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Shenanigans and Malarkey

7/15/2021

2 Comments

 
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Just like unsupervised children, our elected representatives get up to all sorts of hijinks when left unsupervised in Washington, D.C.  What have they been doing lately that you should care about?

A "bi-partisan" energy bill was reported out of the Senate Energy and Natural Resources Committee yesterday.  This proposed legislation, hundreds of pages long, does two things that may affect you personally.

Ranking Senator John Barrasso took issue with these two provisions.  His statement is available here.  Bravo, Senator!

Title I, Section 1005, allows the Federal Energy Regulatory Commission to site and permit an electric transmission project in the event that a State Utility Commission rejects or denies an application.  It usurps state authority to make the decision.  Just like the dreaded eminent domain authority, it demands that a state "voluntarily" approve the project, or else FERC will do it for them.

On this provision, Barrasso stated:
“To that end, the bill would empower the federal government to override states’ decisions on the siting of high voltage electric transmission lines. 
Last week, the president of the National Association of Regulatory Utility Commissioners, wrote to this committee saying: ‘this new provision simply gives the state an ultimatum: ‘Approve the project or FERC will approve it for you.'

At a minimum, a change of this significance should be the subject of its own hearing before this committee." 

Sen. Roger Marshall from Kansas proposed striking this offensive provision, but his amendment failed on a party line vote.

Also, Title I, Section 1007, requires that the Secretary of Energy to enter into capacity contracts for service on transmission lines.  It's not that the Secretary is going to use this capacity for delivery of energy, it's that the Secretary is going to pay for the capacity and then try to resell it to others.  The Secretary is going to use your money to financially support transmission projects that are so unnecessary that they cannot find any customers to use them. 
...the Secretary shall seek to enter into capacity contracts that will encourage other entities to enter into contracts for the transmission capacity of the eligible project.
Say what?  If an entity wanted to enter into a contract, it would do so.  It doesn't need "encouragement" from the Secretary of Energy to take a white elephant off its hands.  The legislation presumes everyone will step up to want a contract after the Secretary gets one.  Sorry, transmission capacity is not Tom Sawyer's fence.  What happens when no one is "encouraged?"  Well, looks like the Secretary is stuck holding the hot potato... for 40 years... paying for transmission capacity nobody uses.  Yes, it's as dumb as it sounds.

Senator Barrasso's take:
“This bill also gives the federal government the authority to buy electric transmission capacity. 

There is no shortage of private sector investment in transmission capacity. 

There is no reason to make the federal government a transmission buyer or seller. 

Au contraire, Senator.  There's 200 million reasons for this stupid, expensive and pointless provision.  One reason for every investor dollar Michael Skelly* wasted on his Clean Line projects that failed because he couldn't find any customers to buy capacity.  Skelly solves that problem by requiring the Secretary to buy his unneeded transmission capacity so that his unnecessary transmission projects can financially support themselves on the taxpayer dole.  It's pure subsidy for absolutely no reason at all.  A merchant transmission project, like Skelly wanted to build, is a market based project.  If there is market for a project, it will find customers, and the amount of its profits are set by the market.  Creating artificial market demand through captive, taxpayer-funded contracts does not create an actual market.  It only creates the proverbial "bridge to nowhere" while filling Skelly's pockets.

Sen. James Lankford from Oklahoma proposed striking this ridiculous provision from the legislation, but his amendment also failed on a party line vote.

If you like these provisions and their effect that could ram a transmission line down your throat and across your property, you need do nothing.  If, however, you object, get vocal.  Contact your Senators.  Contact Senators Barasso, Lankford and Marshall.  Contact NARUC.  Contact your state public utility commission.  Let them know these provisions are completely unacceptable, and why.  These people/organizations would probably agree with you.  Please let them know you are standing by to take further action and ask them how you can help.  This legislation must be defeated!
*And you won't believe what Michael Skelly is up to lately.  More on that later...
2 Comments

Grain Belt Express Moving Forward With Eminent Domain Threats

6/29/2021

1 Comment

 
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There, fixed the headline of this awful article on NPR that proclaims, "Grain Belt Express Moving Forward With Land Purchases."  How is it that this reporter gets everything wrong?  And I do mean everything.  I'm not sure there's even one sentence in this "news" article that is factual.  It's nothing but Invenergy's propaganda, and this lazy reporter bought it hook, line and sinker.  He did not talk to any other sources to verify any of the information he was given.  Did he learn that at journalism school?  Did he even earn a degree in journalism?  Or did he get a degree in political schmoozing?  Did he develop the lazy habit of simply reprinting corporate propaganda because it was quick and convenient?

Here's where the facts don't support the narrative in the article:
A project to generate electricity using wind turbines in Kansas and distribute the power in the Midwest and east coast is moving forward.
Invenergy has purchased nearly half of the land it needs in northern Missouri for the construction project that will begin in earnest in 2023. All of those deals have been the product of voluntary negotiations with landowners willing to sell, according to the company, although Invenergy could have used eminent domain to acquire the land.
Moving forward?  What does that even mean?  It's not fully permitted, it has no interconnection agreement to connect to the rest of the grid, and it has no customers.  It's been that way for pretty much the last decade.  It's not moving anywhere.

I seriously doubt that Invenergy has purchased nearly half the land it needs in northern Missouri.  Qu'est-ce que c'est "nearly," Invenergy?  Wasn't it something like 45% of the land in both Kansas and Missouri in Invenergy's recent letter to landowners (with nearly all of it in Kansas)?  So, 45% is "nearly" half?  Nearly only counts in horseshoes and hand grenades, Invenergy.  Did Invenergy really make this claim, or did the reporter misunderstand the information he was given and Invenergy hasn't bothered to correct him because they *like* the misinformation being presented?

What is "earnest" construction?  Is that unlike GBE's current quasi-construction on property purchased outright in order to avoid time and other constraints placed on its permit by the MO PSC in order to "protect" landowners?  Invenergy is currently engaged in apathetically building a bridge to nowhere.  Fact:  Invenergy won't be building anything anywhere until it is fully permitted, has interconnection agreements, and enough customers to make the line economic (GBE's loss leader pricing to Missouri municipalities doesn't count).

Voluntary?  Didn't use eminent domain to acquire land? 

***BREAKING NEWS FLASH for Reporter Ahl***

Invenergy has been sending a vaguely threatening letter to all landowners who refuse to sign.  It says
In certain circumstances, for example when landowners have stated their intention not to
engage in a voluntary negotiation process or have repeatedly refused attempts to be contacted by the Project, the only option available to Grain Belt Express is to pursue a legal proceeding for right-of-way acquisition. Missouri law requires landowners be notified in writing no less than 60 days in advance of the intended initiation of any right-of-way acquisition legal proceeding. Kansas has no prior notice requirement, however the Project intends to inform landowners prior to beginning any legal proceedings. To be clear, this letter is being mailed to all landowners for informational purposes and does not constitute such notice.
That sort of looks like a threat of eminent domain action to me.  I suspect that's Invenergy's intention as well.  You can take your "voluntary" and "willing to sell" and line the manure pit with it.  Landowners are being coerced to sign agreements under threat of eminent domain.

And if that's not factual enough, perhaps Ahl might be interested in one of the actual 60-day condemnation notices being sent to "selected" landowners?  These notices say:
If we are not able to come to terms on an easement agreement within 60 days of this letter, Grain Belt intends to file a condemnation action regarding the referenced property.
Any easement acquired as the result of this letter is in no way a voluntary action by a landowner willing to sell.  It's just another threat, this one more ominous.

Will Invenergy actually file on day 61?  We haven't quite gotten there yet, and the letter only says it will file, not when.  Both letters also sort of insinuate that the condemnation filing ends negotiations and sets the price.  In my experience, the condemnation filing was only the beginning of serious negotiation to acquire property.  The condemning entity would most likely rather not have to engage in the whole process and be willing to settle just to prevent a price for your property being set by a board of your landowning neighbors.  In fact, the letter itself says:
As it relates to the proposed acquisition, under the Missouri law, you have the right to:

b. Make a counteroffer and engage in further negotiations;
The list of landowner rights after condemnation is filed are required to be included in the letter under state law.  Landowners have plenty of leverage and can settle at any time, not just before condemnation is filed.  Maybe Invenergy isn't going to make condemnation filings until some time down the road when it has county assents, a permit in Illinois, interconnection agreements, and customers to pay for the project?  I dunno... just trying to apply a little logic because Invenergy's land acquisition cart is way ahead of its project pony.  I wonder why Invenergy is so interested in signing "voluntary" easements  for a project that is years away from actual construction?  Something smells here...

Maybe it's this?
The issue could come up again next year, but Luckey said the company isn’t concerned with that, as Invenergy is open to talking with lawmakers.
“It’s about coming to the table and letting them know we respect their point of view and the constituents they represent,” Luckey said. “We want to be a partner with them, and we are going to continue education and outreach with citizens and lawmakers.”
Coming to the table with legislators and playing a little footsie?  Respect must be earned.  Everyone knows those legislators are not acting in the best interests of their Missouri constituents, but in the interest of an out-of-state company's profits.  Missourians will vote accordingly.

And then there's this bold faced lie:
Luckey said linking the Grain Belt Express to the power grid could have helped avoid the massive power outage Texas experienced in February.
“The line would have made it possible to import substantial amounts of excess electricity to supply from other regions to address those outages,” Luckey said.

Except Texas has its own grid that is not connected to the rest of us.  They like it that way so they can control their own energy policy and avoid federal meddling.  Texas can't import anything from Grain Belt Express or anyone else, and that's not going to change. 

And let's end with this, which indicates that Invenergy's broadband promises may be going the way of the monopole... just an empty promise that falls to the wayside in order to increase Invenergy's profits.
Invenergy also lists benefits to Missouri including  the possibility of using the infrastructure to improve broadband internet connectivity to underserved areas.
Possibility?  Seems like it's getting less possible as time goes on.  When are Missouri legislators going to wake up and realize they're being played for fools?

This is possibly the worst reporting on GBE... ever.
1 Comment

Eminent Domain In The Wrong Hands

6/17/2021

0 Comments

 
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There's a reason why eminent domain should not be granted to private companies without an obligation for public service.

It's right in the 5th Amendment to the Constitution:
...nor shall private property be taken for public use, without just compensation.
Public use.  Public.  What obligation does a private company planning to build a project "for public use" have to actually put their project into public use after it builds its project?  In the case of merchant transmission, the answer is none.  A merchant transmission builder may sell its transmission capacity "to the public" using negotiated rates after it builds the project.  Or it may change its mind and decide to keep the transmission line it built for its own private use.  Just because the Federal Energy Regulatory Commission may grant Negotiated Rate Authority to a merchant transmission company does not obligate the company to sell its capacity to the public.  Plans change.  This is why its a horrible idea to put the cart before the horse and allow such a company to use eminent domain to acquire land before it is legally committed to offering its product "for public use."

Eminent domain for existing public utilities has been accepted for years.  These companies already have an obligation for public service, and must offer their facilities for public use.  Merchant transmission, not so much.  Their rates are not regulated and they can do whatever bolsters their balance sheet.

Public utilities use eminent domain only as a last resort.  They generally negotiate well over 90% of the easements they require without the use of eminent domain.  Condemnation is only filed when construction is imminent, and all permits have been received.  A public utility does not want to encumber property that it may never use.  The cost of such property is passed through in regulated rates.  A public utility condemning property long before it has permits, before its project is engineered, has connection agreements, and is ready to build is pretty much unheard of.

And then there's Grain Belt Express.  GBE has recently sent out one of two letters to landowners in Missouri and Kansas.  One letter is the legally required 60-day notice before condemnation is filed, and the other is a veiled threat that the 60-day notice could be coming if the landowner does not capitulate.  You may have received one of these letters.  Some landowners received both (on the same day!)  Confusion supreme... one letter says it is official notice, and one letter says it is NOT official notice.  It simply can't be both.

The 60-day letter ends with this threat:
If we are not able to come to terms on an
easement agreement within 60 days of this letter, Grain Belt intends to file a condemnation action regarding the referenced property.
But it doesn't say when, does it?  GBE could file a condemnation action at the end of the 60 days, or it could file one in 60 years.  How effective is a 60-day notice that sits around for months, or years, like a ticking time bomb?  GBE could file a condemnation action any time after 60 days have elapsed.  Tick, tick, tick... when will they file it?  Or will they actually file it?  GBE is not obligated to do so.  Is this a real threat?  Or just another empty threat designed to push landowners to sign now?  Nobody knows until GBE shows its hand.

Is condemnation the end of negotiation?  Not in my experience.  I found that condemnation was only the beginning of serious negotiation.  The entity condemning my property made bigger and better offers after its condemnation filing, and the offers continued right up until the day it was scheduled for hearing at the court.  It was worth a lot of money to the condemning authority to avoid that hearing.  Of course, individual appetite for risk will vary.  I had nothing much to lose by continuing.  The offers I had received up until that point were pitiful.

A landowner who signs voluntarily is allowing GBE rights over his property in perpetuity.  However, GBE has generally offered landowners a small percentage of the agreed-upon price at signing.  For 10-30 percent of the value of the easement, GBE is an unwanted tenant with full rights to your property for a number of years.  It may not have to pay the balance if it later abandons the project before beginning construction.

The Missouri PSC tried to prevent GBE from building a bridge to nowhere by conditioning its permit to require financial commitments for the entire project before constructing transmission facilities on easement property.  But what did GBE do?  It bought certain properties in full so that they were not easements, and then the company built random transmission facilities without the financial commitment to complete the project.  Do you think GBE is prepared to purchase all easements in full without a financial commitment from customers?  Nothing says "integrity" like using loopholes to avoid the spirit of conditions designed to protect landowners.

What does GBE intend to do?  It recently told the PSC that it had not decided what it was building, or where it might connect its transmission line.  Nevertheless, GBE appears poised to begin condemnation of more than 50% of the easements necessary to build its project in Kansas and Missouri.  The project has no connection.  It's essentially a bridge to nowhere.  A prudent public utility would never do that.  A prudent legislature would never allow its constituents to be victimized this way.

What's still missing? 

Customers!  GBE has not publicly announced that it has enough customers to make the project economically viable.  Coupled with GBE's recent skirting of the financial commitment condition, it leads me to believe GBE does not have enough customers.  In fact, there's been no public announcement of an open season for potential customers to begin negotiations with GBE under its Negotiated Rate Authority.  Who condemns land for a project that may never be built?

County assents!  GBE still needs the assent of the counties through which it will pass before it begins construction.  No news on this front.  Who condemns land for a project that does not have all necessary assents?

Illinois!  Invenergy's attempt to make legislative change to the definition of public utility has still not passed.  Keep your eye on this ball and keep contacting Illinois legislators!  GBE is years away from a permit in Illinois, if ever!  Who condemns land for a project that has no end point?

Kansas!  GBE cannot begin construction in Kansas without a permit in Illinois, or without making significant changes to permit conditions in Kansas.  Crickets here also.  Who condemns land for a project that cannot be built?

A company playing loose and fast with a new toy named eminent domain, that's who.  A company with no obligation to the public, only to its bottom line, that's who.

Grain Belt Express putting its eminent domain cart before its project horse has created one of the biggest eminent domain travesties in history.

Keep your chins up, folks.  It's far from over.
0 Comments

Build Better Transmission

6/15/2021

3 Comments

 
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Let's build back better, they said.

That political catch phrase has not been applied to electric transmission.

Instead of using science and technological advances to build the grid of the future, this administration seems stuck in the past trying to use more force to build the grid of yesteryear.

Much ado has been made about "infrastructure" and building a "macrogrid."  New policies meant to spur this along abound.  However, all of these "new" policies are meant to enable building an electric grid that Thomas Edison would easily recognize.

I'm talking about overhead transmission wire strung on lattice steel towers, approximately 4 per mile.  Even the promises of sleeker monopoles (5 per mile) is something left over from last century.  These linear transmission projects are most often routed on new rights of way across privately owned land.  Farmland is a favorite "undeveloped land" target.  This is how electric transmission has been planned and built since its inception in the early part of the 20th century. 

This kind of transmission is ALWAYS opposed by local landowners and communities.  ALWAYS.  Battles are long and fierce, and opposition never gives in.  The stakes are simply too high to capitulate and accept new transmission.  While transmission companies are fighting for profits, the people are fighting from the heart.

All over the country, people have stood up and spoken out against new transmission across their properties and through their communities.  Today, transmission opposition is organized online, and new groups have access to successful strategies and tactics used by others.  It's easier to get a group up and active than ever before.  Transmission opposition is also more successful than ever before.  Most long-distance transmission of questionable need has been denied or abandoned in the past decade.

This kind of due process simply takes too long to suit transmission profiteers and "clean energy" groups these days.  Historically, transmission proponents have met citizen opposition with propaganda and a muzzle -- a hugely expensive and sadly unsuccessful attempt to drown out or silence the opposition.  I think we can all agree now that transmission developer tactics to quell opposition simply are not working any longer.
Renewable energy profiteers and their political enablers have suggested any number of "solutions" to the problem of public opposition to new transmission.  Everything from throwing more (taxpayer) money at it, to usurping state/local authority permit it has been suggested.  Here's one misguided "solution" to opposition hurdles:
Congress should consider legislation to provide greater federal siting authority to the Federal Energy Regulatory Commission for projects like these that are clearly in long-term national security, climate protection and consumer interests. A recent National Academy of Sciences report on achieving net zero U.S. greenhouse gas emissions by 2050 found that new siting and permitting for transmission must be pursued to “put in place, in a timely fashion, the kind of high-voltage interstate transmission system that is needed for deep decarbonization.”
None of these new policies does a thing to dampen opposition to new aerial transmission.  They simply attempt to run opponents over with greater force.  These tactics are simply a waste of time and money. 

Opposition will continue until the promised "better" projects happen.

What's a "better" transmission project?  It's buried on existing linear rights of way.  Alternatively, it could involve rebuilding overhead transmission on existing rights of way.  Key to the success of both of these "better" projects is the fact that they don't use new rights of way that cause new landowner or community sacrifice, and therefore they don't rely on eminent domain to take property from unwilling sellers.  Because there is no sacrifice and destruction of local communities, there's no one to oppose "better" projects.  If a tree falls in the forest and no one hears it, does it make a sound? 

If you're going to "Build Back Better" you should first make sure that what you're building is actually "better."  Why not encourage "better" transmission that won't be opposed by local communities, and discourage governmental sledgehammering of due process and property rights?

Opposition isn't going away until better projects emerge.  Take the sensible path and live your slogan.
3 Comments

Invenergy Wants To Change Illinois Law To Give Grain Belt Express Eminent Domain

6/5/2021

3 Comments

 
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Was it just last month that Invenergy told the Missouri legislature that it wasn't fair to change state law if it hurt their project?  Well, guess what?  Invenergy is busy trying to change state law in Illinois to help Grain Belt Express by allowing it to become a public utility so it may use eminent domain to site the project across Illinois.  Hypocrisy at its finest!

As many of you may remember, the Illinois courts vacated Grain Belt's permit (and eminent domain authority) several years ago because Grain Belt Express did not own any utility property in the state.  Because it did not own utility property, it was not a public utility, and because it wasn't a public utility it was not allowed to use eminent domain to acquire easements across private property.  Clean Line was unsuccessful in overturning this decision. 

However, Invenergy is attempting to change the law upon which the court's decision was based.  As part of an extensive new energy bill in Illinois, the following language changes have been proposed to the statute.
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By changing the definition of public utility, Invenergy could be be a public utility now, if it only intends to own property later.  It merely has to apply at the ICC and receive a permit.  Our private property rights are under attack all across the Midwest by greedy merchant transmission developers who want to use your private property to make money on speculative renewable energy projects.

Illinois Governor J.B. Pritzker says utilities did not write this energy bill.
Pritzker, who vowed in the wake of the ComEd scandal that utilities and energy companies would no longer write the state’s energy policy, declined to comment on the specifics of his offer, saying that negotiators were “still working on the bill.”

“Utilities did not write the bill that we have worked on. That is clear,” Pritzker said. “We have done everything that we can to stand up for clean energy principles, to make sure that we’re expanding renewables in the state. I have set out the principles, I have stuck to those principles, and so my hope is that we’ll end up with a good energy bill.”

So, we're supposed to believe that Invenergy did not have its thumb on this rather opportune language change?  Illinois is still reeling from a recent utility scandal where ComEd exerted undue influence on the state legislature.  It sure looks to me like Illinois has simply traded one utility master for another.  Instead of the legislature being under ComEd's thumb, now it's under Invenergy's thumb.
Something sure stinks in Springfield!

Invenergy wants to take the most profitable route for GBE, and that's using eminent domain to take private property across three states.  It doesn't want to fairly negotiate with landowners without the sledgehammer of eminent domain.  Here's another news flash:  eminent domain is not necessary to build merchant transmission!  When eminent domain for overhead merchant transmission was outlawed in Iowa several years ago, a better project emerged.  SOO Green Renewable Rail is developing a merchant transmission project buried its entire length on existing railroad rights of way.  No eminent domain!  No changing state law, no sacrifice from landowners.  It's a complete no-brainer!  Maybe Invenergy should make a better project instead of using its influence to manipulate state law for its own benefit?

Fortunately, the Illinois energy bill did not pass before the legislative session ended, however, there's talk that it may come to a vote in a few days, or maybe this month, or next month, nobody is really sure and reports change day by day.  If it does come to a vote, the public utility definition change needs to be stripped out.  Let Illinois legislators know!

Does Invenergy's legislative hypocrisy stick in your craw?  Want to do something about it?  Well, you can!  It's quick and easy, and probably extremely satisfying as well!  You don't have to be an Illinois resident to contact Illinois legislators.  The bigger the voice, the more impact it has! For complete instructions on who to call or write, visit BlockRICL or send an email to [email protected].
3 Comments

Macropropaganda

6/1/2021

1 Comment

 
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It's a new word for the bloviating nonsense spewed by Bill Gates' Macrogrid Initiative.

Bill Gates became rich selling crappy computer technology that enslaved the vast majority.  Now he thinks he's an expert on absolutely everything and dreams of taking over the world and remaking it to his own liking.  Money doesn't equal intelligence.  The only ones buying his schtick are the ones Bill is buying to carry it out.  The ordinary man is not impressed.  In fact, the ordinary man is positively revolted by the rich and powerful dictating every aspect of his life and finances.  The ordinary man will dig in his heels and oppose Bill's brain farts simply on general principles.  Bill's energy vision is no different.

Bill gathered all the best dreamers and schemers he could buy to sell his vision of top down big energy to the new Big Government bureaucrats hungry for power and prestige.  Obviously Bill isn't interested in selling his plan to the masses.  Perhaps he thinks that his Big Government can be used to stomp on the masses and drag them into an increasingly expensive and unreliable energy future controlled by the global elite?

Sorry, we're not on board.  In fact, we're going to fight, kick and scream the whole way.  And we're going to keep speaking truth to power until we get our way.

Big Government agency U.S. Department of Energy held a "summit" last week under the auspices of its ARPA-E program.  There, our Big Government "partnered" with Big Transmission and its bastard child "The Macrogrid Initiative" to tell us what we need "as a society."

The four words no for-profit industry should ever utter:
WE AS A SOCIETY
You're not part of our "society."  You have your own "society" of filthy rich folks who want to use us as a stepping stone to even more riches.  Any elite blowhard who utters these words is displaying his own arrogance.  It is SOCIETY that decides what we need "as a society," not elite dictators.  Saying these words guarantees that society will fight you tooth and nail.

And that's exactly what's going to happen to Bill's Macrogrid Initiative.  Having a dream to build a gigantic, new electric grid is one thing; getting there is another.  There's a fork in the road, and Bill and his cabal have veered off onto the wrong path.

Two options:

1.  Innovate new energy solutions that would be accepted by society.

2.  Use old energy solutions that are highly profitable and attempt to force them on society.

One path requires more money upfront but guarantees smooth sailing on the back end.  The other requires no effort in the beginning, but will flounder endlessly when rejected by society.  You'd think Bill would be smart enough to know the difference, but perhaps his arrogance gets in the way?

The only way we as a society are going to allow an energy transition is if it does not impact the sanctity of our homes and empty our wallets.  Otherwise, get ready for eternal, entrenched opposition from society.  We're not docile sheep, in fact you're probably going to be surprised by the virulence we can muster when threatened.
The panelists agreed that regulatory entities will need to alter their policies to accelerate transmission projects and facilitate their interconnection to the grid.
Alter regulation to increase your profits and decrease society's rights?  I don't think so.  In fact, you might even get surprised by some regulatory virulence if you keep trying to stuff your arrogant ideas down that pipe.

Regulation is for benefit of society.  It's not for the purpose of increasing utility power and profits.  Regulators serve ME, not YOU.  We as a society have created a regulatory paradigm that cannot be dismantled or it will cease to exist and become nothing more than a political-corporate dictatorship that does not protect consumers.  Regulation was formed to protect consumers from corporations, not the other way around.  Are we going to need regulators to protect us from the regulators?  Or are we going to need a revolution?

It's not that great a stretch these days for the people to disconnect from the bloated energy bureaucracy and make their own energy.  What good is a kingdom with no subjects?

Game on, Bill!
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1 Comment

Pennsylvania PUC Denies Transource IEC Project Application

5/24/2021

2 Comments

 
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Late last week, the PA PUC voted on an Order denying the application of AEP affiliate Transource to build the Independence Energy Connection in Franklin and York Counties.  Today, the PUC issued the Order.

Denied, denied, denied, denied and denied!  The PUC also rescinded Transource's Certificate of Public Convenience and Necessity for the project, and ordered all related dockets closed.  As far as the PA PUC is concerned, the Transource nightmare is over and done.  Of course, Transource may (and probably will) ask the Commission to reconsider its decision.    After that, Transource may have certain rights to appeal the decision of the PUC.  However, chances of that being successful seem to be hovering between slim and none.

The Commission adopted the Recommended Decision of Judge Barnes, except as modified in the Order.  The modifications are few.  The Commission addressed all the exceptions to Judge Barnes' decision, and granted only one.  That one was the Judge's finding of fact regarding interference with GPS systems used in farming operations.  The Commission struck that finding, but it did not change the outcome.  The second bone of contention was Judge Barnes' recommendation that the Commission should issue a Rule to Show Cause why Transource's CPCN should not be rescinded.  The Commission simply skipped bothering with another proceeding and straight up rescinded Transource's CPCN in this Order.

The Commission reprimanded Transource over several of its exceptions.  One was its contention that ALL the findings of fact by Judge Barnes should be disregarded where they don't agree with Transource's contentions.  Transource forgot to mention WHY, or provide any facts whatsoever, to support this exception.  Exceptions must be specific, or the Commission cannot even consider them.  Denied!
In its Exception No. 8, Transource asserts that the ALJ’s recommendation to deny Project 9A is based on “faulty findings” without specifying any alleged factual or legal error.  In footnote to its Exception, Transource takes issue with certain specified findings by the ALJ and asserts, as a general matter, that all the ALJ’s findings of fact and conclusions of law should be disregarded to the extent the findings “are inconsistent with [Transource’s] Exceptions, Briefs and Testimony in this proceeding.”  Transource Exc. at 39, fn. 27 (emphasis added). 
 
We note that Transource’s Exception, as stated, fails to conform with Commission Regulations for stating exceptions, and lacks sufficient specificity to enable our review.  See 52 Pa. Code § 5.533 (pertaining to exceptions, requiring that the exceptions be stated with supporting reasons for each exception).  A general assertion that all the ALJ’s factual findings and legal conclusions should be disregarded to the extent they are “inconsistent” with a party’s filings does not state a supporting reason to disregard any of the findings and conclusions.  
Transource's team of crack lawyers (the best our money can buy!) should have known better.

They also should have known better regarding their crazy contention that the PA PUC has no authority (under federal law) to deny a project ordered by PJM.  Pennsylvania must evaluate the need for the project under statute.  Pennsylvania's statute is not satisfied by abdicating to PJM's findings of need.  I think this might be my favorite part:
... “need” from a PJM planning perspective may or may not be, as Transource asserts, “consistent with the standard for need under Pennsylvania law.”  It is for this Commission, not PJM, to decide whether the PJM planning perspective is, or is not, in line with the Pennsylvania standard for “need” under the Code, Commission Regulations and relevant caselaw.
BAM!  Read it and weep, Transource.  Of course, Transource must have known that this argument would lead nowhere, and possibly tick off the Commission.  But they went there anyhow.  Was it because Transource simply had nothing else?

Pennsylvania's Consumer Advocate deserves an MVP award for its work on this case.  The Consumer Advocate provided the experts and data that demonstrated how the transmission project would cause additional costs to ratepayers in Pennsylvania, and how PJM refused to consider these impacts.  PJM's claims simply were not true, no matter what lengths it went to in order to continue to push this project along towards approval.  It's refreshing to see all the PJM flim-flam stripped away, and for regulators to evaluate a transmission proposal based on its actual merits, instead of the glammed up package presented by a regional transmission organization.  The judge and the Commission are not buying PJM's story, and are not impressed in the least by PJM's self-importance or overly-complicated geek speak.  It is what it is, and IEC simply isn't needed.
Isn't it time for PJM to fall gracefully on its sword and cancel the project as it has done in the past for the PATH project, the MAPP project, the Monmouth County Reliability Project, and others, when the need for the project simply and magically evaporated?  C'mon, PJM, the time has come!

PJM's first foray into competitive market efficiency projects has been an overly expensive failure.  Transmission congestion is fleeting, and PJM's planning process simply takes too long.  The IEC was no longer needed by the time the PJM Board approved it.  But once PJM decides it wants a project, actual need no longer matters.  It's about the project, not the process.  The lengths PJM went to in order to continue to prop up this project are truly shameful.  It's time for PJM to come to terms with reality and fix its broken processes that allowed this travesty to play out over the last five years, including the changes it made to FERC-approved mechanisms that allow PJM to ignore cost increases to parts of the region caused by projects that lower costs for others, and to ignore new generation coming online on the other side of the transmission constraint.  It has now been proven that neither one of these policies will fool a state regulator on the question of "need."  When PJM does these things, it damages its credibility as a regional transmission planner.  How many times can PJM order and support projects that are not truly needed before they are simply unreliable and unbelievable?  PJM is not acting in the best interests of regional electric consumers when it orders unneeded projects.  It's acting in the financial interests of its utility members.  How many hundreds of millions of dollars have PJM electric consumers paid in their monthly electric bills for projects that were never built?  Transource's IEC, like other cancelled projects before it, will collect all its project costs through FERC-jurisdictional transmission rates even though the project was never built.  FERC transmission incentives allow the owner of a cancelled project to file to collect all its costs in the event of abandonment.  Transource gets made whole, and even earns a return (interest) on its investment until the project is finally paid off.  But what about the citizens, landowners, and communities who made a huge investment in legal fees in order to participate in the PUC case and uncover the truth?  What do they get?  Are they made whole?  No, they simply enjoy not being burdened by a new transmission line in their community, and the personal satisfaction of victory when speaking truth to power.

If it strikes your fancy, go ahead and tell PJM what you think about their actions, and urge them to cancel IEC before it costs you any more money.

Of course, this story would not be complete without recognizing the hundreds of concerned citizens who stepped up, organized, attended meetings and hearings, and participated in the regulatory process.  Ordinary people doing extraordinary things!  Their hard work and determination changed the course of history!  Despite PJM's original "constructability" analysis that the only impediments to this project sited on "vacant land" were bats and crossing state game land, the people have proven that there is no such thing as "vacant land" that nobody cares about.  People care deeply about their land and community, and they will do remarkable things to protect the places they call home.

Let's end with my favorite quote from cultural anthropologist Margaret Mead:
Never doubt that a small group of thoughtful, committed citizens can change the world; indeed, it's the only thing that ever has.
Congratulations, folks!  Let the parties begin!
2 Comments

It depends upon what the meaning of the word 'is' is...

5/19/2021

1 Comment

 
Picture
Briefs have been filed in the Missouri Public Service Commission case alleging that Invenergy is building a materially different project than the one the PSC permitted.  If the "new" Grain Belt Express project that Invenergy announced last summer is being built, then Invenergy has effectively abandoned the project it had permitted.  No permit, no project.  Invenergy admits that the "new" project would require new approvals from the PSC, but says it alone will set the timetable for when it applies for new approvals.  Meanwhile, Invenergy wants to use its current permit to build a different project, and ask for approval after the fact.

What's the harm in this?  Two words -- eminent domain.  The currently permitted GBE was granted eminent domain authority.  The possibility of eminent domain can be used as a tool to coerce landowners to sign voluntary easements.  Without eminent domain, there is no coercion.  It's as simple as that.  However it remains to be seen if the threat of eminent domain is enough to acquire necessary easements.  How scared are landowners?  Do they believe they will get a better deal before condemnation?  Why should they?  The "fair market value" of their property will not change and will be debated  at any condemnation proceeding by a panel of their peers.  Would landowners believe that they can get more by signing a voluntary easement?  My experience with eminent domain had a different result.  Because I resisted and forced the condemning party to face a court hearing, my value suddenly went up.  It was worth a lot of money to them to avoid the court.  How much?  Six times the original offer, and double that offered before condemnation.  It's a straight up poker game... who's bluffing... and who is forced to show their hand?

Anyhow... back to the briefs.  Invenergy claimed the Missouri Landowners Alliance presented no evidence that it was building a different GBE.  The MLA brief pointed out the specific language Invenergy used in its press release and other documents  and examined the definitive nature of its statements.  It wasn't about maybe, or perhaps, it was a straight up declaration of a new plan.  For example,
Among other indications that Grain Belt now intends to materially change the original project are these additional, unequivocal statements from their press release:
● “Invenergy Transmission, the owner and developer of the Grain Belt Express transmission line project (‘Grain Belt’) today announced plans to increase local clean energy access and accelerate billions of dollars in economic investment in Kansas and Missouri.” The statement does not say Respondents “might” or “are considering” those plans. It says they are hereby announcing them.

● “Economic recovery and long-term economic competitiveness in Kansas and Missouri depend on new investment, more jobs, and tapping into low-cost, homegrown clean energy, which Grain Belt is moving full speed ahead to deliver, said Kris Zadlo, SVP [with Invenergy] .... Grain Belt is proud to increase our investment in Kansas and Missouri to rebuild the economy, deliver billions of dollars in energy cost savings, and meet growing renewable energy demand.” (emphasis added). No ambiguities there.

● “As the new owner of Grain Belt, Invenergy Transmission plans to increase the project’s delivery capacity to Kansas and Missouri to up to 2,500 megawatts of the line’s 4,000 megawatt capacity .... Previously, 500 megawatts of the transmission line’s capacity was slated for delivery to Missouri.” (emphasis added). Again, Respondents’ plan to increase delivery of power to these two states was expressed in unequivocal terms.

● ”Grain Belt will provide critical power infrastructure to the region benefiting residents for decades to come.”

● Governor Laura Kelly of Kansas is quoted in the press release as stating that “[t]his impressive project is the latest example of Kansas’ place as a wind energy leader in our region and beyond.”

● According to the Kansas Secretary of Commerce, “the unwavering commitment from Governor Kelly to further support renewable sources is paying off in many ways, including this tremendous step forward in the Grain Belt Express.” He is further quoted as saying that the revised project “will deliver a significant economic boost to our rural communities in particular. The news couldn’t come at a better time.”

Clearly, these statements from the two Kansas officials would have been authorized for inclusion in the press release only if those individuals had been convinced that Respondents actually plan to move forward with the changes announced in the press release. Had Respondents told them that the revised plans were merely under consideration, the reaction from the Kansas officials would no doubt have been different from what they are quoted as saying in the press release.

● A representative of Renew Missouri is quoted in the press release as saying that “the benefits of Grain Belt have only grown with billions of dollars of added savings ....” Again, this statement is nonsensical unless the speaker had been led to believe that Respondents are committed to moving forward with the changes announced in the press release.

● Perhaps the clearest commitment by Respondents to materially change the original project is the following statement from the press release: “With increased delivery to Missouri ... Grain Belt will double its overall economic investment in Missouri to $1 billion .... Grain Belt will now make available as much as half or more of the project’s total capacity for Missourians.”

The importance of this statement lies in how this additional $500 million is to be spent on the project. As Mr. Zadlo acknowledged, the additional $500 million announced in the press release represents the added cost of increasing the capacity of the Missouri converter station by five-fold: from the original 500 MW to 2,500 MW.35 One could hardly argue that this change is not material.
And Respondents did not state that they were merely “considering” or “contemplating” the additional $500 million investment, which was earmarked for quintupling the size of the Missouri converter station. Instead, the press release states unequivocally that the new plans for the project “would” double the investment in Missouri to $1 billion.
In addition to the press release, in a letter sent from Respondents to landowners just this past December, Respondents included the following statements, again made unequivocally and with no hint that the plans announced therein were anything short of a firm commitment:

● “As you may be aware from recent news, Grain Belt Express has announced a proposed plan to increase the project’s delivery capacity for Kansas and Missouri consumers.”
● “Under this plan, up to 2,500 megawatts of Grain Belt’s 4,000-megawatt capacity would be delivered to Kansas and Missouri consumers .... This requires expanding the already-approved converter station in northeast Missouri.” Again, Respondents do not equivocate. The new plan “requires” the expansion of the Missouri converter station. As it turns out, it requires a five-fold increase in the size of that converter station. ● “Grain Belt Express will be seeking regulatory approval for this plan.” Again, this is a firm commitment to proceed with the project as modified by the announced changes. If Respondents had not already committed to making these changes, there would be no need to state that they “will be seeking regulatory approval” for the changes. This statement also recognizes that the changes being made are “material” enough to require Commission approval under the terms of the CCN decision.

● The letter also states that Respondents will be seeking approval to begin construction of the line prior to obtaining approval for the Illinois segment of the project. This statement confirms the description of the new project in the press release as constituting a “phased construction plan.”

And as counsel for Respondents conceded, “if phasing was to occur so that the Missouri and Kansas portion of the line was built before the Illinois and Indiana portion of the line, then we would likely consider that a material change and be before the Commission.” So the newly announced phasing plan definitely constitutes a material change to the project.

● A series of emails shown at Exhibit 6 indicate that a woman named Kimberly, acting on behalf of Grain Belt, was soliciting comments from the Governor of Kansas to be used in the August 25 press release. In an email of August 6, she informed a number of Kansas officials that “The project is moving into its next phase and the company plans to announce this development.” (emphasis added). She did not tell the Kansas officials that the project might be moving into a new phase. Instead, she unequivocally assured them that the project “is” moving into the next phase.
● Finally, in
his response to Data Request No. 8, Mr. Zadlo simply answered “yes” to the following question:
Do Respondents presently plan to eventually seek regulatory approval from the Missouri Commission for the changes described in the press release attached as Exhibit 1 to the Complaint in this case, assuming no other significant changes are proposed to the project as originally approved?

This answer says, plainly and simply, that Respondents do in fact “presently” plan to seek Commission approval for the changes they announced in the press release. Mr. Zadlo did not say they might do so, or that they were considering that as an option. He said they will be seeking approval for those changes, which necessarily means they have already decided to make the revisions announced in the press release. It follows that Respondents have abandoned the project as approved in the CCN case.
The press release also mentions that Grain Belt will seek regulatory approvals “to the extent necessary” for the revised project. That of course is a given. Respondents have no choice but to seek regulatory approval for what amounts to a new transmission project. But that fact has no bearing on the question of whether they have already decided, as they have said, to move “full speed ahead” with the revised project. And again, the statement reinforces the fact that Respondents themselves consider the proposed changes to be “material” enough to require Commission approval.

In attempting to explain away their answer to Data Request No. 8, Respondents claim that the revisions announced in the press release are merely “contemplated changes.” But that explanation misses the point. As of today the specifics of the new plan may well be in the “contemplated” stage, with final details still to be determined.

However, that does not mean Respondents have not already committed to building the project in accordance with the announcements in the press release, as opposed to the project approved in the CCN case. In fact, they have as much as promised officials in Kansas that those changes will be forthcoming.
Perhaps at some point Respondents realized the potential consequences of their announced changes to the project. But taking them at their word up to that point, they have clearly stated they are already committed to making material changes to the project originally approved by the Commission. For Respondents to now dismiss the press release as nothing more than “a marketing exercise” simply demonstrates a complete lack of transparency and credibility.

The same holds true for their after-the-fact attempt to dismiss the press release as merely announcing the supposed benefits of the line and “an openness by Grain Belt to increase the converter station and dropoff in Missouri.” That document goes well beyond that characterization. In fact, the additional consumer benefits would materialize only if the chances announced in the press release were implemented.

The more credible statements from Respondents concerning this project are those made before the Complaint was filed here. Assuming Respondents were not deliberately misleading Missouri landowners, public officials, and the general public up to that point, those statements can only mean that they have already decided to materially alter the project approved by the Commission.
Based on the foregoing, the design and engineering of the project presently being pursued by Respondents is materially different from that approved in the CCN case.

... she unequivocally assured them that the project “is” moving into the next phase.

Is it, or is it not?  I guess that depends on what your definition of is is.  Famous words from a famous equivocator.

The language clearly stated that Grain Belt Express was being changed.  The claims about the vagueness of this new plan only came after GBE realized it had stepped in it.

Is the MO PSC going to allow Invenergy to dictate how it regulates by allowing the company to permit its new transmission project after the fact?  I think the PSC has a greater duty to the citizens of Missouri than it has to an out-of-state corporation who appears less than honest.

1 Comment

Calling all Hypocrites...

5/19/2021

2 Comments

 
When is hypocrisy not hypocrisy?  When it enables corporate profit and political goals!

The divide between using eminent domain for gas and oil pipelines and using it for renewable energy transmission lines is becoming an issue.  For years, environmental groups have raged against eminent domain to acquire right of way for fossil fuel projects.  However, they are being advised to think differently when it comes to electric transmission "for renewables."  For some reason, this use of eminent domain is okay.  Can we just admit that it never was about eminent domain in the first place?  It's about politics, and these politics are riddled with hypocrisy.

This article just goes too far.  Written by a law firm scrounging for clients who want to re-write eminent domain law, it proposes to change the definition of "public use."  Cue the Supreme Courts...

The 5th Amendment of the Constitution reads:
No person shall be held to answer for a capital, or otherwise infamous crime, unless on a presentment or indictment of a Grand Jury, except in cases arising in the land or naval forces, or in the Militia, when in actual service in time of War or public danger; nor shall any person be subject for the same offence to be twice put in jeopardy of life or limb; nor shall be compelled in any criminal case to be a witness against himself, nor be deprived of life, liberty, or property, without due process of law; nor shall private property be taken for public use, without just compensation.
Each state has its own version of this.  What is "public use?"  Your personal definition of it may differ, but we can all probably agree what it is not... it's not the confiscation of private property by others seeking to make a profit using it for their own purposes.  I cannot force my neighbor to sell me the use of his backyard so that I can plant a vegetable garden that will enable me to open a booth at the local farmer's market and make a profit selling produce.  So why should we allow a for-profit corporation to acquire my property to build a transmission line from which they will realize profit?  We did this in the past because the transmission line enabled others to have electricity.  The public was getting a benefit from having electricity.  We use it still when it enables the public to realize a benefit.  When a transmission line is needed for reliability, for instance.  However, we need to draw the line at using eminent domain to build transmission that may lower prices for a small segment of the population at the expense of another.  We need to draw the line at using eminent domain to build transmission for political reasons.  We need to draw the line at using eminent domain to build unneeded transmission designed for corporate profit.

This law firm proposes:
Soon enough, eminent domain policies will have to evolve to align with renewable energy policies in order for a complete overhaul of the grid system to be attainable. State and federal lawmakers will eventually have to address the issue by having to revise the definition of “public use” to account for transmission lines transporting renewable electricity.
We're going to have to re-define "public use" to suit your political goals and corporate profit? 

NO!

The last time the definition of "public use" arose was in the context of a high profile Supreme Court case, Kelo v. City of New London.  In that case, the Court narrowly decided that economic development (increasing the tax base) was a "public use."  The backlash was enormous.  Many states enacted new laws to thwart this ridiculous decision.   Any corporation can increase the tax base by turning residential property into commercial property, but are the tax benefits to the community a "public use?"

The same goes for taking private property to enable new generation choices.  Everyone who wants electricity has electricity.  Where's the public need?  It's nothing but politics, folks.

And here's something to consider that you may find surprising.  The liberal justices were the ones who supported eminent domain for economic development purposes.  Conservative justices dissented.  How might a new battle be decided?  And just how long might that take?  It would be much, much longer than renewable energy companies are willing to wait.

Can they quietly change the definition of "public use" written in the Constitution and in individual state law?  And if they did, how could they still use it to oppose eminent domain for fossil fuel use, but enable electric transmission "for renewables"?  The hypocrisy here is so thick you could cut it with a knife.
2 Comments

What Will You Give?

5/5/2021

0 Comments

 
Picture
Joe Kalin in News-Press Now
Will you remember him when you turn on the "clean" electricity the media tells me you're "demanding?"

Read Joe Kalin's story in the St. Joseph, Missouri, News Press.
Joe Kalin has fond memories of growing up in the Buchanan County countryside.
His father came from Switzerland and turned 87 acres near Faucett, Missouri, into a successful dairy farm, where Kalin lived and worked with four brothers and a sister. Before passing it to the next generation, Kalin’s father instilled a deep appreciation for the land and its productive capacity.
“My parents both come from the old country,” said Kalin, now 84. “My father, he loved to farm. It was given to us boys as an inheritance. We were always told to take care of it, that it would care of us.”

Mr. Kalin is being threatened with eminent domain so that a merchant transmission company can build an overhead electric transmission line across his family farm. 
It’s a 780-mile, high-voltage transmission line that threatens to cut through the land that brought John Kalin to America in the 1920s. The project, known as the Grain Belt Express, seeks to transfer wind power from western Kansas to population centers east of the Mississippi River.
Perhaps for you, dear reader.  Are you a person east of the Mississippi who has been demanding "clean energy?"  Do you know and appreciate what it's going to take to fulfill your "demands?"  There are millions of Joe Kalins between your house and that fictional "Saudi Arabia of Wind" located vaguely somewhere in the Midwest.  It's time to get acquainted.  Remember his face!  And think about what he's being asked to sacrifice so that you can assuage your climate guilt by pretending the electricity you freely use is "clean." 
For his part, Kalin said he isn’t against green energy but opposes being forced to pay the price while others reap the benefits. He doesn’t want to look out the window and see 150-foot power poles where his father once saw a landscape reminiscent of an alpine meadow.
“I don’t like the government telling people what they can do and can’t do with their land,” he said.

Mr. Kalin isn't going to use any of the electricity that's proposed to cross his farm.  He gets no benefit.  Just sacrifice.  If he has to sacrifice in the name of "clean energy," what sacrifice are you making?

No, I'm serious.  I want to know what you're sacrificing for the sake of the climate.  I mean personally, not some generalized feel good buzzwords.  Go ahead, post a comment.  I want to hear from you.

Are you donating a portion of your private property for the use of a profit-generating corporation?  Mr. Kalin is being told he must allow an easement across his own property so a corporation can make money.

Are  you donating a portion of your 401(K) to some climate change reversing business?  How much?  A farmer's retirement is his land.  When his land is appropriated for someone else's use, it reduces the productivity and future uses for his farmland.  It reduces the value of his retirement nest egg.

I have yet to hear from one person demanding clean energy, just one for goodness sake, who can say their sacrifice in the name of "climate change" is as significant as Joe Kalin's.

Don't turn a blind eye to the reality of "clean energy."  And don't give me a list of "whataboutisms".  They don't impress me.  Everything you do affects someone else.  When are you going to be responsible for your own needs?  Or are you just that type of person who gladly walks over others to benefit yourself?
0 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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