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Clean Line Proposes Bifurcation In Iowa For The THIRD Time

12/2/2015

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Clean Line filed a new motion in its stalled Iowa transmission permitting case the other day.  The "Motion to Establish Procedural Schedule" pretends it's not just a rehash of its two earlier failed efforts to get the Iowa Utilities Board to bifurcate its hearing process for Clean Line's convenience.  Instead of asking for "bifurcation," this time Clean Line is asking for "a single proceeding in two phases."
The word "bifurcate" means "to divide into two branches or forks" (or "phases").

Instead of addressing the IUB's reasons for denying Clean Line's two previous attempts to bifurcate its proceedings (here and here), Clean Line gives the same old lame excuses for why it needs to do this.  Nothing has changed.

In its February 2015 Order Denying Motion to Consider Eminent Domain Issue in a Separate Hearing, the IUB found that the benefits of bifurcation flowed primarily to Clean Line, while the detriments flowed to affected landowners.  The IUB also determined that bifurcation posed due process concerns and was confusing to affected landowners.  The IUB found Clean Line's claim that "many" landowners have expressed a preference for bifurcation baseless.
Now, Clean Line argues that an unknown number of landowners have expressed a preference to wait until after a Board decision on the franchises to sign easement agreements. This means that if all issues are addressed in a single hearing, Clean Line will have to prepare more Exhibit E applications than it will under the two-hearing process. For this reason, Clean Line argues, administrative efficiency would be advanced by the two-hearing approach. Clean Line does not offer any indication of the number of such landowners, other than “many.”

It appears Clean Line could have provided the number of these landowners without violating the confidentiality of the individual negotiations. In the absence of a substantiated number, it is difficult to accept that this group represents a significant part of the overall number of easements Clean Line needs to acquire.

In all, this argument for increased administrative efficiency is speculative at best, and outweighed by the inefficiencies associated with having two hearings to decide issues that are normally decided in a single hearing.
So, did Clean Line provide an actual number of landowners it is still claiming would benefit from bifurcation this time?
Further, a number landowners wish to have clarity on the Board’s decision about the Project in general before negotiating a parcel-specific easement.

Was that a typo, or was someone supposed to stick an actual number in that space before filing this motion? 

This is all you got, Clean Line?  My, my, my, aren't you desperate?

*giggle*
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Clean Line Desires To Keep Costs Low In Order To Increase Profits

12/2/2015

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Take a virtual trip to Ottawa, Illinois, by listening to a recording of yesterday's oral arguments before the Illinois Appellate Court regarding whether or not the Rock Island Clean Line is a public utility under state law.

The recording, just over an hour long, includes arguments from the ICC and RICL in (flimsy) support of the ICC's decision to issue a conditional permit to RICL, as well as from ComEd's lawyer on behalf of appellants.  The appellants asked the court to reverse the ICC's order and send the matter back to the Commission.

The attorney for the appellants discussed why RICL is not a public utility using a demonstrative that listed six attributes of public utilities.  In contrast to public utilities operating (or proposed) in Illinois, RICL has NONE of the attributes of a public utility.

The point was made that the ICC's issuance of a permit to RICL for a speculative, future project was premature.  The statute requires the applicant to possess certain attributes at the time it grants the license.  To go around this failure, the ICC conditioned its permit upon a future showing of RICL's ability to finance its project.  Said showing is to be made by making a filing to the ICC Staff, who will decide whether the financing  stipulation has been met.  Since when does a Commission staff anywhere have decisional authority?  If RICL had met the financial requirements to be granted a permit when it was granted the permit, the Commission would have evaluated RICL's financial evidence to make a determination whether it was adequate to meet the statute.  Instead, the ICC punted its authority over to the Staff at a future date to make a decision in which the other parties cannot participate.

The arguments were constantly interrupted by questions from the three judge panel hearing the case.  These judges have been doing their homework!

One judge asked early on whether RICL's future use of eminent domain demonstrated a desire to keep costs low in order to increase profits.

That's exactly what it demonstrates!  The judge pointed out the difference between a public utility's ratepayer-financed transmission projects, and RICL's investor-financed merchant transmission project.  In the case of the public utility project, eminent domain may be granted in order to keep land acquisition costs as low as possible for the ratepayers who must pay for the project.  However, in RICL's merchant transmission case, RICL's possible use of eminent domain will keep land acquisition costs low for its private investors.  And since RICL's rates are set through negotiation, or by auction to the highest bidder, the price paid for transmission service is not the product of cost of service rate regulation.  It is set by market.  Any savings from using eminent domain to acquire property go directly into RICL's pocket and increase the company's profit.  This, in a nutshell, is what makes the use of eminent domain for merchant transmission projects wrong.  Eminent domain is supposed to be used for the benefit of the public, not for the benefit of private investors.

The judge further pointed out that a public utility has a legal obligation to serve all of the public in a non-discriminatory manner, otherwise any company could hold itself out as a public utility while it only serves certain customers who can afford its services.  If a company proposes to pipe Goldschalger to taps in a limited number of homes who can afford it, it is not legally a public utility.  RICL is no different.

There was also a lot of discussion regarding the amount of progress a permit holder must demonstrate in order to have its 2-year permit extended.

When asked about RICL's progress in Iowa, RICL's attorney said it had made a filing at the Iowa Utilities Board that is "moving the project forward slowly" in Iowa.  (We'll laugh about that in the next post!)  He also whined about how unusual Iowa law is and that Iowa should change its laws to be more like Illinois and other states.  Hear that, Iowa?  RICL doesn't  like your laws!  Awwwww.....

The court will issue a decision on the appeal "soon."
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The Week Clean Line Imploded

11/20/2015

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There's probably more than a handful of folks down in Houston this morning falling to their knees thanking their makers that today is the last day of this week.  What else can happen?  The day's not over yet!!!

Each one of Clean Line's Midwestern projects suffered a setback that caused media backlash at some point this week, and the victories for affected landowners just keep piling up.

First, landowner groups in Illinois came out undaunted about the ICC's approval of the Grain Belt Express project last week.  Because of the scathing dissent of two ICC Commissioners regarding the legalities of Clean Line's permit, appeal seems quite likely.  And quite likely to be successful.
Block Grain Belt Express President Dave Buchman said, “We are disappointed by today’s decision but it was not unexpected. It is imperative for members of the opposition to remain united in our common goal of preserving property rights.” Buckman is anxious to review the order so that the group may formulate a plan of action. They have many avenues of defense still available, such as appealing the decision because the ICC violated state law by allowing Clean Line to file under an expedited permitting process for public utilities, although Clean Line is not a public utility. Additionally, Buckman advises that it is crucial to remember that if landowners stick together, the eminent domain process will be significantly more difficult, if not impossible, for Clean Line.
And in Missouri, the Missouri Landowners Alliance announced its victory in Caldwell County Circuit Court:
Opponents of Grain Belt Express recently won another significant victory in their efforts to block construction of a proposed mega electric transmission line through Missouri. Last month, the Caldwell County Circuit Court found that a project franchise initially granted by the County, but later rescinded, was void. Under Missouri law, Grain Belt Express must have the franchise of all counties crossed in order to build its project.
 
 Last year the Missouri Landowners Alliance (MLA) filed a petition in the Circuit Court of Caldwell County, asking the Court to find that the franchise supposedly granted by the Caldwell County Commission to Grain Belt was void and/or unenforceable.  The franchise would have allowed Grain Belt to build its line on and over the public roads of the county.
 
On October 7, the Circuit Court issued an Order finding in favor of the MLA.  The time for Grain Belt to appeal that Order has now passed.  Therefore, as a practical matter, Grain Belt now has no legal authority to build its proposed line across Caldwell County.  And Grain Belt would have no such authority to build, even if it could somehow persuade the Missouri Public Service Commission to reverse its decision earlier this year that denied Grain Belt a Certificate of Convenience and Necessity.  Grain Belt must obtain authorization not only from the PSC, but also from the County Commission in each of the Missouri counties where it plans to locate the line.
 
Grain Belt’s only apparent hope for building the line through Caldwell County would be to convince the County Commission to reissue a new franchise for the proposed line.  Given that the County Commission supported the MLA in the Caldwell County Circuit Court case, the MLA is optimistic that the County Commission would reject any such overtures from Grain Belt. A survey taken last year for Grain Belt revealed that the citizens of Caldwell County overwhelmingly oppose the proposed transmission line.
 
Grain Belt could conceivably try to salvage this project by somehow re-routing the line around Caldwell County, into other neighboring counties.  But given Grain Belt’s claim that the optimal route for the line is through Caldwell County, that option would seemingly raise a host of problems for Grain Belt.

The Grain Belt project is spearheaded by a Houston-based, investor-owned company with the goal of transmitting energy from Kansas to the richer eastern markets. After a lengthy court battle, in July the Missouri Public Service Commission issued an order finding that Grain Belt Express has failed to meet, by a preponderance of the evidence, its burden of proof to demonstrate that the project is necessary or convenient for the public service.      
 
Recently, the Illinois Commerce Commission granted Grain Belt permission to build in Illinois, leaving Missouri as the only holdout.  Jennifer Gatrel from grassroots group Block Grain Belt stated, “The decision by the Illinois commissioners is in no way final. There will be an extensive appeals process, which the opposition has an excellent chance of winning. We are all very grateful for the two brave commissioners who, in their dissent, outlined why it was illegal for Clean Line to be allowed the expedited permitting process available for public utilities. Their support will be invaluable in the appeal.”
 
Russ Piscotta, President of Block Grain Belt Missouri, stated, “We have beat them once and we will beat them again as many times as necessary. We have spent this time preparing our strategies and are ready to once again defend ourselves. Overall, as a grassroots group, we are doing excellent. We need to remember that Clean Line's goal is to dishearten us. Our goal is to prevent the precedent of a private company getting access to eminent domain. We are doing great so far and will continue to win. We simply cannot afford to lose. Many thanks to the thousands of devoted landowners who have sacrificed much. We are all in this together, and together we will succeed!”
Next up, the Illinois Third Appellate Court scheduled oral arguments on the Illinois Landowners' Alliance appeal of the ICC approval of the Rock Island Clean Line (RICL) project.  The press release also mentioned:
In Iowa, the fate of RICL is equally uncertain. RICL has directed the Iowa Utility Board to suspend all work on their application. In spite of 18 months of land agent activity, less that 15 percent of the easements have been acquired and opposition remains strong.   

Carolyn Sheridan, president of the grass roots organization Preservation of Rural Iowa (PRIA) commented,  “We have a strong legal team and support continues to grow as they and we monitor all aspects of this proposed project. There is no indication that landowners will change their opposition to the misuse of eminent domain." 
This came back to bite Clean Line on Thursday, when the press somehow got the idea that they'd previously been lied to.  Never lie to reporters!  They eventually find stuff out.  Such as the fact that Clean Line quietly asked the Iowa Utilities Board to stop reviewing its application for RICL back in the spring.
Those closely monitoring the project say they were told months ago it had been put on hold. Land agents haven't been in the state for months.

Iowa Republican Gov. Terry Branstad, a supporter of the line, said at a wind energy conference in September that the plan had "kind of been placed on hold right now." Clean Line Energy Partners spokeswoman Sarah Bray said the next day that the project was "certainly still moving forward," with biological studies, wind resource assessment and commercial discussions.

Bray struck a different tone in response to an inquiry on Thursday.

"Given the unique regulatory structure in Iowa, we are currently assessing ways to move the project forward and continue easement negotiations without incurring significant financial and regulatory risk," she wrote in an email.
This caused a whole bunch of weasel words and backpedaling by Clean Line... and more inaccurate and whiny claims by the company spokeswoman.  Bray also whined that the IUB regulatory process would cause the company to spend "tens of millions" of dollars to acquire land with no guarantee that their project would be approved.  Not true!  The IUB requires that a company seeking a transmission line permit submit certain information for each property it may take by eminent domain.  Because Clean Line's land acquisition in Iowa has been such a failure (only 17% of needed easements have been acquired to date) Clean Line doesn't want to do all the work required to take the remaining 83% of the needed easements.  The law doesn't require Clean Line to own all easements up front, it could just as easily acquire signed option agreements to purchase easements if the project is approved by the IUB.  But, the fly in that ointment is that the landowners are having none of it.  So, when Bray says that the company's negotiations with landowners "have been very positive," she's spinning like crazy.

Meanwhile, down in Arkansas, Clean Line's release of an "economic study" of the benefits of its Plains & Eastern project for Arkansas was a major flop.  First of all, most people realize the study is nothing but cooked numbers created from Clean Line's data plugged into a generic spreadsheet that calculates numbers that don't jive with the economic data included in the Environmental Impact Statement released by the DOE.
A controversial electric transmission line project pushed by Houston-based Plains & Eastern Clean Line with the regulatory process challenged by members of Arkansas’ Congressional delegation would create a $660 million impact to Arkansas’ economy, according to a University of Arkansas report.

When asked about the UA economic impact report, Sen. Boozman said the issue is not the impact, but with the process and the potential cost to Arkansas ratepayers.

“Arkansans are not opposed to building needed infrastructure projects, but questions remain about whether this particular project is needed. No Arkansas utilities have signed up to purchase power from the line,” Boozman noted in a statement sent to Talk Business & Politics. “There are questions about the long-term benefits and costs to the state of Arkansas. Not only should a transmission project be necessary, but the state must be given an opportunity to review and approve it – just as it has always has in the past. When DC bureaucrats force a project on the state, as they have in this instance, the harm and costs may not be properly addressed.”

A statement from Rep. Womack’s office to Talk Business & Politics raised a question about who funded the UA study.

“Our concerns about the project are not based on whether Clean Line can commission a favorable study, but rather if the federal government should be able to supersede a state’s right to decide to license a utility and allow the use of eminent domain on behalf of a private company,” Womack said in the statement.

When asked about the perceived credibility of a study commissioned by Clean Line, Deck provided the following statement: “One of the things that our Center does for a wide variety of organizations is estimate economic impacts. Clean Line came to us to understand how its expenditures in Arkansas will affect the state’s economy. We very carefully looked at how much direct expenditure would be made and how the supply chain and personal expenditures that will result from that direct investment would impact the state. For this kind of study, there is no way to estimate economic impact without considerable input from the companies that are involved.  And, of course, companies are the most interested in understanding their own particular economic impact. So, for economic impact studies, you will almost always find that the economic impact generator is the funder of the work.

“As always, economic impact should be considered a single piece of the puzzle as we live in a complex world. But, it is an important piece.”
Landowner opposition groups say the report doesn't address their concerns:
Jordan Wimpy, attorney for Arkansas Citizens Against Clean Line Energy, said Tuesday, “At this time, the primary concern of our clients is Department of Energy’s review of and potential participation in a project that meets no identified or documented transmission need. This is particularly concerning when the federal government’s involvement will circumvent normal state level review and may well include the use of federal eminent domain to condemn the property of private landowners in order to benefit a private, for-profit transmission company.”

Alison Millsaps, spokeswoman for Block Plains & Eastern Clean Line, said, “Again and again, Clean Line and their supporters attempt to focus solely on economic development in regard to Plains & Eastern. The people who make up the opposition to this line aren’t against economic development, they’re against the use of eminent domain to further what is essentially private economic development.

“Dangling big numbers doesn’t always make a proposal necessary or legal. We believe both of those issues will ultimately be determined in a court of law, not by a study on construction benefits,” she said.
Flop.  Flop.  Flop.

So, let's recap.  Clean Line's RICL project is dead in the water and there is no federal override over the IUB's permitting authority.  RICL's Illinois permit is being appealed.  Clean Line's Grain Belt Express project is blocked by counties in Missouri, and will most likely be successfully appealed in Illinois.  Clean Line's Plains & Eastern project just keeps gathering the ire of the State of Arkansas and nobody is buying the manufactured "benefits" of the project.

The only thing moving forward here is bad press.
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What You Need to Know About Utility Eminent Domain Takings

11/17/2015

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Well, it's finally happened.  An electric transmission owner sited its line in the backyard of the wrong person.  Those transmission siting etch-a-sketch toys can be so risky!

And now the way society thinks about the use of eminent domain for energy transmission easements is about to change.

Andrew P. Morriss, Dean & Anthony G. Buzbee Dean’s Endowed Chairholder, Texas A&M School of Law; Senior Fellow, Property & Environment Research Center; Senior Fellow, Reason Foundation; and Research Scholar, Regulatory Studies Center, George Washington University. A.B. Princeton University; J.D., M.Pub.Aff. The University of Texas at Austin; Ph.D. (Economics) M.I.T., lately found himself in the bullseye of an electric transmission project.  And he hired counsel.  And then Morris and his lawyers wrote a paper published in the LSU Journal of Energy Law and Resources.
In the interests of full disclosure, we should note that we are not neutral observers of
eminent domain abuse in this area. Morriss’s wife’s parents, wife, brother-inlaw, and sister-in-law are involved in proceedings contesting the valuation of a power transmission easement across property held by a family limited partnership in Kimble County, Texas, in which they are represented by Barron & Adler. As a result, none of us feels particularly charitable toward utilities that make use of eminent domain for acquisition of power line corridors.
Whoopsy!  But, finally, someone with a big enough megaphone to question the utility easement status quo has done the unspeakable -- suggested that the use of eminent domain for "large infrastructure easements" (or LIEs, proving that acronym creation is an art) should end.
We argue that eminent domain laws need to be reformed to address these problems. The simplest reform is to eliminate eminent domain from LIEs entirely, forcing utilities to negotiate easement terms in arm’s length transactions and leveling the playing field between the utilities and landowners. Because the burdened landowners are a dispersed and unorganized interest group, while utilities have considerable political clout, this may be
unobtainable through the political process in many states. Similarly, the even more potent “bootleggers and Baptists” coalition of utilities and environmental pressure groups, which
back expansion of transmission lines for renewable energy, if not natural gas or oil pipelines, mobilize powerful interests behind
maintaining the power.
In Involuntary Cotenants: Eminent Domain and Energy
and Communications Infrastructure Growth
, Morriss and his co-author attorneys point out the bald truth about utility LIEs:
  • Easement agreements are written by utilities in their own interests.
  • Easement agreements do not adequately compensate landowners.
  • Courts hearing the eminent domain case simply accept the easement agreement as written and concentrate solely on "fair market value" of the property taken.
Why do we allow ourselves to be treated this way?
Much of the growth is likely to involve the use of eminent domain because utilities and
governments often consider eminent domain to be a cheaper and easier alternative to negotiating with potentially resistant, unhappy landowners for the acquisition of property.
The paper points out that in lieu of doing away with utility eminent domain authority altogether, reform is needed.
 For example, providing courts (and other third parties with roles in eminent domain proceedings) with the opportunity to alter the easement terms proposed by utilities for LIEs would serve as an important step toward solving many of the problems we describe. In addition, states and the federal government can take further steps to improve the LIE acquisition process by gathering and disseminating market data to, and providing greater statutory guidance for, valuation
decisions.
The five reforms recommended in the paper include:
  1. Limiting eminent domain power of utilities.
  2. Empowering neutral decision makers to structure easements.
  3. Create exit rights.  (Utilities should not be able to take perpetual easements).
  4. Create better data on LIE costs and provisions.
  5. Establish standards to guide determination of value.  (Not all costs to landowners are immediate or quantifiable).
The paper is also a great guide to things you should consider adding to any proposed easement agreement presented to you by a utility during the "good faith" negotiation period required by law before the utility resorts to eminent domain.  Of course, the utility will most likely bat your efforts away, but in that case, how much "good faith" is the utility actually displaying?  It's all about the money to them, although money is usually at the bottom of the landowner's list of concerns about involuntarily hosting a utility LIE.

And this paper makes you think.  Ever since I saw my first purchase option agreement and easement agreement presented to landowners by the PATH transmission company more than five years ago, I've wondered how anyone thinks this playing field is fair.  The agreements contained many clauses that I would never agree to, however these agreements are often presented to landowners lacking legal knowledge of any kind, and without the benefit of counsel.  When real estate changes hands in a market-based arm's length transaction, both parties are represented by their own counsel.  It's the way we do things.  Have you ever sold your real property sitting alone at your kitchen table with a fast-talking stranger who's just come knocking on your door, checkbook in hand?  Of course not, unless you've been a victim of a utility LIE.  Why is it okay for utilities to prey on landowners this way?  This needs to stop!  The landowner should have the right to independent counsel, at the utility's expense, before signing any agreements.  In fact, it should be required.

Any why should eminent domain for utility LIES continue?  If you've never been affected by a LIE, you may think eminent domain is a necessary evil to providing a public necessity, like electricity, highways, and other public infrastructure.  Arrogant eminent domain proponents believe that because the power you use required an easement across someone else's land at some point, that you should be eager to provide that same easement for someone else's electric need.  It's been many, many years since America was electrified.  During electrification, eminent domain was accepted because everyone was getting the benefit of the infrastructure.  Today, some greedy transmission companies are proposing eminent domain be used for LIES that aren't needed to provide anyone with basic service.  Transmission lines have been proposed that are intended to make the electricity cities waste keeping their skylines lit up all night "greener."  This isn't public necessity.  It's keeping you stupid believing that utilities shall have the right of eminent domain for whatever they propose.  It's time to rethink this because America is rebelling against this kind of thinking in a big, big way.

Start your thought journey by reading the Morriss paper.  And think, really think, what if this happened to me?  Because if we let this continue unabated, it will.

This post wouldn't be complete without thanks to Janna Swanson in Iowa for digging up this thought-provoking paper.  Janna
moonlights as an energy activist and researcher, when not producing food to feed ungrateful utility executive pieholes.
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Tick, Tock -- ICC Issues Grain Belt Express a Conditional Permit

11/15/2015

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Clean Line's Grain Belt Express received a conditional CPCN (permit) from the Illinois Commerce Commission last week.  Another random number covered on Clean Line's Bingo Board.

Clean Line's Skelly acted like it actually did something to speed up the project.
“The ICC approval brings the Grain Belt Express Clean Line one step closer to dramatically increasing the low-cost wind energy available to customers in Missouri and Illinois.”
I disagree.  The ICC's CPCN expires two years from date of issue.  Although GBE requested its permit be issued with a two and one-half year expiration date, the Order did not do so.  So, it's two years.  Tick Tock, Clean Line!

Clean Line's patchwork quilt of permits is an exercise in harvesting low-hanging fruit, with the most desired pieces still way out of reach.  Despite its six years of effort to get any of its four (or it is five?) transmission projects totaling thousands of miles permitted, Clean Line still doesn't have all the permits it needs for even one of them.  They've built a crazy quilt of random permits and their timing is way off.  Permits are going to start expiring before new ones are issued, creating a game of permitting whack-a-mole.

Its Rock Island project has a two-year Illinois permit on which it only has one year left to begin construction.  Meanwhile, Rock Island is completely stalled in Iowa.  No way will it complete its Iowa permitting before the Illinois permit expires.

Its Plains and Eastern project lacks a permit in Arkansas and eminent domain authority in Oklahoma.

And its Grain Belt Express project has been flat out rejected by Missouri.  Clean Line made some noises about figuring out its options in Missouri -- either reapplying with the state or attempting a federal override.  Either way, Clean Line has no chance of clearing up its issue in Missouri within two years.

I think this is just poor strategy and management of Clean Line's permitting process.  Clean Line seems more concerned about having a piece of paper to show its investors, rather than making logical progress toward building a single project.  Maybe this handful of speculators have bitten off more than they can chew?

Anyhow... about Grain Belt's CPCN from the ICC...  Its a conditional permit, again (the Rock Island permit also came with conditions and no eminent domain authority). 

The first condition imposed by the ICC is that GBE have all its financing in place before beginning construction.  The ICC figures this will stop GBE from building the transmission line to nowhere before running out of money and expecting the government or electric ratepayers to bail it out to finish the project.  Does the ICC think this is a possibility without the condition?  That's quite telling in itself, isn't it?  A real public utility usually has more than an idea and a fantastical plan to get rich quick.  At least the ICC seems to realize Grain Belt Express has nothing behind it.

The second condition imposed by the ICC is a whole bunch of make-believe.  The ICC requires Clean Line to come back before it to receive "permission" to charge Illinois ratepayers for the project through FERC-jurisdictional regional cost allocation.  Ha ha ha ha ha ha ha.  Why am I laughing?  Because the ICC has no authority to accept or reject cost allocation to Illinois ratepayers.  It is a regional process under the jurisdiction of the Federal Energy Regulatory Commission.  The most the ICC can do is file a complaint that goes like this, "But, FERC, GBE promised us that we would have jurisdiction over a cost allocation decision!"  And who is GBE to change FERC's jurisdiction?  Can't happen.  So, the ICC's logic goes like this:  If GBE tries to get cost allocation to Illinois ratepayers, then we can suspend its permit and then they can't build the project!  But... what if... GBE constructs its project and THEN receives approval for regional cost allocation?  What you gonna do then, ICC?  Cry?  Waste time and money fighting this at FERC like you did the PJM cost allocation for the Project Mountaineer projects?  That took, what... 10 years?  And cost how much?  The really frustrating part about this is that ICC has had it explained to them six ways to Sunday that they have no jurisdiction to impose this "condition."

But here's the big oops... the vote to issue the CPCN in the first place was 3-2 in favor.  Two Commissioners issued a dissent that I'm going to call "blistering" (because Clean Line likes to say that about the Missouri dissent).  The issue here is particular to Illinois law.   Section 8-406 allows for the application for and issuance of a CPCN.  Section 8-503 allows the ICC to order or authorize a company to build a certain project.  Section 8-503 is a prerequisite to eminent domain authority under Section 8-509.  The ICC may issue a CPCN under 8-406 without Section 8-503's authority that is the basis for an eminent domain grant under 8-509.  That's exactly what happened with the Rock Island project.  The project was issued an 8-406 CPCN but the Commission did not order or authorize the project to be be built under 8-503.  This gives Rock Island the ability to build its project if it can get 100% voluntary land acquisition, otherwise Rock Island has to go back before the Commission to request a determination under 8-503 before it can proceed to 8-509's eminent domain authority.  However, in 2010 the Illinois legislature added Section 8-406.1 to create an expedited process for public utilities to apply for a CPCN.  This speedy process automatically includes the 8-503 grant.  Because Clean Line didn't want to end up with another useless CPCN without 8-503 authority, it decided to use the expedited 8-406.1 process.  The fly in the ointment, however, is that only a public utility may apply under 8-406.1.  Clean Line is not a public utility in Illinois.  This issue was the subject of several motions to dismiss and an interlocutory appeal to the Illinois Supreme Court during the proceedings.  I've heard that the ICC acted quite suspiciously in denying the motions, without public discussion of any kind at the meeting where they denied the motions to dismiss.  And here it comes again, in the form of a dissent from two Commissioners.  I'd say chances of GBE's permit being overturned on appeal are pretty good. 

And what then, Clean Line, what then?  Why were you in such a hurry to get your Illinois permit for GBE when it was obvious Missouri was going to deny your application?  What strategy was that?  Just covering another square on your transmission permitting bingo board?  Yay, you!

So, the Clean Line saga grinds on.  No generators, no customers, not enough permits.  When are Clean Line's investors going to quit tossing money down this rat hole?  One of the more interesting things to come out of Illinois recently was Clean Line's filing regarding its Rock Island project regarding a change of investors.  Although Clean Line made much earlier this year of a "$50M investment" in its company by Bluescape Resources, it turns out that investment was tied up in a ball of string.  Clean Line got $12M.  Bluescape got two seats on Clean Line's Board of Directors.  The Board of Directors can order Bluescape to kick in another $5M at any time, once Oklahoma approves Bluescape's investment.  The other $33M is completely at Bluescape's option.  Bluescape wasn't foolish enough to give these wind cowboys all $50M up front.  Clean Line keeps adding investors to its stable as the ones already there don't seem to be interested in upping their investment.  Remember, if Clean Line can't get their projects built, their investors lose everything.  Every last dime.

And there Clean Line's management sits, with their permit bingo board missing crucial links and no idea whether the balls they need are even in the hopper.
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Environmental Hypocrisy and Fantasy

11/12/2015

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Remember when the environmental community was a kind and gentle, financially struggling, underdog that Americans could look to for help against corporate energy schemes?  That wasn't so long ago, but the environmental community has done a complete 180 in the past seven years to morph into an arrogant, mean-spirited, well-funded, corporate bully.  And their halo (and popularity with the American people) has tarnished.  Along with their increased funding has come corporate and political agendas that the environmentalists must pursue in order to keep receiving their fat, donated paychecks.  No longer does their funding come from the American people through memberships and donations.  Now they're big business, living high on the hog while feeding on corporate largesse and political contributions.  Big Green has become the enemy of the American people.  Just another corporate lackey.

Some of them may be quite unaware of how they're perceived by the rest of us, but the majority must be quietly whispering in shocked tones about the way the public now perceives them as the enemy.  In its defense, the environmental community continues to deny there's an issue, and make excuses for its hypocritical choice of which energy projects to support or oppose.

For example, a recent piece in political rag Triple Pundit attempts to compare and contrast the Keystone XL pipeline with the Plains & Eastern Clean Line.  This piece fails at the starting gate:
After all, both involve transporting energy from one place to another; both require the taking of right-of-way from property owners; and both will create relatively few direct and permanent jobs once completed.
Those are the important points that Americans care about.  The rationalization that follows to explain why those detriments are okay as long as the project has the name "Clean" in its name is nothing but fantasy.

The author is a public relations wonk and "author of books and articles on recycling and other conservation themes."  Well, recycling... that certainly qualifies her to expound on the need for electric transmission and the condemnation of private property for energy projects.  Not.

The author claims that Clean Line will provide more jobs than Keystone, and she bases that on information from... Clean Line.  Just because Clean Line says it will "source" its components from US companies doesn't mean they will be produced in the US.  The author points out that Keystone components will be produced in foreign countries and simply "sourced" in the US.  In fact, Clean Line would be fiscally imprudent to sign contracts for components with US companies now, long before any shovel hits the ground.  It's common practice to issue an RFP for project components and then evaluate the bids for price, quality and deliverability.  If she'd looked underneath the "clean" veneer, she'd realize that Clean Line's promises of US manufacturing jobs are just that... promises.  There are no signed procurement contracts for certain components at fixed prices.  And there are no guarantees of new jobs.

There's no logic in pretending a transmission project provides more "operations" jobs than Keystone.  Maybe if the author knew anything about how transmission lines are operated she'd realize that the "operators" are already employed at regional transmission authorities.  One more line in the stable isn't going to create any new jobs.  Jobs at wind farms?  Sure, the same as jobs that would fill the Keystone pipeline with its liquid gold.  No difference.

The Energy Department has not given Clean Line its "Seal of Approval," no matter what Clean Line wants to spout in the media.  A decision still has not been made.

Mention of TVA?  Why?  The TVA has not included Clean Line in its Integrated Resource Plan and has remarked that any possible use of the project is at least a decade away.  It isn't about where Clean Line connects, it's about finding buyers for the energy Clean Line transports at the connection points.  There are none.  Moreover, there are no generators to sign contracts with end users.  Who builds a road without any cars to drive on it?  We don't build public infrastructure unless there's a need for it, and only public utilities with a need to transmit power have a right to eminent domain authority.  Sure, any investor can build a shopping mall and hope shoppers show up, but we don't use eminent domain for that kind of speculative, for-profit enterprise.  And that's exactly what Clean Line is -- a "build it and they will come" idea.  Block GBE-MO said it best, "No need, no gain, no eminent domain!"

And let's talk about those mid-point converter stations.  Without buyers, they're just useless monstrosities.  And there are no buyers.  Just because Clean Line builds a converter station does not mean power flows to that location.  The converter station is a tollbooth -- if there are no buyers to pay for the juice, it doesn't pass the tollgate.  Arkansas doesn't magically "get" 500 MW of electricity unless someone pays for it.  And if there are no buyers, why invest $100M in a converter station that sits idle?  There's no guarantee that a converter station will be built in Arkansas if it's not profitable.

Perhaps the Tennessee Chamber of Commerce (a traditional utility ally that the environmental groups have disregarded as biased in the past) is looking forward to "new supplies of clean energy," but again, without buyers, they get nothing.

And then the author trots out a 5-year old "report" Clean Line presented to the TVA (who elected NOT to purchase any of its electricity).  This has about as much validity as any other lobbyist promise, I suppose, and is not worth reading.  But, this point is so off the mark it deserves mention:
Greater transmission reliability: The project increases transmission capacity and grid reliability. This is especially important in light of potential for coal power plant retirements and the lack of inter-regional transmission projects.
Reliability is not a measure of the amount of available transmission.  Reliability is the ability to deliver power at all times.  Our current grid is managed by regional planners/operators who order new projects needed for reliability.  No regional grid planner has ordered Clean Line.  It's completely outside any regional grid planning.  It's completely unneeded for reliability purposes.  Furthermore, the most reliable electric delivery system is located as close as possible to the point of use.  Transmission lines are a link in the power supply chain that can be broken at a moment's notice.  The more power you depend on from far away, the more unreliable your system (more moving parts, more chance for problems).  As well, Clean Line is proposing an electric supply provided by intermittent renewables.  There is no reliability to a generator that cannot be counted on to run when called.  That's unreliability.

The article then goes down a political rathole to make partisan attacks on elected officials.  Nobody in the real world cares!

And finally, the author gets on her soapbox to tell the world why and how Keystone will affect the landowners and what makes it "bad."
...property owners and communities throughout the length of the pipeline would be saddled with the risk of a pipeline leak, break or other mishap.
And what makes this different than the burdens saddled on Clean Line-affected landowners?  There is no contrast here, just some blather she probably pulled out of newspaper articles about the opposition.  I wonder how many Keystone-affected landowners this recycling queen has actually spoken to?  I'm guessing none.

I've spoken to plenty of landowners affected by Clean Line's proposal, as well as regular folks concerned about energy issues.  Here's the common thread:  They're not going to put up with eminent domain for energy projects any more.  Whether its Keystone or Clean Line, the project must be built without the heavy hand of government land theft.  While use of eminent domain for energy projects was used repeatedly to build the infrastructure we have today, it's no longer acceptable.  It's a new generation, with a new way to organize and fight.  Nobody's lights are going to go off if we don't build new energy projects.  Instead, what these environmentalists propose is to build an entirely new infrastructure to replace our current system, but basing it on yesterday's unpopular ideas.  The American people don't want "clean" energy that costs them more or that usurps their right to own and enjoy property.

We're at an energy crossroads.  We can embrace new ideas and create a new, democratic and reliable energy future -- or we can simply replace our corporate masters with new "clean" corporations and continue with the status quo.  The people are rising up -- no more corporate energy control!

Only when the environmental groups come to terms with their new unpopularity will they become an impetus toward a new energy future and stop dragging the future down into the corporate past.
3 Comments

Speedy Transmission Siting and Permitting - NECPL's "Secret"

11/2/2015

2 Comments

 
It's really no secret at all how TDI New England is speeding through approvals for its New England Clean Power Link project.
The Clean Power Link is entirely underwater or underground.

The line will originate at the U.S.-Canadian border and travel approximately 97 miles underwater down Lake Champlain to Benson, Vt., and then be buried along town and state roads and railroad rights-of-way or on land owned by TDI New England for approximately 57 miles to a new converter station to be built in Ludlow, Vt.

The Clean Power Link encountered minimal public resistance in Vermont because of the burial of the line.

“It is well recognized in the industry that siting is one of the most difficult facets of building new energy infrastructure,” said Susan Schibanoff with Responsible Energy Action. “NECPL dealt with that issue first by creating solid community and political support with a fully buried line. It has clearly paid off in terms of the record speed with which they have moved ahead.”

This amazing project completed its Environmental Impact Statement in just two years!  The Union Leader compares it to the stalled, overhead Northern Pass project, which has been trying to get its EIS completed since 2010.  That's 5 years, and no end in sight.

When transmission developers design projects to be as unobtrusive and acceptable to landowners as possible, the developer can save millions in expensive advocacy-building and opposition battling tactics, as well as years in its project timeline.

This means burial, especially on public land/water, and along existing roadways or other rights-of-way.  No eminent domain is required. 

But, but, but... a buried project is so much more expensive than an overhead project, whine the transmission developers.

And they fear adding "unnecessary" cost of burial to an O1000 competitively bid project for fear of not being awarded the project.  Let's see these guys start making logical arguments to the RTO about the amount of time and money saved by not having any opposition, not having huge land/eminent domain costs to acquire rights-of-way from private landowners, and general constructability of a buried project vs. any additional cost of burial along public rights-of-way
.  I think they will pretty much balance themselves out.  The more buried projects that get built, the cheaper it will become.

Because NECPL proves that is IS possible get 'er done in a timely fashion while keeping your integrity intact.  Even for a merchant project (NECPL is a merchant project).

There's a lesson here for the transmission industry, if you can actually teach some very old dogs a new trick.  Can transmission developers shrug off their old dirty tricks that lie to communities?  Can they ever be honest with affected communities?  Can they develop some integrity?  Better ideas are right there for the taking. 
This is the modern way to get needed transmission built.  Anybody who tries to tell you different is a dinosaur who needs to retire.

2 Comments

Arkansas Forms Landowner Group to Oppose Clean Line

10/25/2015

2 Comments

 
We have some big news from Dave and Alison in Arkansas!

First, we've heard a rumor that the final EIS may be coming out next week, so keep your eyes open.
Second, working with some friends at Arkansas Citizens Against Plains and Eastern Clean Line over the last month, we've quietly established a landowners' LLC. We kept it quiet because we didn't want Clean Line to know what we were up to until we were ready. As you probably know, landowners' LLCs have had some important victories against Clean Line in Missouri and Oklahoma, and they're working hard in Illinois and Iowa. We feel that, no matter what the DOE decides, we'll be better able to respond if we do it together. Strength in numbers!

The only way this works is if we can get enough affected and adjacent landowners to participate. That's where you come in. We'll be holding meetings across the state in November and early December with our legal representation there to answer questions. We're sending out postcards, but doing so is incredibly expensive. There's no way we can get to everyone we need to without your help. If you would like to donate to help with our mailing, please go here:

GoldenBridgeAR

We're asking you to spread the word and help us pave the way. You know us. Not everyone else does. We can't do this without you. This is the link to the website:

GoldenBridgeAR


The website details membership options (we've kept the buy-in cost very low) and includes a "pre-membership survey". The LLC is structured to keep voting memberships exclusively for affected landowners (preferred and alternates) and adjacent landowners. If you have any questions, please don't hesitate to ask.

It is EXTREMELY IMPORTANT for all affected and interested parties to attend the upcoming meetings. Please do everything you can to help us maximize attendance. This is our chance to give people the opportunity to talk to an attorney for FREE. Together, we have the collective influence and power to fight this thing!
2 Comments

U.S. DOE's Congestion Study Fails to Designate Congestion "Corridors"

10/6/2015

2 Comments

 
Remember when the U.S. DOE's triennial "congestion studies" under Sec. 1221 of the Energy Policy Act were a big deal?  That was before the 4th Circuit told them that a state's denial of a project was not a "failure to act" that triggered federal intervention to usurp state authority to permit a transmission project.  And that was before the 9th Circuit vacated the "corridors" the DOE designated in 2009 because of DOE's failure to consult with affected states.  What's left behind is a useless section of statute that doesn't actually DO anything except waste taxpayer money on ridiculous "congestion studies" that do nothing but compile unverified data and opinion from the internet and the industry to inform the DOE's designation of future "congestion" corridors.  Now when DOE issues one of its "reports" (three years past the deadline, or maybe it's on time and DOE just skipped the 2012 report) it's so anticlimactic that nobody knows about it.

And that's what happened with DOE's 2015 Report Concerning Designation of National Interest Electric Transmission Corridors.  Big nothing.  In fact, it was so uninteresting that DOE didn't even bother to send notice to all the folks who commented on its draft that it had completed its study.  An astute commenter just happened across it.

Despite the industry's urging to continue attempting to use this tool to usurp state authority to site and permit transmission, or to simply delegate its authority to create corridors to transmission builders, the DOE decided not to designate any new corridors.  Seems they have lost their taste for it after the beat down they suffered in federal court.

So, isn't it time to do away with this waste of taxpayer money?  How much did this limp "report" cost to create?  Congress needs to reconsider this mandate in any new energy legislation.  It's a waste of time and money.

DOE's got issues.   I note that this "report" appears to be the agency's recommendation to the Secretary on the designation of new corridors.  I guess that would make it an "internal deliberation" that should be swept under the rug and hidden from the public?  Maybe that's what the lack of notice was about?  How come DOE is making this "internal deliberation" available to the public, but hiding its "internal deliberations" regarding Clean Line's application under Sec. 1222 of the Energy Policy Act?  Something really stinks at DOE.  They're operating like they are somehow above the public scrutiny and transparency that our federal agencies are bound to operate under.  It's just one big taxpayer funded, opague industry party.  And that spells trouble down the road the next time DOE finds itself in federal court over its industry-sympathisizing machinations of the Energy Policy Act.

Ut-oh, DOE!

So, let's toss Sec. 1221 on the failed legislation heap, but save room on the pile for Sec. 1222.  It's coming.
2 Comments

Key Transmission Challenges in the Midwest

9/12/2015

0 Comments

 
Who's a key transmission challenge in the Midwest?

You're a key transmission challenge in the Midwest!  The biggest "challenge" to building transmission in the Midwest is the people who are expected to sacrifice their businesses, their homes, their retirement, for benefit of the illusive "communities that have a strong demand for renewable power."

Electric Utility Consultants, Inc. (EUCI) is having another "educational" shindig to discuss you "challenges," and once again, you're not invited.

On November 9 and 10, EUCI will be gathering its fattened cows to the trough in Indianapolis to be "educated" about the following:
Transmission as a Market Enabler:  Today's "conservative" approach to transmission planning exposes customers and other market participants to greater risks and costs because by understating the benefits of and risks addressed by transmission, valuable investments in transmission facilities are either not made or delayed.
This session will address a study paid for by WIRES, "The Voice of The Electric Transmission Industry."  WIRES is made up of corporations who stand to profit from building new transmission.  Apparently we're not planning enough transmission for their balance sheets.  Awwww.....

But then there's this:
State Regulatory Viewpoint on Transmission Developments in the Region

State Regulators will share their perspectives on:
Balancing priorities
The role of stakeholder involvement
How different states are looking at the challenges involved to collaborate with other states
The benefits and challenges that competition for regionally cost-shared transmission projects creates for the PUCs and the ratepayer.

Adam McKinnie, Chief Utility Economist, Missouri Public Service Commission
Did anyone tell EUCI that the Missouri Public Service Commission recently denied Clean Line's Grain Belt Express application for a 700-mile transmission line through the state?  Fun times!  I hope they're planning to create some space between that guy and...

KURT ALERT!  Amy Kurt, Clean Line Energy Manager for the development of the Grain Belt Express Clean Line, will be "educating" participants about "The Challenges of Renewable Energy Integration," including the sub-topic "Maintaining grid security and reliability while integrating increased penetrations of renewable energy."  I wonder when Amy got her engineering degree that qualifies her to expound on grid security?  Maybe she's been doing it online, in secret?  Or maybe Hans Detweiler taught her how to be an "engineer?"  At any rate don't let Amy sit with Adam at lunch!  "A" is for awkward!

Participants will learn about "Embracing New Communication Technologies."  Good to see that Amy isn't teaching this one, because her communication skills haven't been working too well on the people of Missouri.  Did I mention that the MO PSC denied the Grain Belt Express application Amy "managed" because its benefits didn't outweigh the harm to Missouri citizens? 

So, what "new technologies" will be embraced?
Communicating with the public is a critical element to successfully building new transmission line projects. Strategic communication requires teams to go beyond traditional outreach tools by embracing new techniques including zip-code targeted social media ads (Facebook and Twitter), electronic communication, videos, online comment collection, and Story Maps. For the busy public, an online open house provides access to open house materials, information videos, interactive maps, and input opportunities. With tight project budgets, it's time to embrace new tactics to communicate and stretch dollars and gain the input necessary to identify smart routes and communicate with all stakeholders throughout the project construction process.
What?  No unit on using change.org to send supportive (but off-topic) comments from your Mommy and Little Sis into a regulatory process?  Well, maybe there's a role for Amy after all!

Unfortunately, the "busy public" interested in transmission isn't interested in a corporate-slanted version of web "facts."  The "busy public" gets its facts from equally busy "public" opposition groups... live and in person, via email, via social media, etc.  Hot time in the ol' tool shed tonight!  Nobody trusts the corporation to be honest, with good reason.
Don't miss Amy discussing:
Illinois is home to two of Clean Line's projects, the Rock Island Clean Line and the Grain Belt Express Clean Line. The Rock Island Clean Line received its regulatory approval from the Illinois Commerce Commission (ICC) in November of 2014. The Grain Belt Express Clean Line filed its application with the ICC this April. This presentation will provide an overview of Clean Line's approach to developing multi-state, direct current, transmission lines to deliver renewable energy to market.
Be sure to bring your own copy of the "Motion for Leave to File Complaint for Order of Prohibition" pending before the Illinois Supreme Court so you can follow along.
Sounds like a real party, doesn't it?  Unfortunately, it's going to cost you $1195, plus travel and expenses, to get inside.  But who needs to get inside to be a "challenge?"
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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