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Knock, Knock, Kansas!  The Trojan Horse Is At Your Gate

1/6/2019

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What's the difference between Clean Line Energy Partners and Invenergy?  CLEP's business was only transmission.  Invenergy's says it "...owns and operates large-scale renewable and other clean energy generation."  Invenergy is primarily a generation company, although it owns a small number of generation tie lines that connect its generation to open access transmission lines for public use.

Clean Line
wanted to build merchant transmission for sale under FERC's negotiated rate authority, and its plan to negotiate rates without any undue preference for its own generation affiliates was approved.  Clean Line does not own any generation, making this factor a non-issue in its FERC application.  But now Invenergy seeks to purchase the Grain Belt Express project.  This changes the circumstances of GBE's FERC negotiated rate authority considerably.  But yet... Clean Line and Invenergy claimed during testimony at the Missouri PSC that there's nothing they need to do to transfer GBE's negotiated rate authority to a new upstream owner with generation interests.

I simply don't believe you.  In fact, I wonder if Invenergy doesn't plan to sell transmission capacity at all?  Perhaps Invenergy plans to operate Grain Belt Express as the longest generation tie line in the U.S., where it will enjoy protection from transmission service requests of others under FERC's Interconnection Customer’s Interconnection Facilities (ICIF) rules?

Invenergy has applied to the Kansas Corporation Commission for expedited approval of its proposed transaction to purchase Grain Belt Express.  In actuality, Invenergy simply wants the KCC to approve its assumption of GBE's public utility status and siting permit.  These approvals were issued years ago based on Clean Line's ownership and business plan.  Invenergy says, "Invenergy is highly qualified to become the owner of GBE, and operate the GBE Project."  But is it qualified to be a public utility in Kansas, and is it qualified to wield the power of eminent domain to take private property for its own use? 

That's the real question before the KCC.  If Invenergy is granted public utility status, does that mean that it can condemn and take any property in Kansas for its use, such as to build new wind farms and other generation assets?  Or could the KCC somehow limit Invenergy's eminent domain authority to its transmission subsidiary, in which case Invenergy would have authority to condemn and take property for any new transmission line it intended to build, including generation tie lines that aren't for public use?  The Kansas Corporation Commission needs to think long and hard here about welcoming the trojan horse Invenergy has towed up to its gate.  I really hope they're capable of independent thought in the best interest of Kansas and don't become distracted by secret meetings and brimming bowls of vanilla panna cotta.

How about this for some distraction:

Expedited approval of the Transaction is warranted here because the Transaction does not involve the merger of two public utilities that are rate-regulated by the Commission; rather, it involves a transaction at the holding company level of GBE, a public utility that is not rate-regulated by the Commission, that will improve the capability of GBE to complete the Project. Therefore, many of the traditional state and local concerns with regard to public utility mergers are not implicated by the Transaction.
Concentrate, concentrate, KCC, on the merger of public utilities issue (it looks like a horse) and fail to notice the words "public utility" that are mentioned no less than three times in one short paragraph (and may indicate an army hiding somewhere).

What makes a "public utility" in Kansas?  According to KSA 66-101a, "Electric public utility" means any public utility, as defined in K.S.A. 66-104, and amendments thereto, which generates or sells electricity."  Hmm... GBE doesn't plan to generate or sell electricity.  KSA 66-104 vaguely mentions the furnishing of light, heat, or power... but GBE will do none of these things in Kansas.  And KSA 66-104(g) says
For purposes of the authority to appropriate property through eminent domain, the term "public utility" shall not include any activity for the siting or placement of wind powered electrical generators or turbines, including the towers.
It sure looks like Kansas statute prevents the use of eminent domain for activity related to wind powered electrical generators or turbines, including the towers.  Towers?  Like transmission towers?  Like generation tie lines?  Like transmission lines for export that don't intend to furnish light, heat or power to Kansans?  Do you mean that, Kansas?  It's not clear at all that Clean Line, much less Invenergy, is a legal public utility in Kansas.  In fact, it appears that the determination that GBE is a public utility in Kansas was made in a settlement, therefore there was no actual legal finding by the KCC that GBE is a public utility.  Parties to a settlement could agree that the sky is purple, if it suited them.  Settlements don't set precedent.

Therefore, the circular logic of Invenergy's Kris Zadlo does not make Invenergy a public utility if it buys Grain Belt Express.
The proposed Transaction will benefit consumers by improving the ability of GBE to complete the Project. In granting GBE a certificate to operate as a public utility, the Commission found that completion of the Project would be in the public interest.
So, will the real public utilities in Kansas intervene in this docket and shed some light on the Trojan Horse at the gate?  It seems some of them objected last time around, with ITC Great Plains getting its panties in a wad over the use of eminent domain for the unidentified "AC Collector System" proposed as part of GBE.  How many Kansas utilities are going to in a bind if a wind generation company begins wielding eminent domain authority in the state?  Or building transmission that the public utilities are not allowed to use?

Or perhaps a sneak attack is going to come from one of Invenergy's competitors, such as, oh I dunno... maybe NextEra?  Or maybe it will be Tradewind Energy?  Or Enel North America?  EDP?  Why should Invenergy get to use eminent domain to acquire property in Kansas when their own companies are prohibited from doing so under KSA 66-104(g)?

The mystery will continue until "at least three days before the hearing", which is the deadline to intervene under KSA 82-1-225.

Meanwhile, perhaps KCC staff will enjoy watching this video.
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Invenergy Wants To Use Eminent Domain To Take 95% Of Right Of Way For Its Transmission Line

12/20/2018

1 Comment

 
Oooh... the clueless media... and media whores.  Yay, you, James Owen of Renew Missouri, you got your name in the news again!  And yay, you, Beth The Substation Tourist, you actually believe landowners don't hate Invenergy.  It's brainless dreck for the stupid.

But this article might make those with a working brain think.  I'll sum it up for you (and perhaps elaborate a bit).
Clean Line Energy, which is in negotiations to sell the project to sustainable energy developer Invenergy, is seeking permits from state regulators in Kansas and Missouri to build the power line.
Who is Invenergy?
Invenergy bills itself as North America’s largest privately held renewable energy provider. The Chicago based company has 89 wind projects worldwide that generate 12,814 megawatts of power. The firm and its affiliates claim to have more than $9 billion in total assets.
And who was Clean Line?
The Commission’s concerns regarding undue preference and affiliate abuse arise when a merchant transmission owner is affiliated with customers. Applicant does not have any affiliates that currently plan to secure transmission service rights on the Project. Applicant is therefore a purely merchant transmission owner with respect to its proposal to allocate up to 100% of the Project’s capacity pursuant to bilateral negotiations.
Oh, it looks like Invenergy may have a conflict of interest.  Good luck to all the other wind generation companies who want to secure capacity on the Grain Belt Express.  I'm certain the auction process will be completely fair... if it ever happens.  After all, Invenergy's goal here MUST BE to provide transmission service for its competitors to get their generation out of SW Kansas and NW Oklahoma, without favoring its own proposed generation in the area... such as the 800 (federal tax credit eligible) turbines under construction that Invenergy owns which were left as a stranded investment when AEP abandoned its cancelled Wind Catcher project.  What are you going to do with those, Invenergy?  Make a bid for service on NextEra's Plains & Eastern Clean Line?

Because then Invenergy wouldn't be in a position to have to take 95% of the GBE route in Missouri through eminent domain proceedings.  It could simply let NextEra take 95% of the Plains & Eastern Route in Oklahoma for its merchant generation tie line... except Oklahoma law doesn't allow eminent domain for wind generators.
Local leaders in the Oklahoma Panhandle are pinning their lingering hopes on the idea that some version can be salvaged. The mostly rural region has struggled to attract employers, and this would have been by far the largest investment in its history, with a projected 4,000 construction jobs and a dramatic increase in tax revenue for local governments.

Its demise is still sinking in for Michael Shannon, director of the region's economic development office. "I'm stunned," he said, adding, "There has to be a Plan B."
Or maybe it's now Plan GBE?

I think Hans Detweiler said that GBE has secured easements on 39 properties in Missouri, but it needs 739 easements.  Grain Belt Express needs 700 more easements in Missouri, 95% of its route across the state.  Detweiler thinks that GBE will need to take easements by eminent domain before it can complete final engineering and obtain its project financing.  Where ya been, Hans?  The real transmission companies are all about getting injunctions for surveys long before a project is permitted by a state.  What makes Hans think things are different in Missouri?  Hansypoo's claims rang just a bit hollow for me.  Ditto the other clowns at the circus who were quite insistent that Invenergy would have to use eminent domain before it had completed engineering or found customers.  How many times in the past has Invenergy possessed the right of eminent domain?  How smart is it to give eminent domain authority to a generation company?  Then wouldn't every generator (or wannabe generator) want to have eminent domain authority for their generators and tie lines?  What would make GBE different from a new fossil fueled generator that wanted to build in Missouri and ship the power generated to another state via a private transmission line?

But what happens if the MO PSC approves GBE, and then the company begins eminent domain proceedings against 700 property owners long before it has found buyers for capacity or financing to build the project?  Or even before the assent of county commissions?  What if GBE obtains easements across the state and then changes its project into a generation tie line that doesn't actually serve Missourians?  Will the PSC make GBE give the easements back?  Unlikely.  Where would the authority for that be?  What if this is just a big ruse to gain the power of eminent domain for a private utility's generation tie line?  Is that what Commissioner Hall is smelling this time around?  The Missouri Public Service Commission must absolutely determine that GBE is actually a public utility before awarding them the power to take private property for their own use (because it's actually supposed to be for PUBLIC use).  Is this smelly thing going to survive challenge in the appeals courts? 

Go away, Invenergy.  Your dastardly plan is never going to succeed.  Transmission lines that plan to use eminent domain for 95% of the route are rarely approved.  And these landowners are winning because they have stuck together.  It's unlikely they're going to cave at this point.  Go away, Invenergy.  Just go away.  You don't understand eminent domain because you've never had the authority to use it.
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"Some" Landowners Interfering With Investors' "Overhead Cash Registers"

11/10/2018

1 Comment

 
The arrogant renewable energy folks had a "forum" this week.  On the day of the "forum" a renewable energy news outlet ran a series of three obnoxious articles telling people that the electric transmission grid is outdated and overly congested.  The solution?  Lots more new transmission "for renewables."  (read wind).

This is never going to happen.  The reasons why are clear, if slightly beyond the thought capacity of an industry that continues to lie to itself.  Merchant transmission  has been a gigantic failure.  The articles gush on about troubled projects that have racked up one failure after another, while also noting the complete failure ("the wheels came off") of many others.  News flash:  They're all going to fail eventually!  Not one "renewable" merchant transmission project has been built.  They can't be built.

Reasons why include:

1.  No customers to pay for them!  Even when Clean Line thought it had the green light for its Plains & Eastern project, it failed to attract any customers to pay for it, and Clean Line bailed at the first opportunity to unload this cash cow onto a utility wannabe who thought it could use part of the project as leverage to profit off a real utility's plan to construct a wind farm and the world's longest generation tie line.

2.  RTO's are not designed to facilitate exports.  RTO's are purposed to serve their region and therefore costs of serving the region are visited upon the consumers in that region.  Exporting electricity to other regions does not serve anyone in the region.  Asking different regions to build new transmission to patch regions together to serve the renewable energy industry doesn't benefit anyone in any of the regions either.  One article even claims that new "renewable" transmission lines "represent potential overhead cash registers for their owners."  So, this is all about an industry cashing in for their own benefit?  But yet...

3.  "Some" landowners oppose transmission.  Why the modifier "some?"  What is that supposed to represent anyhow?  That only a handful of landowners object to superrich investors and foreign corporations erecting an "overhead cash register" on their land using the power of eminent domain to take private property?  Sorry, but you're wrong about "some," if that's supposed to mean a small number.  Eminent domain for private gain is widely opposed by both affected and unaffected landowners.  Only "some" landowners are in favor of it, those who don't live on the land and are looking for a quick payday, or perhaps those who obliviously believe they're going to be richly compensated for the use of their land (or quid pro quo payments for being a public advocate for the transmission project).

Or perhaps "some" is an attempt at denying the power of landowners to derail transmission proposals?  Even though landowners were the biggest impediment to Clean Line's projects, Clean Line still wants to claim its projects failed due to the efforts of "a major utility, and prominent state politicians" and "some landowners."  As if the landowners were not the impetus for the political opposition, and as if a major utility opposed more than one of Clean Line's projects?  It was the landowners, Sherlock!  They are powerful, and they are the primary reason transmission projects are cancelled.  Wasn't it Sun Tzu who said "know your enemy"?  Denying the power of your most stalwart enemy is a fool's paradise.

Here's the basic truth:  Eminent domain for the purpose of erecting an "overhead cash register" on private property is frowned upon.  Sure, there was that awful Supreme Court decision that eminent domain could be used for "economic development" purposes, but that came with overwhelming backlash.  Eminent domain's historical use by utilities to serve all customers cannot be extended to erect "overhead cash registers" on private property.  New "renewable" transmission isn't necessary to provide electricity.  The grid we have is managing to keep the light on (for the most part).  One person's desire to obtain a different kind of electricity does not override another person's right to own and enjoy property.  If a company desires to erect an "overhead cash register" on private property, it's going to need landowner buy in.

How to get there?  It's not any of the ways renewable energy companies and environmentalists have proposed.  Landowner aggregation schemes, increased easement payments, even royalties, are not adequate for "some" landowners.  "Some" landowners simply do not want to sell an easement for any reason.  The "eking out and incremental solutions" (in the words of Jayshree Desai, former CLEPT-O, now spending some other investors money as ConnectGen) doesn't reside in erecting "overhead cash registers" on private property.  It resides in new ideas for buried transmission on existing rights of way, along railroads or highways.  That's the solution.  That's the way to "...figure out longer-haul, bulk transmission to really change the fundamental supply-demand balance of renewables in this country," Ms. Jayshree.  Jayshree and her band of Don Quixotes wasted more than $200M of investor cash trying to build "overhead cash registers" on private property.  And still one of the Dons persists because he can't pull his head out of the clouds (or another place closer to the ground). 

Overhead merchant transmission is dead!  The renewable energy industry and its environmental sycophants should should stop wasting their money and efforts on "overhead cash registers" and invest it in underground solutions.  The cost of these solution must be borne by the beneficiaries, in this case it's the renewable energy industry, or its customers.  The rest of us aren't going to pay for it.  You want to make money?  You gotta spend money!  The answer is at hand.  Don't make me grab you by the scruff of your neck and rub your nose in it.

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Whitewashing Greenwashers' Fence

10/24/2018

2 Comments

 
Well, hey there, Corporate America!  The companies that stand to profit from building more wind, solar and transmission projects want you to whitewash their fence!

Come one, come all, step right up and grab a paintbrush!  Your regional transmission planning organization is ready to take your membership money and waste your time!
Honestly, the renewable energy industry has no shame.  Their greed knows no bounds!  They need to keep building renewable energy projects and new transmission to fill their pockets.  Its a parade of trade groups and self-serving "organizations" who want to find someone, anyone, to champion their goals.  They tell you that you must purchase more renewables from far off places, and that you need to pave the road to get them.  And Corporate America is their latest target.

The recycled Wind Energy Foundation is now the Wind and Solar Alliance, and they want corporations to join regional transmission planning organizations and demand new transmission to fulfill corporate renewable energy goals.  Except this idea is crap.  Regional transmission planning organizations don't care about your corporate renewable energy goals.  Sure, you can spend money joining, and then waste a bunch of time sitting through meeting after meeting, demanding new transmission, but it's a completely wasted effort.  RTOs don't even listen to what states want, why should they listen to Corporate America?

I'm going to use PJM Interconnection as an example, since it's the RTO that manages my service area, and one I'm familiar with.  Here's how PJM treats requests to build new transmission for renewable energy goals:  the requester, or sponsor, must agree to pay for the entire cost of a transmission project it desires to have built to meet its renewable energy goals.  In this instance, the requester may be a state with a renewable energy mandate or goal.  One state may not visit its laws upon the citizens of another state that may have different goals.  Just because, say, Maryland, has a legislative goal to procure more renewable energy does not mean that citizens of West Virginia, with considerably different (non-existent) renewable energy goals must pay a portion of the cost of a new transmission line to meet Maryland's law. 

A corporate renewable energy policy may not visit the costs of meeting its goal upon electric ratepayers in any state.  The ratepayers had no part in creating the corporate goal, and they shouldn't have to pay for it.

Why do corporations set renewable energy goals?  It's nothing more than public relations fluff.  "Buy our products because they are created with renewable energy!"  It's a marketing ploy.  Will consumers choose to buy a more expensive product because it supports the renewable energy business?  Maybe, depending on the upcharge.  A few pennies here and there may be something consumers are willing to give to the effort.  A sizable price increase that comes from renewable energy purchases and new transmission lines supposedly needed to get the energy to end user is not something consumers will support.  PR fluff is great when it's cheap, when someone else is paying the cost of creating it, but when it affects the corporate bottom line, even corporations cannot support it.  Every dollar a corporation spends on marketing (and energy) must find its way into the cost of the product.  Spending several billion dollars on a transmission line (even one cost shared by several corporations) will raise prices way past consumer tolerance.  Joining RTOs and demanding new transmission lines is a dead end.

RTOs may consider need when planning transmission.  But they're going to be looking at stuff like load, economics, and perhaps state laws.  When a new transmission project is approved and ordered by an RTO, the costs of the project are allocated to the consumers served.  Corporate energy goals serve corporations.  The corporation receives the benefit of meeting its goal through public relations and increased sales.  This cost simply cannot be allocated to all ratepayers in a region, who will not benefit from corporate goal fulfillment.  Trying to create a scenario where consumers benefit from corporate public relations schemes is an exercise in futility.  RTOs aren't going to fall for it, and neither is the agency that regulates them.

Even though the Wind & Solar Alliance has packaged up their fence painting scheme all pretty and created some bogus "report"* that says absolutely nothing, it appears that some big corporations aren't falling for it.
As global manager of renewable power for General Motors, Rob Threlkeld speaks often with both RTO and utility managers about transmission. When he depended primarily on power-purchase agreements with wind producers, “That would require a significant amount of transmission to be built.”
While he expects transmission to continue to be a challenge in meeting his company’s renewable energy goals, he is more focused now on green tariffs and sees a new resource on the horizon: the transmission capacity left in the wake of closing coal plants.
“As we shift the generation fleet,” he said, the question is, “How do you repurpose existing transmission?” Wind farms used to rely on all new transmission lines to bring the power to where it was needed, he said. But he sees that changing as coal plants close and reduce the load on parts of the transmission system.
“Don’t build new all the way; build new half the way,” he said. “Those are the types of discussions we have.”
I guess he must be thinking about his bottom line, perhaps GM only wants to pay for half a new transmission line to meet its goals?  Or maybe he realizes there is no free lunch here.  RTOs are never, and I do mean NEVER, going to plan for corporate energy goals and pass the costs off onto other electric consumers.  Trying to "re-purpose" lines that have been paid for by electric consumers, in order to now serve corporations, is just another way to shift the cost of meeting corporate goals off onto others.  Obviously Rob doesn't want to PAY to make GM greener.

If a corporation wants to polish its public image with greenwashing, it should be prepared to pay for it.  Power purchase agreements are paid for by the corporation.  If a corporation has to pretend that its actually using the energy it is paying for (as opposed to the fantasy REC product), then it may purchase capacity on merchant transmission.  That's a much cheaper option than paying the entire cost of a new transmission line.

However, the merchant transmission that has been proposed takes too long to build (wahhhh!)  That's merely because the merchant transmission that has been proposed in the past is THE WRONG KIND.  It's the overhead across private property kind that faces fierce opposition from landowners and regulators.  That kind of merchant project is never going to be built.  In fact, at least one state has outlawed that kind of transmission, and others have found ways to put a stop to designating these projects as "public utilities" who may wield eminent domain authority.  Maybe the corporates should support a different kind of transmission?  How about new technology that doesn't require eminent domain and therefore doesn't foment opposition?  It's a much better way to spend corporate funds, instead of wasting it supporting dead projects such as Clean Line.  Wake up, Walmart, before the people who shop your stores in their jammies find out their prices are increasing because you choose to waste money joining RTOs and testifying in favor of overhead transmission projects before state regulators.  They'd probably rather you spend your money paying your employees a living wage... so they can buy real clothes for their shopping expeditions.

The Wind & Solar Alliance is simply looking for someone to paint their fence.  They've gotten nowhere lobbying RTOs for new transmission to serve renewable energy goals.  Now they want Corporate America to do it for them.  You're smarter than that, right?
*Let's play a game!  How many typos can you find in the WSA's new "report?"  Doesn't exactly inspire confidence, does it?  I wonder who proofread that... was it this member of WSA's extended team?  No, really, check it out.  There's another little surprise waiting for you there.
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Eminent Domain Abuse Arguments are a Tool Strictly for Landowners

10/23/2018

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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.
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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
I got it (i got it) I got it
For a violation, for a violation call...

0 Comments

Clean Up in Aisle 5!

7/11/2018

0 Comments

 
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?
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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