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The Forked Tongue of FirstEnergy

1/2/2015

2 Comments

 
I noticed something funny the other day.  It seems that FirstEnergy is having trouble telling the same story about its transmission building endeavors to different audiences.

Just like new transmission lines proposed to criss-cross the midwest to allow "wind" to interconnect with the existing transmission system are nothing more than gigantic generator lead lines, FirstEnergy's "Energizing the Future" campaign to build new substations and transmission in West Virginia are nothing more than gigantic service lines to new Marcellus shale processing plants.

Generator lead lines (the transmission necessary to connect a generator to the existing transmission system) are paid for by the generator.  It's part of their cost of selling power, just like the rest of their plant.

So, why are service lines for new customers the responsibility of all customers?  If I wanted to open a plastics factory in my backyard and asked Potomac Edison for service, I bet they'd charge me plenty...  like the entire cost of the service line connected to whatever voltage I required for my plant, or the cost to upgrade existing lines to serve my plant.

The State Journal reports that FirstEnergy is building new transmission and substations in West Virginia to support the Marcellus shale industry.
Projects include the new Waldo Run transmission substation and a short 138-kilovolt transmission line in Doddridge County near Sherwood. The $52 million project is expected to support industrial users and enhance electric service to more than 6,000 customers in Doddridge, Harrison and Ritchie counties. The substation will accommodate additional load growth at a new natural gas processing facility, which consumes large amounts of electricity separating natural gas into dry and liquid components.

FirstEnergy is also working on a 138-kilovolt transmission line that will support the natural gas industry, as well as enhance service reliability for nearly 13,000 customers in the Clarksburg and Salem areas. The 18-mile, $55 million Oak Mound-Waldo Run transmission project is expected to be placed into service by December 2015.

The company is also evaluating additional transmission upgrades as new service requests from shale gas developers continue throughout the Mon Power territory. FirstEnergy is currently evaluating new transmission facilities in Wetzel County to support a midstream gas processing plant that continues to expand.
Would the existing 19,000 customers need their electric service "enhanced" if not for the addition of the Marcellus facilities?  Probably not.

So, what is FirstEnergy telling the landowners affected by their new, Marcellus-supporting projects?
Project Need
FirstEnergy has identified the reliability risk of low voltage conditions on the transmission system under certain conditions. The proposed project addresses the reliability issues. Its assessment is based on existing conditions and the need for system reliability to safely meet the electrical needs of the region now and into the future.
Nothing about shale gas development or new Marcellus facilities there.  Just mysterious "low voltage conditions on the transmission system under certain conditions."  Wanna bet those "certain conditions" are the construction of Marcellus facilities?

It seems that FirstEnergy has two stories here.  The one for its investors is all about building things to support Marcellus.  The one for ratepayers is about building things to support existing customers.  Obviously, one of these stories isn't exactly honest.

Why isn't the Marcellus industry paying the cost of new electric facilities to support its business? 

Why are West Virginia electric consumers, who have been subject to more and more rate increases recently, being asked to pay the cost of harvesting Marcellus gas?  Isn't the gas industry in West Virginia profitable enough without subsidies provided by ratepayers?

And if that isn't bad enough, FirstEnergy's transmission scheme is all about pumping more and more "transmission spend" into its transmission subsidiaries, like TrAILCO, that earn a sweet 12.7% return on equity courtesy of federal transmission rates.  In addition, these lower voltage transmission lines are beyond the jurisdiction of state regulators.  As noted on FirstEnergy's "fact sheet:"
Regulatory Approval
TrAILCo will submit a letter to the staff of the Public Service Commission of West Virginia advising them of the project.
Just a letter.  No debate.  FirstEnergy is a utility with eminent domain authority in West Virginia so they're just going to write a letter to the PSC, and come take your property.  They don't even need to notify you until they show up with the bulldozer.  Who needs due process?
Easements
In most locations, a new 150-foot wide right-of-way will be needed for the proposed transmission line. In a few locations, the new right-of-way will be 200 feet wide.
Who wins here?  The Marcellus industry.  FirstEnergy. And your elected officials owned by both industries.

Who loses?  Ratepayers.  Again.
2 Comments

"A Significant and Unwarranted Intrusion"

12/31/2014

1 Comment

 
Just one more post about Requests for Rehearing of the Illinois Commission's issuance of a conditional permit for the Rock Island Clean Line.

The Illinois Landowners Alliance not only reiterates the arguments put forth by ComEd and the Illinois Farm Bureau, but adds a stylish lambasting of the Commission for permitting "a significant and unwarranted intrusion upon landowners."
ILA’s witnesses and its many other members have expressed repeatedly their uniform opposition to the Project, routing and treatment of landowners and their concerns. The Order’s granting of a CPCN to Rock Island will permit Rock Island to force its way onto landowner property to “make land surveys and land use studies” (220 ILCS 5/8-510), a significant and unwarranted intrusion upon affected landowners for a project that is so speculative and tenuous.
Although the ICC significantly conditioned RICL's permit before any actual construction begins, and denied them eminent domain authority at this time, the ICC also allowed RICL immediate access to private property to conduct its "surveys."

It's a powder keg.  Let's hope it doesn't explode before the ICC reconsiders its misguided decision to order the trespassing and destruction of private property by a company with no financial assets.  The landowners don't seem to have changed their opinion about RICL and probably aren't going to welcome them to their properties with open arms and a forgiving attitude.  I hope the ICC thinks this though...
1 Comment

How Deep is the Clean Line Corruption at the U.S. Department of Energy?

12/15/2014

5 Comments

 
Get out your hip-waders, folks, it's going to get pretty deep!

According to this article, in 2011 former Secretary of Energy Steven Chu appointed Lauren Azar to a position at the DOE in order to carry out the administration's political agenda. 
Chu's selection of Azar was largely seen as a sign of the Obama administration's intense interest in expanding the grid to support renewables and tackle climate change, sources said.
Azar got the finger pointed at her as the impetus for a controversial memo that urged federal power marketing agencies (PMAs) to use their authority to help get privately funded transmission projects built.
As laid out in the memo, she also championed Texas-based Clean Line Energy's application to partner with DOE through its never-before-used authority under Section 1222 of the Energy Policy Act, which would allow a PMA with federal authority to site the line and overcome state opposition.
It's not about reliability or economics of the grid, it's about federal support for certain companies with personal ties to the DOE:
Jimmy Glotfelty, founder of Clean Line Energy Partners and a former senior electricity adviser for President George W. Bush, said Azar should be remembered for trying to build infrastructure and integrate renewables in a thoughtful and cooperative manner.

"The customers of PMAs are pretty protective, and if you ask a lot of people who have been in her shoes -- including myself -- it's not uncommon to get into debates with customers of PMAs," he said. "They're tough negotiators."
Clean Line, with its DOE-connected "vice president," became the only transmission company to take advantage of Sec. 1222 of the Energy Policy Act of 2005 during a very convenient RFP process run by the DOE in 2010.  But the pre-Azar DOE just wasn't aggressive enough:
Azar brought that same spirit to DOE. She helped bring together the "federal family" in 2011 -- nine agencies key to streamlining federal permitting of major new power lines that could have taken up to 15 years to garner approval (Greenwire, Oct. 5, 2011). DOE already had existing authority to do so under 216(h) of the Energy Policy Act of 2005, language that allows the agency to coordinate federal and environmental reviews.

"DOE, until I got there, implemented [the rule] in somewhat of a tepid manner," she said. "I came in like gangbusters as I always do and not only helped to lead the rapid respond team for transmission but helped DOE draft some rules for 216(h), negotiate with the nine agencies."
Shortly after Azar was appointed, Clean Line submitted an "updated" application under Sec. 1222 in order to use the federal power marketing agencies to take land for its private gain and override state denials.
The Honorable Lauren Azar
Senior Advisor to the Secretary
U.S. Department of Energy
1000 Independence Avenue SW
Washington, D.C. 20585

August 17, 2011

Dear Lauren,

With development efforts well under way, the Plains & Eastern Clean Line is positioned to
help meet President Obama's call for 80% clean energy by 2035. The Plains & Eastern Clean Line will provide affordable, renewable power to millions of customers in the  southeastern United States. Regulatory and permitting approvals at the state and federal levels are the critical path items. Since submitting a proposal in July 2010, the Plains & Eastern Clean Line has made substantial development progress, strengthening the case for a partnership with the Department of Energy (DOE) and Southwestern under  Section 1222 of the Energy Policy Act of 2005.

The attached document provides an update on our efforts, including the widespread support the project has received from a diverse group of stakeholders. It also supplements the original application with respect to how the project is necessary to accommodate the increase in demand for transmission capacity and how the project is consistent with needs identified in transmission plans or otherwise by the appropriate transmission organization.
Projects like the Plains & Eastern Clean Line have the potential to return the United States to a global leadership position in clean energy. The private sector has the resources and the desire to invest in our aging infrastructure and we respectfully ask that the DOE exercise its authority to make it possible. We  appreciate the attention you are giving the Plains & Eastern Clean Line. We will be in Washington, DC regularly in the coming months and would like the opportunity to sit down with you and your team to review the project materials and respond to any  questions.
Magically, the DOE entered into an Advance Funding and Development Agreement with Clean Line in early 2012, despite the fact that Clean Line did NOT meet all the statutory criteria in Sec. 1222.  Sec. 1222 requires that a project:
2) is consistent with--
(A) transmission needs identified, in a transmission expansion plan or otherwise, by the appropriate Transmission Organization (as defined in the Federal Power Act [16 U.S.C. 791a et seq.]) if any, or approved regional reliability organization
Clean Line's projects are not a part of any transmission expansion plan, therefore they cannot be "consistent with" a plan that does not include them. 

Instead, the DOE relied on:
DOE has emphasized the need for additional high voltage transmission capacity to deliver renewable resources from transmission-constrained areas, stating in its "20% Wind Energy by 2030" Report that "If the considerable wind resources of the United States are to be utilized, a significant amount of new transmission will be required."
GRID2030 is probably the highlight of Clean Line "vice president" Glotfelty's career at the DOE.  And then Glotfelty leaves the DOE after setting the stage, and personally invests in Clean Line Energy Partners? 

Clean Line brags:

Jimmy worked for George W. Bush, for almost eight years, at both the gubernatorial and presidential levels. He led the Bush Administration’s efforts on electricity issues with Congress and the electric utility industry.  In this capacity, he founded Office of Electric Delivery and Energy Reliability at the Department of Energy (DOE) and served as its first Director.
Let's see... which office is undertaking DOE's consideration of Clean Line's application under Sec. 1222? 
The Department of Energy’s (DOE) Section 1222 Program is administered by the Office of Electricity Delivery and Energy Reliability (OE).
Wow!  What a coincidence!  A DOE appointee uses his office to set up a scheme whereby private investors can override state authority and regional transmission planning processes, and then leaves his position to personally invest in just such a scheme?  And the office he "founded" is now in a position to approve his financial scheme?

Something stinks here...

Maybe this guy should investigate and clear up the appearances of federal actions undertaken for private profit?

Whether the department will take the same approach under Chu's successor, MIT nuclear physicist Ernest Moniz, remains unclear.
I don't think that Moniz has a clue what his underlings are up to, but that's no excuse to let this federal land-taking scheme continue.

Clean Line's plans are a for-profit initiative masquerading as a political agenda.  And DOE's political agenda is favoring corporate interests over the interests of the citizens and consumers it is supposed to serve.  Let's clean the stink out of our federal Department of Energy!
5 Comments

Clean Line's Grain Belt Express Welcomed to Illinois

12/3/2014

7 Comments

 
Clean Line's Texas hucksters showed up in Illinois last night, and the citizens were there to meet them.
Outside the Church of the Nazarene Fellowship Hall, members of a grassroots protest group gathered to tell landowners of their opposition to the project. Inside the hall, company officials told of its benefits.
Which group do you think was telling the truth?  Hint:  One group was paid to be there by Clean Line, the other was there voluntarily.

Apparently there was lots of "misinformation" afoot, but only one group whined about "misinformation."  Guess which one?  It might be the one laboring under the misapprehension of the information deficit model.

The accompanying picture is a classic:  crowds of disenchanted landowners, some with arms folded, staring down the "clean" employee performing a song and dance in front of a company poster at an "information station."

The divide and conquer routine isn't working, Clean Line.  These folks got the jump on you.

Silly Clean Line routed their project through land owned by a local attorney.


"They are filing for expedited review with the (Illinois Commerce Commission) which provides for limited time for landowners to object and even shorter filing periods, which constrains ability to have fair and full hearings insuring that due process rights of each landowner are protected," Probst said.
"Our firm is looking into calling a meeting of landowners and invite other interested parties to discuss what options are available to the landowners of Shelby County," the lawyer added.
Ooopsy, Clean Line!  Why the hurry?  Hoping that you can ram this project through approvals at the ICC before the landowners organize enough to seek legal counsel?  Too late!

Bravo to the citizens of Illinois who have worked so hard to prepare for Clean Line, as well as to all the experienced Clean Line opponents who traveled to the meeting to help out.  What an auspicious beginning!
7 Comments

The Bluff and Bluster of Clean Line's Fantastical Business Plan

12/2/2014

3 Comments

 
Finally got around to reviewing the Illinois Commerce Commission's 200+ page final Order on Clean Line's RICL project.  Imagine my shock and horror to find that the actual Order bore no resemblance to the posturing Clean Line did for the media immediately following the Commission's vote.

Clean Line is nothing if not optimistic about its business plan to construct nearly 2000 miles of new "merchant" transmission lines across eight Midwestern states.  However, Clean Line's claims rarely comport with reality.  Isn't it odd that Clean Line had a press release ready to go the second the Commission voted?  It's all about pretending the Commission's decision "marks a critical milestone needed to deliver low-cost wind energy to Illinois and [those mysterious, unnamed] states farther east," no matter what the actual Order said.

And the press ate it up.  Shame on them!  The rest of us have been snickering at how much egg ended up on Clean Line's face for running with a media fantasy, and now the REAL story shall be told.

The ICC's Order issued a CPCN for the proposed business plan, finding it would be "needful and useful to promote competitive electricity markets in Illinois" if it ever gets built.  However, the Commission also found that RICL is not necessary to provide adequate service to customers, and that is is not necessary.  In addition, the Order requires Clean Line to jump some pretty high hurdles to make its business plan actually happen before it can build anything.
  A couple of conditions the ICC attached to the CPCN require that the company make a compliance filing demonstrating that it has funds available to construct the entire project before beginning any construction.  The ICC also attached a stipulation making the CPCN null and void if Clean Line attempts to allocate costs of its project to Illinois ratepayers through regional cost allocation administered by regional transmission organizations and FERC.  And, all this must happen within 2 years from the date of issue.  Tick-tock, Clean Line!

Oh... where to begin?  Let's talk about that financing stipulation.  In order to convince lenders to pony up the money to build the project, Clean Line must demonstrate an income stream.  It needs to have signed contracts with shippers or end users.  It has no end users.  The proposed shippers have not even been constructed yet.  In order to construct these mythical shippers (wind farms), the wind farms also have to borrow money to construct their projects.  In order to receive financing to build, these shippers must also demonstrate an income stream via signed contracts with purchasers.  It's a headache-inducing string of dominoes fraught with risk.  Utilities hate risk.  If utilities need to purchase renewables, there's plenty of EXISTING renewables available at concrete prices.  Since none of Clean Line's shippers exist, none of their proposed prices can be negotiated into signed contracts.  Remember... only two years to get this done!  And if you think it's going to happen, I'm a fairy princess.

Because the ICC did not find the project necessary under Sec. 8-503 of the PUA, Clean Line's CPCN only authorizes the company to build on voluntarily-negotiated easements.  The easements Clean Line has managed to sign with landowners are few and far between.  The rest of the landowners have rejected Clean Line's efforts and may continue to do so.  Clean Line was so certain that it would be granted eminent domain authority to take property that it has disrespected landowners with fantastical claims that bear no resemblance to reality
, along with underhanded tactics and empty promises.  You've got to get up pretty early in the morning to fool a farmer.  Nobody's buying it.  And since Clean Line has already ruined any possible cordial relationship with landowners, it is unlikely to regain what has already been tossed away.

And that brings us to the match tossed into the powder keg...  the CPCN issued by the ICC:


The Commission also observes that the approval of a line route as part of this Certificate Order should facilitate negotiations with landowners, and that the issuance of the Certificate will enable Rock Island to gain access to the property to conduct surveys and related activities, which are steps characterized by Rock Island as important ones in which to engage in the near future.
That's funny.  The Commission was so uncertain about this company's financial resources that it required it to have financing in place before beginning construction, but yet this same company can now enter upon and damage private property to conduct its surveys, without the demonstrated financial resources to guarantee that landowners will be compensated for damages.  What happens when Clean Line's surveys damage private property and the company refuses to make landowners whole?  Where's the remedy for landowners?  Will the ICC be policing Clean Line's survey activities?  Will landowners be left swinging in the wind with only a civil remedy?  And, I don't think Clean Line barging onto private property and leaving a mess behind will "facilitate negotiations with landowners."  Call me jaded...

So, Illinois landowner groups now have been handed the task of figuring out how to protect their interests all on their own.  And they will.

Two years, remember that.

And, in addition, RICL has just barely begun the permitting process in Iowa, where thousands of landowners have joined forces as the Preservation of Rural Iowa Alliance, and hired counsel and witnesses to participate in the Iowa Utility Board's review of RICL.

Two years.

I'm thinking that this thing is NEVER going to happen.  The ICC Order requires Clean Line to perform in accordance with its fantastical business plan to get all this accomplished in two years.

So, despite sweeping bluster like
“The ICC approval is a great step forward for the Rock Island Clean Line project and brings Illinois one step closer to creating a cleaner energy future,” said Michael Skelly, President of Clean Line Energy. “We are grateful to the Commission for their careful consideration of our application and proposed route. By approving game-changing projects like the Rock Island Clean Line, Illinois will benefit from access to low-cost clean energy and job creation in the construction and manufacturing sectors.”
the Order doesn't actually move RICL closer to reality.  It simply starts the clock.  Tick-tock.

Todd Maisch, President of the Illinois Chamber of Commerce should be eating the words Clean Line put in his mouth:

Companies like Clean Line that propose electric transmission projects are forced to meet a high threshold to prove that their energy project serves the public need and benefits consumers.
...because Clean Line didn't actually meet the ICC's high threshold to be found necessary, and therefore has to make its plan a reality before it could be granted the authority to build the project and take land from unwilling owners.

Michael Cornicelli, Executive Vice President of the Building Owners and Managers Association of Chicago, or BOMA/Chicago also had some inapt words:
This project should demonstrate that independent, investor-driven transmission infrastructure can become a viable business solution in a traditionally utility-driven arena.
...but only if it can make its fantastical business plan into reality.   I think the ICC's Order demonstrates that merchant transmission projects undertaken outside the traditional regional planning process cannot succeed, but time will tell.  Two years.

Clean Line also makes fantasy claims about its ability to reduce carbon emissions:
The wind energy delivered by the Rock Island Clean Line will allow other generators to run less and burn less fuel by eliminating the need for the equivalent amount of energy to come from fossil fuels, thereby reducing pollution. More than 1.4 million homes will be powered by the renewable energy generated as a result of this project.
Because it is an intermittent resource, baseload fossil fuel generators will be required to run constantly to back up Clean Line.  The ramping up and down of baseload plants actually produces MORE emissions than running at a constant rate.  Clean Line's insistence that its transmission line will reduce fossil fuel generation on a basis equal to its production is unrealistic fantasy. 

And, we'll end with this:

Developing a project of this scale is a long-term undertaking...
Yes, indeed.  Two years.  Tick-tock!
3 Comments

Landowners Prevail Over Rock Island Clean Line Eminent Domain Scheme

11/26/2014

0 Comments

 
You won't be seeing variations of the word "approve" in my headline.  That's because the Illinois Commerce Commission decision yesterday was not a pivotal moment that sealed the project's success.

Far from it.

Although the actual Order has been withheld from the parties and the general public for the time being, I've been able to piece together a general idea of its contents from various news stories, along with knowledge of what was in the proposed order issued by ALJ Larry Jones several months ago.

Clean Line applied to the ICC under two separate statutes.
Rock Island therein requests an order granting it a certificate of public convenience and necessity (“CPCN” or “Certificate”), pursuant to Section 8-406 of the Act, authorizing it to operate as a transmission public utility in the State of Illinois and to construct, operate and maintain an electric transmission line (“Project”); and authorizing and directing it, pursuant to Section 8-503 of the Act, to construct the proposed line. 
News reports say that the Commission granted the CPCN under Section 8-406, but did NOT order it to construct the line under Section 8-503.

Sec. 8-406 makes it technically possible to construct the line, if it can acquire VOLUNTARY easements from all affected landowners. 

Only under Sec. 8-503 may the company be granted the authority to take property through eminent domain condemnation.  An order under 8-503 would set the company up to effect takings through mere procedural steps.  But the ICC DENIED Clean Line's application under Section 8-503.  Therefore, Clean Line would have to come back before the Illinois Commerce Commission with a second application for an order under Sec. 8-503 at some point in the future, with likely similar results.

ROCK ISLAND CLEAN LINE HAS BEEN DENIED EMINENT DOMAIN AUTHORITY TO TAKE PROPERTY IN ILLINOIS!

Big win for landowners!


Know this -- the ICC would never grant Clean Line eminent domain authority to take the majority of its route.  Usually, holdouts in transmission line cases that actually end up being taken via eminent domain are few and far between.  There's strength in numbers.

Feel free to say "no."  Isn't it ironic that a company that has been telling regulators and the media how well it has been "collaborating with landowners" would now actually have to... well... collaborate with landowners?  Perfect!  However, Clean Line's lies and underhanded tactics have inspired massive distrust by landowners.  And every farmer knows... you reap what you sow.
0 Comments

Do not underestimate the power of a large group of people with a common goal

11/20/2014

1 Comment

 
Read the Preservation of Rural Iowa Alliance's letter to the editor of the Des Moines Register.

Opposition to Clean Line's projects is now active and collaborating in seven states, and numbers in the thousands
.

Ut-oh, Clean Line!

1 Comment

Clean Line's Terrible, Horrible, No Good, Very Bad Week

11/15/2014

9 Comments

 
Spending the better part of my week playing lawyer, paralegal, and legal secretary, all at the same time, wasn't much fun.  However, I was thoroughly cheered to observe from time-to-time when I came up for a sanity break, that Clean Line Energy Partners was having a MUCH WORSE week than me!  :-)

All three of Clean Line's active projects took it in the shorts last week, in one form or another.  This is the direct result of overwhelming, forthright and committed opposition in every state through which it intends to build its Rock Island Clean Line, Grain Belt Express and Plains & Eastern Clean Line projects.  And to get there, it's taken an enormous amount of dedication, organization and hard work on the part of some savvy opposition leaders
, and the help of everyone involved to raise this issue in the public dialogue.  So, pat yourselves on the back, everyone!

First, let's look at the Rock Island Clean Line project.  It STILL has not been approved in Illinois, despite Clean Line's project leader telling newspapers it had been.  It was on the Illinois Commerce Commission's agenda on Thursday, but, once again, the Commission kicked the decision down the road
for another day.  Clean Line had been telling folks that once it got approval in Illinois, it would file for its franchise in Iowa.  Even though approval is still up in the air (and the proposed order of the ALJ did not recommend eminent domain authority at this time, along with a whole bunch of other hurdles that make the project much less viable) Clean Line went ahead and filed its applications in Iowa.

The Preservation of Rural Iowa Alliance says that despite having land agents active in the community for the past year, the company still has only secured easements for 15% of the property it needs to build its line.

Clean Line said the company will need to cross approximately 1,500 separate land parcels in Iowa to reach Illinois. So far, about 200 owners have signed agreements. That’s about 15 percent of the total needed.

Eric Andersen, another Clean Line opponent from Grundy County, said the small number of willing sellers so far will be one of the arguments opponents use against the plan.

“This is a private investment firm that’s building a private transmission line and they want to use eminent domain on 85 percent through some of the best farm land in the world. That’s a huge deal,” Andersen said.
RICL is asking the Iowa Utilities Board to grant it eminent domain authority to condemn and take 85% of its route?  Never going to happen.  Usually, holdouts that require the use of eminent domain are few and far between.  Never 85% of the landowners targeted!  If these landowners continue to dig in their heels (and I expect they will) this project will be political poison.

Turning now to Clean Line's Grain Belt Express project, evidentiary hearings got underway before the Missouri Public Service Commission this week.  In addition to the various landowner groups and others opposing the project, the staff of the MO PSC has also adopted a position opposing the project:
“As staff has set out in the position statements it filed last Friday, it is staff’s view that the evidence in this case will not show that the transmission line and converter stations are needed, economically feasible, or will promote the public interest in Missouri,” Williams tells the Commission.
But Clean Line has an ace up its sleeve that it thinks will "turn a no into a yes."
Clean Line turned to the Department of Energy and Section 1222 of the Energy Policy Act of 2005. The little-known provision would enable DOE to work through a federal power marketing administration and, in certain instances, condemn property required for easements.

Clean Line filed a similar application with DOE for the Grain Belt Express project in 2010.

In a testy exchange during Monday’s hearing in Missouri, Agathen, the landowners’ attorney, repeatedly asked whether Clean Line would pursue federal approval of the Grain Belt Express project if denied by the Missouri PSC.

Skelly said Clean Line’s application for Section 1222 authority for Grain Belt Express is still pending at DOE but inactive. And the company would exhaust efforts to persuade state regulators to approve the project before turning back to the federal government.

“We would look at the no and figure out a way to turn it into a yes,” he said.
And this brings us to the third Clean Line project, its Plains & Eastern, that got thoroughly pummeled last week during a joint State Agencies and Governmental Affairs committees and joint Agriculture, Forestry, and Economic Development committees of the Arkansas legislature.  Arkansas Rep. John Hutchinson's interim study presented a parade of experts, state agencies, and concerned citizens who spoke against the project for several hours.  The Clean Line representative in attendance never spoke, but did manage to smirk at opportune moments.  Because, you know, that arrogant little frat boy behavior just makes people want to love you, right Clean Line?  The Arkansas Democrat-Gazette reports:
"Game & Fish Commission Director Mike Knoedl said that bird deaths in the area would be 'astronomical' because of the high lines and towers, some as tall as 200 feet."
Clean Line probably doesn't care who opposes their project in Arkansas though, since the company is planning to have the U.S. Dept. of Energy step in to take land from Arkansans under the federal Energy Policy Act, Sec. 1222.  Unless Arkansas fights back... stay tuned!

9 Comments

TVA Voices "Interest" in Fairy Tales

11/5/2014

9 Comments

 
I think the TVA has been reading too many fairy tales.  In an abrupt about-face, the TVA produced a letter expressing "an interest in options" like Clean Line on Tuesday.  The letter was sent to Clean Line just in time to be presented to the Tennessee Regulatory Authority at its evidentiary hearing on Clean Line's application yesterday.

I smell a big, fat, political glad-handing rat.

In July, the TVA sent a letter responding to Tennessee congressmen Alexander and Fincher that panned Clean Line.  In a nutshell, the letter said that Clean Line presents economic and reliability issues for the TVA.

Now, just 4 months later, TVA "encourages" the TRA to:
...provide the regulatory and other government review needed to move the project forward.
What's changed?  I think it might have been the employee who drafted the letter for Johnson's signature.  This latest one sounds to me like it was written by some external affairs schmoozer, perhaps over a few "clean" cocktails, and not by TRA's resource planning staff.

The TVA says that Clean Line may provide a "potential option for the future needs of the region," but stays far, far away from actually committing to it.  TVA says that it is still working on its integrated resource plan, and Clean Line's interconnection study, and that only the TVA Board can decide whether to purchase capacity on Clean Line.  But yet TVA President William Johnson thinks Clean Line should be built just so he has some "options" to choose from.

Don't we build only the transmission that's actually needed?  Don't transmission planners base new lines on actual need?  I've never heard of a transmission line approved by an RTO just to provide "options."

If TVA decides that wind is the most economic and reliable option for a portion of its resource plan, then it will have plenty of wind "options" to choose from, whether Clean Line is built or not.

So, let me get this straight... TVA wants to clear cut a new 700 mile right of way through three states, take land from thousands of citizens through condemnation, depress the economy of "pass through" states, raise electric rates in generating states through increased competition, and encourage Clean Line to borrow billions of dollars to construct this project, just so the TVA can consider it as an "option?"

Fortunately, it's a financial impossibility to build Clean Line without firm contracts with shippers and utilities that will provide a collateral income stream.  So, guess what?  If Clean Line gets built, it will already be fully subscribed, which means that there will be no "option" for TVA's "interest."
  See paragraph above about other "options."

The TVA finishes off its split-personality missive with a
disclaimer that negates all the rest of the blather.
I note that, while Clean Line might represent an option for TVA and its stakeholders' future, only the TVA Board has the authority to  approve exercise of such an option. That Board to-date has not undertaken such an approval. That consideration process will focus on the statutory requirements of least cost, need for the resource, and other matters within the purview of the TVA Board.
Sort of sounds like a special fairy tale intended to grease the TRA's approval wheels to me.  What a shame.  Just when people were starting to have faith in the integrity of the TVA's integrated resource planning process...
9 Comments

Dear Utilities:  Invest Your $$ With Your Competitor

11/3/2014

2 Comments

 
megalomaniac |ˌmegəlōˈmānēˌak|
noun
a person who is obsessed with their own power.
• a person who suffers delusions of their own power or importance.
The President of floundering Clean Line Energy Partners thinks utilities whose territory his projects pass through would make great investors in the projects.
In the future, Skelly says he hopes that utilities, whose territories are crossed by the HVDC lines, could invest in Clean Line.
So, sign up today to support Mikey's risky plans for more unregulated transmission lines outside the normal planning process!  Because getting a few of Mikey's crumbs is soooooo much better than building your own transmission lines and eating the whole pie.
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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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