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Eminent Domain Abuse Arguments are a Tool Strictly for Landowners

10/23/2018

0 Comments

 
There are so many things wrong in this rant, it's hard to know where to begin.  Was this the result of some kind of drunken truth or dare game?  It's all over the map and kind of hard to follow, but I think it's supposed to say that eminent domain abuse lawsuits cannot be used on clean energy projects by environmentalists.

So, wait, let me try to digest that again... environmentalists are using eminent domain arguments to stop clean energy projects?
Environmentalists are starting to use the same legal tactics they use to halt the construction of oil and natural gas pipelines against clean energy projects like wind farms, cutting into consumer choices for clean energy.

Yup, that appears to be what it says.  But where is this happening?  I'd love to read about it if it is!  But maybe it's not actually happening, except in the mind of the author.  Because a lot of the other things this guy claims just aren't true.  Such as:
In Oklahoma, legal fights have slowed the rollout of critical transmission lines and wind farms that could power other parts of the United States with emissions-free electricity. Wind Catcher — a 2-gigawatt, 300,000-acre wind farm planned for the Oklahoma panhandle — had to be scrapped after oil and gas opponents began to campaign against it, stiffening the spines of property owners in the path of the mega-wind farm’s transmission lines and making the project too tortuous and risky for investors. 
WRONG!  WRONG!  WRONG!  Dude, you weren't there!  You're just making crap up after the fact to fit your tortured rhetoric.  I really don't remember you from the Wind Catcher opposition group... probably because you're nowhere near Oklahoma.  (Of course, neither was I, however I was working remotely to help organize and strategize the landowner opposition).

Now let's get to your most bogus claim -- that oil and gas opponents began to campaign against it and that "stiffened the spines" of property owners in the path of the transmission line.  Who are oil and gas opponents?  Do they oppose oil and gas?  If they oppose oil and gas, why did they oppose Wind Catcher?  Perhaps your brain overran your hand and you meant to say "oil and gas corporation-funded opponents of Wind Catcher?"  Is that what you meant to imply?  Either way, you're wrong.  Oil and gas had NOTHING to do with landowner opposition to the transmission line.  And the "spine stiffening" you speak of occurred because of the coming together into an organized group of landowners.  It was landowners who inspired other landowners, not oil and gas folks.  The oil and gas folks were not the cause of any landowner actions.

You must spend too much time reading baseless, self-centered lies on the internet, Bill, if you think a small group of thoughtful, committed citizens can't change the world.  In fact, that's the only thing that ever has!  The environmental groups and their groupies want people to think that clean energy got it's butt kicked by a well-funded, powerful industry instead of Robin Hood and his merry men, a small but dedicated group of opposing landowners.  Because if affected landowners can stop "clean energy" projects from confiscating their homes and businesses, it demonstrates just how weak "clean energy" and its environmental sycophants truly are.  But that's exactly what's happening... the "clean energy" charade cannot stand up to landowners protecting their land (perhaps even using eminent domain abuse legal arguments).  Stop trying to steal the landowners' victory and give it to "oil and gas."  Oil and gas folks were bit players nibbling around the edges of the landowner opposition trying to tap their energy to serve the oil and gas agenda.  And it didn't work.  And no money was given.  Landowners fully funded their own legal battle, and it cost them dearly.

Here's the next untruth:

If Wind Catcher is cancelled, has that "slowed the roll out" of the project, or has it STOPPED it?  It's dead and gone.  And there was nothing "critical" about the transmission line or wind farm.  In case you've never heard, in your long and distinguished energy journalism career, RTO/ISOs plan and order "critical" transmission lines.  These would be the lines necessary to maintain reliability, or to serve an economic or public policy purpose.  Southwest Power Pool did not order the Wind Catcher project.  It was completely superfluous... as in not needed.  Not "critical."

And who are these "investors" who ran away because Wind Catcher was too "torturous and risky"?  It looks like Bill thinks the project was cancelled because investors refused to put up the money to build it.  Here's what really happened... state regulators in Texas, acting in the interest of Texas electric ratepayers, denied AEP's application to add the cost of the wind farm and transmission line into rates.  The regulators did this because all the risk that that Wind Catcher would end up being an additional cost, instead of a predicted savings, was being placed on the backs of ratepayers.  Were ratepayers the "investors" Bill's talking about?  They were the only party taking on risk for Wind Catcher.
Similarly, in Iowa, the legislature banned the use of eminent domain for high-voltage transmission lines carrying wind energy across the state into Illinois. The state government would have used eminent domain to obtain rights of way from reluctant property owners in order to build these lines.
This is a false portrayal of something that actually happened.  The Iowa legislature banned the use of eminent domain for ABOVEGROUND MERCHANT TRANSMISSION LINES.  It determined that aboveground merchant lines were for private development purposes.  Therefore, aboveground merchant transmission lines may not use eminent domain to obtain private property.

What the Iowa legislature did not do is "ban the use of eminent domain for high-voltage transmission lines carrying wind energy across the state into Illinois."  That implies that all high-voltage lines carrying wind energy are banned.  Any transmission line for any purpose may still use eminent domain EXCEPT aboveground merchant projects.  And there is no such thing as a high-voltage transmission line carrying wind energy anywhere.  Transmission lines may not segregate or exclude electrons based on generation source.  An electron is an electron.  And a transmission line carries all kinds of electrons, mixed up into electric soup.

Bill is embellishing to fit his own disjointed narrative.

And then Bill invents the strawman "national anti-development forces."  Whut?  Who?  I've never heard of these people.  I'm not sure they exist.  If they do exist, they're not interested in transmission or wind farms, that's for sure.  Those projects are opposed by the landowners who are expected to live with them.  And only a landowner is entitled to use eminent domain abuse legal arguments!  Because only a landowner has standing to use an eminent domain legal argument.  A national anti-development activist, an environmentalist, or an oil and gas person, does not own the land proposed to be taken by eminent domain, the landowner does.  Therefore, only a landowner may use an eminent domain-focused defense.

And that's another huge problem that probably gets Bill's shorts all wadded and uncomfortable... environmentalists, anti-development activists, and oil and gas people, all pretend to be sticking up for landowner rights by covering themselves with what they feel is a popular petard... eminent domain abuse.  Truth of the matter is, none of these folks actually give a damn about landowner rights.  They pretend to, though, in order to attempt to siphon off the energy of landowner groups to serve their own agenda.  That's because none of these people have any citizen energy of their own.  They don't have a grassroots army.  The best they can do is create front groups that give an appearance of grassroots support.  However, purchased advocacy never performs to the level of true grassroots efforts.  For example, what if I gave you $5 to pretend to be pissed off about something?  You'd be acting.  However, what if I smacked your momma?  Bet you'd get genuinely mad for no money at all!  Paid advocacy is boring, but a true grassroots movement is exhilarating, energizing, and completely rewarding.  And it can't be faked.

Environmental groups who simultaneously speak out for and against landowner rights demonstrate a huge hypocrisy that is apparently confusing for Bill and The R Street Institute.  While environmental groups are for eminent domain when used to take private property for "clean energy" projects, environmental groups are also against the use of eminent domain to take private property for "oil and gas" projects.  So, are environmental groups for or against eminent domain?  Apparently there's some other standard to be applied that makes eminent domain suddenly a great idea... if the developer of a project pretends its project is "for clean energy."  But that really doesn't change the eminent domain argument at all.  It just makes environmentalists the ultimate hypocrites who should be ignored. 

Perhaps these are the people Bill is ranting about?

There's nothing wrong with landowners using eminent domain arguments to protect their land from energy projects of all kinds.  Environmentalists and oil and gas people need to stop confusing this issue for their own purposes.  Remember, only landowners have standing to use eminent domain abuse legal arguments.

And maybe Bill should re-think being done with school.  Some clarity and honesty in what he writes for publication seems sorely needed.
0 Comments

Transmission Company Employee Thinks Opponents are Merely Greedy

8/10/2018

3 Comments

 
What better demonstration of the Peter Principle than within the hierarchies of investor owned utilities?  The Peter Principle, simply stated:  "In a hierarchy every employee tends to rise to his level of incompetence."  Bloated behemoth American Electric Power demonstrates its love of the Peter Principle every day, with more levels of unnecessary management than a multi-level marketing scheme.

But American Electric Power isn't alone in this.  I've noticed it at every utility and call center I've ever had the pleasure of disagreeing with.  The mid-level manager... dumb as a box of rocks!  What do we do with dumb people?  We promote them off the front line where they tend to embarrass us, and give them a nice corner office where they can direct their incompetence into meaningless managerial tasks.

American Electric Power withdrew their application for cost recovery of their now cancelled Wind Catcher project the other day (although they want the OCC to bless their settlement agreement with Oneta Power -- how does the OCC approve a settlement agreement for a withdrawn proposal?).  Also on the docket were a collection of public comments that had been gathered before the proposal tanked.  One last look at the battling form letters and other creative ways AEP tried to make its misguided proposal look popular and therefore worthy of approval.  Amid the postage-paid postcards and hand-written letters from landowners opposed to the project were two absolute gems signed by AEP/PSO employees in Oklahoma.  Why, AEP, why?  Was this a company-sanctioned activity?  Were employees who voiced their support awarded with days off or a free breakfast?  Or are these employees simply trying to find something to do with their time in the corner office?  Each letter was hysterically incompetent in its own way and demonstrated the kind of unimaginative thinking characteristic of a bloated hierarchy full of incompetent middle management.  This is all on you, AEP.

First let's examine the letter from Debbie Burchett, Administrative Supervisor from Oologah.  Oologah is the site of one of AEP's massive coal/gas generation plants.  What is an "administrative supervisor"?  I have no idea, but she's "well versed in the electrical business on the generation side."  I'll assume this means she sits in the corner office and writes letters to regulators with ideas that are strictly her own (but submitted in her official capacity with AEP).  And she expects the regulators to call her on her cell phone to get further info (without a period because it's apparently a complete word at AEP) and leave a message and she will happy to return the call and talk to them about her perspective.  Yes, I'm sure that would be very helpful to the Oklahoma Corporation Commissioners when they're making a decision on this complicated matter.

Ms. Debbie's advice is full of threat and doom of what will happen if the Commissioners don't approve Wind Catcher.  Jobs and projects won't come to Oklahoma!  It will hurt the state in electric use! (huh?  what?)  It will cost consumers higher rates in the future!  People say they want renewables but Oklahoma won't approve a project that lowers rates!  (Again... where's the logic here?)  And then we get the dreaded double negative so bad it makes my head hurt!  "l wouldn't understand why you wouldn't do this."  And if that isn't convincing enough reason to approve Wind Catcher, "this would not be good if it failed for both the electrical industry and the consumers."  Not good, according to Ms. Debbie.  Ms. Debbie has been a consumer for 45 years!  (How old is Ms. Debbie?  I'm hoping she's 45, because it's pretty hard to live without consuming anything.  I suspect she's been a consuming burden her entire life.)  Well, she's got a leg up on people who have only been consumers for 25 years, or 40 years.  An experienced consumer is always the best judge of new regulated projects that depend on a captive customer base for their revenue.  Guess what, Ms. Debbie?  Regulators like the OCC Commissioners take the place of competition in a regulated environment to make decisions about what's best for captive customers.  Bless your heart, Ms. Debbie, you really gave it your best shot here.  I hope you enjoyed your corporate trinket.

And now let's move on to Mr. Brett L. Martin, who thinks he's both witty and a master of the English language.  His letter is addressed to "Esteemed Ambassadorial staff."  Who?  Maybe Brett addresses all his inter-office memos to his superiors with this salutation (because you don't get the corner office without a bushel of brown-nosing) but I don't think there are any Ambassadors at the OCC.  Feigned toadyism only works in corporate settings, such as at AEP.

Brett is a SCADA Engineering Sr and that apparently makes his intellect and logic on all topics superior.  Because he's an Engineer, y'all!  Now obviously Brett isn't one of those innovative and creative thinking engineers because his knowledge of topics he didn't learn in engineering school are unimaginative and devoid of logic and understanding.  Brett is headed to the corner office in a big, big hurry!

He makes "deductions" about resource adequacy and load projections that are not only completely wrong, his solution depends on an overly-expensive and intermittent resource that intends to ship 70% of the power produced out of Oklahoma.

His theory is that only wind is "green energy."  True "green energy" is sustainable energy.  Industrial wind is not a sustainable source because it becomes a burden on the land and population.  Maybe he meant to say its burden is less than other sources, but that's only true when the infrastructure isn't in Brett's backyard.  A completely myopic and boring repetition of meaningless and trendy climate change memes.

He then delves into gas v. wind prices and unknowingly makes a great argument for disapproval. "The forecast for natural gas cost is not a valid comparison unless the OCC wants to gamble on future markets."  That's precisely why the Texas PUC denied this project.  Thanks, Brett!  His solution obviously wasn't cleared by upper management, because he wants to "Ensure accountability for the provided statistics and this point is closed regarding protective assurances."  AEP did not want to provide these protections.  It couldn't.  That would have most likely caused a loss to the company.  That's how skewed their gas price forecast was, and they knew it.

Then we get a paragraph about the sky falling if "a negative result is found."  There will be massive state revenue losses!  (You mean like the ones related to state tax credits for wind?)  And many Oklahomans will hold the OCC responsible for any future repercussions!  Do you mean you, Brett?  Are you the Oklahoman who is going to sue the OCC over possible "what if" situations?  I hope your understanding of the regulated legal system is better than your understanding of rates and resource planning.  Go for it, Brett!  And while you're at it, good luck with that generation shopping thing.  It sure looks like you're suggesting if the OCC approved cost recovery for Wind Catcher from PSO's captive customer base that it could later on change its mind and allow customers to opt out and buy their generation from somewhere else.  Did you check that idea with management first?  I'm pretty sure the company wanted a cost recovery scenario that would be guaranteed... forever.

And let's finish up with Brett's completely wrong-headed ideas about right of way acquisition and drivers for landowner opposition.  This is so misguided, so arrogant, so tyrannical, it can only be a revelation of the institutional mindset of a corporation so used to persecution to get what it wants that it is completely devoid of the empathy that makes us human.  Karma has a package for Brett and someday it will deliver.
In conclusion, the only argument I've noticed that needs addressing, is the Right of Way with landowners. Most of the Transmission route is satisfactorily settled to landowners' liking. There will always exist individuals that aim to capitalize on any efforts to improve a populations quality of living. I understand and readily concur that there are some situations
that need clarification and potential settlements, but this in no way impacts pre-approval of cost recovery. Laws exist by the legislature to ensure both landowners and corporate entity interests are protected regarding Right of Way. It seems arguments are rather one sided lately favoring the landowners. If our nation aimed at 100% satisfaction, we wouldn't even be able to elect governmental officials. With corporate expansion, the same holds true. A majority of Oklahomans approve this project and want our state to lead the nation.
Landowners who oppose transmission are merely being greedy?  Is that what you think, Brett?  Do you believe they will drop their opposition if enough cash changes hands?  Wow, aren't you jaded?  Here's the reality you've been sheltered from in your little SCADA world... landowners oppose new transmission because their land isn't for sale at any price!  Landowners oppose transmission for a lot of reasons, but one of the most common is attachment to the land, often land that represents the blood, sweat, and tears of their family for generations.  There is no amount of money that can compensate for the permanent destruction of a person's home, especially one rich in heritage and memories.  Your accusation that landowners who resist new rights of way are merely trying to score a bigger pay day is so deeply offensive, Brett.  Where did you get such an awful idea?  Was it from your buddies in the land acquisition department who insist they are "working with landowners" to coerce right of way agreements, or did you think it up on your own while passing the trophy case on your way to the cafeteria on numerous occasions?  (Ratepayer-funded donuts!)

And can you tell me how many "most" is?  You say "most" of the route is settled.  I don't think that's true.  Most should indicate nearly all, or a vast majority of something.  Certainly more than 50%.  My experience with landowners affected by Wind Catcher was that "most" of them didn't want to sell.  Some initially felt persecuted enough by high-pressure land agents and injunctions that they just gave in.  These landowners were not happy to sell a right of way.  They were bullied and coerced to do so.  And others on the verge of giving up were empowered by other landowners who refused to negotiate, and they subsequently joined the ranks of opposition.  Your "most" is a declining population once opposition gets a toehold and begins to spread.

Additionally, your idea that laws adequately compensate landowners is not a view shared by affected landowners.  It is one shared by unaffected individuals and transmission owning bullies.  A one-time "market value" payment for only land taken doesn't even come close to just compensation for an entire parcel devalued by changed use forever.  "Just compensation" attempts to make a landowner whole for one particular point in time.  It does not compensate for loss to the entire parcel, nor for future uses that subsequently become impossible.  Land unobstructed by involuntary rights of way can be used for any purpose in the future, whether it is for new farming ventures, new businesses, or even future residential development.  Adding a utility right of way through the property forecloses all these future possibilities, yet landowners are never compensated for future scenarios.  Landowners are also not compensated for their emotional attachment to land, nor the burden of having to look at and live with new infrastructure and its inherent risks every day in perpetuity.  "Just compensation" serves the interloper, not the landowner.  Any ideas that a landowner merely holds out for higher compensation is nothing short of adding insult to injury. 

And there is no voting process for eminent domain.  It's a process reserved for the courts and special compensation boards or juries of landowning peers.  Your attempt to compare the eminent domain process to democratic elections is an utter failure.  The public at large hates eminent domain, for any reason.  If a person isn't a self-centered, greedy bastard who thinks he can profit or gain something through the use of eminent domain, if he is someone with common empathy for his fellow man, he will always see himself in the victim role.  If the community at large voted on eminent domain takings, they would cease to exist.  If eminent domain can be used on our neighbor for one reason, it can be used on us for a different one.

Brett, I pretty much think you may be an absolute jerk.  But thanks for that little peek into corporate think.  You're an asset to your company and hopefully you'll have that corner office soon.
3 Comments

Michael Skelly Aspires to be Meaner

8/1/2018

1 Comment

 
How much meaner could one be than to continue to attack people in 3 states with pie-in-the-sky promises to impede their businesses and take their land by eminent domain, when the likelihood of ever actually doing so is hovering near zero?
"We knew that if we were going to focus, we would need a leaner, meaner team."
Really, Michael Skelly, I can't help laughing at your feeble attempt to pretend you're some incredible go-getter who can suddenly make Grain Belt Express happen with a "leaner, meaner" approach.

Is "leaner" meant to cover the fact that there are no Clean Line employees anymore?  I notice you suspiciously skirted around that issue in your ego-polishing interview with Houston Business Journal. 
Though he declined to comment on the sale price of the assets Clean Line has sold or the company’s current, reduced headcount, Skelly did say he isn’t looking to move into a smaller office with the slimmed-down team.
Oh, c'mon!  We know that ConnectGen has taken over Clean Line's former ugly orange office space on McKinney Street.  When a person calls Clean Line's former phone number, it is answered "ConnectGen."

It looks like most of the management of the former Clean Line Energy Partners has reconstituted itself at ConnectGen, including the former Grain Belt Express project manager.
Leaner?  So lean that there's no longer a need for a project manager?  Who does still work there, and are they actually drawing a paycheck?
Houston-based Clean Line Energy Partners LLC has trimmed its portfolio down to one $2.3 billion project in the midwest called Grain Belt Express.

That left Clean Line with Grain Belt Express, a transmission project moving wind power from Kansas to as far east as Illinois. That’s what Skelly wants to hone in on, he said.

Grain Belt is still in the permitting phase, and it had been hung up in a Missouri Supreme Court case around who determines whether the project is in the public interest. The court ruled that the central Public Service Commission gets to decide, a favorable outcome for Clean Line, according to a July 26 press release.


The PSC has broad discretion in how it handles the decision going forward, so the timeline for the project could still change depending on what it does, Skelly said. But right now Grain Belt is looking at five or six years before it’s operational, he said. Clean Line should hear the PSC’s decision within the next several weeks, Skelly said.

Since its single remaining asset is still in development, Clean Line is not producing revenue right now.
Seems like Skelly forgot some parts.  Clean Line will STILL need the assent of Missouri counties before it can begin construction on its line.  While the court said the PSC can issue a permit before county assent, it must issue a conditional permit that is only good after county assent.  It was completely an issue of timing, not authority.  Skelly also forgot to mention that GBE's Illinois permit has been revoked by the Corporation Commission upon order of the Illinois Appellate  Court.  The court found GBE was not a utility, and even if it somehow manages to buy utility property and re-apply under the long process, there are unresolved issues at the Illinois Supreme Court in the RICL opinion regarding whether Clean Line's merchant business model prohibits it from being a public utility under Illinois law.  Chances of building GBE are slim to none.  But building GBE may not be what Skelly has in mind.
Clean Line’s founder and president, Michael Skelly, hasn’t yet decided what to do with Clean Line once it either sells or completes Grain Belt, he said. If it sells the project, it will have cash and a very small number of employees — a good position for the company, Skelly said. It’s still to be determined whether the company would make an exit from the market at that point or start working on a new project, he said.
Sell Grain Belt Express?

Why, who in their right mind would buy Grain Belt Express?

And is there some Failed Utility Ideas Gazette where one can take out a classified advertisement to sell used transmission project ideas?

It almost sounds like Michael Skelly is simply preening and polishing for the express purpose of trying to unload this turd on some unsuspecting mark with more money than brains.
So, here's a scenario that Michael Skelly didn't envision in the article.  What if he fails to sell the doomed GBE project?  Does he have the cash and expertise to complete it himself?  How does one man with little to no cash build a transmission line more than 700 miles long?  How far are we supposed to stretch belief here?

What if Michael Skelly fails to sell or complete GBE?  With no cash and no employees, a bad position for Michael Skelly, will he finally become humbled enough to admit that Clean Line is defunct?  Can he man up enough to release these landowners from his empty threats?  Michael Skelly needs to quit wasting everyone's time and money!
1 Comment

Dear Abby, Dear Abby...

8/1/2018

0 Comments

 
Dear Abby, Dear Abby
Bet you never thought
Telling your lies, that you'd ever be caught;
There is no PUC deadline for eminent domain
The deadline is yours, and your lie is insane.
In a recent news article about public hearings for the 133 eminent domain petitions filed by the Transource Independence Energy Connection, spokeswoman Abby Foster says:
Many landowners are in the process of negotiating rights of way, and Transource had to meet the PUC deadline for any easement which might require eminent domain, according to Transource spokeswoman Abby Foster.

"Those names may come off as negotiations happen," she said.

Transource will not proceed with eminent domain proceedings until the project is approved, according to Foster.

Landowners should meet with Transource right-of-way agents so they can understand the process and can negotiate the location of the line, she said. 

"They can still say no at the end of the process," she said. "It's up to the landowners whether to sign the documents."

A PUC deadline, you say?  It's been a while since I read one of Transource's eminent domain petitions (filed in May) but I don't remember anything about there being a PUC-imposed deadline to make those filings.  So, I gave it another look.  In one such petition against a landowner in York County, I found this admission:
However, given the construction schedule and in-service date for the proposed lEC-East Project, it is necessary for Transource PA to seek Commission approval to exercise the power of eminent domain in order to ensure that the lEC-East Project is constructed and operational by the in-service date.
So it's actually a self-imposed deadline by the company.  IT IS NOT A "PUC DEADLINE."

Where I come from, we call this a lie.  In fact, I'd categorize as the bold-faced variety.

What was the purpose of this lie?  Was it because 133 eminent domain petitions looks bad for Transource?  Especially when there was no reason whatsoever to file them.  Except maybe Abby's statement reveals Transource's reasoning...  the company is STILL trying to get landowners to negotiate.  But landowners are STILL routinely slamming doors in Transource land agent faces.  How many is "many," Abby?  The dictionary defines "many" as "a large number."  133 is a large number, and many of those individuals have refused to negotiate.
Miss Abby, Miss Abby, I have a complaint,
The truth is the truth and truth this just ain't
So, listen up, missy, and listen up good
Stop telling your lies and go back to your 'hood.
Landowners should NOT meet with Transource right-of-way agents... unless they just want to amuse themselves "negotiating" the location of the line to Nick Akin's backyard.
0 Comments

Tommy, I've Got Your Number

7/11/2018

0 Comments

 
Tommy, Tommy, who can I turn to?
You give me something I can laugh hard at
I know you'll think I'm like the others before

Who saw your name and number on the wall...
...and your ridiculous new "Code of Conduct Principles" on the web.  Is that what happens when one of your prior "Codes of Conduct" mates with your "Principles of Business Conduct?"

Can't get that song out of my head.  Thanks a lot, Tommy.  You're a real pal.

Wind Catcher has some new "Code of Conduct Principles" on its website.  It attempts to take some lines from the old "Code of Conduct" and then adds some new stuff that can only create hilarity.
Tommy, Tommy, you're the manager for me
You don't know me but you make me so silly
I tried to call you before but I lost my nerve
I tried my imagination but I was disturbed

Mostly I was disturbed by this "principle":
Except in response to a question from a landowner, Project Representatives will not represent that a relative, neighbor and/or friend supports or opposes the Project, even if it’s true.
Except in response to a question from a landowner?  Because if a landowner asks a question (any question apparently, such as, "is the sky blue today?") it's okay to divulge information about another person? 

But what about these principles?
All communications and interactions with property owners and occupants must respect the privacy of property owners and other persons.

The details of the negotiations with property owners and occupants are to remain confidential unless allowed by the landowner. Project Representatives will not discuss these details with other property owners or other persons unaffiliated with PSO or the Project.


Project Representatives will not ask relatives, neighbors and/or friends to influence the property owner.
These principles go together sort of like oil and water.  Whipped cream on a Triscuit.  Salisbury steak on an ice cream sundae.  So, if a landowner asks, is it okay to tell them that a neighbor, friend, or relative has agreed to an easement, even if it's not true?  What does the truthfulness of telling tales on other people have to do with easement negotiations anyhow?  And whether or not a neighbor, friend, or relative supports or opposes a project can be used by the land agent to try to influence negotiations with another, as long as the land agent doesn't ask the friend, neighbor or relative to influence the landowner directly?

This is garbage.  It's ridiculous.  It's unenforceable.

Oh, right.  I get it now.  Nobody enforces these "principles" so it's okay to make them as confusing, contradictory, and devoid of true meaning as possible.  What's a landowner to do when a land agent violates any of these principles?
Tommy, I've got your number
I need to report a violation
Tommy, don't change your number

Because there's been hundreds of violations already!  Do you mean that from now on this is a problem, although your land agents have used it extensively in the past (like yesterday).
While PSO has the legal right to use court proceedings to obtain land rights for the Project, the Project Representatives should not threaten to call law enforcement officers, obtain court orders, or threaten the use of eminent domain.
I don't think a land agent can operate without using the words "eminent domain."  Without them, a land agent has nothing.  Especially when...
Project Representatives will respect all communications from property owners to them – whether in person, by telephone or in writing – in which the property owner indicates that he or she does not want to negotiate or does not want to give permission for surveying or other work on his or her property. Unless specifically authorized by PSO, Project Representatives will not contact the property owner again regarding negotiations or requests for permission to survey.

When asked to leave a property, Property Representatives will promptly leave and not return unless specifically authorized by PSO.


Buh-bye!  Your land agents are going to have a lot of free time on their hands, if they paid attention in PSO Customer Relations Training class.  Maybe you can hold more classes to keep them busy?  I suggest enrichment activities related to recognizing a "threat."
If threatened, Project Representatives will promptly and politely leave the property.

This should probably include units on running like hell, because a true threat from a crazy landowner doesn't allow for a controlled and polite exit. 

What, exactly, constitutes a threat?   If a landowner says, "If you don't quit asking me for an easement, I'm going to call Tommy?"  Would that make a land agent leave?
Tommy, I've got your number
I need to make your land agent leave
Tommy, don't change your number

But this... this has to be my favorite line in the whole "Code of Conduct Principles":
Project Representatives will not give the property owner any legal advice.
Because that would be practicing law without a license, since I'll assume your project representatives are not lawyers.  But if they did, would it be okay if it was true?  Would it be considered a threat?

Are the land agents going to be handing out copies of these "principles" when they call on landowners from now on?  Way to throw landowners off balance and encourage them to talk to land agents longer just to see how long it takes for a violation of the principles to occur!  If that happens, maybe people don't want to call you, Tommy, although I don't see your phone number on the principles, nor any other way for a landowner to report a violation.  I guess they'll just have to report violations to Dana Murphy at the Oklahoma Corporation Commission.
I got it (i got it) I got it
I got her number on the wall
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Clean Up in Aisle 5!

7/11/2018

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AEP shell company Transource sure is wasting a whole bunch of my money chasing rainbows in Pennsylvania.  A company without a federal guarantee to recover its investment in a poorly-planned transmission project would have surely given up by now.  But not Transource.  Transource received a guarantee from the Federal Energy Regulatory Commission that it may apply to recover its prudent costs for the Independence Energy Connection when the project is abandoned.

And it will be abandoned.  Like a rickety supermarket cart with two locked wheels, one pointing horizontally, and the fourth missing, Transource keeps attempting to shove its project toward the check out counter.

The Pennsylvania Public Utility Commission held a second pre-hearing conference for the parties this week after Transource asked to consolidate its east and west cases, shelter its new substations from local zoning regulations, and that the commission find eminent domain necessary for the IEC on 133 separate properties.

133!

That's pretty much the entire route, right?  Transource thinks its going to build a transmission project on new right of way composed almost entirely of property taken by eminent domain?  Unlikely.  Very unlikely.  Also unlikely is a future scenario where landowners cave in under the threat of eminent domain and voluntarily sign easement agreements.  Affected landowners have been steadfast in protecting their properties from Transource's invasion, even in the face of earlier threats and court proceedings.  They are unlikely to capitulate under future threats.

The PUC also added discussion of Pennsylvania's new Act 45, which prohibits the use of eminent domain on preserved land.  Much of Transource's route impacts conserved farmland.  Transource believes it is not affected by the Act due to an exclusion for public utilities.  However, that exclusion is not entirely clear.

Jana Benscoter of the York Dispatch reported on Monday's pre-hearing conference.
Barnes, one of the administrative law judges, said the commission has an interest to "reduce the impact" on landowners, and she’s “hard pressed” to approve the currently proposed project. 

Not only did she mention that some of the existing transmission lines in Franklin and York counties are “underutilized” and “defunct,” but Barnes also emphasized that the cost of the $320 million market efficiency project is concerning.

We haven't even gotten to administrative hearing yet (now scheduled for Feb. 2019) and at least one of the PUC judges seems to have concerns.  Not exactly promising for Transource...

York Dispatch also reported extensively on the comments of electric utility PPL, who owns an existing transmission line that parallels IEC's east segment in its entirety.
During a second prehearing conference before the Pennsylvania Public Utility Commission Monday, July 9, a PPL Electric representative said the company's existing infrastructure could accommodate the goal of moving more power from the northern U.S. to the south.

In response to a question, PPL counsel Amy Hirakis told administrative law judges Elizabeth Barnes and Andrew Calvelli "it's feasible to use existing PPL right-of-way and facilities for the market efficiency project identified by the PJM Interconnection."

Joe Nixon, PPL strategic communications manager, also confirmed "our existing transmission lines in the York County area has the capacity to carry additional circuits." 
"PPL proposed an alternative market efficiency project to address the issue identified by PJM, but ours was not the selected solution," Nixon explained. "PJM awarded the project to Transource. We always look at the least impact to landowners in developing solutions."

And not to be outdone, FirstEnergy affiliates in Pennsylvania said they also proposed an alternative project "which largely used existing transmission rights of way" that was not selected.

Why, PJM, why?  Why did you select the most expensive, most invasive, riskiest, project to relieve congestion?  Someone didn't have their thinking cap on!  You can blame it on an inaccurate "constructability" study, but really anyone who has even remotely been involved with transmission opposition could have told you a greenfield project across "undeveloped" land in southern Pennsylvania would be overwhelmingly opposed.  The smarter decision would have been to select a re-build or non-transmission alternative that would receive little or no opposition.  Did PJM select Transource because it was AEP's "turn" to win a project?  Perhaps the IEC looked "more robust" or something, but it's never going to be built, so perhaps a lesser project that CAN get built is the better choice.

By the way, FirstEnergy is also a bit perturbed that one of Transource's 133 eminent domain petitions affects West Penn Power property in Greene Township.  FirstEnergy says, "Transource lacks legal authority to condemn the used and useful property of another utility."

And that's where Transource's crippled grocery cart topples over and spills its load.  Because if the PUC determines that re-builds or additions to the transmission lines of other utilities are the preferred alternative to a new project on new right of way, Transource is done.  It cannot condemn the existing transmission lines and rights of way of others to build a version of the IEC.  If the PUC makes that decision, then the project has to go back to PJM to be re-bid and re-evaluated as a rebuild.  And there the idea will die a quiet death.

So, let's cut to the chase, shall we?  What PJM giveth, PJM can taketh away.  Considering that all PJM's "need" findings are created by magic math, it's probably only a matter of dropping in a few new variables to create a finding that the IEC isn't needed after all.  Stopping now will end the runaway expenditures that ratepayers will be on the hook for later.  Cut me a break, won't you?
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York County Judge Issues Thoughtful Opinion on Public Utility Trespassing

5/14/2018

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If a privately held utility has been granted public utility status by a state, does that give the company the right to enter any property in the state at any time to perform potentially damaging tests and surveys?  That's the question being considered by judges in the states of Pennsylvania, Maryland, and Oklahoma recently, courtesy of American Electric Power and its subsidiaries.

This issue has rarely come up in the past because transmission public utilities have been able to propose projects, apply for permits, and even receive approval without creating this kind of pitched battle between the utility and landowners.  Utility entry to survey has been voluntary, and landowners who agree have signed survey permission forms releasing the company from liability for incidental land damages.  Even when large numbers of landowners refuse permission, such as happened with the AEP's PATH transmission project, the company was still able to pursue its regulatory applications and route planning because the transmission project didn't have a firm "drop dead" date by which it must be constructed.

Now, however, AEP subsidiaries find themselves involved in two projects that do have firm in-service dates.  Transource's "Independence Energy Connection" has a June 1, 2020 completion date written into its Designated Entity Agreement with PJM Interconnection.  And PSO's Wind Catcher generation and transmission project must be completed by December 31, 2020 in order to qualify for the federal production tax credits that supposedly make it economically beneficial.  Both of these projects have self-imposed hard completion dates, therefore AEP wants to get as much pre-construction surveying and engineering done as possible during the permitting phase.  It's going to take too long to survey and test after regulatory approval and eminent domain authority is granted for these specific projects.  AEP fears it may miss its drop dead dates.

Ya know what, AEP?  You're going to miss both these dates anyhow.  Landowners who use their land as a source of income have another timetable.  These dates were already too ambitious from the start.  Transmission never stays on schedule, as you should well know since you like to parade your 16-year timetable to get your Jacksons Ferry-Wyoming project built as some kind of regulatory, and not personal, failure.

AEP subsidiaries claim to have a right under the law (or even by virtue of flimsy precedent), as public utilities, to enter into any property at any time to conduct tests and surveys.  If it's that simple, why are you asking courts for injunctions to allow entry?  As Judge Richard Renn in York County, PA, opined:
Plaintiff is quick to claim that it does not need any court order to enter upon the lands because it has that inherent right pursuant to the Eminent Domain Code. (Plaintiff's Brief in Opposition to Defendants' Preliminary Objections ... p. 7.) Yet, Plaintiff is here in Court seeking just that -- a court order permitting it and its agents entry onto lands of Defendants.
Why are you wasting time in court, AEP?  Is it because you're really not sure you have such a right?  If you have such a right, why is this the first time this issue has come up?  And why have you been seeking voluntary permission for decades?  If you, indeed, do have such a right, you should have been exercising it for years and not asking landowners to voluntarily sign away their rights.

Judge Renn also took into consideration the nature of the studies and tests, and their specificity to each property.  AEP asked for blanket permission to enter and perform any number of invasive tests, at its own discretion, including the right to cut and trim vegetation and drill holes.
...claiming an immediate need to access Defendants' property for the purpose of obtain[ing] critical information, including various environmental studies, (including, wetland delineations, habitat assessments, and threatened or endangered species surveys), appraisals, geotechnical surveys (including soundings and drillings for testing soil and bedrock, cultural resources surveys, civil surveys (including trimming or cutting vegetation necessary for survey purposes) and all other surveys and tests necessary to properly assess the area, design and construct the proposed electric transmission line ...
(Plaintiff's Motion,~ 22).

From this description, the nature of the proposed intrusion onto Defendants' land appears to be quite extensive, quite possibly resulting in damage to the land. In fact, Defendants acknowledge the possibility of damage by noting in its Motion that it stands ready to pay damages should such occur.
While the law in Pennsylvania states that the utility shall pay for damages, it lacks any specificity to ensure damages are adequately compensated in a timely fashion.  Who shall determine the extent and value of the damages?  When shall payment be made?  What about remediation -- whose responsibility is that?  And what happens if the landowner and the utility cannot agree on damages?  And what about damages that cannot adequately be compensated, such as the cutting of trees that provide a buffer or serve some other economic or sentimental purpose for landowner?  Payment based on their marketability as timber is hardly adequate when the landowner never intended them to be marketable timber.  Who determines the value of lost or spoiled crops?  What's the value of eradicating invasive plant species that are caused by the utility's entry?  What's the value of disturbed top soil or soil compaction and its effect on future crops?  It seems that a little more expertise is required here to determine and price damages other than a utility's self-interested determination of immediate, visible damages and their value.

Judge Renn was not inclined to allow the utility to
disrupt Defendants' peaceful possession and enjoyment of their lands with "soundings and drillings ... [and] trimming or cutting vegetation ... " possibly resulting damages, on the off chance that the power line may, in fact, run over a portion of those lands, with one exception.
That exception being the bog turtle hunts that Transource described with specificity in its motions, because the judge believed them to be non-invasive and unlikely to cause damage.

However, I note that perhaps the turtle hunts may not need to take place on every property.  Does every one of the 36 properties in York County contain a wetland suitable for bog turtles?  And for the ones that do, is there still enough time to perform the surveys according to the published guidelines?  Run, turtles, run!!!

The only thing that Judge Renn didn't deny was the turtle hunts because they were specified as to procedure and he found them to be potentially non-damaging.  The rest of AEP's trespassing wish list has been denied until further consideration and possibly a trial.  Maybe Transource should have just stuck to the turtle hunts to begin with, and not asked for blanket permission to take over and damage private property?

Because that's what AEP is also asking for in Oklahoma.  Blanket permission to perform damaging surveys on an uncertain route for an uncertain project has been recommended for denial by an Oklahoma Corporation Commission judge.  And the only thing they rely on there is precedent where a utility was allowed the right of entry for purposes of preparing its filing of an eminent domain suit.  AEP claims it is actively constructing a transmission line in Oklahoma and preparing eminent domain suits to acquire land for its project, except that's not even close to true.  AEP doesn't even have a certain route yet and the OCC has not determined there is a need for the project or that it will permit the company to charge its costs to ratepayers in the state.  Without cost recovery, AEP will not undertake this project.  It's all about what might happen and AEP is certainly engaging in a land-damaging fishing expedition of the kind Judge Renn denied in Pennsylvania.
We fully realize that the final route may not be able to be approved absent the studies Plaintiff seeks to undertake. However something more than Plaintiff's mere assertions as to whose lands might be affected is required to satisfy us that Plaintiff is not on the proverbial "fishing expedition." We are mindful of Plaintiff's argument that preventing discovery at this stage of the proceedings makes it difficult for it to obtain final route approval. However, our concern is not with what Plaintiff must do to satisfy the PUC, our concern within the context of this litigation in general, and regarding Plaintiff's discovery request in particular, is to ensure that a party does not suffer from "unreasonable annoyance, embarrassment, oppression, [or] burden" during the discovery process.
My understanding is that Oklahoma doesn't approve transmission routes, so what's the reasoning for doing the surveys at this point in time?
PSO will suffer irreparable harm, damage, and injury unless the acts and conduct of Defendants above complained of are enjoined because further work and construction of the
transmission line cannot continue unless the location and description of the right-of-way easement across the Property owned by the Defendants can be determined.
Who you trying to kid here, AEP?  A judge?  You know full well that you're not actually constructing anything and are nowhere near filing condemnation actions.  That costs money AEP doesn't want to spend until it is guaranteed recovery of its costs to construct this project from ratepayers.  And that approval (from four different states no less!) has not happened yet.

And because it just can't help exaggerating and asking for more than it really needs, AEP has requested the Oklahoma judge order landowners to pay for the cost of its overreaching lawsuit.  Do you really want to punish landowners that way for resisting you, AEP?  You think landowners who won't sign your voluntary permission forms and give up their rights should pay for your overpriced lawyers to sue them?  Or did you just add that as an intimidation tactic?  Despicable!

While these fights seem very specific to two AEP projects, the effect of them could potentially be broad.  Should we upend the current status quo that makes survey permissions voluntary until after utility commission review (at which time the commission can issue an approval contingent upon surveys and tests being performed)?  Or should we roll out the red carpet for any utility to enter upon and damage the property of any landowner at any time?  Seems to me if it's the latter then new laws and regulations covering this activity are sorely needed because we will all be subject to corporate dictatorship instead of due process.  Private property rights shouldn't be set aside in favor of corporate profits.
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AEP Treats Landowners Badly

5/9/2018

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AEP wants to increase its corporate profits by building a transmission line through your property?  Bad news.  AEP has been increasingly disrespectful to landowners and actively seeks to coerce and bully landowners into submission long before its projects are even approved.  It's high time this company's abysmal treatment of landowners is reined in by regulators.  It's coming: AEP's "relationship" with landowners is speeding down the track on its way to a spectacular wipeout.
AEP likes to pretend it is "working with landowners."  As if saying it makes it so.  Nothing could be further from the truth.  The reality is that AEP is working AGAINST landowners.

AEP's huge dilemma is that it is engaged in several transmission projects with compacted time lines.  If AEP cannot get its projects approved and built by certain dates, the projects will be cancelled.  And what's the first thing that goes by the wayside when AEP is in a big hurry?  Landowner relations.  AEP simply doesn't care about establishing a cordial relationship with landowners it proposes entering into a co-tenant relationship with in perpetuity.  Instead, AEP is simply attempting to mow down landowners on its path to profit.  Logically, this just can't end well for AEP.  There's going to be a huge price to be paid for each minute, incremental "victory" AEP believes it has won along the way.

A transmission company files an application at a state regulatory commission, hoping to ultimately receive approval for its project.  The regulatory process takes a long time, especially in states with no statutory deadline for a decision on the application.  Transmission companies have dealt with this long lead time by attempting to perform surveys, environmental studies, and engineering work during the regulatory process, with the goal of getting as much pre-construction work accomplished as possible before the regulatory decision.  However, this requires cooperation from landowners who may grant permission for the company to enter private property to perform its pre-construction work.  When landowners refuse, the company has no choice but to put this work on hold until after the regulators make a decision on the project.  When all pre-construction work has not been performed on a project that a regulator approves, the transmission permit is conditioned upon such work being performed before construction begins.  It's simple.  And it works.  And, most importantly, it avoids the kinds of power struggles AEP has recently engaged in with landowners.  As well, it avoids the extra expense of pre-construction work for a project that is ultimately denied by regulators.  Since many transmission projects approved by regional transmission authorities such as PJM Interconnection come with abandonment incentives that reimburse transmission companies for project expenses in the event that a project is subsequently cancelled or denied by state regulators, the money transmission companies like AEP spend on pre-construction activites comes out of the pockets of electric customers across the region.  Having to wait for approval before engaging in expensive pre-construction work can save ratepayers a lot of money on an abandoned project.

But AEP didn't want to wait on its Transource Independence Energy Connection.  Because PJM Interconnection put such a tight timeline on the project, AEP is attempting to get as much of its project built as it can before regulators make a decision.  After all, it doesn't cost them a thing... except goodwill.  And AEP is going to need a lot of landowner goodwill if it expects to actually build this project someday.

So AEP lied to landowners who refused to grant access.  AEP told them they would be arrested.  AEP told them they would trespass on private property after giving 10-day notice under Pennsylvania law.  Except the law wasn't really as clear as AEP tried to make everyone believe.  AEP threatened to sue landowners for access. 

None of this made any impression whatsoever on landowners (except to further anger them and create entrenched resistance).  AEP filed a whole bunch of confused legal actions against landowners.  Lengthy court processes ensued.  And the court processes have gone on just long enough to ensure AEP's time sensitive turtle hunts can't possibly take place this year.  Awww... that's really too bad.  But were turtles really the reason?  I'm sure there's plenty of damage AEP can do to landowner property cutting down trees, running over freshly planted crops, drilling holes, propagating invasive weeds, compacting soil, encouraging erosion, creating drainage issues and generally impacting farm operations for the entire growing season.  Sadly, all these activities can be performed any time of the year, perhaps even after harvest, when their effects will be somewhat mitigated.  But AEP is a bully, and destroying farm operations for this year is supposed to intimidate landowners into agreement.

That's not going to happen.  The more AEP tries to bully landowners the more determined the landowners become to resist.  This battle is far from over.
AEP also did not want to discuss specific eminent domain cases. However, AEP spokesperson Melissa McHenry specified that as of this past spring, the company had more than 3,200 easements on projects, including more than 903 miles of transmission line. Out of the 3,200 easements, only 41, or 1.28%, required eminent domain filings, she said. In some of those cases, eminent domain was necessary “because the land was without clear title, and, therefore, condemnation by publication was necessary,” she said.

According to McHenry, when AEP constructs or upgrades a transmission line that requires the use of a landowner’s property, easement negotiations begin with property owners after state regulators have approved the project. The negotiations are based on the fair market value of the property needed for the ROW, she said. Appraisals and market data studies are conducted to determine market values and a basis for acquisition negotiations. Negotiations will continue “as long as practical” to reach a voluntary agreement.

If it becomes clear that a voluntary agreement between AEP and the property owner cannot be reached and other viable alternatives do not exist, the company will then exercise the right to eminent domain to secure required easements.
AEP uses eminent domain only 1.28% of the time, you say?  The more AEP enrages landowners, the less they fear the company, and the higher that percentage climbs.  Has AEP ever built a transmission project that required eminent domain for 98% of the project?  Of course not.  That's absurd.  Those kinds of projects never get built.

And how successful will AEP be asserting involuntary entry on Pennsylvanians when the Maryland portion of its project is not subject to such abusive laws?  And what about AEP's transmission projects in other states that don't have laws that allow trespassing prior to condemnation?  Does AEP think that pretending it does have such authority will actually be enough to intimidate landowners into allowing involuntary entry?

The only thing it does is fill landowners with a terrible resolve to resist AEP completely.  Resistance causes project delays.  AEP's timetable is not a landowner priority.  It's not a regulatory requirement.  The more desperate AEP becomes, the more resistance it creates which will ultimately result in prolonged delays... and project failure.  The price of victory in one small battle oftentimes results in losing the war.  Pretty dumb stuff, AEP.  What idiot there thought that was a good idea?  If I was in charge, I'd fire that person.

So, what if AEP involuntarily forces its way onto your land?  Fully document the condition of your land before the invasion using pictures and video.  Keep a running visual diary of AEP's actions on your land, both during and after the invasion.  Don't sign any voluntary permission forms that abrogate your rights.  Have damage professionally remediated and keep all receipts.  Don't settle for less than it costs to restore your property to its original condition.  This bully deserves to be treated the same way it treats you.

And remember how you were treated by AEP during the next legislative session.  Abusive laws need changing.

Having a reputation as a landowner bully really isn't a good thing in the long run.  It squanders goodwill for no  reason.  Nobody likes a bully.
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Top Ten Clean Line Mistakes - #3 People Love Transmission for Renewables

4/17/2018

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Starting a company based on a public opinion survey of 1,239 adults -- who does that?

At the American Wind Energy Association's big convention in the spring of 2009, a couple of guys from a "consulting" firm made a presentation of the results of a survey it conducted of a "demographically representative sample of 1,239 American adults (18+) based on U.S. Census data for age, ethnicity, gender, region and income."  The survey determined, "A majority of Americans oppose new high-voltage transmission lines in their community, but that opposition drops precipitously to 17% if those lines are delivering clean, renewable energy from wind. Support for new transmission lines leaps from just 46% to 83% when respondents are asked specifically about high-voltage transmission lines delivering wind power."  It must have been one hell of a presentation.

Now I can't say for certain whether Michael Skelly personally flew into WindPower 2009 (or maybe he took a train, I'm sure he doesn't remember), or whether he attended this amazing presentation.  But it is certain that later that same year Clean Line Energy Partners, LLC, registered its business in several states.  Clean Line's business was to "develop" transmission lines delivering wind power across private property in multiple states.  Did Michael Skelly actually develop a business plan based on a public opinion survey of 1,239 people?  Maybe some day a reporter will ask him that question.

More than $200M has been wagered on this public opinion survey of 1,239 people.  Maybe Clean Line told its investors...

...the new results are a clear sign that Americans support cleaner, renewable power and that it has carried over to the distribution of that power through their own backyard.

High-voltage transmission lines generate some of the most adamant NIMBY (Not In My Back Yard) opposition in the country. That such a large percentage of people are willing to allow green lines in their community says a lot about the awareness and importance of renewable energy and climate change issues in addition to the education efforts undertaken by the renewable energy industry.
It sure looks like Clean Line believed it.  They actually thought impacted landowners would love them and jump at their "market-leading compensation package."  How many bottles of expensive scotch did it take for some out-of-work wind farm executives to meld the royalties paid to wind farm hosts with the market value compensation paid for right-of-way taken through eminent domain, and call their bastard child a "market-leading compensation package."  What market?  There's no "market" for transmission rights-of-way.  Rights-of-way are taken when not offered willingly.  That's not a "market."  Leave it to Clean Line to "lead" a "market" that doesn't exist.

Was that survey really supposed to be taken literally to mean that landowners would jump at a chance to have a renewable energy transmission line in their own backyard?  I'm thinking not.  A less myopic view of the survey/presentation says the point being made here was not that landowners would support renewable transmission lines, but highlighted the "awareness and importance of renewable energy and climate change issues in addition to the education efforts undertaken by the renewable energy industry."  This was more about the wind energy industry congratulating itself on the greenwashing of America, and making renewable energy the darling of political dreams.  It wasn't really about renewable energy at all, but the mere idea of it used to score political brownie points.  People love the idea of renewable energy!

Well, until it shows up in their own backyard.  And then they hate it.  And they really hate it when eminent domain becomes a tool to advance renewable energy.

Just a week after the press party on the release of its amazing survey, even the presenters backtracked to say that their survey wasn't to be taken literally.

Polling indicates the public’s feelings about a number of various topics on any given day. But it can also be misleading if viewed out of context — especially when it comes to land use issues.

How is it, for example, that most Americans support wind energy in general, but emotive opponents can block transmission lines delivery wind energy or wind farms in some local communities?

So, the jury’s in, right? Everyone loves renewable energy projects. But wait.

But the emotional opposition appears to fly in the face of surveys and polls showing national support for clean energy generation and transmission. What’s going on? Do these polls and surveys lack credibility? No. In fact, they are spot-on in terms of reflecting how Americans feel about renewable generation and distribution projects and how they may positively impact our communities given the perceived global threats of climate change, greenhouse gases and negative impact to wildlife over time. Today, based on a solid campaign by climate change advocates, the renewable energy industry, the current Obama administration and constant media pounding, the threat to our economy and the environment posed by carbon-emitting generation sources is very real and frankly easy to grasp. The arguments have been made and, let’s face it, many Americans are buying in.

But it’s easy to support a wind energy project without a real wind turbine or transmission line literally staring you in the face. That’s where rational thinking ends and passionate “defense of the community” (or defense of the children for that matter) campaigns begin.

...shop for a home in a community of interest and share the rumor of a new 765 kV transmission line going across the property down the road, in front of the view of the mountain range. What’s the survey say then? Chances are you may not find majority support, even from residents who responded in the poll you fielded yesterday.

Perhaps at best, polling identifies the size of the silent majority you have on your side when they are under no local threat of changing their daily lives. Winning hearts and minds in a poll won’t necessarily win you a permit at town hall.

Renewable energy is great in our public opinion, just not when it gets in the way of our personal point of view.
Too bad Clean Line didn't seem to get that memo.

What a colossal mistake.  With more than 2,000 miles of new electric transmission "under development" Clean Line invaded the personal spaces of thousands of affected landowners.  And then they used the threat of eminent domain in an attempt to coerce landowners to agree to make a willing sacrifice in the name of "renewable energy" (and investor profit).  It ticked off "a bunch of farmers."  "A bunch of farmers" aka "some landowners" are the biggest reason Clean Line failed.  Without their fierce opposition, determination, and hundreds of thousands of dollars of their own personal funds, Clean Line could be fully permitted.  But it's not.

Lesson:  Never tick off a farmer.

Secondary Lesson:  Public opinion surveys are notoriously wrong.  Just ask Hillary Clinton...
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Top Ten Clean Line Mistakes - #4 Section 1222 of the Energy Policy Act of 2005

4/13/2018

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The Energy Policy Act of 2005 was created by the National Energy Policy Development Group, aka "Cheney's Secret Energy Task Force."  Without getting all political here, this government group met with industry bigwigs to create new energy policy that helped the industry make money.

This group's "report" recommended that Congress:
Grant authority to obtain rights-of­ way for electricity transmission lines with the goal of creating a reliable na­tional transmission grid. Similar au­thority already exists for natural gas pipelines and highways.
That didn't fly with Congress, who were protective of state rights to site and permit new electric transmission.  So the lobbyists came up with what they thought were several "work around" provisions on the Act that would allow the federal government to step in when states resisted new transmission. 

One was Section 1221 of the EPAct, which allowed FERC to site and permit transmission if a state withheld approval for more than one year.  It also authorized the Department of Energy to do transmission congestion studies and designate "National Interest Electric Transmission Corridors" to facilitate a federal role in permitting and siting new transmission.  Several federal court battles later, Section 1221 ended up completely useless to the industry.  But yet the federal government is still required to waste our tax money on triennial "congestion studies" that do absolutely nothing.

Another work around was Section 1222 of the EPAct.  This section allows two federal power marketers (WAPA & SWPA) to accept and use third-party, private money, to build new transmission.  It grants authority to the Secretary of Energy to decide whether the power marketers may "participate" in new transmission projects.  On its face, it appears that the purpose of this section was to allow the feds to use private money to build new transmission, instead of taxpayer funds (although those funds are paid back by the PMAs).  Most importantly, it allowed private investors to front up money and get their finger in the federal transmission pie in exchange for generous returns, which increases costs to consumers.  It was an unnecessary way for industry to increase their profits, which pretty much sums up the entire purpose for the Energy Policy Act.

The industry focused all its greedy energy on Section 1221 for many years, and Section 1222 sat around untested.  But with the ultimate legal failure of Section 1221, the DOE decided to begin testing Section 1222.  And wouldn't you know it, one of the federal DOE employees who had a hand in the Energy Policy Act had subsequently left the department and invested in a transmission scheme that could serve as the test case for Section 1222 authority.  That scheme was Clean Line Energy Partners, who wanted to build more than 2,000 miles of new transmission crossing some of the federal power marketing territory covered by Section 1222.

Early in its history, Clean Line was the first (and only) company to apply for Section 1222 authority under a conveniently issued DOE Request for Proposals.  Perhaps Clean Line expected "fly over" states that would receive no benefits from its proposed projects to reject them.  Or maybe Clean Line was just too eager to use Section 1222 authority.  We may never know what actually took place behind closed doors.  But we do know that Clean Line applied for Section 1222 well before its projects were rejected by any state public utility commission. 

The first rejection came from Arkansas in 2011, who said it did not have authority to approve the project because it did not intend to serve any customers in that state.  The obvious remedy for that was creation of an interconnection in Arkansas and re-application at the Arkansas PSC.  But that's not what Clean Line did.  Instead, it waved around its rejection and doubled down on acquiring Section 1222 authority from the DOE.  It's almost like Clean Line wanted that rejection to use as a tool in its Section 1222 application, because the company did quickly add an Arkansas connection to its Plains & Eastern project.  However, Clean Line never re-applied at the Arkansas PSC and instead concentrated its money and energy on a Section 1222 designation.  How much differently would Plains & Eastern have turned out if Clean Line had re-applied instead of setting its sights on the long and expensive Section 1222 process?

Section 1222 cost Clean Line millions.  Like double digit millions.  It also cost them multiple years, because the wheels in Washington turn with excruciating slowness.  But Clean Line was so intent on using the Section 1222 toy that they eschewed the quicker, cheaper, more obvious solution right in front of them.  I believe that was a huge mistake.

Section 1222 required a hugely expensive multi-year federal Environmental Impact Statement process, paid for by Clean Line.  And then the DOE needed to make up some other reviews before coming to its foregone conclusion that it would "participate" in the project for the express purpose of using the condemnation powers of the federal government to acquire new transmission rights-of-way for its project.  Federal eminent domain is not mentioned in Section 1222, and furthermore, DOE never did a proper rulemaking to regulate its use of Section 1222.  A rulemaking is necessary for a government agency to make use of a statute.  The law merely states what can happen, not specifically how the agency can get there.  An agency must review the law and then make sure that it designs a regulatory process that carries out the law while maintaining a fair process that protects other rights.  A rulemaking process is public, and all may participate to make sure the agency gets its rules right.  But DOE didn't waste its time with a rulemaking.  Instead, it made up its rules as it went through the process.  This provided no consideration for the due process rights of affected landowners, nor any fairness in the process.  Rules were made up to suit the conclusion DOE and Clean Line wanted.  What a horror show!

Surprise, surprise, the Secretary of Energy decided to participate in the Plains & Eastern project 6 years after the initial RFP was issued.  Clean Line got what it wanted, but it cost them dearly.  Not only was it a huge money suck for investor funds, but it came with conditions that must be satisfied before the DOE would take any action to condemn properties.  One of the conditions required Clean Line to have hard contracts with customers before proceeding.  Of course, that condition would have asserted itself even without the requirement of the DOE because as a merchant project, Clean Line must secure a revenue stream before it can finance the construction of its project.  No bank is going to loan money to a company to build something that produces no revenue with which to repay the loan.  But there was a timing issue here... DOE required a revenue stream before it took action to condemn land, to make sure the project was commercially viable before it paved a road to nowhere.  Why condemn land for a transmission project that won't be built?  Why spend the time and money before a project is viable? 

That ended up being Clean Line's albatross... build it and they will come doesn't work if you can't build it in the first place.  Need (and revenue) must come before a transmission project is built, and without need and revenue there's no point in dumping money into an idea that may or may not happen.  Clean Line never had a viable idea in the first place, but somehow the company managed to sucker a bunch of investors into pouring money into its harebrained scheme.

With its 1222 authorization in hand, Clean Line redoubled its efforts to find customers.  Proof that the project was "approved" and would be built failed to convince anyone that the project was viable.  At this point, Clean Line was trying to convince a bunch of experienced and knowledgeable utility companies to put the cart before the horse, instead of a bunch of rube investors who didn't understand electric transmission.  Utilities weren't buying Clean Line's rainbow farts about how wonderful service on a Clean Line would be.

And after two years of efforts that yielded no results, the DOE finally bowed out.  The Section 1222 experiment had failed.

And how lucky are the DOE and Clean Line that they ended this farce before the legal process examining this partnership from hell had barely even begun?  Thinking that the first court decision on the legality of Section 1222 prevented future challenge is a fool's paradise.  Any faith in the decision of the U.S. District Court in Arkansas should be dashed once the decision is read.  It's crap!  I've read a whole bunch of court opinions over the years and this one had to be the worst.  None of the conclusions were supported by evidence or law -- it's just like the judge made his decisions unconnected to any reality.  Chances of that decision standing upon further judicial review?  Slim to none.

Clean Line reached a fork in the road early in its saga -- to take the long and winding Section 1222 path that must surely have a pot of gold and cover multiple states; or to take the obvious and well worn path to the Arkansas PSC which dead ends there.
And both that morning equally lay
In leaves no step had trodden black.
Oh, I kept the first for another day!
Yet knowing how way leads on to way,
I doubted if I should ever come back.

I shall be telling this with a sigh
Somewhere ages and ages hence:
Two roads diverged in a wood, and I--
I took the one less traveled by,
And that has made all the difference.
It sure has.  Nice work, knuckleheads!
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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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