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Invenergy Salivates Over Government Handouts

10/3/2022

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Who didn't see this coming?  In last year's "Infrastructure" legislation, greedy transmission merchants inserted a provision whereby the federal government can become a fake "customer" of merchant transmission and pay the merchant with your tax dollars to transmit absolutely nothing to nobody. 

Not being able to secure any customers willing to sign contracts to pay to use merchant transmission has been a problem for the speculative merchants that have been pushing to construct hugely expensive boondoggle transmission lines that nobody wants to use.  A merchant transmission developer, first and foremost, takes on all risk and must pay for its project with voluntary customers.  There can be no backstop funding for merchant transmission, or it's no longer merchant transmission.  It becomes transmission with captive customers that must be regulated to protect the customers.  It can only charge "cost of service" rates that are subject to inspection and challenge by customers and regulators.

But reality and fairness never stops legislators from making the foolish laws greedy private interests want in order to fill their pockets.  It's only our courts that can stop laws that don't make sense, or overreach in some way.

Here's what Invenergy recently had to say about the IIJA's Section 40106 that orders the U.S. Department of Energy to become a "voluntary customer" of merchant transmission that doesn't have enough customers to be financially viable:
Under the Department of Energy’s Transmission Facilitation Program, as envisioned in Section 40106 of the Infrastructure Investment and Jobs Act, the Department of Energy may serve as an anchor tenant on new and upgraded transmission lines, by buying up to 50% of the planned commercial capacity of lines for a term of up to 40 years. Yet, under MISO’s interpretation of Attachment FF and BPM 20, a merchant transmission project with a Department of Energy contract, and meeting Invenergy’s other suggested indicia of being sufficiently advanced stage, would still not be accounted for in MISO’s transmission planning processes unless it had an executed interconnection agreement with MISO or was included in a state or utility IRP. This cannot be a just and reasonable interpretation of MISO’s Tariff and BPM language which requires MISO to “analyze the performance of the Transmission System in meeting both reliability needs and the needs of the competitive bulk power market, under a wide variety of contingency conditions,” to “give full consideration to the needs of all Market Participants,” and consider “a wide range of potential conditions that comply with Federal, State, local and transmission owner reliability standards and public policy mandates . . . as well as other industry trends,” as Invenergy quoted in its Complaint.
'scuse me there, Invenergy... "reliability needs" and "needs of the power market"?  Just because the DOE may sign a contract for free lunch payments to merchant transmission owners, it doesn't mean they intend to take service of even one electron over the transmission line.  And if there is no need for the electricity and/or no customers actually taking service, there is no "need."  There is no market.  There are no actual customers.  And since merchant transmission is a market-based need gamble, no customers means no market.  Just because greedy merchants pulled the right legislative puppet strings to add a legally dubious section to proposed legislation does not create a "need."

And because Invenergy is salivating so hard over Section 40106, I simply have to pop their balloon.  The DOE held a public comment period on how it might implement this ridiculous new law earlier this year.  The DOE asked for responses to answer a number of questions.  Here's one:
Is it advisable for DOE, when selecting eligible projects for capacity contracts, to prioritize projects that have a certain percentage of capacity already subscribed? If so, what should that percentage be? What level of commitment (firm supply versus other types of capacity subscription) should DOE require eligible entities to demonstrate to be selected for a capacity contract? How should applicants be required to document such commitments? Should DOE's capacity be capped as a ratio of the firm subscription obtained before the execution of a capacity contract? If so, what should that ratio be?
DOE only has $2.5B in its revolving slush fund and it wants to rotate it to new projects on a timely basis.  Does DOE want to blow its whole wad on a merchant project like GBE that only has something like 4% of the capacity subscribed and no real prospects?  As if, Invenergy!

Meanwhile, Invenergy asks Missouri and Illinois (and later Kansas and Indiana) to give them permits and eminent domain authority to take land from the good citizens of those states in order to build a transmission line that nobody may ever use.  That's not a "public use."  Until GBE has real customers (not obligations to pay for absolutely nothing from DOE) it's not a public use.  And Grain Belt Express/Invenergy completely fails to mention any of this to the state regulators!  Invenergy just keeps talking about "need" and other meaningless platitudes.

What else did Invenergy have to say in its forbidden Answer to an Answer at FERC?  This very short fictional story caught my eye:
MISO TOs cite to the Rock Island Clean Project as an example of why advanced-stage merchant transmission should not be accounted for in MTEP/LRTP base case analyses.  However, the Rock Island project never had final, non-appealable permits in any state. See Illinois Landowners Alliance, NFP v. Illinois Commerce Comm’n, 2017 IL 121302 (2017) (finding that the owner of the proposed merchant transmission project was ineligible under Illinois law to obtain a required certificate of public convenience and necessity). Rock Island subsequently discontinued efforts in neighboring Iowa in light of the Illinois developments. In contrast, Grain Belt Express has final, non-appealable permits in Kansas, Missouri and Indiana.  Although Grain Belt Express is making minor modifications to those permits approvals, which is typical for new project development, the underlying approvals are sound and Grain Belt Express has significantly advanced the development of the project since securing those permits including securing rights of way and land.
RICL wasn't abandoned in Iowa simply because it lost its case at the Illinois Supreme Court (big time!)  Invenergy seems not to be aware that the Iowa legislature made a law in 2017 that prohibits eminent domain for above-ground merchant transmission lines.  This crazy town revised history fictional story doesn't even make sense.  Without approval of those "minor modifications" (which are actually material changes) GBE doesn't have a working project.  The Grain Belt Express cannot be built without approval of "minor modifications" to its existing permits, and considering that one of those "minor modifications" asks to use eminent domain on a whole bunch of new landowners, there's really nothing "minor" about it.

When the new laws greedy corporations make don't work with the fundamentals of regulation, it's nothing but a hot mess where nothing gets accomplished.  Drool all you want!
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Federal Eminent Domain Across Your Land

9/24/2022

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I warned you last week that slimy senate snake Joe Manchin's secret backroom deal with Chuck Schumer would contain FEDERAL EMINENT DOMAIN to take your land for new electric transmission lines.  Sure enough, when Joe finally showed his hand, all the bad stuff is in his idiotically-named "Energy Independence and Security Act of 2022."

Like this:
Compensation for property taken under this subsection shall be determined and awarded by the district court of the United States in accordance with section 3114(c) of title 40, United States Code.’’.
Federal eminent domain authority could be granted with the flick of a pen by the Secretary of Energy, if in her opinion a transmission project pushed forward by corporate lobbyists "is consistent with sound national energy policy; and will enhance energy independence".  What the heck does that mean?  We're going to spend trillions building stuff AND TAKING PEOPLE'S PROPERTY because of "policy" created by political hacks?  Isn't all electricity in this country already domestically produced?  What do you mean "energy independence"?  Sounds like plumped up nonsense to me.  I want my country back!!!

The Secretary LOVES this legislation!!  She said


Energy Secretary Jennifer Granholm on Friday backed the much-debated permitting overhaul provisions unveiled in Congress this week, saying they would enhance the department’s efforts to speed up electric transmission lines that connect clean energy to the grid.

“We are very excited at DOE about the potential for streamlined permitting on clean energy projects,” Granholm told reporters on the sidelines of the Global Clean Energy Action Forum in Pittsburgh.

“And I think that holds the greatest promise of the goals we’d like to achieve, which of course is getting to 100% clean electricity by 2035,” Granholm said.
Jenny from the Block is very concerned about you.
“Community input is important in all of this,” she said. “We have to be very intentional about that, and we’ve got a team that is focused on that as well.”
And then she said
“Obviously, the transmission process has been ridiculously slow, and so many NIMBY issues related to it,” Granholm said, using an acronym for the “Not In My Backyard” movement.
She wants "community input" but then turns right around and uses a derogatory term intended to dismiss community concerns.  Jenny is an elitist piece of &#!%.  She might as well have said, "Let them eat cake!"

Some states are opposing this nonsense.
We don’t think that removing the states is actually going to reduce the time frames,” said Greg White, executive director of the National Association of Regulatory Utility Commissioners, which represents state officials.

He called the permitting proposal “draconian,” arguing it does nothing to solve delays stemming from federal environmental reviews. NARUC has pressed the department to scrap the proposal and bring states to the table.

“The sense is, if they can remove the state authority on siting these, that these projects will proceed quicker—and we disagree with that,” White said.
Nothing has ever been made faster and better through federal government mandates.

So, what can you do?  Call or write your U.S. Senators and tell them to oppose Manchin's permitting reform legislation.  Do it now, even if you've done it before.  The stakes are too high to sit back and hope things work out okay.  We must act!
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Manchin Deal Gives Transmission Permitting Authority to U.S. DOE

9/17/2022

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Quick... to your battle stations, good citizens!

The biggest hush-hush in Washington these days revolves around West Virginia Senator Joe Manchin's "permitting deal" with members of Congress.  Reports indicate that in exchange for voting for the recent "Inflation Reduction Act", Joe was promised quick passage of new legislation that changes permitting authority for new electric transmission projects.  News articles say that Senate leader Chuck Schumer has promised to attach Joe's proposed legislation to a "must pass" government funding bill that avoids a government shut down at the end of this month.  Time is growing short and perhaps they think they will have a short and quiet glide to the finish line.  Don't go quietly, folks.  This legislation is THE WORST THING TO COME OUT OF WASHINGTON IN YEARS.  You might as well go kicking and screaming all the way.  Let's defeat this horrible plan!

Here's a one page summary of the legislation that was leaked to the press.  See the second to last section on this document:
Enhance federal government permitting authority for interstate electric transmission facilities that have been determined by the Secretary of Energy to be in the national interest.

Replace DOE’s national interest electric transmission corridor process with a national interest determination by the Secretary of Energy that allows FERC to issue a construction permit.

Require FERC to ensure costs for transmission projects are allocated to customers that benefit.

Allow FERC to approve payments from utilities to jurisdictions impacted by a transmission project.
Here's the actual proposed legislation, in long form.  You can check these talking points in the legislation, like I just did.

Here's a summary:

This legislation will usurp the authority of your state public utility commission to approve siting and permitting of electric transmission.  Instead of your state regulators determining whether the project is needed, economic for you, and properly sited to avoid impacts, the U.S. Department of Energy in Washington will be making a decision whether the project is "in the national interest."  What does this mean?  Considering how political the DOE is, it means that a political deal is made that is completely divorced from need and economics.  It would be about whether the developer who wants to fill his pockets building it has the right lobbyists to get a DOE designation.  Once the designation is bought from DOE, the legislation passes the buck to the Federal Energy Regulatory Commission in Washington to site and permit the project.  What do some appointed bureaucrats in Washington know about how the project might affect you and your community?  They absolutely don't care.  They may simply stamp it "approved."  Once that happens, federal eminent domain authority will be used to take your property for the transmission project.  That's right, folks, FEDERAL EMINENT DOMAIN to condemn and take your private property.

And then the legislation dips into FERC's authority to allocate the costs of regionally approved transmission projects to captive electric customers (this means you).  Currently, only those projects planned and approved by federally regulated electric grid managers, such as MISO or PJM, may be allocated to captive customers who must pay for the project.  However, this legislative mandate requires ALL transmission designated by DOE as in the "national interest" to be cost allocated.  This would include the many merchant transmission projects that are currently being developed outside regional grid plans.  Merchant transmission, by definition, does not have captive customers that are required to pay for their projects.  Merchants must negotiate contracts with voluntary users to pay for their projects.  They cannot simply charge everyone for a project that has not been found needed by independent regional grid planners.  A merchant project gambles that voluntary customers will find it useful and pay for it.  If that does not happen, then the project will not be built.  We should not be forced to pay for politically-connected merchant transmission projects that are not needed for reliability, economic or public policy purposes.  We should not be forced to pay for speculative developer boondoggles in the name of greed.

And here's another foray into FERC's authority to ensure that transmission rates are just and reasonable.  This legislation requires captive consumers to pay for a utility's BRIBES, that's right  BRIBES, to local communities in exchange for accepting transmission impacts.  Long-standing FERC regulations prohibit a utility from recovering its costs to influence transmission approvals.  This includes making bribes to local governments in exchange for their support of the project.  If this legislation passes, we will be paying to bribe ourselves to accept disbenefits and impacts.  How does that make transmission better?  It doesn't.  It just makes it hurt even more.

So, what can we do about this?

Let Joe Manchin know that you do not approve of his "permitting deal" on electric transmission!  Tell him you do not approve of federal eminent domain, federal permitting authority, being forced to pay for speculative projects, and paying bribes to your own community in exchange for allowing your private property to be condemned.  Tell him that new transmission technology allows projects to be buried on existing rail and road rights of way.  Buried transmission on existing rights of way doesn't take any new land and is not opposed by communities.  It doesn't require BRIBES and it doesn't cause project siting delays.

You can email Joe here.  Or you can call his office at 202-224-3954 and tell him you oppose his permitting deal on electric transmission.

And while you're at it, you can also contact your own Congressional representatives and let them know you oppose Joe's "permitting deal" on electric transmission.

Time is short.  Please take a few minutes to register your resistance to this horrible plan now.

Don't let all your hard work opposing the transmission project that has affected you go to waste.  Don't let your victory turn into defeat at the hands of Washington politicians.  Stop this horrible deal now!
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Lessons On Empathy

9/11/2022

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At the beginning of this year, I opined
These arrogant greedsters will continue to push their narrative that only a boot on the neck of rural America can usher in a renewable energy future.  Instead of working with rural America to find a solution, these folks continue to push for more authority to simply take what they want.
It's still true, and getting worse.  Look what this selfish little baby recently wrote in a liberal propaganda rag.  Blah, blah, blah, we're so much smarter than you and we have to have our way!  We don't want to see energy infrastructure from our little city cracker box stacks.  We need to build an enormous amount of wind and solar and transmission in your back yard right.the.heck.now. and you don't matter.  You know how it goes, dear reader, glib name calling from clueless partisans.

But wait... look at this.  I mean REALLY look at this!

Australia has spent several years already trying to do the same thing this country has only recently started to attempt -- overbuilding wind and solar in remote places, along with new transmission to connect it to cities.  Australia is several years ahead of us in this game.  But it's not turning out so swell.  Massive public protests against the new transmission have happened, and the growing movement against this "clean energy" plan actually threatens the plan itself.  The opposition has played this to a stalemate.  Transmission cannot move forward.  And because it can't move forward, the whole "transition" is being delayed.  Little do these elite babies know that anger against unwanted infrastructure, if left unchecked, can turn into anger against clean energy and derail the entire thing.  The boot on the neck of rural Australia has not worked.  It won't work here, either.

Australia's experience is a lesson we need to learn now, before our own "transition" begins in earnest.

The lesson is here.  Literally right here.

Australia's Energy Grid Alliance has recently released a new report, Acquiring Social Licence for Electricity Transmission, A Best Practice Approach to Electricity Transmission Infrastructure Development.

Doesn't sound like much -- just more trendy speak... social license?  However, once I got reading, I was hooked.  This report tells the most important truths about transmission opposition and why the U.S. Government's current approach to put a boot on the neck of rural America will fail, just like it did in Australia.  I'm not sure when I've seen all the right social/behavioral/community studies together in one easy-to-read report like this... probably never.  Maybe you'll think it's a bit geeky and the Aussie-speak requires a bit of translation while reading, but you won't be sorry you invested the time to read it.  After reading, please feel free to forward it to every elected official, regulator, reporter, transmission developer, and environmental group you can find.  This is how we need to begin:  Tear  down the current system we've been using to build electric transmission and start from scratch.

If you read that stupid NYT editorial linked at the beginning of this blog, you'll see that self-appointed "advocates" fueled by Big Green money are pushing for the "
talk to them early and pay them more" approach that has completely failed in Australia.  Why would we take this approach when it is sure to fail (and waste a bunch of time in the process)?  Turns out these self-appointed "advocates" don't know diddly squat about opposition to electric transmission, which makes them suggest incorrect (and outdated) ideas.  I'm looking at you, Niskanen Center... this wouldn't be the first time I've told you to shut up and go away because you don't speak for any electric transmission opposition group.  You speak for the people who intend to get rich building transmission.  You are the original fox in the hen house.  The Energy Grid Alliance Report talks about people just like you...
At a recent Australian energy conference, the program indicates that the energy industry is acutely aware of, and concerned about, the urgent need to develop trust and acquire social licence for transmission. So much so that a panel discussion specifically focussed on the best ways to combat anti-transmission line sentiment. The panel included key industry representatives from the Victorian Department of Environment, Land, Water and Planning (DELWP), the Australian Energy Infrastructure Commissioner, AusNet Services, Powerlink Queensland, Nous Group and CutlerMerz.

Interestingly, the panel did not include members of the public, representatives from community advocacy bodies or community groups calling for better transmission planning and framework reform.

T
his raises an important question; how can anti-transmission sentiment be truly understood by the industry if those representing the Australian public are not involved in the discussion? The lack of public inclusion in forums such as this suggests there is still much work to be done in understanding best practice engagement principles.
I've long written about silly industry conferences where they talk about ways to control or neutralize opposition, and consistently get it wrong.  Happens in Australia, too.  And it's happening here right now, where environmental groups tell regulators how they should control us.  Hypocrites of the highest order!  We are never invited to participate.  They don't want to hear what we think, what we want, what we feel.  They don't want to hear from us, period.

Oh, sometimes they pretend to allow us "meaningful participation," but it's like shouting into a pillow.
Firstly, communities are not upset that their concerns haven't been heard as there is no doubt opposition has been voiced. Communities are upset because their concerns are not being understood, listened to or respected, with collaborative action being taken to understand and accommodate this opposition to bring about a more mutually beneficial outcome. There is a significant difference between being heard and being understood. Communication is not simply about the transmission of information; it is about the reception and understanding of it. Genuine engagement is then demonstrated by taking meaningful, constructive and collaborative action.
But it doesn't stop them from pretending they know what we want better than we do.  They think they just need to "educate" (indoctrinate?  brainwash? fool?) us better about all the "benefits" we will receive.
Secondly, in the case of the WVTNP, there are no foreseeable benefits to communities expected to carry the burden of 190km of overhead transmission. How can the industry better sell the benefits to host landholders and neighbouring communities when there are no benefits to sell?
And this report does one of my most favorite things ever!  It introduces a rarely used word from the Brits that I plan to use the heck out of:
             DISBENEFITS
Disbenefits are the opposite of benefits.   They are disadvantages. They are costs to landowners and communities.  They are harms.  They are impacts.  They are uncompensated.  They are forever.  A transmission line visits many disbenefits on the landowners it crosses.

When the actual affected people are not equal partners in the solution, nothing gets solved.  The newest thing being pushed by environmental groups in the U.S. is earlier engagement with communities and more compensation.  This doesn't work because it's not about giving opposition a seat at the table, it's about "educating" and bribing them to accept disbenefits.  Here's what the report says about that:
The energy industry and governments can do more to understand and appreciate that community benefits and compensation may not be the quick-fix solutions they hoped they might be. In fact, pushing the ‘talk to them early and pay them more’ agenda is very likely to further dilute trust, increase opposition and dissolve any credible opportunity to acquire social licence. Without empathy in the social licence and public policy equation, it will be near to impossible to develop trust for transmission.
What was that?  EMPATHY!!  There is absolutely no empathy for affected landowners and communities (see NYT op ed I started this blog with).  These arrogant and elite babies who would give their last dollar to a homeless person on their way home from work, or let a hardened criminal out of jail, have absolutely no empathy for hardworking farmers or rural residents from all walks of life.  The big environmental groups and our big government are also devoid of empathy for these folks.  It's almost like they take perverse glee in making rural folks shoulder the burden of new energy infrastructure.... because maybe they voted for another political party.

The report puts a high priority on empathy, which it describes like this:
Empathy is the ability to emotionally understand what other people feel, see things from their point of view, and imagine yourself in their place. Essentially, it is putting yourself in someone else's position and feeling what they are feeling. The ability to feel empathy allows people to "walk a mile in another's shoes". It permits people to understand the emotions that others are feeling.
I challenge every regulator, elected official, and clean energy disciple to really stretch themselves to learn and practice empathy.  That's where progress begins.  We're not your enemy.  We all inhabit the same planet.  You wouldn't like it if we imposed our will on you to place energy infrastructure in your back yard.  Be honest and admit it.  That's the first step.  Only through mutual understanding will we create a fair and just energy system.
The admonition to walk a mile in someone else's shoes means before judging someone, you must understand his/her experiences, challenges, thought processes, etc. Truly listening to another persons view creates empathy, something that community sentiment suggests is lacking within the energy industry.

It’s not difficult to understand why it may be challenging for the energy industry to demonstrate empathy. For decades, its has been insulated from the need to consider social or environmental externalities and has rarely had to meaningfully engage with, or have empathy for landowners and communities.
Are we turning the page, or continuing the unjust rationale to visit the needs of the many on the lives of the few?
Empathy helps develop trust; therefore, it is important that transmission network planners and policy makers spend time to consider, understand and respect landowner and public perspectives, experiences, and motivations before making a judgment about them and asking rural communities to shoulder the burden of overhead transmission for the benefit of the masses. Economic benefits, community benefits, compensation, the climate, environment, emissions, jobs, and green energy, are often wielded by governments and the industry to garner public support for overhead transmission. While there may be truth in some of these benefits, many in the community view this strategy as an intentional attempt to reduce credible objections to those of NIMBYism (Not in my backyard). For many, this strategy demonstrates a concerning lack of empathy as to why overhead transmission projects are being objected to in the first place.

In addition to legitimacy, credibility and trust, empathy should be added to the list of social licence components. Without empathy, it is impossible for the other three components to exists. Without empathy, it will be challenging to garner community support. To develop empathy, it is necessary to first explore the deeper reasons for objection to offer these objections the respect and attention they deserve.
And you can only get that from affected landowners, not the puffed up environmental actors who hate them.  Landowners need a seat at the table.  That means upfront, where policy is created, not at the end of the line where they may have 2 minutes to tell an uninterested regulator why they object to the transmission project that has been thrust upon them as a fait accompli.

How familiar does this sound?
When discussing compensation and engagement with potentially impacted landowners throughout the eastern states of Australia, many have indicated, in no uncertain terms;

‘I'll never sell'; 'We will not be bought off'; 'No amount of money will compensate for the impact on our properties, community and environment'; 'We will not risk our kid's inheritance'; 'Our land is our superannuation, we will not sacrifice that'; ‘This is our livelihood, who has the right to take that away.

W
hen speaking with stakeholders in the energy industry and those living in more urbanised environments, reactions suggest a level of confusion. Comments often conveyed indicate it’s difficult to comprehend why people would not accept payment for the burden they are expected to carry.

'They are only transmission lines'; 'We drive past them every day to work, what's the issue'; 'This is the price we must all pay for progress and to reduce our impact on the climate'; 'Transmission towers remind me of our engineering mastery'; 'It's only farmland, plant your potatoes somewhere else'.
Transmission opponents have all lived this.  Over the past 15 years, I have listened (with empathy, btw) to hundreds of landowners affected by different transmission projects.  Sadly, I've often seen the dismissive attitude of the unaffected as well.  This section is 100% accurate.

So, how do we get past this to develop understanding and empathy?
To understand this, we need to dig a lot deeper than early engagement and financial motivation. We need to understand the connection between people, the environment, the land, and rural areas. We need to understand the person-place interaction that leads to attachment to place. This connection to place is experienced by traditional owners, landowners, neighbours, and visitors alike. The strength of this attachment often surfaces under threat of loss of place.
We need to recognize and understand this:
Family farms are a unique institution, continuing through time in a world where considerations of hard work, long-term thinking and commitment are often sparse. Families in agriculture have long provided a steady backbone to rural Australia, serving as stewards of our natural resources and taking care of the neighbours, communities and environments in which they live. Because of their dedication to preserving farm operations and improving land for native wildlife, farm families are very emotionally close to their way of life and to the land on which they live. Many see themselves as temporary stewards of their land, managing it for future generations, just as their great-great-grandfather might have done for them.

A statement by one landholder was, “I don't have a sense that I own it as such. But I've been given the privilege to influence it, to protect it, to enhance it and among other things – stop other people influencing it, without me giving them permission."
Ultimately, here's what needs to be understood and accepted by everyone:

New transmission only made necessary by the "clean energy" transition must be willingly accepted by those asked to host it.  It won't happen through force.  It can only happen when we set firm boundaries against new sacrifice and put on our innovative thinking caps.  How might new transmission, or better yet a new energy system, be built that doesn't cause unnecessary sacrifice?  One answer might be building smaller systems for localized use and dispensing with the need for big new transmission altogether.  Another might be rebuilding existing transmission to increase its capacity.  But a favorite idea, by far, is to build new transmission on existing linear rights of way, such as roads or rail.  Better yet, burying this new transmission on existing rights of way is an idea that has already gained acceptance with landowners in the U.S.  It is popular in Australia, too.
It’s also important to note that a cost seen by some, is viewed as an investment by others. Communities impacted by proposed overhead transmission projects argue that despite potential increase in capital by avoiding a shorter more impactful route, use of existing easements, longer least-impact routes or an investment in undergrounding (particularly HVDC), is a long-term economically viable investment in achieving climate change objectives, protecting our environment, avoiding land use conflict, and providing increased redundancy, resilience and reliability to our transmission networks. Despite the increased cost, Star of the South, a private development, is undergrounding its transmission to minimise the environmental impacts. This has been well received by potentially impacted communities.
Of course, each community is different and it's important to bring them to the table before any decisions are made about how the project will look, or where it will go.  However, a project that doesn't create any impacts on privately-owned land, such as one buried on existing right of way is a guaranteed winner with any group of landowners.  You don't bother them, they won't bother you.  In fact, they might even *gasp* support you!!!

So, as Congress takes on the task of trying to improve energy infrastructure siting and permitting this fall, it's important to let your representative know that a boot on your neck will not work.  It didn't work in Australia, and it's not going to work here.
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FERC Complaint Changes Everything You Thought You Knew About Grain Belt Express

9/8/2022

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Isn't it high time to stop Invenergy's posturing about how "advanced" Grain Belt Express is, or how much of a "sure thing" it is.  Here's the reality I've been continually serving up for years, now bolstered by both MISO and MISO transmission owners:  Grain Belt Express is a speculative project that can't be completed because it doesn't have enough customers.  Here, I even created a fresh one!
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Invenergy is so full of themselves lately that maybe now they even believe their own exaggerations about how "needed" they are?  What else could explain the recent Complaint Invenergy filed against Midcontinent Independent System Operator (MISO) at the Federal Energy Regulatory Commission (FERC)?  At any rate, filing that complaint could begin a new section of Invenergy's Grain Belt Express scrapbook entitled "The Beginning of the End."  Well, if Invenergy is keeping a scrapbook, that is....

Invenergy filed its complaint in the beginning of August, claiming that MISO wrongly excluded GBE from its recent Long Range Transmission Plan (LRTP).  Invenergy said that although MISO's rules require a merchant transmission project to have a signed interconnection agreement (IA) or to be included in a utility's state-approved integrated resource plan in order to be a part of the plan, Grain Belt should also be included because it is an "advanced stage merchant transmission" project.  Invenergy said that by failing to include a completed and operating GBE in the model of the MISO transmission system that is used to identify new projects, MISO was hurting ratepayers by making them pay for projects that might not be necessary if GBE was included.  In plain English -- some of the projects that MISO approved in its LRTP may be a better deal for GBE's prospective customers!!!

Here's a map of MISO's recently approved Tranche 1 LRTP.
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As MISO confirmed in its Answer to the Complaint, Invenergy's problem is the series of lines beginning at "Orient" Iowa (its the name of a substation, not necessarily a town) connecting to Fairport, Missouri, connecting to Zachary, Thomas and Maywood, Missouri, and ending at Meredosia, Illinois as shown on the above map.
On March 17, 2021, MISO laid out its initial roadmap for LRTP transmission solutions based on the Futures analysis. The initial roadmap included a proposed line from central Iowa, through northern Missouri, with two offshoots further south into Missouri with one in a similar area as the proposed Point(s) of Connection for the GBX Line, and finally into central Illinois.
 
It was announced during that meeting that the analysis had been completed on the proposed Transmission Solutions linking central Iowa to Northern Missouri to central Illinois and that those upgrades would be included in the LRTP portfolio. It was only after this announcement that Invenergy approached MISO to express its views regarding the GBX Line and how it interacted with LRTP.
Or, as Missourian Norman Fishel said in his Comments on Invenergy's complaint filed at FERC:
In comments to MISO, Invenergy claimed that “[f]ailure to account for the GBX Line may cause economic harm to GBX.”

Grain Belt Express acknowledges how it intends to edge out new MISO projects by taking their place:

“Across the Midwest and Great Plains, several potential transmission projects have been proposed over the next decade to address regional reliability needs, enable the delivery of power to load centers, reduce congestion, and unlock renewables potential. While there still may be a need for localized upgrades, given that the Project addresses these broader goals, it stands to logically reason that the Project could plausibly defer/eliminate the need for certain future major transmission developments."
Well, talk about overestimating your own importance!  Invenergy must think that it can control MISO's planning the same way it has grabbed various state politicians by the scruff of their neck and owned them.

A merchant transmission project cannot just horn into a regional transmission plan and claim it's accomplishing the same goals and therefore make the regional transmission organization cancel its own projects.  It just doesn't work that way.  MISO plans its own system.  MISO also manages generator connections like GBE to make sure they don't compromise the system.
Invenergy also compares the expected timeline of its proposed projects to the expected timelines of the LRTP Tranche 1 projects, but that comparison does not help Invenergy’s argument, even if taken on its face value. Under the Tariff, the MTEP is “developed to facilitate the timely and orderly expansion of and/or modification to the [MISO] Transmission System.

Including projects without sufficient certainty, regardless of timeline, does not advance system reliability.
In other words, MISO cannot count on speculative merchant transmission projects to ensure reliability.

Couple other things MISO said in its Answer, which I urge you to read carefully:
  1. GBE kept changing its interconnection requests in both size and location.
  2. GBE still has an interconnection position in Ralls County.  MISO doesn't know what its intention is with this.
  3. GBE's interconnections are all unidirectional -- they have asked for permission to inject energy into MISO, not withdraw it.  Beware any entity that has been promised service from MISO to PJM (MJMEUC).  Or any entity that has been told how GBE could reverse directions and move power from east to west in an emergency.  It just can't happen.
  4. "Invenergy has only requested to operate the GBX Line as a long generator lead line."  That's a quote.
  5. "Adopting Invenergy’s proposals will reduce the precision of MISO’s planning models by making them subject to an MHVDC [merchant] Connection Customer’s changes or withdrawals." and "Invenergy’s proposals may inappropriately assign costs driven by the GBX Line to MISO load. The Commission should not allow Invenergy to unilaterally mold MISO’s MHVDC connection and planning processes to fit its commercial proposals."
  6. No load serving entity (electric utility) in MISO said it was "planning on the GBX Line as a resource to meet their plans/goals."
  7. Invenergy told MISO that Ameren was ordered to include GBE in its Integrated Resource Plan by the MO PSC, but "Ameren’s 2022 IRP update does appear to not mention the inclusion of the GBX Line."  Sounds like another case of Invenergy using stale information to misleadingly bolster its project.  Be sure to verify everything Invenergy says from now on (more on why in the section of this post about Norm Fishel's comments).
  8. MISO's rules "protect MISO customers from unjust and unreasonable rates that could result from the incorporation of premature or incorrect assumptions about future projects without sufficient certainty."  Here's the thing... GBE can be cancelled at any time due to lack of customers.  If MISO counts on it and that happens, MISO would have to quickly plan projects to take its place that may be less efficient and more expensive.
  9. "The reality, however, is that projects and business plans change and the GBX Line proposal is a prime example..."
  10. "[Invenergy's] proposed definition of “Advanced Stage Merchant Transmission” is completely unsupported."  Read Norm's comments to see why "Advanced-stage merchant transmission has no definition, and even seems to change depending upon the venue in which Invenergy finds itself.  In its recent Missouri Application, Invenergy claims that its project has not yet reached an advanced stage..."
  11. MISO explains how adding a speculative merchant transmission project to the models before the interconnections are approved causes new lines to support those interconnections to appear in the plan earlier, where they are paid for by captive ratepayers, instead of the merchant that caused them... "...relieving Invenergy of its obligations to pay for upgrades needed to accommodate its interconnection." 
  12. "MISO is concerned that the Complaint is merely a vehicle to address one entity’s commercial preferences or use MISO’s processes to enable a specific project rather than an identification of a genuine need."  And if Invenergy was looking for MISO to support building GBE, it can now be sadly disappointed.  All the malarkey about reliability, need, lower prices can now be chucked out the window.  Reliability, need and cheaper electricity prices are what MISO does.  MISO says GBE is not needed for any of those purposes.  Who are you going to believe?  An impartial grid planner or a self-interested profit-seeking corporation?
And if you think the MISO Answer is derisive towards GBE, don't miss the Protest of MISO Transmission Owners (TO).  This entity consists of a large group of utilities that own transmission lines that serve MISO and who have fully participated in MISO's planning process which came up with the new lines Invenergy objects to, including Ameren.  The TOs don't mince words.  You should probably read this to yourself using a sneering voice:
Invenergy also fails to show that the GBX Line should receive special treatment and circumvent the MISO planning process. As a project that is not yet certain, MISO properly excluded the GBX Line from the planning studies for LRTP projects.
The TOs go on to point out why GBE is speculative.
Invenergy claims that its GBX Line, a merchant high voltage direct current (“MHVDC”) transmission project designed to carry up to 5,000 megawatts (“MW”) of energy, should have been accounted for in MISO’s transmission planning analyses even though it has not yet obtained all necessary approvals and interconnection agreements, and its prospects for achieving such statuses are not at all certain.
The TOs make other points too righteous to ignore:
  1. "In the instant proceeding, Invenergy asks the Commission to render MISO’s transmission planning process null by compelling MISO—after MISO’s Board approved LRTP Tranche 1 Portfolio on July 25, 2022—to conduct a sensitivity of the Tranche 1 projects that accesses the potential impact of the GBX Line assuming it is ever finished, based solely on an unsubstantiated allegation that the Tranche 1 benefits metrics may be flawed because they did not account for this speculative project."
  2. Invenergy's attempt to disrupt MISO's planning is "particularly egregious."
  3. "Unless and until the firm generation and load customers are identified by Invenergy, the GBX Line cannot be modeled..."
  4. "Invenergy had multiple opportunities to participate in the numerous stages of the process whose outcome it now seeks to upend."  But it did not until it thought the process might hurt its project.
  5. "Invenergy repeatedly describes how much money it has expended toward completion of the GBX Line as evidence that the line is at an advanced stage near completion. However, a developer can spend many years in development and millions of dollars on an MHVDC project that will never be completed. For example, the Rock Island Clean Line project (“Clean Line”) failed to reach completion despite its half-decade and multi-million dollar efforts.  Had MISO assumed the Clean Line project would be constructed in its long-term planning processes based simply on the time and money that had been invested in the project, there is no telling how many changes and new plans would have been needed once it became clear the project would not go forward."
This quote deserves to be highlighted:
While Invenergy explains the status of the GBX Line noting the number of approvals and permits it has obtained, the prospects for the project are far from certain. For example, as Invenergy concedes, permits are still required in one state. In addition, on August 24, 2022, Invenergy submitted an amended Certificate of Convenience and Necessity Application in Missouri to request significant changes in the GBX Line.   Invenergy also has not yet executed interconnection agreements with half of the transmission systems it proposes to interconnect—MISO and PJM.
Speculative... far from certain... not advanced enough to be included in regional transmission planning.  So, you might ask youself, what the living spit is the Missouri Public Service Commission doing allowing such a project to CONDEMN and take land from the good people of Missouri?

And, let's end this section with the following quote from the TOs:
The Commission should deny Invenergy’s attempt to obtain preferred treatment for the GBX line.
Don't miss the Comments of Missouri's own Norman Fishel asking that FERC deny Invenergy's complaint.  They were written for "real people" and are perfectly understandable.  Norm gathers information from Invenergy's various applications, comments, and permits to show, "Grain Belt Express seems to be like a chameleon, its description changing depending upon the venue it finds itself in, and the goal of its filing." 
Norm says that GBE doesn't even consider itself to be an "advanced-stage" project.  He also points out that GBE  has NO state approvals, since all the state permits will have to be re-approved due to changes in the project.  He points out that GBE only has one valid interconnection, since it has proposed changes to its SPP interconnection in Kansas that have not yet been approved.  And, perhaps my favorite part is where Norm baldly demonstrates that Invenergy might be a... well... a liar.
In its Complaint, Invenergy claims “Grain Belt Express has secured voluntary easements for over 75% of the necessary right-of-way in Kansas and Missouri.” However, in its Application in Missouri, Grain Belt claims it has “[a]cquired 72% of all easements required for the Kansas and Missouri portion of the Project.” While only a difference of 3%, it is notable that the percentage of easements acquired went down in the two weeks between the filing of this Complaint and the filing of the Missouri application.
So Invenergy told FERC on August 8 that it had secured over 75% of the easements, and then on August 24 told the MO PSC that it has 72% of the easements.  Did a bunch of easements get unsigned in that 2 week period?  If not, Invenergy is a flat out liar.  You can't believe anything a liar tells you.  Word to the wise.

Another section of Norm's comments deals with all the inconsistencies in GBE's Negotiated Rate Authority from the Commission and questions whether Invenergy has invalidated the Commission's approval to negotiate rates with potential customers.  Without Negotiated Rate Authority, Grain Belt Express cannot sign contracts with customers.

And maybe that's what Invenergy intends?  Norm clips this quote from GBE's Illinois application:
“Subject to additional oversight and approval by the Federal Energy Regulatory Commission (“FERC”), Grain Belt Express may sell and/or lease an undivided interest in the project to potential buyers and/or lessees, and Grain Belt Express and those buyers/lessees may seek to provide transmission service over the line to eligible customers as defined by FERC on a non-discriminatory basis under a FERC-approved open access transmission tariff (“OATT”). Any co-owner or lessee of Grain Belt Express that seeks to provide transmission service will be required to operate pursuant to an OATT on file with FERC that will meet the requirements of the Federal Power Act and FERC’s regulations. Grain Belt Express may also sell a cotenancy interest or lease a long-term leasehold interest in the transmission line, in which case it is not providing transmission service to such buyer/lessee because the buyer/lessee has control over that undivided interest”.
Invenergy says it may sell "interests" in the projects to other private parties for their own private use.  Those parties who buy an "interest" may sell service to other parties for public use, but they may also keep all the transmission service for themselves.  If they kept it to themselves, it would be nothing more than a private-use generation lead line, which is a private electric roadway for a generator to connect to the transmission system.  The BIG HUGE problem with this is that without offering its transmission service to all entities through a public offering, Grain Belt Express is no longer "for public use."  And if GBE is not for "public use" then it is not entitled to use eminent domain to condemn and take property.

It sure looks to me like GBE is only using FERC's Negotiated Rate Authority as a fig leaf to cover its real plan to use the project for private use without opening it up to public bidding.  Looks like it's going to take land now under false pretenses, and then privatize its project later once it has all the land it needs.  This is a GIANT stopper for both the Missouri PSC and the Illinois Commerce Commission (and the Illinois Supreme Court, who had serious questions about RICL's "public use" that were never addressed in that case).  Without being for "public use" the project CANNOT USE EMINENT DOMAIN.

So, to sum up this exceedingly long blog...  We've got a whole new ball game, folks! 

MISO has approved new projects that will bring Iowa wind electricity to Missouri and Illinois, most likely for a much cheaper price that GBE has been offering.  This happened because GBE has failed to be built when it said it would be built.  A stone rolling downhill, or a grid with hungry customers, waits for no man/project.  MISO says that GBE is not "needed" for reliability, economics, or any other reason.  MISO and its TOs think GBE is far from certain to be built.  This is quite refreshing because for so long Invenergy has been trying to gaslight regulators, legislators and landowners about how it is needed for reliability and economic purposes and is ready to be built.  Turns out none of that is true.  It's all been a house of cards.  Reject everything you thought was true about Grain Belt Express and embrace the new reality this complaint demonstrates.  Grain Belt Express's reign of terror across the Midwest is about to end.  The sooner Michael Polsky realizes this, the less money he will lose at the end.  Let's hope he's not as stupid as Michael Skelly was... dumping his last penny into projects that never become reality.

When you poke a stick into the lion's cage, sometimes the lion bites your head off.

The End.
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Missourians Protest Unnecessary Transmission Project

9/2/2022

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The good citizens of Missouri peacefully protested outside the Public Service Commission this week.  The citizens are opposed to the plans of Chicago-based renewable energy company, Invenergy, to use eminent domain  to run the high-voltage electric transmission Grain Belt Express Tiger Connector line through their properties.
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The successful protest attracted lots of attention from the media.

Such as this story on KOMU.  Maybe someone wants to ask Patrick Whitty at Invenergy who the other customers for 2500 MW of transmission capacity in Missouri might be, since his "39 cities" have only signed up to purchase less than 10% of the available capacity?  Those 39 cities aren't going to generate enough revenue to build a $5B electric transmission line across 4 states.  Can we apply a little common sense here?

And this story in the Fulton Sun.  Isn't that gracious of Invenergy to "thank the citizens for their feedback?"  What a bunch of lousy fakes!

And this one on KRCG.  Short and to the point, heavy on the pictures.

And there are plenty more. 

Too bad for Invenergy, who tried to hide or minimize the Tiger Connector project in recent press releases.... one of which got absolutely no media attention at all.

The cat is out of the bag now...
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Bravo, Missouri citizens!
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If The Shoe Was On The Other Foot...

9/2/2022

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Said Missouri attorney Brent Haden about Grain Belt Express using eminent domain to acquire land in another great article in The Mexico Ledger:
“If the shoe were on the other foot, would Invenergy or its executives consent to a forced sale of their property to Missouri farmers and ranchers? We could run cow-calf pairs on their lawns in Chicago, and they’d probably even come out ahead on mowing cost. But something tells me they might feel differently about the eminent domain doctrine if that were the proposal.
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Indeed they would.  Eminent domain is only good for thee, not for me.  My only question is... which home, and could the cows drink from the pool?  It looks like Michael Polsky has more than one home.  This is where your blood, sweat and tears is going to end up if Invenergy gets its way in Missouri... in a fancy mansion that is hardly lived in?

Alan Dale also wrote about a citizens' protest at the PSC in Jefferson City this week (more about that next blog).  Protest organizer Pat Stemme said:
“I am a farm wife, and we live in Boone County, but our farms are in Audrain and Callaway,” Stemme said. “There are several residents from Audrain that will be attending the protest. I don’t have the commissioners schedule, so I don’t know if they will be in house or not. It doesn’t matter: We will still be able to get our message across, that we are opposed to any decision that allows the Tiger Belt (Connector) to move forward. I don’t feel the (House Bill) 2005 is very comforting. Our Fifth Amendment rights are being abused.
“The PSC has no agricultural representation. They also have no oversight.”
According to Stemme’s press release announcing the protest, Invenergy proposes to add a “completely unnecessary” 40-mile double circuit 345-kV electric transmission line on a destructive course that would impact prime farmland that is presently producing crops for ethanol and biodiesel. These valuable farms are helping reduce emissions in St. Louis, Columbia and Kansas City.
Stemme noted that Invenergy has only revealed customers for less than 10 percent of its planned delivery to Missouri.
“As a merchant transmission project, the company cannot charge captive ratepayers for its project and can only recover its costs from voluntary customers,” the press release states. “Without customers, there is no revenue to pay for the project.”
Stemme’s press release adds, “The PSC’s prior granting of a permit and eminent domain to Grain Belt’s speculative plan have directly caused the Tiger Connector proposal by encouraging the company to take land for a route that has now changed and must be extended into Audrain and Callaway in order to connect with Missouri’s electric grid. Without an approved grid interconnection and enough customers to pay for its construction, Grain Belt Express remains nothing more than speculation and could change again in the future.”

That's a word of caution for the Missouri PSC.  Without an approved interconnection from the Midcontinent Independent System Operator (MISO) Grain Belt Express cannot connect its transmission line to the existing electric system.  Without an interconnection, it's just an extension cord that's not plugged into anything.  Simply planning to connect somewhere is not good enough.  GBE was planning to connect to a transmission line in Ralls County for many years.  But when Invenergy bought the project, it filed for new interconnections in Callaway County.  If Grain Belt Express had connected as originally planned, the Tiger Connector would not be happening.  And who's to say that Invenergy won't change its mind again and decide to interconnect at a different place, and then run lines from Callaway to another point of interconnection?  Because it's not like Grain Belt Express re-routes its project when it chooses to change its interconnection.  Instead, it just adds more electric lines across private property.  When you've been granted the ability to simply TAKE private property from taxpaying citizens, it doesn't matter how many people you affect.

Another warning:  lack of customers.  Grain Belt Express WILL NOT BE BUILT if it cannot find customers to pay for its transmission line.  Unlike the rest of the lines in Missouri today that are ordered by MISO to meet a reliability or economic need, Grain Belt is strictly a voluntary project undertaken at the company's risk.  Invenergy is risking its capital on the project and betting that customers who need transmission service from Southwestern Kansas to Callaway County, and from Callaway County to Indiana (or SW Kansas to Indiana) will be willing to pay to use the project at a rate that is profitable.  However, even though GBE has been on the drawing board and trying to find customers for a decade, it only has one customer.  That one customer is the Missouri Joint Municipal Electric Utility Commission, or MJMEUC, a a joint action agency comprised of 70 municipally-owned, retail electric systems located across the state of Missouri.  After Grain Belt's first application was rejected by the PSC in 2015 because it caused more harm to Missouri landowners than it provided in benefits to the citizens, Grain Belt offered MJMEUC a fabulous deal.  It offered MJMEUC "up to 200 MW" of transmission capacity from Kansas to Missouri at less than cost.  MJMEUC still had to buy electricity generated in Kansas to transmit to Missouri, but it was a "free lunch" MJMEUC simply couldn't resist.  MJMEUC bought something like 135 MW of wind power from a wind farm in Kansas (contingent upon GBE being built) and claimed the deal saved millions for customers in 39 Missouri cities.  Of course, the devil is in the details, or in this instance in the math equation that produced the savings.  MJMEUC compared the cost of GBE + the cost of the Kansas wind power to an overpriced contract it was locked into to buy electricity from Prairie State in Illinois.  The new power would replace the Prairie State contract that would expire in 2021.

What year is this?  Oh, right, it's 2022.  That Illinois contract expired last year and GBE was not built and could not replace it.  So, what did MJMEUC replace that contract with?  Obviously the lights are still on in 39 cities, so it must have signed a new contract with a new supplier.  So, how much does GBE "save" when compared with that new contract, or even with any other existing contracts that are due to expire soon?  And where's the math for that?  Guess what?  MJMEUC and Grain Belt refuse to do the math.  They continue to cling to the previous "savings" calculated more than 5 years ago and claim that's how much utility customers would "save."  But it's now nothing but a BIG FAT LIE.  Show us your "savings" math, MJMEUC!

Instead of continuing this speculative gamble with the lives and fortunes of Missourians, the PSC must reject Tiger Connector's application and tell them to stay away until they have signed interconnections that firm up the route, and enough customers to finance the project.
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How You Will Pay Transmission Bribes To Your Local Government

8/27/2022

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A healthy, democratic government realizes that it has no money of its own.  It recognizes that all the money it spends comes out of the pockets of the taxpayers that elected that government to serve their needs.

And here we are today, clutching our wallets while an out-of-control facist government engages in a spending spree of epic proportions.  And they're doing it with OUR money.

It's bad enough that your money is being used to prop up unneeded transmission projects by buying capacity the government will never use (roads to nowhere that nobody will ever use).  But now your federal government is planning to spend $760M of your hard earned tax dollars trying to bribe local governments to hush up and support new transmission lines across your private property.

You are bribing your local government to screw you!  That's about as boiled down as I can get it.

The inaptly named "Inflation Reduction Act", Section 50152, Grants to Facilitate the Siting of Interstate Electric Transmission Facilities, will "facilitate" the siting of new transmission lines by "promoting economic development in affected communities."
Here's how it's explained in the legislation that was recently signed into law:
a) Appropriation.--In addition to amounts otherwise available, there is appropriated to the Secretary for fiscal year 2022, out of any money in the Treasury not otherwise appropriated, $760,000,000, to remain available through September 30, 2029, for making grants in accordance with this section and for administrative expenses associated with carrying out this section. (b) Use of Funds.-- (1) In general.--The Secretary may make a grant under this section to a siting authority for, with respect to a covered transmission project, any of the following activities:

(2) Economic development.--The Secretary may make a grant under this section to a siting authority, or other State, local, or Tribal governmental entity, for economic development activities for communities that may be affected by the construction and operation of a covered transmission project, provided that the Secretary shall not enter into any grant agreement pursuant to this section that could result in any outlays after September 30, 2031.

(3) Economic development.--The Secretary may only disburse grant funds for economic development activities under subsection (b)(2)-- (A) to a siting authority upon approval by the siting authority of the applicable covered transmission project; and (B) to any other State, local, or Tribal governmental entity upon commencement of construction of the applicable covered transmission project in the area under the jurisdiction of the entity. (d) Returning Funds.--If a siting authority that receives a grant for an activity described in subsection (b)(1) fails to use all grant funds within 2 years of receipt, the siting authority shall return to the Secretary any such unused funds.
Let's get this straight... your State, local or Tribal government can make you pay, via your federal taxes, for "economic development activities" in exchange for tossing you under the  bus.  Phrased another way... your government can score "free money" by welcoming an electric transmission line across YOUR property.  What skin does the state, local or tribal government have in your property?  None.  Absolutely none.  That's why it's free money for them to throw you under the bus and make kissy face with transmission developers.

I think we've reached the pinnacle of pay to play politics.  Government-funded bribes.  BRIBES!
Also the pinnacle of stupidity.

Any government taking advantage of this new provision is soon to find itself booted out of office.  Nobody likes being sold down river by their government, and if they will do it to your neighbor, they'll do it to you.  These elected officials will be gone at the next election, and it could spread from there as local government houses are cleaned.  It's poisoned, dirty money that screams of poisoned, dirty politics.

So, you may be asking yourself, where did such a stupid idea come from?  It came from the stupid people who are now controlling federal energy policy, who originally thought utilities building transmission could pay bribes to local governments and then collect the cost of their bribes through electric rates.  When it became apparent that bribes are not an expense that can become part of electric rates, they pivoted to make the federal government pay the bribes with your tax dollars!

Of course, this is an unproven idea.  Will it work?  Will state, local and tribal governments welcome community destruction, permanent impacts, eminent domain and loss of control in exchange for a one-time windfall that must be spent within 2 years or else clawed back?  It's never been tested.  It's a stupid idea dreamed up by stupid people.  And guess who's King Stupid of this garbage dump? 

Is it all starting to make sense now?  We don't have a government of, for, and by the people.  We have elite rich people controlling our sham government.... and they're coming for your property next.
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Grain Belt Express Seeks Government Subsidies

8/26/2022

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I'm not surprised.  Are you?  Grain Belt Express has never had any signed customers except for the below cost MJMEUC contract for less than 10% of the capacity it wants to make available in Missouri.  But yet GBE's owners are purposefully trying to build an electric transmission line that does not have enough contracted customers to be economic.  No customer, no need....

... your federal tax dollars to the rescue!!!

In its recent application to the Missouri PSC for "amendments" to its current Certificate, Grain Belt finally tells everyone who, exactly, it expects will pay for this ginormous transmission line without sufficient customer contracts.
As stated above, Grain Belt Express then intends to raise debt secured by the revenue stream from the transmission capacity contracts to raise the capital necessary to complete the remaining development activities, construct the Project and place it into operation. Grain Belt Express anticipates utilizing a combination of commercial and governmental sources of financing, and at this time is still evaluating all potential options for financing. Options for governmental sources of financing include the Western Area Power Administration (“WAPA”) Transmission Infrastructure Program (“TIP”); and the Bipartisan Infrastructure Bill Transmission Facilitation Program; Department of Energy loans to non-federal borrowers for transmission facilities pursuant to the Inflation Reduction Act and potentially other government funding options. Additional equity capital may also be raised to help finance construction of the Project, or Grain Belt Express’ existing investors may make additional equity investments in the Project.
That's right... Grain Belt Express cannot begin to build its project until it has adequate financing to pay for the construction.  Invenergy wants the Missouri PSC to hurry up and approve the "amendments" so that it can secure financing from "governmental sources".  I see they casually toss in the Bipartisan Infrastructure Bill transmission program being put together by the U.S. DOE.  That program allows the DOE to become a transmission "customer" by purchasing transmission capacity that nobody else wants.  DOE isn't going to actually USE the capacity, it's just going to pay for it using your tax dollars in order to prop up a transmission project that doesn't have enough customers to be economic, like Grain Belt Express.  DOE says it will sell the transmission capacity to other entities so that it can replenish its transmission slush fund, but let's think about that a bit.  If nobody wants to buy transmission capacity from GBE, why would they want to buy the same capacity from DOE?  The whole scheme should make a freshman economics student laugh.

It's not really government "financing"... in the case of the Bipartisan Infrastructure Bill, it's a subsidy paid for by your tax dollars in order to build a transmission line to nowhere that nobody will ever use.

And for this they want you to give up your private property?  Tell the PSC not to approve Tiger Connector and clear the way for Invenergy to apply for federal government subsidies to build a project without sufficient customer interest!  Without enough customers to make the project economic, it's nothing but a useless parasite sucking Missourians dry.  The PSC needs to stop approving speculative transmission projects without signed customers and interconnection agreements and enabling rich investors to fill their pockets with our hard-earned tax dollars!
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Invenergy Trips Over Its Grain Belt Lies

8/24/2022

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Investigative journalism is not dead!  It can still be found digging away at the Mexico Ledger in Mexico, Missouri.  Managing Editor Alan Dale smells a story and he's determined to tell it.  This week, he asked Invenergy nine questions about its project, and then several follow-ups, one of which caught Invenergy in a lie (surprise!  surprise!)

Here's how Dale caught Invenergy in its own lie:
Have you entered any new agreements with any potential partners or “customers” who will use the Grain Belt and the connector?
We have an existing contract with a consortium of 39 Missouri communities to take power from the Grain Belt Express at an annual savings for $12.8 million, and we see very strong market interest in transmission capacity from the line, which is one factor in the recent announcement to expand local delivery capacity.
Will you move forward prior to an agreement or wait until you get enough before beginning construction?
Kuykendall: “We will begin construction after acquiring the necessary easements and approvals from regulators.”

Because that answer was obviously baloney, Dale asked a follow up:
So, to clarify customers that pay into Grain Belt Express through money or service, who, if anyone, have you entered into an agreement with? If you have no one paying into the line - a customer - you are saying you would build anyway? Or do you want to expand on this?
Kuykendall: ““Grain Belt Express will be bringing power to 350,000 electric consumers across Missouri through a signed transmission service agreement with the Missouri Joint Municipal Electric Utility Commission (MJMEUC) representing 39 Missouri municipal utilities. Grain Belt Express has seen strong interest in the market and expects to secure additional customer agreements prior to construction beginning.”

Oh, that's right... Grain Belt Express *DOES* need customers to pay for the project before it builds.  Why?  Because Invenergy is claiming that the project will cost $7B.  They're going to need a construction loan for the project, and the lender is going to need a reasonable expectation of being repaid, such as the project having paying customers that would produce a revenue stream to make timely loan payments.  Duh.  How dumb does Invenergy think we are anyhow?

Grain Belt also admits that it will need additional customers, in addition to the MJMEUC customer.  That's because the MJMEUC contract is for "up to 200 MW" of capacity.  GBE is planning to make available 2500 MW of capacity in Missouri.  MJMEUC is less than 10% of the capacity offered.  In addition, MJMEUC got a sweet, sweet deal because they were used by Grain Belt to show the Missouri PSC that there was some "benefit" to Missouri.  Grain Belt witnesses testified at PSC hearings that MJMEUC received a "loss leader" contract price that was actually less than it cost GBE to provide the service.  Invenergy isn't going to be making any construction loan payments with its proceeds from MJMEUC. 

So, where are the other customers?  They do not exist!!  Despite all the overly optimistic blather about the customers GBE "expects", the customers are just not there.
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So you might wonder... what's the rush to get Tiger Connector approved?  What's the rush to acquire land?  What's the rush, Invenergy, when you don't have enough customers to make your project economic?

And, let's check out some of the other prevarications in Invenergy's answers.
What measures will the company actually take to minimize negative impacts for affected landowners?
Kuykendall: “Missouri stakeholders have urged Invenergy to develop solutions to deliver more power to Missouri from the Grain Belt Express project. The Tiger Connector is necessary to meet that request, and in doing so provide billions in energy savings to Missourians.
Wait a tick... who are these "stakeholders?"  Do they have names?  Do they even exist?  I'm thinking they do not because who, other than a customer, would urge GBE to make more capacity available in Missouri?  And we know GBE doesn't have any customers other than MJMEUC.  If the "stakeholders" are real, Invenergy should name them.  If not, they don't exist.

And then there's the matter of eminent domain:
What will the company do to avoid condemnation, which is likely the biggest issue?
Kuykendall: “This is always a last resort for us. We’ve already acquired 84 percent of the parcels needed along the Phase I portion of the Grain Belt Express HVDC route, with nearly all of them coming through voluntary easements.

Oh, look... "nearly", my favorite weasel word!  "Voluntary" is an inappropriate description of acquiring easements through threat of condemnation.  I'd even go so far as to say that none of the easements are voluntary since they weren't offered before Grain Belt Express land agents came calling.  Kuykendall also forgets to mention that Invenergy has already filed a number of condemnation lawsuits that are currently working their way through the Missouri court system.  Why must Invenergy condemn land NOW for a project that doesn't have enough customers to get built?  Will Invenergy surrender these easements when it can't find enough customers?  Grain Belt's current permit from the MO PSC requires that Grain Belt give back any easements it has acquired through condemnation if it doesn't use them within 5 years.  Which brings us to the next bit of propaganda...
Can you confirm that Invenergy intends to honor the 7-year Sunset revision on easements as stated in the law?
Kuykendall: “The company is still reviewing that provision of (House Bill 2005) and expects this issue to be addressed in any regulatory filings before the Missouri Public Service Commission. As you know, HB2005 does not apply to Grain Belt Express and any commitment to comply with portions of the law would be voluntary in nature.”

That's right... Grain Belt only gets 5 years, not 7.  But since the Missouri ag organizations generously gave 2 years away to Invenergy in HB 2005, perhaps Invenergy can add another two years?  No wonder they're being cagey.  But, never fear, dear landowner, Invenergy says:
We will engage further with the Missouri Farm Bureau, other ag groups, and the Missouri Public Service Commission to implement these commitments to balance energy affordability and reliability and landowner interests in Missouri.”
What landowner rights do you suppose they will give away on your behalf next?  Only YOU can look out for YOU, not some special interest group that has other issues to pursue.

And let's end with Invenergy's complete and utter nonsense about burying transmission:
Will Invenergy move lines from the middle of fields? Bury lines?
Kuykendall: “We will propose a route that takes the input gathered from these public meetings into account. We understand the desire for some or all parts of the Tiger Connector line to be buried.  Undergrounding the Tiger Connector would require burying two separate transmission systems to meet safety and reliability requirements. This makes undergrounding a non-starter.

“The Tiger Connector line will have one circuit for MISO and one circuit for AECI.
“Overhead line maintenance can be performed by shutting down one circuit while the other continues to deliver power.
“This is not possible underground because workers cannot work with a live circuit present, and federal reliability requirements prohibit a system design that would shut down power delivery to multiple markets at once. This would require two separate buried systems.
“Undergrounding would also have much greater impacts on ag operations, including:
Eight times as much land permanently taken out of production.
Over 80 times the excavation that can reduce yields from compaction and soil mixing.
Permanent “call before you dig” requirements for landowners in easement areas.
Ag impacts result from:
Excavating two buried cable trenches across the entire length of the line – with the trenches separated sixty feet from each other. Recent studies of other buried infrastructure projects have shown reduced yields for corn and beans between 15-25 percent due to compaction and the mixing of topsoil and subsoil caused by trenching.
Installation of permanent access bunkers which are like U-Haul trucks parked in the ground every 2,000 feet in pairs, one along each set of buried cables. Crops cannot be grown over these, and each set would be farmed around.
“In addition to the significant land impacts, this request could set a precedent for other future transmission lines in Missouri, representing billions of dollars in added costs for Missouri electric consumers over time.
“Stakeholders have cited the importance of balancing energy affordability and reliability while also serving landowner interests. Burying any part of Grain Belt Express would fail both of these goals.”
Kuykendall added these statistics to the response:
1.3 acres permanently out of production, vs. 0.16 acres
484,853 total cubic yards of soil excavation for undergrounding, vs. 5,759 cubic yards for monopole foundations

You need to bury two separate systems?  Why?  Are there two separate transmission lines?  Workers can't be near a live circuit underground, but they can be near one above ground?  If you can shut off the current to an aerial circuit, why can't you shut off current to a buried circuit?  Point us to these "safety and reliability requirements" you quote.  Or maybe you're simply making the whole thing up?  I think Invenergy is trying much too hard to repel the idea of undergrounding the lines.  None of this makes actual sense.  It makes my logic bone ache.

Burial would have greater impacts on agriculture?  Only if you buried the line on new rights of way across agricultural land, but that's not necessary at all.  Buried transmission can be sited alongside existing road and rail rights of way, where they can bury the U-Haul truck vaults that allow faults to be repaired without digging up the entire line (something Invenergy recently claimed elsewhere).  The beauty of buried electric cables is that they can go on existing linear easements.  Nobody condemns a new right of way in order to bury a cable for some sort of infrastructure, they use the ones that already exist.

Oh, God forbid Invenergy set a precedent for building a transmission line that does not cause permanent impacts for farmers!  What a horrid thing!  Because it's really not that much more expensive when you consider the millions of dollars Grain Belt has spent over the past decade fighting landowner groups, buying influence, and pumping out the propaganda.  Add to that the cost of 10 years of delay, and it probably costs the same as burying it on existing rights of way from the get-go.

And hey, look, there's those mysterious "stakeholders" again.  Who ARE these people?  And why should they speak for what landowners want?  Only landowners should determine how the project affects them.  It's their land, not mysterious stakeholder's.  Mysterious stakeholder has not been out there alongside the landowner over the decades, pouring his mysterious blood, sweat, and tears into the land.  Mysterious stakeholder needs to shut his pie hole...  if he's anything more than a sock puppet being used by Invenergy.

I really can't wait for Alan Dale's next article!!!  Please let him know how much you appreciate his reporting on Grain Belt Express!
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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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