernize and harden the existing grids against natural disasters. We believe that rather than going for a very costly maintenance, it will be economical to develop these Microgrids, which could lend support to the existing system.
That's right, instead of building more transmission it will be more economical to develop more secure microgrids.

A microgrid is defined as:
A microgrid is a localized grouping of electricity generation, energy storage, and loads that normally operates connected to a traditional centralized grid (macrogrid). This single point of common coupling with the macrogrid can be disconnected. The microgrid can then function autonomously. Generation and loads in a microgrid are usually interconnected at low voltage. From the point of view of the grid operator, a connected microgrid can be controlled as if it were one entity.
Microgrid generation resources can include fuel cells, wind, solar, or other energy sources. The multiple dispersed generation sources and ability to isolate the microgrid from a larger network would provide highly reliable electric power. Produced heat from generation sources such as microturbines could be used for local process heating or space heating, allowing flexible trade off between the needs for heat and electric power.
Wow!  What a great idea, right?

Just one more warning shot across the investor owned electric utility bow.  Transmission is a dead end.  Save yourself, utility friends!  After all, if my favorite utilities die, who am I going to pick on in my spare time?
0 Comments

Lah-De-Dah, Making the Rich Richer at Your Expense

2/14/2014

16 Comments

 
Honestly, I couldn't make this stuff up if I tried!

Thousands of small, independent farm businesses and other residents of the Midwest are being asked to suck it up and make a financial sacrifice to accept the burden of new high voltage transmission lines through their land proposed by Clean Line Energy Partners.

There is no proven need for Clean Line's projects.  They are a speculative venture that assumes "states farther east" will pay outrageous prices for wind energy exported from Kansas, Iowa, and Oklahoma.  These projects aren't needed to keep the lights on.  They are intended to supplant current generators in "states farther east" and replace them with generation imported from thousands of miles away.  This is not economic, nor reliable.

Clean Line Energy Partners is financed by
a couple of billionaires, who expect that they will make a huge return on their investment by selling capacity on new transmission lines at a huge profit.

Clean Line has identified one of its investors as Michael Zilkha of Houston, whose inherited fortune was made in the oil industry.


Who is Michael Zilkha?  I'm sure he's a perfectly nice man who just happens to live in a 20,515 sq. foot stone manse that features 17 rooms.  Built in 1999, the residence features a pool with pool house and lavish grounds including gardens and courtyards.
... but no transmission towers.  Nasty energy infrastructure is Not In Michael's Back Yard.

Our perfectly nice Mr. Zilkha also supports the arts, making Houston's society pages by "saving lives through words" by supporting poetry at the Houston Writer's Ball.
(go ahead, click through and check out all the photos of our glittery social heroes saving the world with ostentatious panache).  Well, that's very helpful for all the Midwesterners who are being asked to make financial sacrifices to enable his transmission line investment to pan out.
  Maybe he'll write you a poem about eminent domain?

I think I'd rather hang out at a barn dance.  At least the people are real.

16 Comments
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    About the Author

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

    About
    StopPATH Blog

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

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


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