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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

1 Comment

 
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.
1 Comment

Top Ten Clean Line Mistakes - #3 People Love Transmission for Renewables

4/17/2018

2 Comments

 
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...
2 Comments

Top Ten Clean Line Mistakes - #4 Section 1222 of the Energy Policy Act of 2005

4/13/2018

3 Comments

 
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!
3 Comments

Illinois Court Snatches Away Permit for Grain Belt Express

3/15/2018

1 Comment

 
It's dead folks.  Dead, dead, deader than dead.

This isn't a "casting of doubt" or a "speed bump."  This is the end of Grain Belt Express.

On Tuesday, the 5th District Appellate Court of Illinois "reversed where the Commission lacked the authority to grant a nonpublic utility company a certificate of public convenience and necessity under the expedited review process set forth in the Illinois Public Utilities Act."

If that's not clear as a bell, there's also this:
The order of the Commission is hereby reversed and remanded where it granted a
nonpublic utility company the authority to construct and manage an electrical transmission line project under the Act's expedited review process without the requisite
finding that the applicant was a public utility.
That's right, Grain Belt Express no longer has a permit to construct in Illinois.  Grain Belt Express has no approvals in Illinois.  It's back to square one.

And appeals will be fruitless, because the court cited last year's opinion from the Illinois Supreme Court that determined the exact same thing.  Clean Line is not a public utility and therefore the Illinois Commerce Commission cannot grant it a certificate of public convenience and necessity.  Done deal.

Does Clean Line have legal options?  Sure.  But those options will be very, very expensive and very, very time consuming.  Only an idiot would commit to spending millions and trying to fight this battle for several more years, when its also engaged in a similar battle in Missouri.  At what point will Clean Line run out of money?  And will its investors give it more cash to waste pretending there's still a chance for these projects?  My opinion is no.  No, this is the last hurdle GBE just can't jump.

This turn of events is completely unsurprising.  I've been remarking for months that Illinois was about to snatch away GBE's permit.  There was absolutely no chance that the court would decide otherwise after the Illinois Supreme Court decision.  The die was cast.  It's another case of permit whack-a-mole.

So, what did the 5th District opinion say?
Pursuant to section 8-406.1, the section utilized by GBX in the instant case, "[a]
public utility may apply for a certificate of public convenience and necessity pursuant to
this Section for the construction of any new high voltage electric service line and related
facilities (Project)."

Section 3-105 of the Act defines a "public utility" as follows:
"[E]very corporation, company, limited liability company, association, joint stock company or association, firm, partnership or individual, their lessees, trustees, or receivers appointed by any court whatsoever that owns, controls, operates or manages, within this State, directly or indirectly, for public use, any plant,
equipment or property used or to be used for or in connection with, or owns or controls any franchise, license, permit or right to engage in ***

We note, however, that the definition of "public utility" was recently clarified by the Illinois Supreme Court in Illinois Landowners Alliance, NFP v. Illinois Commerce Comm'n, 2017 IL 121302. In Illinois Landowners Alliance, NFP, our supreme court determined that when the Commission grants a company a certificate of public convenience and necessity under section 8-406 of the Act, the "central question remains: Does it even qualify as a public utility under Illinois law so as to be eligible for such a certificate under section 8-406 of the Public Utilities Act?"

Our supreme court determined that Rock Island, a new entrant, was required to present ownership of utility infrastructure assets to qualify as a public utility, as defined in section 3-105, in order to obtain a certificate of public convenience and necessity under section 8-406 of the Act. Id. ¶ 48. In order to qualify as a public utility, our supreme court concluded that "the company must also own, control, operate , or manage, within this State, directly or indirectly, a plant, equipment, or property used or to be used for or in connection with (or must own or control any franchise, license, permit, or right to engage in) the production, transmission, sale, etc. of one of the specified commodities or services." Id. ¶ 39. The supreme court noted that the statute is phrased in the present tense because it requires that a company must own, control, operate, or manage, within the state, a plant, equipment, property, franchise, etc. at the time it seeks certification by the Commission.

The supreme court reasoned that when the General Assembly repealed the prior language in section 3-105 of the Act, which defined a public utility as "every corporation *** that now or hereafter *** may own, control, operate or manage" specific plants, equipment, or property (Ill. Rev. Stat. 1965, ch. 1112/3, ¶ 10.3), it intended, as the court
must presume, to speak only to ownership in the present tense when it eliminated the words "that now or hereafter *** may." Id. ¶ 42. As a result, the court determined that courts must read the statute as "evincing an intention by the legislature to limit the definition of 'public utility' to situations where the subject entity meets the ownership test
at the present time."

Here, GBX similarly fails to establish that it was a public utility at the time it filed its application with the Commission. It is undisputed that GBX does not presently, or at
the time it filed its disputed application with the Commission, own, control, manage, or operate any plant, equipment, or property in Illinois used or to be used for or in connection with the production, transmission, sale, etc. of one of the specified commodities or services. Accordingly, GBX did not meet the definition of a "public utility" under section 3-105 of the Act at the time it filed its application with the
Commission.

...we are not persuaded that the legislature intended for the expedited review process to be an available avenue for nonpublic utility entities. The Commission's conclusion that any nonpublic utility may apply to be a public utility under section 8-406.1 ignores the express language set out in section 8-406.1(a). Significantly, section 8-406.1 of the Act clearly and unambiguously reads that "[a] public utility may apply for a certificate of public convenience and necessity pursuant to this Section ***."  As such, our interpretation of section 8-406.1 requires that the applicant must meet the definition of a public utility. In order to obtain status as a public utility, the applicant must meet the ownership test at the time of application, the same prerequisite in section 8-406, and the Commission must make this finding before issuance of a certificate. Here, GBX holds an option to purchase property that would serve as the site to place equipment for the proposed project. "[H]aving an option to buy something is not the same as owning or even controlling it," and an option agreement "does not involve the transfer or [sic] property or an interest therein." Illinois Landowners Alliance, NFP
The court says that Section 8.406.1, the "expedited process" under which GBE applied for its permit is specifically reserved for existing public utilities.  GBE is not a public utility because it doesn't own or control any utility property in Illinois.  It uses the Supreme Court's opinion in Illinois Landowners (RICL decision) as the basis for its finding.  The only place for Clean Line to appeal this is at the Illinois Supreme Court.  That's a dead end.  The Supreme Court is unlikely to reconsider the same argument and come to a different conclusion.

But don't despair, Clean Line, there's still a "way forward" for GBE... you don't need a permit from Illinois to build your project at all!  The only thing is, without a permit and a public utility designation from the ICC, you won't have eminent domain authority.  I mean, you have always said you weren't seeking eminent domain for your projects, right, Clean Line?  Go ahead, try to obtain needed rights of way across Illinois without the coercion of eminent domain.  Landowners love you, right?  That's what the court has instructed you to do:
The supreme court noted, however, that the Act does not prohibit new entrants from commencing development as a purely private project before applying to become a public utility in Illinois:
"Once their projects are further underway and they have obtained the ownership, management, or control of utility-related property or equipment required to qualify as public utilities, they may then seek certification to operate as public utilities if they wish to conduct their business in a way that would make them subject to the Public Utilities Act's regulatory framework."

As a result, the Commission must find that an entity is a public utility at the time of application in order to utilize the expedited review process in section 8-406.1 of the Act.
Unable to meet the requisite ownership test, GBX is not a public utility under section 3-105 of the Act, but rather an entity with a purely private project that does not require the
Commission's authority to proceed.
The media says, "Clean Line officials couldn't be reached yesterday."

Maybe Michael Skelly simply couldn't reach the telephone?

1 Comment

Federal Transmission Permitting Is a Bad Idea

3/7/2018

1 Comment

 
This guy.  Ugh.
The Republican Party’s current infrastructure spending bill is missing one item: a provision establishing federal siting authority for electric transmission lines. Oddly, this idea has few champions in Congress and only tepid support from environmental groups.
That's because its an awful idea that nobody supports.  Congress doesn't support it.  And do you know why that is?  Because states and citizens oppose it.

While natural gas is limited by its geographic sourcing, electricity generation can take place anywhere.  The days of coal mine mouth electric generation plants and long distance transmission lines are over.  It's much more efficient to move fuel to generation plants located closer to load.  And it's much easier to move fuel than it is to build electric transmission lines.

We don't need federal authority for transmission lines.
Problematically, the best locations for wind and solar power plants are far from population centers—in the windy central plains or the sunny southwestern deserts.
That's absolutely not true.  The "best locations" for wind plants are offshore, conveniently located within just a few miles of the largest population centers.  The "best locations" for solar are right on your own roof, where source and sink align to create the most reliable system.
More than ever, consumers want green power.
Also not true.  When consumers were given an opportunity to purchase renewable energy transmission capacity from the Midwest, there were no takers.  Whether it was a matter of price (new transmission will produce a cost to consumers in the billions of dollars), or a matter of favoring local resources, or both, consumers rejected Clean Line Energy Partner's plans for new transmission.  Consumers who say they want "clean" energy in a random survey are never given complete information about how much this "clean" energy is going to cost, and when the rubber hits the road, consumers vote with their wallets.  Any consumer truly dedicated to a "need" for clean power can make it happen at home.  We don't need big utilities and expensive new infrastructure to make it happen.
Conservatives claim that federal transmission siting authority would threaten state sovereignty or landowner property rights, but those claims ring hollow. Why are those values worth protecting against transmission lines but not against natural gas pipelines?
Those claims don't ring hollow to the affected landowners, and those are the only parties who matter in this instance.  Landowners, frankly, don't give a shit if some policy wonk in the big city thinks their legislators' protection of private property rights sounds hypocritical.  Those policy wonks won't be voting in the next local election, but the landowners will.

Why is it that these liberal wind bags demand that you abandon your own beliefs if you don't support theirs?  "Okay, so you're against transmission lines, therefore you must also be concerned about my issue."  No, we're not.  Attempts to reframe the argument to paint opposition as hypocritical serve no one and are just a waste of time.  But while we're on the subject of hypocritical arguments, that's where your environmental groups come in.  They attempt to use landowners to serve their environmental goals by latching onto non-environmental arguments, such as eminent domain.  And then they get caught supporting eminent domain for electric transmission lines, but not for gas lines.  And then the people start to feel used.

Dude, your argument is crap.  Federal permitting and siting for electric transmission has been attempted many times over the years and it has consistently failed.  Elected officials know it can't happen.  That's why they don't support it.

Duh.

Never going to happen.
1 Comment

Transource "Respects" Landowners by Filing for Court Order to Trespass and Damage Property

3/1/2018

3 Comments

 
Transource Urges Court to Deny Due Process for Landowners
Transource has sunk to new lows this week.  Hard to believe they could go any lower, right?

Transource filed petitions in Pennsylvania and Maryland courts asking the court to order landowners along its proposed route to permit entry for "surveying," including "geotechnical surveys (including soundings and drillings for testing soil and bedrock)," and "civil surveys (including trimming or cutting vegetation necessary for survey purposes)."  That's right, in addition to all the other things it wants to do to private property, Transource wants to clear cut your trees and bring large equipment across your place so that it may drill into your bedrock.  And guess what you're going to get for this intrusion?  A promise that Transource will give you money to repair the damage they do.  You believe them, don't you?

I couldn't think of a more certain way to demonstrate to landowners how little they matter and how much this company disrespects them than this statement in a court filing:
Defendants will suffer no damage as a consequence of granting immediate possession, because any damage to the land will be remedied by the payment of money, per the statute.
Money can't put 100 year old trees back where Grandpa planted them.  And it probably can't fix compacted and mixed soil, not really.  And if your horse steps into a random drill hole and breaks a leg, maybe you can buy a new one with your free Transource horse voucher.  It's just a possession, right?  It's almost as useful as getting a free $10 meal voucher for having to spend 11 hours at an airport waiting for a cancelled flight to be rescheduled.
So what's the problem here?  The problem is that Transource has no legal authority to enter private property to "survey," and landowners have refused to voluntarily give permission to enter.  Transource is in a big, giant hurry to get its project built.  In fact, they're in such a hurry that they can't seem to wait for the state public utility commissions to find their project necessary and they want to pretty much "move forward" on building their project ahead of state approval.

​Transource spokespuppet Abby Foster tried to pretend it's just a few landowners holding up progress:
Transource appreciates that many landowners have granted them access to conduct surveys, Foster said. 
​
"Transource and its representatives are committed to treating landowners and their properties with respect," Foster said. "While reaching a voluntary agreement with property owners is a high priority, it is imperative for Transource to continue through the phases of the project as the company seeks regulatory approvals. The approval of this filing will allow Transource to proceed with field work for those landowners who have not yet granted the company access.”
How many landowners have granted them access on the proposed Eastern right of way?  Well, Transource's application says there are 38 owners in York County.  The media says filings were made against 36 landowners.  Two out of 38 is "many?"  No, it's not.  If it was only a few landowners, Transource could go around them and wouldn't need to file these desperate, reaching petitions.

It is not "imperative" for Transource to continue through the phases of its project before it has been determined needed by the state utility commissions.  Just because Transource and PJM signed an agreement setting pretty impossible deadlines is not reason enough to trespass upon private property, damage it, and then take away any due process for landowners to object.

​Transource says:
Transource PA will not be able to begin construction in time to allow the Project to be completed to meet the in-service date set by PJM.  If Transource PA misses the PJM-mandated in-service date, the public will suffer irreparable harm in the form of continued electric gridlock, and delay or ultimate failure  of the project.  Furthermore, Transource P A will suffer irreparable harm as Transource Energy has invested considerable time and money in attempting to obtain access rights to the route.

In fact, Transource PA has invested more than $6.0 million to date in siting, design and engineering. The foregoing harms would also result if Transource PA's access is obstructed by Landowners, or other unauthorized and untrained third parties who are present on the Property in the vicinity of the work corridor at the invitation of Landowners
Suffer?  The public will suffer?  How about those landowners whose property you've commandeered?  I mean, it sure sounds like you want to take over the place and make sure no "untrained parties" are allowed to use their properties while you are surveying.  Hey, guess what?  I read Transource's attachment on how to survey for bog turtles.  Complete instructions included.  Maybe landowners can do their own surveys?  Seems simple enough.  Either you see one or you don't.  And, by the way, can you define "electric gridlock" and list the actual harms that will be experienced by the public because of it?  You make it sound like people are going to drop dead if you're not allowed to trespass on private property.

And as far as your whining about how much money you've "invested?"  You act like this is your own money, Transource, and if you don't complete the project you'll lose your "investment."  That's absolutely not true!  Transource is guaranteed to recover its prudent "investment" in the project, plus 10.4% interest, even if the project is cancelled.  If the project is delayed and/or cancelled, Transource won't be harmed at all.  Transource will be made whole (plus 10.4% for its trouble) by electric ratepayers across the PJM region.  No harm to Transource.

But you know what's most galling of all?  Transource's attempt to prevent due process for affected landowners in Maryland.
Accordingly, this Court may issue an Order, granting this petition and authorizing Transource MD to enter onto the Subject Property to conduct surveys, and obtain information in connection with the acquisition and project, without the need for a hearing prior to the issuance of the Order.
Not only is Transource's legal pondering in its petitions unsound, but they want a judge to wave his magic wand and grant them the right to trespass without the landowner being able to question the company's facts and legal conclusions.  Only a lawyer who knows his work is shockingly wrong would insist that no other parties be allowed to participate and expose him for the corporate shyster that he is.

This just can't happen.

This is a train wreck waiting to happen.  You can't bully your way onto private property with the intention of destroying it just because you *want* to build something on it, maybe, later on, if you get actual permission.  Seems to me that cutting vegetation and drilling ARE construction.  Construction without a permit.

Tick tock, Transource!
3 Comments

"Clean Line Builds..."

2/18/2018

2 Comments

 
...the answer is NOT "transmission lines for wind and solar projects."  I'll spare you the lecture about verb tenses (but you can get it here) but basically there are three verb tenses -- past, present and future.  Clean Line has not built anything, therefore to say it "builds" is incorrect.  Clean Line is not currently "building" a transmission line.  Clean Line has not "built" a transmission line in the past.  Clean Line perhaps hopes it "will build" a transmission line in the future, but I don't think that's likely.  The only thing Clean Line seems to be building anymore is Michael Skelly's ego.

What purpose did the Houston Chronicle article serve?  Was the reporter actually trying to make a point?  That renewable energy isn't "lonely" in Houston?  Michael Skelly may be about as lonely as they come these days.  Nobody seems to care about the transmission lines he hopes to build anymore.  It's all about Michael Skelly, just like it was all about Michael Skelly back in August, when Skelly practiced heroics with his feet on a table during Hurricane Harvey.  And back in 2014, when he showcased his heroism in building a compound of historic homes in one of those terrible "poorer" neighborhoods.  Building -- something that was actually done.  Not something one aspires to in order to pretend it's happening.  Michael Skelly sure has "built" quite the ego.

Skelly likes to pretend that the abandonment of his dream and the sale of a portion of his project to NextEra was a "success."

Michael Skelly, the company's president, told Arkansas Business that the direct-current project, which would have transmitted 4,000 megawatts of renewable energy from Western Oklahoma to eastern Tennessee, is basically on life support.

"Everybody knows that if you can delay a project, you can hurt it or force a different outcome," Skelly said after devoting nearly nine years and some $100 million in private investor money to the project, which would have crossed 12 Arkansas counties with 200-foot-high transmission towers. "We're ending up with an outcome that's just fine for us business-wise, but not as good for Arkansas."
Actually, Arkansas will be just fine without a "clean" line.  The project was never purposed to benefit Arkansans anyhow.  It was about Michael Skelly and his investors making a bundle of money riding the renewable energy wave to sell a bunch of clueless people something they didn't want or need.  Except it turns out they really didn't want or need it, and the project went broke.  Clean Line gladly cannibalized its Plains & Eastern project and sold the juiciest cut to NextEra.  What's left isn't even good for soup.  Not only doesn't Clean Line's Arkansas and Tennessee assets not connect with anything, but the company withdrew their interconnection requests.  There's nothing to interconnect.  Clean Line is over.

As far as that delay thing goes, he's partly right though.  It may have turned out oh so differently for Michael Skelly and Clean Line if they had honestly attempted to engage landowners along the route and find out what would inspire them to sign a voluntary right of way agreement.  Instead, Clean Line acted like an arrogant, entitled, smart ass, figuring it only had to make it look like it was negotiating with landowners, while desperately attempting to acquire the power of eminent domain to force involuntary easements.  Any cost conscious, astute developer would have given up many years ago, however.  Only Michael Skelly continued for 9 years, wasting increasing amounts of funds supplied by his silly investors.  Business-wise, Clean Line is a bust.  I'm thinking they didn't get anywhere near the $100M they spent on Plains & Eastern in the NextEra sale.  Only Skelly's ego is pretending that was a good outcome.  Maybe if he says it enough, money to repay the investors will fall from the sky?  Maybe if he says it enough, he won't be a 50-something year old failure?
So Skelly is pretending he and his company are still viable in order to maintain the old ego.  But what's wrong with Vicki Ayres-Portman?  Did someone forget to send her the memo about Clean Line's sale of its Oklahoma assets, or is she quite insane?  I received numerous copies of this article last week.  It says:
Clean Line Energy spokeswoman Vicki Ayres-Portman explained the impact wind energy has had on local county budgets and what it would mean to be the member of a state that divests in wind energy at Monday's get-together.
Ayres-Portman was taking the place of originally scheduled speaker Mark Yates, Oklahoma director for the Wind Coalition.
“Most of you have probably heard there are two bills running on the floor of the house today that would have a detrimental impact on the future and possibly retroactive on wind development,” she said. “So Mark felt like he really needed to stay at the capitol today and asked if I would stop by on my way to the capitol and give you guys an update on wind energy in Oklahoma.”

What interest does Clean Line have in Oklahoma wind at this point?  Or are they simply a registered lobbying agent for NextEra?  And why was Vicki on her way to the capitol?  Clean Line sold its Oklahoma assets, remember?
Ayres-Portman detailed the well publicized and still working 9-year-old Clean Line project set to run from the Oklahoma Panhandle to Tennessee. The $2.5 billion, 4,000 megawatt project that was set to provide energy to customers in Arkansas, Tennessee and other markets stalled recently. The issues hamstringing the plans come after President Trump began pushing coal and nuclear power options.
"The market has really changed since Clean Line started this effort eight, nine years ago,” Ayres-Portman said. “At that time, the bioenergy centers to the East were really looking forward to more renewables. We had a new President elected. And although I agree with a lot of great things he’s done, one of the things, pushing coal and nuclear has really dampened the power purchase agreements from big utilities that were looking at doing renewables, whether that was natural gas, wind or solar.”
So those companies that had memorandums of understanding to come onto the Clean Line transmission line, have pulled away from those agreement.
Still working?  What the hell does that mean?  How can Clean Line be "still working" in Oklahoma when it doesn't own anything in Oklahoma?  The demise of Clean Line is Trump's fault?  Anything but!  The demise of Clean Line is Clean Line's fault.  It failed to attract any customers. No customers, no revenue, no "builds."  What "companies" had memorandums of understanding to "come onto the Clean Line?"  No company had such an understanding, so there's nothing to "pull away" from.  Clean Line acts like it has some firm commitments that were cancelled after Trump was elected.  That's just not true.  Ayres-Portman looks like she's quite insane in that article.  Maybe she'd like to make some corrections so she doesn't "build" herself a reputation as a fabulist?

Clean Line needs to just go away.  The idea that consumers would pay a premium to import wind energy from far, far away wasn't viable.  And the idea that landowners would welcome a transmission line across their property if it carried "renewable energy" was completely bogus.  Enough time and money has been wasted.  Give the old ego a rest and just go away.  I think you might be on the verge of embarrassing yourself.
2 Comments

Shame On You, Transource!

1/13/2018

4 Comments

 
Transource is a new joint venture of utility giant American Electric Power and Great Plains Energy.  So far, it seems that Transource's Independence Energy Connection is being managed by AEP employees.  AEP has more than 100 years of experience building utility infrastructure and interacting with consumers.  So how did they screw this up so badly?  Why has an elected representative demanded that Transource cease and desist aggressive and illegal land acquisition practices and issue an apology to all the landowners it threatened?

You've gone too far, Transource.  Shame on you!

Transource thinks that perhaps they're dealing with a bunch of rubes who are easily threatened into submission.  After all, the eastern portion of the project is only 10 miles of line in a rural community bisected by a state border... but it's a sophisticated and well connected community.  Transource, your strong arm tactics and lies don't work here!

During the past week, Transource poured the gas on their fruitless efforts to get landowners to sign legal documents giving the company permission to "survey."  Landowners are never required to sign survey permission forms.  While Pennsylvania law allows a public utility to access private property, there's a lot more to it that Transource presumes landowners don't know.
Furthermore, the Transource letter sent to landowners  dated January 5, 2018 is inaccurate  and misrepresentative of the proper procedures set in place  under the Eminent  Domain  Code and public  codes of the Commonwealth. In  the letter, your company  stated it  has obtained utility status by Pennsylvania. While the Public Utility Commission (PUC) approved Transource's application for utility  status on December 21, 2017, your company  has yet to obtain  the appropriate certificate  and orders from  the PUC to  operate as a public utility  and conduct land surveys/assessments. Moreover,  even after obtaining the appropriate approvals,  Transource must follow the Eminent Domain Code  and issue a  10-day notice to all landowners before  accessing private property. As of today, Transource cannot  send such a notice until the proper certificate and approvals from the PUC.
And Transource is going to pretend, with all its lawyers and legal support staff, that it didn't know these things?  I don't believe you!  And even if Transource was completely unaware of Pennsylvania law, there's absolutely no excuse for threatening to have landowners arrested on their own property.  You went too far, Transource.

Even if Transource has the legal right to enter onto property, a landowner never has to sign a permission form.  If the company exercises its right to access property without the owner's permission it cannot expect that the landowner would release the company from liability for its use of the property.  You need never sign a permission to access form.

Numerous landowners on the eastern portion of the project reported a rash of strong arm tactics by Transource land agent Western Land Services last week.  Landowners received threatening phone calls demanding that they sign the survey permission form or the sheriff would come and arrest them.
I have received numerous complaints from constituents in my legislative district who experienced threatening behavior from your contracted land  services agent, Western Land Services. In communication with landowners,  agents from Westem Land  Services threatened to call the sheriff's office  and arrest residents who did not  sign letters granting access to their properties. This type of coercive behavior and  harassment by your contracted  agent is unacceptable  and illegal  at best. I  am requesting punitive actions be  taken to  ensure this type of disrespectful behavior  does not  happen again during  the remainder of  the project.
The sheriff isn't going to arrest these landowners for failing to sign a permission form.  At best, if Transource receives all its permits from the PUC the most it can do is issue a notification that it will be access the property in 10 days.  Such notice would need proof of delivery.  Only if Transource had accomplished all the necessary legal steps and had some sort of legal order to present to the sheriff, and the landowner physically threatened or interfered with property access, would the sheriff even be interested in wasting his time on this issue.  Your sheriff works for you, not some company in Columbus, Ohio.

Whose idea was this, and why did they think it would work to intimidate this community?  That person needs to be fired, first for breaking the law, second for having no morals, and third for being stupid, I mean just a complete idiot.

It really wasn't that long ago that another company got in big, big trouble in the Pennsylvania court and regulatory system by deploying threatening and coercive land acquisition tactics just like these.  And TrAILCo's application to build transmission in Pennsylvania was denied by the administrative law judge who heard he case.  Did TrAILCo's abysmal behavior play a part in its ultimate denial?  Absolutely!  Let's look at all the abusive land acquisition tactics that Transource has in common with TrAILCo... so far.
All communications with property owners and occupants must be factually correct and made in good faith.

Do not make false or misleading statements.

Do not misrepresent any fact.

Until the Company has been authorized by the state utility commission, do not suggest that the Project is a "done deal" or is "99 percent sure" or make similar statements suggesting that the state utility commission has authorized construction of the project.

All Communications and interactions with property owners and occupants of property must be respectful and reflect fair dealing.

Do not engage in behavior that may be considered harassing, coercive, manipulative, intimidating or causing undue pressure. 

All communications by a property owner, 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, must be respected and politely accepted without argument.

Do not represent that a relative, neighbor and/or friend have signed a document or reached an agreement with the company.

Do not represent that a relative, neighbor and/or friend supports or opposes the Project.

Do not threaten to call law enforcement officers or obtain court orders.

Do not threaten the use of eminent domain.
We've hardly just begun, Transource, and already you've violated accepted conduct for land agents working on your behalf.  I know you're going to blame Western Land Services for going rogue behind your back, or a few "bad" agents who don't understand their job.  But I know that's just not true.  Land acquisition companies behave badly with the full knowledge of the company who is paying them.  So maybe it's time to fire this company.  And Transource needs to get all the money it paid Western refunded to the ratepayers so it won't cost the ratepayers anything extra to hire a reputable company with some moral and ethical standards.

Does PJM Interconnection know how badly you've screwed up this transmission project they "ordered" you to build?  If I was PJM, I'd cancel your contract and find a reputable company to build it instead.

Meanwhile, Representative Hill wants you to apologize to the landowners you harassed.  Try to be a big boy and take responsibility for your actions and don't blame them on rogue land agents or a fly-by-night company.  You all know what's going on and chose to try to strong arm this community willingly.  It blew up in your face.  

​Shame on you!
4 Comments

Plains & Eastern Clean Line Killed

1/1/2018

16 Comments

 
...but the bullshit never stops!

Hi Gullible One-Sided Story Journalist,  Attached is some bullshit that you can use for your story.  We have also provided someone else to blame for Michael Skelly's failure.  If you need anything else to craft your biased, fantasy story, please let me know!

The Tennessee Valley Authority is getting blamed for "killing" the Plains & Eastern Clean Line.

The Plains & Eastern Clean Line is dead?  Sweet!
Time to celebrate, Mayberry Munchkins!  Do you really care who gets blamed for "killing" it?  In my opinion, the TVA is a hero who refused to bow to greenwashing political pressure and in so doing saved its customers from higher rates and landowners outside its service territory from financial and economic harm for benefit of super-rich foreign investors.

Bravo, TVA!  Well done!

Except it really wasn't TVA's fault.  It's Michael Skelly's fault.  Clean Line had no customers.  No customers, no revenue, no financing, no construction, no transmission line.  It's just that simple.  Skelly might as well blame Duke Energy, Southern Co., Entergy, Florida Power & Light, or any other utility, for not buying his transmission capacity.  Skelly was proposing a merchant project where all risk is shouldered by investors, not consumers.  Skelly was granted negotiated rate authority by the Federal Energy Regulatory Commission to negotiate rates for his transmission service with willing customers.  Nothing in Skelly's transmission plan obligated the TVA, or any other utility, to become customers.  If Frito-Lay goes out of business next week, will it be YOUR fault for keeping your New Year's resolution to lay off the over-processed, salty, junk food?  Of course not!  You choose what to buy and who to buy it from.  The same is true of merchant transmission projects like Clean Line.  The whining of the "environmentalists" makes me laugh!  Once again, the environmentalists completely fail at trying to plan and run the TVA from their home offices.  These "environmentalists" have no idea what it takes to run the TVA so they need to shut their pie holes and let the professionals do their jobs.

So, how dead is Plains & Eastern?
The nation's biggest wind generator, NextEra Energy Resources, has bought the Oklahoma portion of the proposed 700-mile-long Plains and Eastern Line to serve Oklahoma and Midwest customers. But for now, plans to bring wind energy from the windy areas of Oklahoma and Texas into the less-windy Tennessee Valley and Southeastern part of the United States are stalled and unlikely to be resurrected for years.

"Unfortunately, this represents a significant delay in our ability to deliver this energy in the Southeast," Skelly said of the decision not to actively pursue the project at this time. "TVA's lack of interest has certainly not been helpful."

Skelly said other utilities want to buy wind-generated power, and Clean Line is now focusing on its four other transmission projects in the Midwest and the Western part of the United States. NextEra will use the Oklahoma part of the Plains and Eastern line to begin serving parts of Oklahoma, Kansas with wind-generated power that NextEra plans to develop.

"We are hanging onto our permits and rights of way in Arkansas in the event TVA in the future says it might like this power somewhere down the line, " Skelly said. "But at this point it would take considerably more effort to get this project moving for TVA again."


"TVA obviously has to make its own decisions about its future power supply, and we understand that," Skelly said. "But for now, we've stopped the process [of pursuing an interconnection agreement with TVA] because TVA required a whole lot of money to continue in this process but they have not wanted to make any commitments to buy the energy off of this line."
Oh, puh-leeze, Michael Skelly.  Do you actually believe your own lies?  TVA required a whole lot of money to continue the interconnection process because continuing to study your project for interconnection (which is completely separated from the study of whether or not to buy capacity on the line) costs the TVA money!  The TVA isn't paying dividends to investors with all the money it was charging Clean Line to remain in the interconnection queue.  Where do you think the TVA gets its money, Michael Skelly?  It gets all its money from its customers -- regular people who pay an electric bill.  Why should those people pay extra for TVA staff to continue to study the Plains & Eastern Clean Line to determine whether it may interconnect to the TVA transmission system without causing reliability problems?  Does Skelly think that he should get a free ride on the backs of hard-working Mayberrians?

So, if TVA's "whole lot of money" was too rich for Clean Line's bank account, where is Skelly going to get the money to "hang onto our permits and rights of way in Arkansas"?  That costs money, too, and for an undetermined "maybe" period of time?  I don't think so.

Skelly tries really hard to pretend that the part of his project that he didn't sell to another company is still commercially viable.
But Skelly said other utilities have found that their projections about the costs of using a variable source of power like wind have often proven more than expected "and as battery and other storage methods become better, wind will prove even more attractive."

"We think we gave TVA a very good offer, but apparently they did not," he said. "We're still getting a lot of interest from other utilities that want to increase their renewable energy and see wind as a good way to achieve that at a reasonable cost."

Skelly said Duke Power and other Southeastern utilities have expressed interest in buying more wind-generated power, but TVA was needed to buy and/or readily transmit the 3,500 megawatts the line was designed to deliver to Memphis.

Well, goll-lee, Mr. Skelly, if these other utilities want to buy your transmission capacity then you don't need TVA at all, right?  Why would you need TVA to buy something that another company wants to buy?  If you have customers, then go ahead and build your project.

Instead, Plains & Eastern is dead.  It's dead because it failed to attract any paying customers.  It failed to attract any paying customers because it was a bad idea that failed.
Skelly said he and his partners have been working on the Clean Line transmission project for more than eight years and have had to battle local landowners who didn't want to sell their land and regulators in Arkansas who balked at permitting the transmission line rights of way to a developer from another state.
"We've been able to overcome those obstacles, but we always knew when we started it wouldn't necessarily be easy or quick," he said. "But we do think it is the right choice in the long run."

The right choice?  Eight years of misery and more than $200M dumped into a bad idea?  Maybe it was only "the right choice" because that $200M and the land along the right of way belonged to other people and not Michael Skelly.

I think Michael Skelly should stop trying to blame everyone else for his own failure.

But there's this:  The Plains & Eastern Clean Line is dead, according to the Chattanooga Times Free Press! 
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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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