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The Dirty Underbelly of Clean Line Energy Partners

8/26/2015

7 Comments

 
Ever heard the idiom "qui cum canibus concumbunt cum pulicibus surgent."  Probably not, but you must be familiar with its English translation, "when you lie down with dogs, you get up with fleas."  Clean Line has recently exposed its dirty underbelly by publicly scratching its fleas.

Clean Line is now a proud "member" of the Consumers Energy Alliance (#25 under "Energy Providers and Suppliers").

What is the Consumers Energy Alliance?  According to SourceWatch:
The Consumer Energy Alliance (CEA) is a nonprofit organization and a front group for the energy industry that opposes political efforts to regulate carbon standards while advancing deep water and land-based drilling for oil and methane gas. The CEA supports lifting moratoria on offshore and land-based oil and natural gas drilling, encourages the creation and expansion of petroleum refineries and easing the permitting process for drilling. The group also says it supports energy conservation. CEO portrays itself as seeking to ensure a "proper balance" between traditional non-renewable and extractive energy sources and alternative energy sources. The group also supports construction of the Keystone XL Pipeline.

According to Salon.com, which obtained over 300 emails of personal messages between lobbyists and Canadian officials, the CEA is part of a sophisticated public affairs strategy designed to manipulate the U.S. political system by deluging the media with messaging favorable to the tar-sands industry; to persuade key state and federal legislators to act in the extractive industries' favor; and to defeat any attempt to regulate the carbon emissions emanating from gasoline and diesel used by U.S. vehicles.
So, the CEA is a well-known front group for the fossil fuel industry?  But, wait a tick, I thought Clean Line was all about "clean" energy and shutting down the fossil fuel industry?  Money makes strange bedfellows.

What is a front group?

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. The front group is perhaps the most easily recognized use of the third party technique. For example, Rick Berman's Center for Consumer Freedom (CCF) claims that its mission is to defend the rights of consumers to choose to eat, drink and smoke as they please. In reality, CCF is a front group for the tobacco, restaurant and alcoholic beverage industries, which provide all or most of its funding.

Of course, not all organizations engaged in manipulative efforts to shape public opinion can be classified as "front groups." For example, the now-defunct Tobacco Institute was highly deceptive, but it didn't hide the fact that it represented the tobacco industry. There are also degrees of concealment. The Global Climate Coalition, for example, didn't hide the fact that its funding came from oil and coal companies, but nevertheless its name alone is sufficiently misleading that it can reasonably be considered a front group.

The shadowy way front groups operate makes it difficult to know whether a seemingly independent grassroots is actually representing some other entity. Thus, citizen smokers' rights groups and organizations of bartenders or restaurant workers working against smoking bans are sometimes characterized as front groups for the tobacco industry, but it is possible that some of these groups are self-initiated (although the tobacco industry has been known to use restaurant groups as fronts for its own interests).
Front groups are formed and managed by well-paid public relations/lobbying firms.  They are paid for by the industry.  The CEA is managed by HBW Resources.  The group has been "conducting a grassroots operation" in "target states" that would "generate significant opposition to discriminatory low carbon fuels standards" that were created to address climate change.

The term "grassroots" means ordinary people with no financial interest in the proposal at hand.  CEA is not a grassroots organization.  It is funded and directed by the corporations that pay HBW to run it.

But now the CEA  has a new "initiative" to support Clean Line Energy Partners.  The "initiative" supports Clean Line's Plains & Eastern Clean Line.
“Unfortunately, virtually all energy projects face at least some level of opposition. But, in most cases, the opposition comes from the vocal few who stand in the way of the silent majority who see these necessary projects providing tremendous job and economic development opportunities on many levels. The EDJ Alliance will help taxpayers, energy consumers, landowners and businesses to voice their opinion to elected officials so that they embrace the opportunities associated with energy development.”
Vocal few?  Silent majority?  You mean landowners and consumers who object to the Plains & Eastern project vs. Clean Line Energy Partners?  CLEP is hardly silent (paid mouthpieces like HBW stand in evidence) and it's certainly not any kind of "majority" in Arkansas.  In addition, CEA does not represent any actual "consumers" or other "grassroots" interests.  It simply pretends to speak for them.

Like this:
Support landowners in Arkansas and Oklahoma!  Support energy infrastructure!  Support the Plains & Eastern Clean Line!

We need your help!

America's energy infrastructure needs your help!  Lobbying efforts at the white house level have inhibited the passage of an energy infrastructure project beneficial to citizens and landowners in Arkansas and Oklahoma!

........

Support energy infrastructure, land owners, and the Plains and Eastern Clean Line project by simply clicking the link below to sign the petition!  Every click makes a difference!

It is absolutely imperative to demonstrate support as a citizen!  The future of America's energy infrastructure is in your hands!!
When a couple of the landowners CEA claims to represent questioned the group's claims, HBW promptly removed the claims from its facebook page.

How stupid does HBW think the American people are?  Do they ever type a sentence that doesn't end with one (or two!!) exclamation points?  This is ridiculous, ineffective drivel.  C'mon!!!!!!!!

What "lobbying efforts at the White House level" have inhibited "passage" of an energy infrastructure project?  Do you mean the DOE's consideration of Plains & Eastern's Section 1222 application to "participate" in the project in order to override state authority to site and permit transmission?  That decision won't be made until next year.  And it's supposed to be made by DOE secretary Ernest Moniz, not the "white house."  Does HBW and Clean Line know something about some dirty dealings that the rest of us aren't privy to?

So, who are the faces of CEA's "initiative?"

Ryan Scott, Outreach Director

Since 2005, Ryan has provided strategic advice to clients across a number of industries with a focus on the oil and gas sector in particular.

While working as an attorney, before joining HBW, Ryan focused on commercial litigation, often representing business clients in contract disputes.  Prior to practicing law, Ryan worked at Deloitte & Touche’s Strategy & Operations Consulting practice.  While with Deloitte, he worked with clients such as Bristol-Myers Squibb (BMS), developing and delivering Financial Reporting & Legal training to a BMS executive team.  Ryan evaluated Finance function processes to improve and transform them leading up to a major SAP implementation for Wal-Mart.

Ryan received a B.A. in Economics from the University of Southern California, and a JD – MBA from Case Western Reserve University in Ohio.  Ryan is licensed to practice law in Illinois and is a member of the Illinois State Bar Association.
Here's Ryan Scott trading papers with Clean Line public relations "manager" Amy Kurt at the second Mendota Illinois Commerce Commission public forum in the fall of 2013:
And here's Ryan Scott interacting with the ICC judge at the forum:
Here's what Ryan Scott had to say about the Rock Island Clean Line at the forum:
MR. SCOTT: My name is Ryan Scott;
R-y-a-n, S-c-o-t-t. I'm here as a resident of Illinois and representative of Consumer Energy Alliance. We're a trade association representing virtually every sector of the economy from trucking, to organized labor, to energy producers. The reason I'm here to speak in favor of Rock Island is simple. Consumer Energy Alliance and I support this project because it represents an important piece of the energy puzzle to supply consumers with affordable and reliable energy.  Anyone who plugs in their smart phone into an electrical outlet, fires up their television to watch the Bears or perhaps a better football team or just uses their air conditioner will benefit from this project. The bottom line is in the United States demand is increasing. As one of the previous speakers stated, according to the Department of Energy and Energy Information Administration, forecasts of 25 percent increase in demand for electricity over the next three decades are expected in the United States. At the same time, the supply of electricity is expected to decrease due to aging plants and tightening Federal regulations. Many coal-fired power plants will be shuttered in the coming decades. In Illinois coal, which we expect to be decreasing in production, actually makes up approximately 40 percent of the State's energy base level. So that's an important piece of the puzzle that will no longer be available to Illinoisans. For all the reasons stated above and in order to meet Illinois' energy needs, the Consumer Energy Alliance and I support the Rock Island Clean Line project. Thank you.
That's funny.  Ryan didn't mention that Clean Line Energy Partners is a member of the CEA.

Who does Ryan Scott work for?  It's not CEA or its "initiative," it's HBW Resources.  HBW doesn't do anything for free, so I believe that Ryan was paid to appear at the ICC forum and make that statement.

Didn't Clean Line have the opportunity to present its case to the ICC as the applicant?  Why, then, did Clean Line feel it necessary to have paid speakers posing as third party "consumer" interests supporting its project at the forum?  Did Clean Line think it was fooling the ICC into believing that consumers supported RICL?

And now Ryan, HBW, and its new "initiative" think they're fooling a whole new bunch of folks at the "white house" and in the Mayberry towns of Arkansas and Oklahoma?

I wonder what Clean Line's big green supporters think about its getting into bed with fossil fuel interests in the CEA?  At what point are these environmental fools going to conclude that Clean Line isn't about "green" energy, but a different kind of $green$?

And, as far as Clean Line's attempted deception about the "benefits" of the Plains & Eastern Clean Line?  Report to your battle stations, Mayberry!  We're going to have some fun!   You've got to get up pretty early in the morning to fool a farmer.  Also an idiom you've probably heard.  Not translated into Latin.
7 Comments

Grain Belt Express Has Not Proven It Serves The Broader Public Interest

8/1/2015

8 Comments

 
I have a declaration to make.  Clean Line Energy Partners doesn't represent my interests.  I'm pretty sure they don't represent the interests of any other eastern state ratepayers or the eastern states themselves, either.  It's all just a bunch of "royal we" smoke and mirrors where Clean Line attempts to speak for others who aren't present and don't necessarily agree with them.  "Me and my imaginary friends..." has no place in a court of law.

That's pretty much the basis for Clean Line Energy's application for rehearing of the Missouri Public Service Commission's denial of the company's application for a permit for its Grain Belt Express project.

The Kansas City Star continues its excellent coverage of the Grain Belt Express debacle with its story about the request for rehearing.
“The project is too important to Missouri’s energy future not to pursue,” Clean Line Energy officials said, adding that the state’s ruling also deprived the rest of country of low-cost, clean energy."
Where's the proof of that?  Who elected Clean Line to speak for "Missouri's energy future?"  Who elected Clean Line to speak for "the rest of the country?"  Nobody, that's who!

The Missouri PSC does have a role in determining "Missouri's energy future," however, and the "rest of the country" has not been actively participating in the case.

Clean Line's request for rehearing is a long-winded whine about the Commission not accepting its "evidence" at face value.  Clean Line also whines that, because it is not required to participate in regional transmission planning,  the Commission's consideration of federally-sanctioned transmission planning is somehow discriminatory.  Clean Line wants the PSC to ignore regional transmission planning when considering the "need" for a transmission project dreamed up for the sole purpose of enriching private investors.  This collateral attack on regional transmission planning organizations simply cannot be supported.

But Clean Line's main argument seems to be to hide behind the Commerce Clause to claim that Missouri's denial
"...
interferes with the flow of interstate commerce, be it through actions that overtly discriminate against interstate commerce through differential treatment of in-state and out-of-state economic interests, or through actions that impose a burden upon interstate commerce that is excessive in relation to the putative local benefits."

Commerce Clause?  Really?  I hope Clean Line wasn't expecting anyone to actually be afraid of this, and is merely wasting time in Missouri while posturing for its lobbyists in Washington, D.C., who could claim that allowing state authority to site and permit transmission is preventing needed transmission from being built.

Clean Line is not THE ONLY way to ship electricity.  In fact, it might not even be the most efficient or economic because it has not been vetted as part of any regional planning process.  It's not like Missouri has said wind cannot be shipped across the state on existing roads, or new roads that are proven needed by regional planners.  It's that Clean Line may not build a new, private, toll road to ship electricity across the state.

Clean Line seems to believe the Commerce Clause protects any private enterprise that wants to damage a state for its own interstate commerce profits.  It's really not that simple.

So, here are a couple of things Clean Line says in its brief that demonstrate just how little Clean Line cares about the rights of people impacted by its projects:

1.  "...because the narrow local interests that the Report and Order serves do not justify the burden that it imposes upon interstate commerce."  In other words, protecting the rights of Missouri property owners and electric ratepayers are less than the "interstate commerce" goals of Clean Line.

2.  "
The Commission never considered the substantial uncontested evidence on the record of renewable energy demand and RES requirements of other states, and the substantial public benefits the Project delivers to other states. It also cited to the concerns of individual Missouri landowners -- but in the application of the Tartan factors impermissibly weighed those concerns only against the potential benefit to local interest, as opposed to the broader regional and national interest -- in concluding that the evidence shows that any actual benefits to the general public” did not justify approval."  Perhaps the Commission gave little weight to Clean Line's conclusory "evidence" of what other states and the broader regional and national interests require.  The concerns of individual Missouri landowners are real and came from the landowners themselves.  The "needs" of other states or the nation at large were not presented by any of these interests, only Clean Line pretending to speak for them as the voice of the national interest.  Clean Line, get over yourself!  When the PSC gave Clean Line the opportunity to present evidence that these national interests needed its project, the only thing Clean Line could produce was crickets.  Clean Line has no "other state" or "national interest" customers who need its "interstate commerce."

3.  "
The Commission’s finding that the Project would probably make Missouri-based wind projects less likely to be constructed is exactly the sort of economic protectionism that the dormant Commerce Clause prohibits. So too is the Commission’s criticism of the Company’s witness on economic benefits, who the Commission found did not address the displacement of jobs and energy production in Missouri due to the Project. Courts are highly alert to “the evils of ‘economic isolation’ and protectionism.... "  So, Clean Line believes that lost economic opportunities in Missouri are "evil" or should not be considered? Or that they must necessarily be less than the "national interest?"  If all local interests take a back seat to "national" ones, that's a pretty slippery slope!  I mean, we might as well just surrender ourselves to some world dominating corporation and let them do whatever they want.  Speaking of Evil, is the good Dr. in the house?

4. 
"The Commission’s denial of the Company’s CCN Application runs afoul of this element of Commerce Clause analysis because it unduly burdens the delivery of electricity generated by wind farms in Western Kansas not just to Missouri consumers, but to key markets in Illinois and Indiana. The Commerce Clause violation is as apparent in this instance as it would be if Missouri sought to restrict passage of cattle raised on Western ranches for shipment to stockyards in the East."  Again, it's not as though the MO PSC said no electricity (cattle) could pass through the state... it simply denied a permit for Clean Line to burden Missouri residents by building a new toll road to ship only certain electricity (cattle) across the state.  Cattle is perfectly free to use existing roads in Missouri to get to other states or anywhere it likes

5.  "
With the interests only of Missouri utilities and consumers in mind, the Commission made findings whose burden on interstate commerce clearly exceeds the local benefits. For example, the Commission found that Missouri had no need for the Project, and that the Project is not economically feasible, because utilities in the State could build natural gas fired plants and buy renewable energy credits.  Neither is a valid reason to deny Kansas wind producers efficient access to the market or to deny utilities and their customers the ability to benefit from the Project. And the putative local interests do not outweigh this burden."  So, the ONLY market for Kansas wind power is through Missouri?  Clean Line provides a "benefit" to utilities and customers?  Did Clean Line prove this?  I don't think so!  Clean Line doesn't have any customers!

6. "Indeed, any burden to local landowners would be small compared to the hundreds of millions of dollars of savings to Missouri and other states. The evidence shows that Grain Belt Express has agreed to compensate landowners for the fee value of their land, plus an annual payment, plus any economic damages to crops.  Even if, as a last resort, Grain Belt Express acquired an easement through a condemnation proceeding, Missouri courts would require that Grain Belt Express pay fair value."  Landowner burdens are "small"?  That sort of depends on if it's your land, doesn't it?  Who is Clean Line to determine the burden on landowners?  If the burden was ameliorated by Clean Line's compensation, why are the overwhelming majority of landowners opposing the project?  One could conclude it's because Clean Line's compensation doesn't even come close to making landowners whole. Clean Line also failed to prove the "hundreds of millions of dollars of savings to Missouri and other states."  The PSC did not find those claims credible.  How would Clean Line ever attempt to prove this claim, when it cannot set a price for electricity generated by others?  It can't even set a capacity price for its transmission line at this point!  There's simply nothing that shows evidence of "savings."

7. 
“The menace of inconsistent state regulation invites analysis under the Commerce Clause of the Constitution, because that clause represented the framers’ reaction to overreaching by the individual states that might jeopardize the growth of the nation— and in particular, the national infrastructure of communications and trade—as a whole.”  So, because all states don't have the exact same regulations governing siting and permitting of interstate transmission that somehow violates the Commerce Clause?  Or is this just a peek into the rationalizations of Clean Line's Washington DC lobbyists?  If every state was required to have identical laws, you might as well make transmission siting and permitting a federal process, right?  I don't think that's the intent of the Commerce Clause.

8.  "
The Commission’s actions here are equally likely to paralyze the development of interstate electric transmission to deliver low-cost renewable wind power from high capacity states to states lack renewable energy resources. The Commission’s stated local interests, confined to protecting Missouri utilities and consumers, do not outweigh (and in no way justify) its demonstrated effort to isolate itself from a growing national concern over the lack of such transmission infrastructure by erecting a barrier against the movement of interstate commerce. Indeed, given the shipper-pays nature of the Project and the evidence regarding the cost impacts of the Project, there can be no detriment to Missouri consumers because they will bear no costs unless a utility determines that the benefits of purchasing energy delivered by the Project outweigh those costs. Similarly, no Missouri utility is compelled to buy power delivered by the Project if it isn’t lower than the cost of other resources."  Paralyze the development of interstate electric transmission?  Hardly!  Plenty of interstate electric transmission is proposed, approved and built through the regional planning process Clean Line chose not to participate in.  Clean Line's proposals simply aren't viable, and the fault for that is entirely Clean Line's.  What states lack renewable energy resources?  I don't think there are any states that have no renewable energy resources.  It is not up to Clean Line to determine what kind of renewable energy resources states build and use.  That must violate some clause or another somewhere... And where's the "growing national concern over the lack of such transmission infrastructure?"  I don't think Clean Line has provided any evidence of that.  It's all just a bunch of vocabulary diarrhea.  Blah, blah, blah, we're speaking for everyone else here and we are what they want.  I don't think the MO PSC was fooled by that, just like the people weren't!

9. "There can be no harm to Missouri from having another option to supply power. Any perceived detriment to landowners is mitigated by the law that provides them fair and reasonable consideration. If there is a detriment to landowners, it is drastically outweighed by the hundreds of millions of dollars of benefits provided by the Project, the thousands of jobs that it creates, and the immeasurable ways in which it would advance the national interest in clean, inexpensive, renewable wind energy."  Wow, there they go again, throwing Missourians under the bus for benefit of the "national interest" that Clean Line pretends to speak for.  Who says the "national interest" outweighs the interests of Missouri landowners?  Clean Line?  Not.their.job.  Where's the proof of the thousands of jobs and the "immeasurable ways"?  Perhaps we could actually measure the ways in which Missouri would be harmed by this project?  Actually, I think that's what the PSC did here!  Nobody believes Clean Line is their altruistic economic electricity savior.  Nobody.  Save the drama for your mama (when you ask her to sign your petition supporting your project).

10. "It is clear that the Commission’s decision in this case was not even-handed, and that its exclusive and inaccurate focus on Missouri utilities, consumers, and landowners arbitrarily resulted in an application of the Tartan factors to the Company’s CCN Application that discriminates against the Project merely because of its interstate nature."  Actually, it was very even-handed.  The Commission listened to both sides of the argument and was not swayed by Clean Line's propaganda and attempts to purchase support for its project.  Nobody discriminated against Clean Line merely because of its interstate nature... it's simply a bad idea pushed by a bunch of disrespectful rich people for dubious economic reasons.

Block GBE-MO's Jennifer Gatrel hit the nail on the head when she characterized the company's request for rehearing as disrespectful:

“We continue to be disappointed by the lack of respect shown by Clean Line to landowners and citizens of Missouri,” opposition leader and farmer Jennifer Gatrel said Thursday. “They have been told no in every way possible and yet they persist in attempting to override the will of the people and the decision by our commissioners.”
8 Comments

The Only Thing Clean Line Is Dedicated To Is Its Own Profit

7/30/2015

0 Comments

 
The only news story to leak out of the Illinois Commerce Commission's three public hearings on Clean Line's Grain Belt Express project presents an opinion that is not factual.
"To bring Illinois forward in clean energy, we need dedicated direct current lines here in our state," said Taylorville's Patty Rykhus.
Wandtv.com, NewsCenter17, StormCenter17, Central Illinois News-
"Dedicated?"  Dedicated to what?  If Patty thinks Grain Belt Express is "dedicated" to clean energy, she's mistaken.  Electric transmission is "open access," and even though Clean Line asked the Federal Energy Regulatory Commission for permission to give preference to wind generators when assigning capacity on its project, the Commission denied their proposal.  Clean Line cannot be "dedicated" to any form of energy.

Does Patty think that HVDC lines bypassing Illinois will actually move "clean energy forward" in Illinois?  Where might she have gotten that idea?

GBE spokespuppet Mark Lawlor tries to tell the reporter "In the first five years of this line being in operation it will reduce wholesale rates by $750M."  Where's the proof of that, and why would he say such a thing?

First of all, the Missouri Public Service Commission recently examined the company's claim that the project would reduce wholesale rates in Missouri and rejected it.
The GBE production modeling studies do not support the GBE allegation that the Project would result in lower retail electric rates for consumers.
Let's hope the ICC does a similar evaluation.  Lawlor goes on that way because the promise of lower wholesale rates is the ONLY reason the ICC granted the company a CPCN for their Rock Island Clean Line project last year.  But the ICC did not find the project "needed," only that it might "...promote the development of an effectively competitive electricity market that operates efficiently...".

That still doesn't give Clean Line the eminent domain authority they seek in Illinois.  Maybe Patty should educate herself before making statements on TV that aren't factual.  And Lawlor should know better.

Dumping a whole bunch of "cheap" energy into a local market may have the initial effect of lowering prices through supply and demand, but Clean Line isn't selling electricity at wholesale.  Its entire business model is based on power purchase agreements between generators in Kansas and east coast utilities.  Lawlor leaves out quite a bit in his quest for the perfect (if not entirely factual) sound bite.

Big win for landowners in the story though.  Landowner Clint Richter clearly articulates the problem of using eminent domain for purposes of enriching investors speculating in "clean" energy markets:
Shelby County landowner Clint Richter said that, "it's not that we're not for renewable energy, but we're against a private company coming in and taking land that's ours for their own private gain and I think that's what is really happening here."

WAND-TV's Ed Cross asked, "why is that such a concern?"

"Well it's a concern because I think all of us know what it's like to work hard to save up money to buy land to something that's special and important to you and to have someone come in and basically say 'hey I want that, I'm going to take that land, and I'm going to make some money off it,' I don't think that sits well with a lot of people," added Richter.
That's what the viewers will take away from this story.  Way to go, Block-GBE Illinois!
0 Comments

How To Reach Out To Stakeholders by FERC

7/29/2015

3 Comments

 
In response to "stakeholders" following the trail of breadcrumbs that lead to 888 First Street, N.E., Washington, DC, FERC's Office of Energy Projects has come out with a "Suggested Best Practices for Industry Outreach Programs for Stakeholders."

*sigh*  Reads no better than any industry propaganda, beginning with its title.  Was FERC really attempting to mollify the public and prove that it's acting in the public interest with this?  FERC staff needs to take this brochure home to grandma and ask her if she thinks it was written in a conversational and informative manner.  She'll probably buy you some gigantic, ugly, 1940's-style underwear next Christmas in response.  Or knit you a suit jacket and pop into the office with cookies at random intervals to make sure you're wearing it.

FERC realizes that landowners are "stakeholders!"  Yay!  But it's all downhill from there.  While FERC recommends involving "the public" early in the process on the first page, venturing further shows recommendation that the company involve local elected officials before landowners, in order to "sell" them on the project (while making campaign contributions?).  In this way, the company can head off landowner concerns by indoctrinating the public's representatives in the "company way" so that when landowners find out about the project and turn to their local elected officials for help, there is none to be had.  Of course, this is easily turned around with enough landowner (voter) pressure, making early elected official notification sort of useless.

There's also recommendations for a whole bunch of "stakeholder" meetings, where only selected "key stakeholders" are invited to participate.  Landowners aren't invited to these, they only get to participate in public "open house" meetings, where they are presented with the project as a fait accompli.  FERC supposes involving "key stakeholders" can "result in developing partnerships with special interest groups, municipalities, and community business organizations."  Holy back room deal, Batman!  Is FERC suggesting that a company buy cozy relationships with certain community groups that can benefit from the project so that they can throw the impacted landowners under the bus for their own profit, or for the simple benefit of making sure the project is not constructed in their own back yards, but in the back yards of others who are politically powerless or not participating in this process?  Wrong approach!

This whole brochure fails because it's based on the "information deficit" model
.  It presumes that the only reason people oppose projects is because they lack enough information.  It supposes that if a person is bombarded with enough "information" (propaganda) that they will acquiesce to having their lives turned upside down for benefit of others.  It doesn't work.  Never has.  Never will.  It actually increases the potential for entrenched opposition and local political battles.

FERC obviously doesn't notice that it has placed itself squarely in the corporate camp.  Maybe they didn't intend to, but this brochure reveals who FERC identifies with... and it's not landowners.  FERC presumes a proposed project must be built as proposed.  FERC could use a crash course in how and why opposition develops.  Come out of your ivory (city soot coated) tower!  There's much to be learned!

Presenting the public with a project as a fait accompli is the first crucial mistake.  Nobody likes to learn that a company, or their elected officials, or the Sierra Club, or the Chamber of Commerce, or the "good ol' boys" in their town (or even FERC... especially FERC) have been secretly developing a project that takes their property.  People's property is sacred to them.  You might as well show up with a plan to conscript our children.  You'd never do that, right?  But it's the exact same punch in the gut feeling when a landowner learns others have been conspiring to take what belongs to him.

If you really want impacted landowners to get on board with a project, you need to involve them in the decision making from the start.  Instead of saying, "we need to build this," how about saying, "we have a problem and here are several ways to solve it, but we're open to suggestion"?

Only when the public gets some ownership of the decisions made are they likely to work cooperatively toward a solution.  This is a still a democracy, right?

3 Comments

Reply Briefs Filed in PATH's Long And Winding FERC Proceeding

7/24/2015

11 Comments

 
Today was the deadline for reply briefs in the matter of the Formal Challenges to PATH's rates as well as PATH's recovery of abandoned plant, which was heard by the Federal Energy Regulatory Commission back in March and April.

Here's what turned up:

Reply Brief of Keryn Newman and Alison Haverty

Reply brief of FERC Trial Staff

Reply Brief of the Joint Consumer Advocates

Reply Brief of PATH

Th... tha.... that's all folks!  Now we wait for the Presiding Judge to issue his initial decision on September 14.  The Judge's decision must then go before the Commission for approval.  Possibly more briefs (and replies) on exception at that time.

Now go enjoy summer!  I'm going to!

11 Comments

How Much Does It Cost To Bury Transmission Lines?

7/22/2015

6 Comments

 
Ask a transmission developer proposing a new transmission line and you'll get an answer in the neighborhood of 10 times the cost of an overhead line.  (Example: $1B overhead = $10B buried)

Ask an engineer for a company proposing an underground project and you get an estimate that burial would double the cost of a similar overhead line.
(Example:  $1B overhead - $2B buried)

I've been told both of these things.  So, who to believe?  Who might be exaggerating to serve their own purposes?

Apparently it only does "almost double" costs to bury HVDC transmission.
  That's what the Department of Energy concluded in its recently released draft environmental impact statement on the ill-fated Northern Pass project.

A complete burial of the Northern Pass transmission line would nearly double the project’s cost, but reduce potential negative impacts on the environment, tourism and local property values, according to a draft report released by the U.S. Department of Energy Tuesday.

While the proposed Northern Pass project — made up primarily of overhead lines strung between Pittsburg, N.H., and Deerfield, N.H. — would be the cheapest option at roughly $1.02 billion, it would also pose the greatest environmental and visual impact, the report says.

Four of the alternatives call for a complete burial of the transmission line. Another calls for partial burial beneath Interstate 93 through Franconia Notch, or along Routes 112 and 116 through the White Mountain National Forrest.

Five call for burial along existing roads and highways, options with the least environmental impact, the report says. All of the underground alternatives carry the highest costs, ranging from $1.83 billion to $2.11 billion.
But nowhere near a magnitude of 10 times the cost.  Liar, liar, pants on fire!

In addition, a buried line provides significant benefits over its aerial cousin.
The visual impact, which includes “large industrial-appearing lattice structures,” could negatively impact New Hampshire’s tourism and recreation, the report says. And the proposed overhead route likely would cause the largest drop in residential property values and have the least economic tax benefit to host communities.

Putting the line underground, as opposed to overhead, lessens the impact on tourism, recreation, historic resources and the environment, the review says.

Burying the line requires less vegetation removal and has fewer effects on wildlife, including protected species. The buried lines are less susceptible than the overhead lines to damage from extreme weather.

Construction of the overhead line would generate fewer short-term and permanent jobs than an underground alternative, the report says.
But wait...
But, the report says, blasting during construction would generate more noise than putting the lines overhead. And burial of the line would increase the potential for erosion.
Really?  That's the only drawback?  Noise from blasting?  So, how much "blasting" would Clean Line need to do to bury its proposed transmission lines across Midwest farmland?  Little to none?  What if much of the additional cost of burial was tied to blasting up the "Granite State" to create trenches?  And erosion?  I think that could probably be handled.  Once buried, out of site, out of mind, right?

C'mon, Clean Line, get with the program and re-engineer your projects as underground lines!  How much have you spent (and moreover how much will you have to spend in the future) trying to get your lines permitted?  It would have been much cheaper (in terms of both money and time) to have done the smart thing and proposed your projects as buried lines in the first damned place!

And don't give me any of that crap about how its technologically impossible to bury long lines.  The engineer who gave me the spot on double cost estimate also told me there is no mileage limit.  He's got a lot more cred than you do at this point...

How much does opposition cost?  How much does buying support cost?  How much does lobbying to change laws cost?  How much are a whole bunch of contested eminent domain cases going to cost?  How much do repeat or additional approval processes cost?

Clean Line says its currently proposed transmission line will only add something like 2.5 cents per kw hour to the 2.5 cent cost of wind energy.  So, even doubling the project costs, it's still possible to deliver at 7.5 cents/kwh, right?  Well, unless Clean Line has been lying about the delivered price of wind via its projects...

Maybe Clean Line's projects won't be "economic" enough to provide big returns to their investors without foisting some of its costs off onto bypassed landowners by taking land as cheaply as possible through condemnation and eminent domain?

We all know that the public's appetite for "green" energy only stretches so far as their wallet.  When faced with increased electric bills for "green" energy, the majority of the public will snap their wallet shut and oppose it.  So, why would this same public expect that Midwest landowners should accept economic sacrifice and burden to keep urban electric bills low?  It's only appealing when its been greenwashed and politicized, and none of that nasty infrastructure gets planted in THEIR backyard!

And... this question bubbles up... why does the DOE's draft EIS for the Northern Pass include multiple routing options that require underground lines when DOE's draft EIS for the Clean Line Plains & Eastern project proposed NO underground options?  Are the people and environment of Oklahoma and Arkansas worth less than those in New Hampshire?  Or is it just that Northern Pass has gotten bigger, politically-connected, push back and top-notch legal help?

It's about time to recognize that the public will no longer accept the burden of overhead lines.  Anywhere.  There's a better way.  "Green" energy costs more.  Deal with it.
6 Comments

Illinois Commerce Commission Advises Grain Belt Express Public Hearings Are For Directly Affected Citizens

7/20/2015

0 Comments

 
The ICC's press release about the upcoming Grain Belt Express public hearings makes clear who should attend the hearings:
The hearings are set in communities in the western, central and eastern portions of the state in order to reach out to Illinoisans who would be directly affected by the proposed transmission line. As proposed, the line would run through Pike, Scott, Greene, Macoupin, Montgomery, Christian, Shelby, Cumberland and Clark counties.
Hear that, Clean Line?  The hearings are for ILLINOISANS WHO ARE DIRECTLY AFFECTED BY THE TRANSMISSION LINES.  They are not for bussed in, hungry, college students (which are at a premium during the summer months anyhow), and they are not for flown in company executives who stand to profit from supplying components for the project.  They're probably not even for vans full of out-of-work union guys who have no specialized skills in building HVDC transmission lines.

So, there will be none of this:
And certainly none of this:
So, for those folks who ARE ILLINOISANS DIRECTLY AFFECTED BY THE TRANSMISSION LINES, this hearing "forum" is for you!

The forums will have two parts; the first part of the forum will be an opportunity for the public to provide oral and/or written comments into the record. This portion will last for 90 minutes and each speaker will have a 3-minute time limit. After the public comment portion, ICC staff will conduct an informal question and answer session.
The dates, times and location for the Public Forums are:
Tuesday, July 28 at 5 p.m. at the Pike/Scott County Farm Bureau office at 1301 East Washington in Pittsfield.
Wednesday, July 29 at 9:30 a.m. in the Pana Junior High Auditorium, 203 W. 8th Street in Pana.
Wednesday, July 29 at 4 p.m. at the Gerald R. Forsythe Performing Arts Center, Marshall Junior High School, 806 N. 6th Street in Marshall.
Don't let Clean Line steal YOUR seat at the forum!  Arrive early, sign in with the clerk if you wish to speak, and take a seat.

Note to Clean Line:  Don't embarrass yourself again.  Just.Don't.Do.It.
0 Comments

Sprouse Brothers v. Ziff Brothers

7/2/2015

8 Comments

 
... and this one goes to Sprouse!

We're still living in America, where money apparently can't buy everything.  And that's a cheery thought!

The Kansas City Star continues its excellent coverage of the Grain Belt Express debacle in the wake of yesterday's denial of the project by the Missouri Public Service Commission. 

The Star focuses on impacted Missouri landowner Loren Sprouse, who, along with his brothers, operates a farm in Caldwell County.  Read the article and watch the video here.
A week before the vote, Loren Sprouse — along with two brothers, he farms land in Caldwell County that’s been in the family since 1919 — said of Grain Belt: “This is a giant land grab by a huge company. They (Clean Line) are a private, for-profit company trying to masquerade as a public utility.”

After Wednesday’s vote, Sprouse said: “Now we can get back to the important business of feeding America.”
The Missouri PSC's Order denying Grain Belt's application mentioned:
Clean Line Investor Corp. is a subsidiary of ZAM Ventures, L.P., which is one
of the principal investment vehicles for ZBI Ventures, LLC. ZAM Ventures, L.P. has a consolidated net worth of $500 million based on U.S. GAAP measurements. ZBI Ventures,
LLC is owned by Ziff Brothers, a multi-billion dollar family investment fund.
The Order stopped short of revealing how much of this particular $500M chunk their multi-billion dollar fortune the Ziffs have invested in Clean Line's struggling projects, but Clean Line's recent application to the Illinois Commerce Commission revealed it's in the neighborhood of $70M.  That's nearly 1/5 of ZAM's fortune tied up in Clean Line with no hope of recovery if the projects fail.  Maybe this will give the Ziffs some empathy for the Sprouse brothers, who stand to lose a huge chunk of their investment if the project is built.

And let's think about that for a second... how much potential profit is in these projects for the Ziffs if they're willing to invest such a huge chunk of their fortune?  Will they recoup their entire investment if only one of Clean Line's five projects gets built? 

So, who watched the Missouri PSC meeting yesterday?  It was lovely of Mike Skelly and Mark Lawlor to choose seats that put them within range of the streaming video camera.  Everyone got to watch them lose!  Here's what it looked like:
Schadenfreude?  You betcha!

Skelly originally took his classic "arms folded" defiant pose while Lawlor awkwardly stood in the doorway with a hang dog expression.  I guess someone told them that their body language was unbecoming for the occasion, because Skelly switched to the "hands tightly clasped between his knees" pose and Lawlor sat down to take notes.  Although, in this shot, it looks like Lawlor is about to bolt from his seat and run screaming from the room. 

So, what did Clean Line have to say afterwards?  It took forever for them to issue a press release (because the victory one they probably had prepared ended up in the shredder).  Clean Line says:
...there appears to be some confusion at the Missouri Public Service Commission about how the project will benefit Missourians.
Confusion?  Hardly.  The MO PSC's Order was clear as a bell.  It weighed the evidence and made a decision that actual benefits to the general public from the Project are outweighed by the burdens on affected landowners.

Who does that Clean Line?  Who calls a state regulatory board "confused" when they don't get their way?  This isn't boding well for another application down the road...

The profit-seeking needs of the Ziff Brothers were outweighed by the burden the project proposed to the Sprouse Brothers.

What a great thought as we celebrate America this weekend!

And let's end with a final photo of Mike and Mark, who finally managed to have a word with each other as the meeting was ending.  What do you suppose they said?
8 Comments

An Energy History Lesson

6/28/2015

1 Comment

 
Federal energy agencies are a puzzle to most people.  FERC and DOE?  What's the difference?  Is there a difference?  What do these agencies do, and how can you participate in their processes?

It's helpful to start at the beginning, with the creation of these agencies.  The Department of Energy Organization Act of 1977 reorganized a hodge podge of federal energy departments to separate energy policy from energy regulation to prevent too much coziness and to create a national energy program.

The U.S. Department of Energy was established as a cabinet-level department to deal with energy policy.  Within the DOE hierarchy, Congress also created an independent energy regulatory Commission known as the Federal Energy Regulatory Commission, or FERC.  The DOE organizational chart looks like this.

FERC was given jurisdiction over narrow and specific energy issues.  FERC is NOT a national appeals court for state energy decisions you don't like.  FERC does NOT have jurisdiction over the actions of DOE, or any other agency over which it is not specifically granted jurisdiction by Congress.  Sometimes the DOE can delegate specific authority to independent agencies like FERC, in order to work cooperatively with them to develop rules or policy over which DOE has jurisdiction.

Here's a simple list of what FERC does and what FERC does not.  If you think you have an issue that FERC should do something about, please check the list before wasting time and resources filing frivolous complaints or petitions with FERC.  If you don't understand this list, or need more information, please ask someone who does know or do some research before running to DC with your pop gun loaded with blanks.  Not only do you look silly, but you waste incredible amounts of time and resources and damage your reputation.  Federal energy regulation and policy is not a game of flinging poop on the wall to see which pieces stick.  Get educated, get your game plan organized, and target your requests with efficiency for best results.

FERC has its own set of rules that apply to matters under FERC's jurisdiction.  If your issue isn't within FERC's jurisdiction, FERC's rules don't apply.

Unless operating under the rules of a different agency that has some jurisdiction in one of its actions, the DOE operates under 5 U.S. Code Chapter 5, Subchapter II - ADMINISTRATIVE PROCEDURE.

If you want something, you have to legally support what you're asking for.  Remember, only monkeys throw poop.
1 Comment

PATH Rate Challenge and Abandonment Recovery Briefs Filed at FERC

6/26/2015

2 Comments

 
Did you think I've been on vacation for the past couple of weeks?  Hardly.  But I've been having so much fun it sort of felt like a vacation.

Today was the filing deadline for initial briefs in the consolidated FERC proceeding dealing with the formal challenges to PATH's 2009, 2010 and 2011 rates and the recovery of PATH's capital investment in the cancelled PATH project.

The briefs summarize the evidence and positions of the parties.

You can download them here:

Newman-Haverty Initial Brief
(deals with formal challenge only)
66 pages

FERC Trial Staff Initial Brief
(deals with formal challenge and abandonment)
99 pages

Joint Consumer Advocates Brief
(deals with abandonment only)
268 pages

PATH Brief
(deals with formal challenge and abandonment)
168 pages

Happy reading!  They're much shorter than War and Peace.  I think.

Why do they call them briefs?  Is this some sort of sick joke?
2 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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