Dear Governor Parson,
As I sit here entering the eighth year after Grain Belt Express started their drive to build a transmission line through Missouri, to the East to deliver wind power, I wonder how this can still be going on. There have been sixteen public hearings before the PSC that I am aware of, hearings at Jefferson City, hundreds of letters of opposition, and hundreds of testimonies which have been overwhelmely opposed to this transmission line. Also Missouri citizens have had to spend an enormous amount of time, resources, and money against this attempt to illegally use the power of eminent domain for a private company. Even if they did qualify for a permit, statue 229.100 of Missouri law would require consent from each county commission before they apply to the PSC.
GBE has been denied a permit twice before the PSC and their status as a non public utility has not changed. I would think that should have been the last time GBE could apply before the PSC. However, The Missouri Supreme Court requested by GBE and former Governor Nixon, who was in support of GBE
while in office, sent the denial back to the PSC. Is there a limit as to how many times this process can go on? If GBE is approved then they would have the power of eminent domain the same as a public utility to seize private property. The only thing that has changed is that GBE has signed a contract to sell this project to the company lnvenergy. It was stated in GBE's easement agreement that their rights may be sold, mortgaged, or leased in whole or in part at any time. What kind of Pandora's box will we be subject to then?
As I understand, Missouri has ample wind and other power to meet its needs and it is questionable that GBE or lnvenergy would drop off any power in Missouri. Without being a public utility they could sell to the highest bidder. Giving a private company the power of eminent domain would not only give an unfair advantage to our existing public utility companies, it would set a dangerous precedence for the future of our state and it citizens.
My family and I have been on this land for eighty five plus years. This proposed line would cross five farms and three and one quarter miles of our most productive farmland. I have testified and written letters in the past as to the irreparable and sustained economic loss, and ability to farm the land, such a line would have on me and all people in its path. I and my family are firmly opposed to granting GBE this power of eminent domain and it is my hope that as Governor that you can do whatever is in your authority to protect the citizens of Missouri against such abuses of power. Thank you for your time in listening to my concerns.
Respectfully,
Kent Dye
Paris, MO
Here's another letter to Missouri Governor Parson.
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The people of Aurora, Ohio, were ready for FirstEnergy last week, and it looks like its "Open House" effort to charm and pull the wool over everyone's eyes was a complete failure. FirstEnergy may have counted on light attendance to overwhelm and baffle its critics. Instead, it got this: Hundreds packed a public open house convened by FirstEnergy Monday night to reveal plans for the Northern Portage Reliability Project. Oh no! People turned away, you say? Guess you'll have to be punished with more dog & pony shows, FirstEnergy. Punishment? But of course! The pictures tell the tale, and they look just like every other set of news photos of a transmission line "Open House." Shocked and angry landowners glaring aggressively, transmission company employees making animated faces and hand gestures as they try mightily to make their lies believable. Aurora clearly wasn't buying FirstEnergy's story. And why should they, when FirstEnergy is clearly making crap up as they go along. Why else would there be two different takes on burial costs? According to FirstEnergy, the cost to run the lines underground along the rail corridor would be three to seven times more expensive than using utility poles. Or First Energy has said the underground scenario could create a 10-fold increase in the cost of the project and the above-ground rerouting would be longer that the former rail line, and would send the lines over roadways and home owners’ yards. Pop quiz! How much does it really cost to bury transmission lines? Who could believe anything FirstEnergy says? It's obvious that depending on who you ask, you're likely to get a different answer. And some of the answers are conflicting, such as this one: Jennifer Young, a spokeswoman for the company, said the lines will be carried by 60-foot wood poles and those might be reduced to 45 footers, making them lower than nearby trees. You mean the height of transmission lines is a purely elective thing? I thought safety standards dictated clearances to the ground. If the lines are as safe at 45 feet as they are at 60, why in the world would you have ever planned to build them at 60 feet? 60 foot towers are probably more expensive and maybe more obtrusive, and definitely more objectionable. Why would you do that unless it was a safety requirement? I simply don't believe you that the height of the line "might be" reduced to 45 feet. The only thing that could reduce the height of your project would be if you eliminated a proposed double circuit that would have required additional height clearances, and where would FirstEnergy be with its redundancy and reliability claims if it built a double circuited line? This is obviously an empty promise. I wonder who the genius was who came up with this idea: Beach said FirstEnergy measures the viability of various routes by their potential impact on property owners. The western route could affect 111 homeowners (although the company would need right-of-way access from about half that number), and the eastern route could affect up to 177 homeowners with right-of-way access from half that number. He also said many of those properties would have utility poles going up in the front of their properties. And said "opportunity" runs along the back side of residential property. So, where would you rather have a transmission line on your property, Aurora? Your backyard or your front yard? Nothing like stuffing a few strawmen for public execution, is there, FirstEnergy? How about neither yard? How about FirstEnergy buries it, or better yet doesn't build it at all? I did not notice those options on the table. Of course not, FirstEnergy's game is rigged to allow the company to win (build a transmission line) every time! Aurora Mayor Ann Womer Benjamin takes on FirstEnergy's lies in this video. This lovely lady seems knowledgeable, calm, and entrenched to resist. And there's no more formidable opponent than a determined lady of a certain age, is there, FirstEnergy? You might as well just give up now and cut your losses. Unfortunately, you've got to sit through a FirstEnergy crapfest where Bill Beach shoots the strawmen before Womer Benjamin appears, but it's worth waiting for.
Dear Governor Parson, I am adamantly opposed to Clean Line Energy’s Grain Belt Express transmission line project and urge you to stand with Missouri landowners, farmers, and residents in opposing Clean Line’s application for a Certificate of Convenience and Necessity from the Missouri Public Service Commission (PSC). My husband’s family has had its roots in the City of Hannibal, Missouri, and the farmland of Ralls County, Missouri, for generations. Our family’s farm in Ralls County – Parham Farms – falls directly in the path of Clean Line’s planned Grain Belt Express (GBE) transmission line project. Companies like Clean Line are not new to me. During nearly a decade working in our Nation’s Capital, I have witnessed well-paid corporations and lobbyists painting pretty stories about how their plans will do good for others, and I know from experience that the truth is always in the bottom line profits. If what is profitable also happens to be good, that can work out just fine, but if not, the outcome can be devastating. Clean Line is not here because providing clean wind energy is good for Missouri. If Clean Line was here to do right by Missouri residents and farmers, it would be offering them fair value for their land in order to build the Grain Belt Express, rather than asking the PSC to give them a free pass to take what they like for their own bottom line. I believe that the cultivation of clean energy sources is vital to our nation’s future, and to that of local communities. However, there is a right way and a wrong way to go about clean energy policy, and allowing a private company to declare eminent domain and take away the land of private citizens in the name of wind energy isn’t the right direction – all the more so when that private company’s plans would tear apart a quarter century of local efforts at environmental and habitat protection in Ralls County. It is the PSC’s job to protect Missouri and its citizens from companies who aren’t providing a “convenient and necessary” service by denying those companies petitions for public utility status. The PSC’s own past findings showed that Clean Line can’t deliver what they promise. I encourage you to stick with Missouri farmers and landowners, no matter how much prettier the picture that Clean Line paints this time around might be. I ask that you support Missouri residents, landowners and farmers, by opposing Clean Line’s application for a Certificate of Convenience and Necessity. Respectfully, Rachel Nyswander Thomas Parham Want to send your own letter to the Governor? Missouri Rep. Jim Hansen is collecting them and promises to hand-deliver your letters to the Governor.
Send yours here: Rep. Hansen’s e-mail address:[email protected] Mailing address: State Capitol, 201 W. Capitol Ave., Room 111, Jefferson City, MO 65101-6806 And keep checking back as we publish more letters! Missouri citizens have begun a letter-writing campaign to Governor Mike Parson, appealing for his help on the Grain Belt Express issue. The letters are personal and compelling, and I'm going to share a few here. Let's kick this off with the letter from Block GBE that started this ball rolling. Dear Governor Parson, Want to send your own letter to the Governor? Missouri Rep. Jim Hansen is collecting them and promises to hand-deliver your letters to the Governor.
Send yours here: Rep. Hansen’s e-mail address: [email protected] Mailing address: State Capitol, 201 W. Capitol Ave., Room 111, Jefferson City, MO 65101-6806 And keep checking back as we publish more letters! Sign me up! If Grain Belt Express is selling $5 Cadillacs, I need one! I mean, I really NEED one! Missouri Landowners Alliance triumphs once again in their reply brief... The MLA respectfully contends that the type of “need” created by Grain Belt in inducing MJMEUC to buy its product is not a true “need” for the service in the sense envisioned in the Tartan case. By analogy, it seems safe to say that not every family in Jefferson City truly “needs” to own a Cadillac. But if a dealer were for some reason to offer a Cadillac to everyone in the City for say $5.00, would the fact that virtually every family in the City was now driving a Cadillac suddenly prove there really was a “need” for those cars after all? Okay, maybe I'd just want one... because it was so cheap. But when would my want turn into plain old greed? Would my "need" actually be "greed" instead? It's always been obvious that MJMEUC is only onboard the Grain Belt Express for pure and simple greed. MJMEUC's analysis of how much it would "save" in this deal isn't even logical. To begin with, the only meaningful means to determine what MJMEUC might have saved by using the Grain Belt line is to compare MJMEUC’s total cost of power from that line to MJMEUC’s next best alternative at the time it signed the contract with Grain Belt. The problem is, before MJMEUC signed the TSA with Grain Belt, it did not bother to solicit bids from any other party to replace the expiring Illinois coal contract. Therefore, neither MJMEUC nor anyone else will ever know what the best alternative would have been to signing the TSA with Grain Belt. MJMEUC's greed has failed the ratepayers it supposedly serves by foregoing any real opportunities to replace the Illinois coal contract, and instead pinning its hopes on a transmission project that will never happen. The time to get a good deal is ticking away and MJMEUC may end up paying much more when GBE never materializes and it's forced to take what it can get at the last minute. A bird in the hand is worth two in the bush, isn't it? At least that's the rule most of us live by. Showing your resolve by sticking with an impossible pipe dream is for personal pursuits, not utility decisions. MJMEUC should be making decisions based on ratepayer interests when it considers both cost and risk. While the cost of renewable energy could be "cheaper" with GBE, the project is so fraught with risk that other viable alternatives must be explored, lest the ratepayers take it in the shorts while MJMEUC is sticking its head in the sand and mumbling greedy platitudes. MLA also tackles the audacity of GBE, who presumes the PSC will necessarily be obligated to approve its sale to Invenergy because it has relied on the finances of Invenergy to issue a permit to GBE. In short, all of the cases cited by Grain Belt on this issue merely support the reliance on the resources of Clean Line, and not those of a third party with no ownership in the Applicant. Thus based on Grain Belt’s own analysis, it is asking the Commission to take a position here for which there apparently is no precedent. Chicken, egg. The approval of the sale HAS TO come before the consideration of Invenergy's finances as the owner of the project. Until the sale closes Invenergy owns nothing. And it's not even as if the Commission can control all the variables here to ensure that the sale happens. The sale is also contingent upon the approval of the Kansas Corporation Commission. I'm pretty sure the MO PSC will have disposed of this matter long before the KCC issues a decision on the sale, even if it expedites the matter. The Commission simply cannot rely on ownership that doesn't exist and over which it can have no control. Monday morning quarterbacking isn't going to cut it with a court. And then there's the issue of whether or not Grain Belt Express is economically feasible. When it was supposed to connect with the PJM market at least there was a pretense that it could, hypothetically, be feasible if buyers in PJM wanted to pay high prices for service. But reality is that Grain Belt Express is not going to get anywhere near PJM any longer. It absolutely WILL NOT be approved through Illinois. There's too much judicial history here that cannot be avoided. The court didn't believe that an entity that did not serve all customers equally could be a public utility under state law and existing precedent. It doesn't matter how much "utility property" GBE wants to buy in Illinois, it cannot be a public utility because of its business plan and rate scheme. End of story. This is an argument that Staff, GBE and its sycophants are pretending not to understand. Either you're all as dumb as a post, or you're merely pretending not to understand in the hopes of leading the Commission astray from the real argument. You don't have anything, anything at all, to counter MLA's argument that GBE is not a public utility, do you? Here it is again... right here. Read carefully. 1. A public utility must serve all customers who request service, even if it means expanding its facilities. 2. A public utility must charge the same rate to all similarly situated customers. It cannot charge different rates to identical customers. Therefore, GBE is more likely to terminate in Missouri. Grain Belt supports its position on this issue primarily with broad generalizations about the market for wind generation. And while it contends that “the economic feasibility of the Project continues to be strong”, it does not even attempt to make a case for the economic feasibility of the Missouri segment of the line, without access to the PJM market. So, let's think about this... if GBE terminates in Missouri, it would mean an engineering change that would purportedly require another trip before the Commission, if certain conditions are ordered. And what would the Commission do with a permitted project where the route completely changes? Would it require re-application with notice to newly affected landowners? Or would it merely try to alter existing permissions to fit a completely different project? And what if the engineering change is actually a business plan/rate structure change? Would that need to be re-examined? What if GBE changes into a generation tie line that doesn't need Commission approval at all? How does the Missouri PSC assert any authority over a project outside its jurisdiction? Perhaps GBE isn't a public utility subject to PSC jurisdiction even now. That sort of makes things, clearer, doesn't it?
I'm really finding it hard to believe that Invenergy wants to own a transmission project where it may sell capacity to its competitors and enable them to reach the more profitable PJM markets with their generation. Invenergy would have to be completely idiotic to do that. But yet the Commission is being asked to believe this story. Invenergy may be called a lot of things by its opponents, but stupid has never been one of them. So now this mess is in the hands of the Missouri PSC. Ample support has been provided to deny the application. The only thing approval would bring is another expensive trip through the courts. How much are the taxpayers of Missouri supposed to spend entertaining this greedy project? Stop the bleeding. In a letter sent to Governor Parson this week, citizens group Block Grain Belt Express Missouri advises that Grain Belt Express is not a public utility under state law and cannot be granted a permit to build a high voltage transmission line through Missouri. The granting of a permit by the Missouri Public Service Commission (PSC) would enable the company to exercise eminent domain for 95 percent of its route through eight northern Missouri counties. In testimony during December’s PSC hearing, GBE’s witness informed that it had voluntarily acquired only 39 of the required 739 easements needed across private property in the state.
“Utilities that do not serve the public do not qualify as a 'public use' deserving of eminent domain authority,” said Russ Pisciotta, President of Block GBE. The missive to the Governor warned of possible issues with federal rate authority if the project is purchased by wind energy giant Invenergy, which owns substantial generation assets that could benefit from a private electric highway across Midwestern states. Grain Belt Express will also not serve all customers equally, the group says, making it unlike other Missouri public utilities. “We look forward to working with the Governor as we continue to fight to protect landowner’s property rights from a private company seeking eminent domain authority,” said Rep. Jim Hansen. The Missouri Landowners Alliance has thoroughly briefed the public utility issue at the PSC last week, linking state law with legal precedent to determine that the PSC has no authority to issue a transmission permit to an entity that is not a public utility and won’t fully submit to PSC jurisdiction. Block GBE ended its letter thanking the Governor for his support of agriculture, and with a plea for his help to preserve their businesses, homes, and communities. Those were the words of SOUL representative Rob Danielson just after Judge Michael Newmark granted intervention to all the individuals who attended yesterday's prehearing conference at the Wisconsin PSC. Despite earlier clouds of smoke and "scary" letters with 18 pages of rules intervenors must follow, Judge Newmark said he had no choice but to admit all the intervenors who still expressed an interest as parties. Even ATC's attorney encouraged the judge to grant intervention to those requesting it, including those who didn't bother to show up for yesterday's hearing. Cue the suspicious glances. This guy is not your friend. He shared that he plans to file data requests on each and every intervenor just to find out what their interest in the case is, and if they will be calling witnesses. I hope that's all there is to it, because as I recall, ATC seems to have a history of abusing the discovery process when faced with a crowd of pro se intervenors. ATC works hard to silence its critics. Besides hiring police to keep dissenters out of its meetings, the company seeks to discourage ordinary citizens from taking part in the Public Service Commission's review process. That tactic probably isn't going to work this time. The judge already raised the issue, saying that ATC could not ask intervenors the color of their dog, for example, because it has absolutely nothing to do with the matter at hand. Intervenors need to remember what's on trial here -- ATC's transmission proposal -- and not the actions, beliefs, or lifestyles of the intervenors. When ATC gets a little too nosy, intervenors can simply object to the question. It would then be up to ATC to file a motion to compel and try to convince the judge to force the intervenor to answer. Judge Newmark is serious about justice and due process. He did nothing yesterday that leads me to believe otherwise. Intervenors should get a fair shake from Judge Newmark. However, intervenors need to strive to follow the rules and deadlines set by the judge. One topic the judge raised yesterday was intervenor testimony. He seemed quite worried that testimony would be a mess and after ATC refused to help him out, the judge said he would develop his own questions and sample testimonies for benefit of intervenors. I think it was ATC's attorney who suggested merely supplying a copy of correctly concocted testimony as an example. The absurdity of testimony Q&A is never quite as sharp as when concocted by pro se intervenors. Correctly formatted testimony consists of a question asked by some mysterious, unnamed party, which the witness answers in written form. Except with pro se parties, they are asking their own questions and playing Q&A with themselves. (Don't worry, the lawyers for the utilities are playing the same game, they just don't like to admit it.) Once you get over the stupidity of playing Q&A with yourself, testimony must be double spaced on numbered lines on numbered pages. (Your word software should be able to do this for you if you ask it to... look it up if you don't know how). Why? It's always important to know why you're doing something that seems odd and useless. It's so your testimony can be correctly cited during the hearing and briefing. Instead of saying "...that part where he says he caught ATC's attorney going through his trash can..." everyone can simply reference Page 5, Lines 15-17, of Intervenor Suzy Q.'s testimony. You'll fully appreciate this when it comes time to write your own brief. “This is a work in progress,” [Judge Newmark] said. “Really the first time we’ve had this many parties.” A new window of democracy opens in Wisconsin. All that fresh air is going to be exhilarating. Any person, especially an attorney, who values their own convenience and personal grudges over democracy should probably question their life choices. Democracy won the day!
All eyes toward Wisconsin this week as the Public Service Commission holds a "prehearing conference" on January 3 for the purpose of sorting the more than 50 intervenors to the Cardinal Hickory Creek proceeding. On December 10, Administrative Law Judge Michael Newmark sent a letter to all intervenors calling the conference and explaining the rights and duties of intervenors... well, most of them anyhow. I have great empathy for Judge Newmark. It's not going to be easy to manage this number of parties and still adjudicate this case efficiently. I get it. But not allowing due process for landowners and citizens affected by the Cardinal Hickory Creek transmission proposal is simply not an option. Judge Newmark is walking a tightrope between efficiency and due process. What he decides at the prehearing conference will overshadow this proceeding as it moves forward through the evaluation process, and beyond. However, I think Judge Newmark leaned a little bit too much toward scare tactics in his letter. Yes, being an intervenor is a serious process, and those who intervene pro se have a steep learning curve. However, pro se intervenors are not held to the same standards as attorneys. There's a big amount of give and take here... if an intervenor makes a valiant effort to comply with rules and regs and comport themselves professionally, then they should be allowed to fully participate, with procedural guidance from the judge along the way. It's the least a judge can do for a citizen who faces the economic harm of eminent domain on his property. Yes, "...although a party may represent oneself, most parties hire an attorney for that purpose." However those who cannot afford an attorney may represent themselves, and it happens with increasing regularity in transmission line proceedings. Judge Newmark provides an exhaustive list of Additional Ordered Conditions for Contested Case Proceedings which is nothing more than a rule/style primer for intervenors. However I believe it is meant to be intimidating, instead of helpful. No intervenor needs to know all these things up front -- it's overload. Each little section can be applied when needed (and not all these things are required, in fact most intervenors will never do all these things). Judge Newmark tries to steer intervenors towards "a more effective way for you to participate". Judge Newmark thinks it would be more "effective" for the majority of the pro se intervenors to make public comment instead. He describes it as "...an opportunity to express your opinion on the project in a formal, but limited way." Limited. Instead of a participating party, the intervenor would be just one of a sea of faces making public comment which may or may not receive considered notice. In the 10 years I've been doing transmission work, I have NEVER seen an ALJ cite any individual public comment testimony in his decision. Instead it gets grouped in the catchall "public comment." Is this where you want your property rights noticed? In a lump sum of people who object to the transmission project for various reasons? Pretty cavalier treatment for the taking of private property for "public" use. While the PSC may only decide whether to approve or disapprove the project and grant the ability to take property via eminent domain in general, this is the turning point that decides to wrest your property from you against your will. You may still participate in the taking of your individual property in a future court proceeding, but by that time it's only about how much you may get in compensation, not whether or not the transmission owner may take it in the first instance. And it's not all about monetary compensation, although most courts hearing eminent domain cases believe that's the sole purpose. There's so much more that can go into an easement than mere monetary compensation. Judge Newmark lists some of the rights that come with intervention and party status. Approval of a request for intervention makes the requester a “party” to the proceeding. A Commission proceeding is a formal legal action, and becoming a party to that action confers certain rights and expectations. For example, party status confers the rights to: (1) acquire evidence from other parties; (2) offer expert testimony; (3) cross-examine expert witnesses; and (4) present a written argument. It seems that Judge Newmark has left one very important thing out... only a party may ask for rehearing or appeal the decision of the PSC in the courts. If you voluntarily give up party status in favor of public comment, you're stuck with the PSC's decision. You cannot appeal if you're not a party. Therefore, unless you expect that the PSC is going to decide in your favor (and when has this ever happened?) you've given up your right to appeal a decision with which you don't agree. Use caution when abandoning your legal rights! Judge Newmark has proposed "grouping" of intervenors. It's as if he expects laypersons to practice law without a license and represent the rights of others before the PSC. The Judge suggests that SOUL of Wisconsin can represent the interests of a "group" of intervenors who filed similar petitions to intervene. I looked at SOUL's request to intervene and I don't see the appearance of counsel. And why should SOUL have to pay an attorney to represent the interests of separate parties if it chooses not to break the law and practice law without a license? Only a licensed attorney can represent the interests of others. SOUL says: “We are perplexed by the Judge’s idea that a not-for-profit organization could represent the detailed interests of numerous, unique, households-- not to mention those of six municipal governments with elected leadership,” observed Keith Ashley Wright, President of SOUL. That's exactly right. SOUL cannot represent the property concerns of individual landowners as a group, and it certainly cannot represent the rights of municipal governments with elected officials. The idea of that is absurd (and also illegal).
Judge Newmark also seems concerned about a group of landowners who intervened by snail mail. Perhaps he didn't notice what I did when perusing the list of intervenors in this group. These intervenors are Amish. They don't have computers. They cannot participate electronically. By attempting to force these intervenors to participate electronically, the Judge would be infringing on their religious freedom. I'm pretty sure justice isn't reserved for only those religions who permit the use of electronic devices. I'm guessing there are numerous ways that these intervenors may be permitted to exercise their due process rights as their religion allows -- from having their filings directed to a PSC staff person who may upload them electronically, to preparing a separate service list for this small group of individuals who must be served by U.S. Mail. It's a test of Judge Newmark's ability to protect the legal rights of the citizens of Wisconsin while still maintaining control of his court room. If everyone approaches this dilemma with an open mind, and an open heart, I'm sure it can be accomplished. Opposition to new aerial transmission lines is nothing new. It's been around almost as long as the transmission lines themselves. Nobody wants to live with these things, but in the past they may have been a necessary evil, and in the past it may have been easier to overwhelm small communities to force an involuntary sacrifice. The people were sacrificing their home, business, health, sense of place and peace of mind for benefit of other people who needed electricity. We electrified the country in the last century. Mission accomplished. But today's transmission lines aren't needed for the same reasons. The vast majority of today's transmission proposals are for other reasons, such as cheaper prices for customers in other regions, or "cleaner" energy for other regions. It's no longer about bringing electricity to people without it, and it's not all about keeping the grid we have functioning and reliable. For today's transmission companies, it's also about profit. There's a fortune to be made constructing transmission and controlling new pathways to transport electricity further and further from its point of generation. Today's transmission opposition has also undergone a vast sea change from the small, disconnected community groups of yore. Now it's easy for small groups to connect with others and tap the experience of successful opposition groups, thanks to the internet. We communicate differently in this century, and communication is oftentimes the secret sauce of success. While transmission companies haven't changed their "best practice" tactics in decades, opposition is fleet and malleable. The secret hierarchy of opposition groups makes them quick to adapt, and even quicker to deploy new, winning tactics. The opponents are fighting with their hearts, the industry is fighting from a stale, dog-eared "playbook." It's just a job for the industry warriors. Personally, the only thing they get out of victory is a pat on the head, or maybe a bonus or promotion. Opponents receive the opportunity to maintain the status quo, at least until the next transmission proposal invades. They don't get a bonus. In fact, the only return on their investment may be gazing out the window and not seeing an ugly transmission tower. The transmission employee merely moves on to the next job... he can't see those towers from his house! It's all about motivation, and transmission opposition groups are racking up an amazing list of victories. It's simply no longer true that the transmission company wins every time. In fact, they're probably closer to losing most of the time when faced with organized opposition. Opposition is costing transmission companies a lot of money and often outright cancellation or failure of transmission proposals. This recent opinion piece from Transmission Developers Inc. (TDI) defends its project from the inaccurate characterization of its project from competing transmission company Central Maine Power (CMP). The two projects, both purposed to transmit hydropower from Quebec to Massachusetts, couldn't be more different. CMP proposes aerial lines and many miles of new right of way through the Maine wilderness. TDI, on the other hand, proposes new transmission that is underground and underwater, with no new overhead transmission lines. CMP is also a second attempt to build new aerial lines to satisfy Massachusetts' huge appetite for "clean" power generated elsewhere (Not In My Backyard, eh, Massachusetts?). Massachusetts' first choice was the ill-fated Northern Pass project through New Hampshire. When that project was rejected by New Hampshire, CMP was selected as the second choice. TDI gets no love from Massachusetts, who is only looking at the proposed cost, not the actual cost. TDI points out something very important in its letter: TDI, from the very beginning, took important community, environmental and aesthetic considerations into account when designing and siting the NECPL. TDI carefully chose underground technology specifically to minimize impacts on the people, viewshed and environment of Vermont. We recognized that the additional expense related to underground construction for NECPL was worth the alleviation of a multitude of genuine community and environmental concerns, and that the cost of any project can’t only be measured in dollars. But can it be measured in dollars? I think we can get pretty close! Opposition causes real expense.
1. Purchased advocacy. Transmission companies first knee-jerk reaction to organized opposition is to compete with it by purchasing advocacy. Front groups, advertising, and "donations" to advocate groups to win their favor cost money. How much? It sort of depends on how big a campaign the transmission company thinks it needs. It also depends on the size of the opposition. A bigger opposition requires larger expenditures to secure advocates. People who are willing to sell their community down river for benefit of an out-of-state intruder can be pretty pricey if they're likely to receive a lifetime of ostracized backlash from their neighbors. A transmission company can easily spend $10M or more on purchased advocacy. Cha-ching! 2. "Mitigation" payments to communities and community groups. This can be a huge expense! Transmission companies make agreements to "mitigate" their effect on local communities with monies paid to local governments, organizations, and business groups who are happy to push their community under the bus in exchange for cash. Local governments figure payments from transmission companies benefit the community as a whole, and some of them are amazingly cheap dates. Others not so much. Organizations and business groups are all about personal profit or concessions that benefit the group or organization, at the expense of the community. This is pure greed! A transmission company can shell out at least $100M in "mitigation" payments to governments and groups that drive a hard bargain. Cha-ching! 3. Increased regulatory costs. Opposition in the regulatory process costs money. A transmission company must spend more money on legal fees, experts, and bogus "studies" to be submitted as evidence in the regulatory process. A transmission company may also shell out a whole bunch of money to purchase the best political influence on the regulatory decision. We're talking hundreds of millions of dollars in this category alone. Cha-ching! 4. Permitting delays. Time is money, and good opposition can cause increased permitting delays. An uncontested application can sail through the regulatory process in record time. A contested application drags on and on and on. How much does delay cost? Over a month? Over a number of months? Over a year? Over a number of years? Opposition permitting delays are usually of the "years" category of delay. The cost of delay to the transmission company can vary. With a merchant project, the entire cost of the delay and value of the sunk investment is on the company. This is hugely expensive. With a ratepayer guaranteed, cost-allocated project it still costs just as much, however ratepayers are picking up the additional costs of delay, and paying the transmission company for the cost of its investment during the process. While the costs are the same, it's all about who pays. In the case of the merchant New England projects, the cost is on the company. Cha-ching! 5. Permitting failure. It's reasonable to plan that a merchant transmission project may fail entirely after shelling out the money noted in the four previous categories. In this case, the transmission company is left with nothing but a huge debt and some pretty angry investors. Example: The Clean Line merchant projects that spent over $200M in "development" costs and then failed to receive enough permits to build (and couldn't find any customers to pay for the projects, which was another huge factor in the failure). Cha-ching! A transmission project buried on existing public or private rights of way (such as roads or railroads, or under large bodies of water) that doesn't cross privately owned land, and doesn't use eminent domain, doesn't create the same kind of expensive opposition. A project without opposition can avoid the expense of opposition, and as we've discussed, opposition costs money. Lots of money. A buried project may cost more to build, but it provides the kind of regulatory and price certainty that transmission companies need. The odds are good that a buried project will be approved and built, whereas an aerial project with entrenched opposition will probably not be approved and will never be built. Any customer who looks solely at price when considering competing transmission proposals fails to realize that after the cost and risk of opposition is added, they're going to end up paying the same, or more. They may also experience the cost of failure. Opposition is too expensive. Choose the buried option. I'm a huge fan of landowners participating fully in the regulatory process. I encourage them to file testimony, because they are the preeminent experts on their land and their business. I'm thrilled when I see landowner testimony, and the testimony of Barron Shaw is a well-written account of what it would be like to be trespassed by the Transource Independence Energy Connection. Mr. Shaw is the owner and operator of Shaw Orchards. He also lives on the property, which has been in his family for generations, since the early 1800's. More than 100 years ago, Mr. Shaw's ancestors started commercial operations as Shaw Orchards. Being a farmer is not an easy life, but yet these brave souls do it anyhow. Farming is hard. And the farming of orchard crops is arguably the most difficult. Every time it rains during the period of April through July, my apples are at risk from disease, requiring frequent and expensive protective chemicals. We have experienced two major exotic pests in just the last 6 years, with Brown Marmorated Stink Bug, Spotted Wing Drosophila, and a third pest, The Spotted Lanternfly, which has spread to the next county will arrive next year if it is not here already. Most of the apple varieties we produce on the farm are worth little more now than they were 30 years ago, while labor, chemicals, and insurance, our three biggest expenses, have increased significantly in that time. The labor supply for the hard fieldwork is almost non-existent, and our crew size shrinks each year. My wife and I work an average of 12 hours a day, six days a week, from mid-March through November each year. We do not have a summer vacation. Shaw Orchards grows and sells fruit and other crops, both wholesale and retail. But the retail business and pick-your-own-sales are by far the most profitable, producing a return 300-1300% over wholesale prices. Mr. Shaw concludes he would be out of business if he did not have a successful direct-to-consumer operation. And what will Transource's new 130-foot right-of-way across Shaw Orchards do to Mr. Shaw's business? It will make it a less desirable location for consumers. It should come as no surprise that many customers who seek out family farms to buy fruit and vegetables are concerned with their health, and the health of their families. A large proportion of the population has concerns regarding the health effects of high voltage lines. Put simply, it doesn't matter what I think about the health effects of high voltage lines, if my customers believe that they are dangerous, then their presence will cost me money, either from people refusing to pick near them, or because they don't want food that is grown near them. Perception is reality when it comes to the effects of proximate high voltage transmission. No amount of electric industry studies, or overpaid stuffed suit "scientists" with utility-financed opinions can change perception. And besides, it's impossible to prove a negative. The electric industry simply cannot prove that high voltage lines do not have any detrimental effects on people and animals. And, wait, that's not all. The Transource IEC project will also cause a dangerous possibility when sited overhead of Shaw's existing irrigation system. We use permanently sited irrigation in many of our fields, including the field that lies under the proposed power line. There are not only concerns about damage during construction, but concern that after construction is complete, an accident in the field could cause water under high pressure to jet into the line. Is this an acceptable risk for the Shaws, who will not benefit in any way from the Transource project? No, it's not. And that's not all... the Food Safety Modernization Act requires Shaw Orchards to comply with food safety regulations related to contaminated fresh produce. Mr. Shaw has documented flocks of Starlings roosting on a nearby power line during migration. If the Transource line is built across Mr. Shaw's fields, birds will sit on it. And what do birds do? They poop. A lot. Even the most feeble minded among us knows that if you park your car under a tree, power line, or other overhead roost, you should expect to find it covered in bird poop. Now, who wants to eat fresh produce that's been pooped on? Nobody. And besides, it's illegal for Shaw Orchards to sell this contaminated fresh produce. It is not advisable to site power lines over fields of produce. And what else? The farm uses helicopters to spray crops, and it also uses drones. Examples of future drone usage include counting fruit tree blossoms to predict fruit load, and looking for insect infestations before they grow large. A transmission line crossing fields makes use of these tools impossible. The largest part of Mr. Shaw's property is preserved by Maryland's Agricultural Land Preservation Foundation (MALPF). He may never use the land for anything other than agricultural purposes. If Mr. Shaw wanted to run an electric line through his property to serve a future development, he couldn't do it. However, if Transource wants to run an electric line (and not just any electric line but a double-circuit 230 kV monster) through Mr. Shaw's property to serve electric consumers in Washington, D.C. as cheaply as possible, that's okay? Preserved land should be off limits to ALL development. And to make matters worse, if Transource is successful in taking a right-of-way through Shaw Orchards, it must compensate the MALPF for the amount it paid for the conservation easement. Mr. Shaw would receive a one-time payment for the agricultural value of the land within the easement, although that land would be encumbered in perpetuity and impacts to his business would be devastating and permanent. And here's a story about Transource's coercion tactics that simply must be told. On August 9, 2017 Transource held an open house at Norrisville Elementary School. I arrived between 30 minutes and an hour after the event began. As I walked in from the parking lot, I was immediately recognized by a citizen who took me by the arm and asked if it was true that the Shaws were negotiating with Transource. I was confused, and said we had not even spoken to Transource. She told me that Transource had been telling people that “the Shaws are onboard” and that we were negotiating during the meeting. I asked her to take me to the person who told her that. On the way into the building, I was recognized by Transource’s Public Affairs person, Mary Urban (whom I had never met in person). She tried to welcome me, but we continued together into the event and met the Transource representative who had been spreading the rumor. He confessed to stating that he believed we were negotiating. I told him in no uncertain terms that my family was not negotiating and that he must stop spreading rumors about me and my family. I admit to raising my voice. He was ushered out of the room by other Transource people. Wow, Transource, your audacity knows no limits! You have demonstrated that even with your pretend "Internal Practices for Dealing with the Public on Power Line Projects," your employees will do whatever they want. If I expected the perpetrator of this audacious act to have been fired for his gross and flagrant violation of Transource's "Internal Practices," I'd probably be wrong. But why not? It's almost like Transource (well, really AEP, since Transource has no employees of its own) encourages violation of its practices if it helps the company reach its goal of signing easements. There is nothing too dirty or disingenuous for AEP! Mr. Shaw also makes a few observations about need for the project that are stunning in their logic and simplicity. While PJM and Transource are scrambling to keep the public confused about the project so they remain in the dark, clear messages are so desperately needed. In an editorial published in local papers on 9/21/18, PJM Vice President of Planning Steve Herling stated the core justification of the IEC: “After all, it would not be fair for customers in one area to consistently pay higher prices than others do simply because the system's design prevented some customers from accessing the lowest-cost electricity.” The implication of this statement is that all customers are entitled to the lowest-cost electricity possible. There is no assertion here that there is any law, regulation, constitutional guarantee, or even a policy that would indicate that there is something wrong with the status quo. Instead, he says, “it would not be fair.” This project is predicated solely on the assumption of an entitlement that is documented nowhere. And this: Large-scale transmission intended solely to decrease Locational Marginal Price (LMP) has the adverse effect of discouraging investment in generation capacity in the destination market. Maryland imports 47% of their electricity, and Washington DC imports 100%. For each megawatt that is imported into the state, the decreasing price provides less incentive for generators to make an investment in the state. PJM cannot order generation, therefore it orders transmission. Generation is left to market forces which are never allowed to work before PJM proposes a transmission line to obviate any new builds. This system is broken and in desperate need of fixing.
Transource IEC is hardly a harmless infrastructure project for the Shaws and Shaw Orchards. The impacts will be prolonged and severe. The project will require Mr. Shaw to completely change his operations in and near the proposed new transmission right-of-way, and hopefully recover at some point in the future, while sustaining an instant loss. For these impacts, Mr. Shaw and Shaw Orchards will not be compensated at all. Instead, he may be compensated for the value of the land, not the value the land provides year after year. And if the Transource IEC is not built? What will be the impacts to others? They may pay a few pennies more on their electric bills, according to PJM. There's nothing "fair" about that. |
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
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