Please do your part to inform the legislators about your concerns. "Someone" isn't going to take care of it for you this time. "Someone" has been busy helping other people for the past week, and "nobody" stepped up to fill the void. It's "do-it-yourself" this time.
Lots of stuff to catch up on today now that I'm back in this time zone, but the most important thing going on today is the legislative discussion of the study regarding electric utilities' billing practices being held at 3:00 p.m. You may listen live at this link. When it's time for the meeting, the location will change to a "Listen Live" link. I hope you have already called or emailed the members of Gov. Org. to let them know about your concerns regarding your electric bill. If not, here's a link to committee members.
Please do your part to inform the legislators about your concerns. "Someone" isn't going to take care of it for you this time. "Someone" has been busy helping other people for the past week, and "nobody" stepped up to fill the void. It's "do-it-yourself" this time.
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After years of wrongly insisting that we needed billions of dollars worth of new transmission lines to avoid "brownouts and blackouts," PJM Interconnection's incontrovertible transmission planning system failed massively on Tuesday, leaving thousands sweltering in record-breaking heat when it instituted rolling blackouts in order to avoid a cascading failure. This story explains that PJM had allowed many different elements of its generation and transmission system to be out of service for maintenance on Tuesday, when one of FirstEnergy's transmission lines in Ohio failed. The failure of this one line caused PJM to "order utilities to institute small, localized blackouts in Ohio and other states to prevent more widespread outages." A part on a FirstEnergy Corp. 345-kilowatt transmission line broke on Tuesday afternoon, leading to a loss of power to about 15,000 customers, said FirstEnergy spokesman Mark Durbin said. That's right... it was probably lack of proper maintenance as FirstEnergy continues to brag about cuts to its maintenance expenses in order to squeeze a few more pennies into shareholder dividends every quarter.
If this story is true however, then PJM has some 'splainin to do. PJM told us we "needed" PATH because its system must be designed for contingencies where failure of one transmission line will not bring the whole system crashing down. That would be irresponsibly poor planning. Isn't that right, PJM? Watch Toad blink and twitch his way through another fairy tale.
The people aren't buying it. In fact, this story only makes them ANGRIER and more determined to show up at the upcoming public hearings in record numbers. It seems many want to take Toad on for his lies. How about it Toad? Want to debate with your eager public? Maybe we can all roll our eyes and make faces! Anyhow, why not let the reporter know where she went wrong? (Please be nice!) The Power Line tells us that the WV PSC has scheduled a hearing on FirstEnergy's proposed Harrison settlement for 9:30 a.m. on Friday, September 13. Ooooh! Scarily auspicious for FirstEnergy, don't you think?
After months of back and forth legal wrangling and a full-blown, three-day hearing at the PSC, FirstEnergy and all other parties to the case, EXCEPT West Virginia Citizens Action Group (WVCAG), agreed to a settlement. However, a settlement is still subject to the approval of the WV PSC, and our Commissioners have said... not so fast, FirstEnergy. Therefore, "The Commission stated that it would require all parties to this case appear at a hearing with a witness to state whether, and why, the Joint Stipulation is, or is not, in the public interest." Do you think the settlement is in the public interest? Do you think it's in YOUR best interests? If not, you need to let the Commissioners know. Intense public scrutiny is what has caused this additional hearing, instead of the routine rubber-stamping of a contested settlement. Only continued scrutiny will ensure justice! So, how can you participate? Our friends at the Coalition for Reliable Power have made it so easy that it will only take you 2 minutes! Check out their "Take Action" section for suggested text and a link for submitting your comments online. Do it now! If you're too busy to spend two minutes now, you'll only have the next 27 years to regret it! ...Karma came a'knocking yesterday. The Plain Dealer reports that FirstEnergy failed a Nuclear Regulatory Commission "force on force" exercise at its Beaver Valley nuke. Security forces at FirstEnergy's Beaver Valley power plant apparently failed part of a routine "force-on-force" exercise in April. Beaver Valley contains two reactors. FirstEnergy says that its failure was a result of the way the NRC inspectors conducted the exercise. ![]() In other news, a group of local residents filed a lawsuit alleging that FirstEnergy's Hatfield's Ferry coal-fired generator was damaging their health and their property. Hatfield's Ferry is one of two plants that FirstEnergy has slated for closure in October. Political hijinks have ensued, attempting to keep the plants open. PJM has determined that the plants are necessary for reliability, but FirstEnergy is pretending to proceed with closure, hoping it might get a better deal if it continues this silly game of chicken.
And, closer to home, a Potomac Edison publicity stunt went wrong yesterday when spokesflack Crapaud Meyers got cornered about how the WV PSC General Investigation was going. Unfortunately, the wanna be journalists at WHAG's summer training camp turned it into a one-sided infomercial, but that didn't dampen Crapaud's enthusiasm for twitching his way through making crap up. Crapaud now says Potomac Edison is working on solving the problem, when just a few months ago, the company told the PSC that there was no problem to be solved. Watch the video to enjoy Crapaud's newly-evident twitch. What it is that FirstEnergy does to its employees that makes them twitch like that when they lie? The WV PSC just issued an Order requiring all the parties who signed that ridiculous settlement agreement to have to defend it during oral argument before the Commissioners. This is HUGE! The Commission appreciates the continuing efforts made by the Stipulating Parties, even after the close of the record in this matter, to offer compromises and counter proposals in a concerted undertaking to develop the Joint Stipulation that is now before us. We also understand the desire of the Stipulating Parties to move this matter to resolution with utmost speed. The Commission shares that desire; however, we will chalk up the suggested decision date of “no later than August 30, 2013,” to “corporate enthusiasm.’’ The issues to be decided in this proceeding are too numerous, too significant from a rate making and cost of service perspective, and too important to current and future ratepayers, Mon Power and PE, and the economy of the State to suggest that they be treated in anything other than a detailed and thoughtful manner by the Commission. Hooray for the WV PSC for putting the brakes on this crazy train! And Hooray and THANKS to the WVCAG for being the only party to point the finger and loudly proclaim, "The Emperor is naked!" Well, you know what they say, necessity is the mother of invention, and one creative individual has come up with a new (if illegal) way to pay his outrageous Potomac Edison electric bill. According to this article in the Herald-Mail: Charles Ashby Atkins, 78, of South Raleigh Street was arraigned Friday night by Magistrate Robert L. Lowe II on single misdemeanor counts of fraudulent schemes, obstructing, pedestrian on the interstate and failure to obey a traffic-control device, the court records said. So, how many copycat crimes will this cause? And would it be a crime if you stood on a street corner with a bucket and a sign "Help Me Pay My Inaccurate and Outrageous Potomac Edison Electric Bill!"? Probably not. And it would probably be even more lucrative. You can't mention the words "Potomac Edison" out in public around here without having bystanders chime into the conversation. While out having coffee with a friend yesterday morning, those words were said and next thing you know we're in conversation with a gentleman who was simply standing nearby fixing his coffee. Who hasn't gotten an outrageous bill or knows someone who has? Would you feel sorry for someone stuck with an outrageous, inaccurate bill who was having their service shut off? Would you toss in a few bucks?
Thanks, Potomac Edison! Dishonest panhandlers! Just one more service you provide! FirstEnergy has been defending its rate-increasing Harrison plant settlement by telling the media, "...the agreement includes a commitment to "bring more jobs" to West Virginia, and provides financial contributions for economic development, weatherization programs, low-income utility payment assistance and an education program to promote energy efficiency initiatives in the state's public schools."
And not one reporter was smart enough to ask Toad Meyers who would be paying for all these wonderful benefits? 1. 50 more jobs - The cost of those jobs, just like the cost of all the other FirstEnergy employees, is recovered from consumers through electric rates. 2. Financial contributions for economic development - As we've found in other cases, these rate credits for industrial users (like Century Aluminum) are merely deferred for later collection in a future rate case... where consumers will pick up the $2.3M cost. 3. Weatherization programs - The settlement stipulates that this contribution is in addition to the $250,000 amount currently included in rates as a result of the Joint Stipulation in Case No. 09-1352-E-42T. "Included in rates" means that consumers are paying for it. 4. Low-income utility payment assistance - The settlement stipulates that this amount will be funded by customers. 5. An education program to promote energy efficiency initiatives in the state's public schools - No mention of how this is going to be paid for. 6. Additional energy efficiency programs - Paid for though consumer rate increases, just like the current programs. So, what did FirstEnergy "give" West Virginia consumers in exchange for accepting the financial liability of a 40 year old coal plant? The bill for its concessions! Ridiculous! The best FirstEnergy can do is to point to additional cost for consumers as a "benefit" of this transaction. And if you think that's stupid, FirstEnergy did it one better! Toad Meyers was his usual brilliant self... when asked about WVCAG's Objection to the settlement, Toad told the press: "Just like any settlement agreement, there's a lot of negotiating, a lot of back and forth, give and take," said Todd Meyers, a FirstEnergy spokesman. "We all came to an agreement that people were comfortable enough with to sign and forward along to the PSC for recommendation." Well, obviously if WVCAG refused to sign on to the settlement and has now filed an Objection to it, then ALL parties didn't come to an agreement. Or maybe WVCAG was ostracized from participating in the settlement? Or maybe WVCAG is just not "people?" Qu'est-ce que c'est, Crapaud, qu'est-ce que c'est? Don't you just love it when the mouth-breathers at FirstEnergy explain themselves into a corner?
On August 15, FirstEnergy filed its first monthly statistical report. The Commission had previously ordered FirstEnergy to submit monthly data for at least a year so they could keep an eye on these shysters. In its first report, "FirstEnergy stated that its data 'excludes annual meter reading accounts up through 11 months'.” Now the Commission has ordered FirstEnergy to explain just what an "annual meter reading account" is, and provide statistical data on these accounts as well. Shhh... if you know why the Commission did this, keep it to yourself. I want to see if FirstEnergy's brain trust can figure this out on their own... Too bad stupidity isn't painful. Ha ha ha! West Virginia Citizens Action Group, the only party to refuse to sign FirstEnergy's Harrison settlement, filed an Objection to the settlement with the PSC this afternoon. The Objection asks that the Commission "...disapprove the proposed settlement and that the Companies’ petition be denied in its entirety."
WVCAG is the only party that didn't cave in and go along with that sugarcoated flashing blue light special settlement the others were pressured into signing. What? Pressured? That's what I think. Some people accuse me of having too much imagination, but if you pick up a crayon and start connecting the dots, a perplexing picture begins to form. The public has been increasingly dissatisfied with the actions of the WV PSC over the past several years. It's not just some obscure agency nobody has ever heard of anymore. High profile rate cases, the PATH project, and now the intra-company coal plant sale cases have promoted the WV PSC to common dinner table talk. As well, public anger over the FirstEnergy/Potomac Edison billing investigation has raised the ire of legislators. The WV PSC, with one expired Commissioner and another re-appointed but not yet confirmed by the Senate, does not want any nasty utility public relations poo stuck to its shoe. Any decision it would have made on FirstEnergy's Harrison transfer (other than a denial) would have produced more citizen and legislative scorn, possibly turning into the straw that broke the camel's back. So, the Commission slunk out of the emergency exit by not having to make a real decision. Because the case was "settled," blame for what went wrong can be foisted off on the settling parties. The Consumer Advocate will be retiring at the end of next month. A new one will be appointed by the Chairman of the PSC (let's not even worry about what a very stupid idea this is right now!) Any consumer advocate division employees who may be hopeful of moving up to the top spot and filling the vacancy would be beholden to pleasing the Chairman right now. Perhaps one way to cement the Chairman's approval would be a willingness to divert public anger from the Chairman (who doesn't need anymore public disapproval before his re-appointment is confirmed). Once the PSC staff and Consumer Advocate rolled over for FirstEnergy, the rest of the parties just went on a feeding frenzy to pick up what stray crumbs they could (with the exception of WVCAG, who exhibited good, old fashioned ethics). Maybe I just think too much... or maybe I just know too much. Anyhow, that's my theory of why this happened. But... here's something else to think about! How did a proposal that FirstEnergy said would raise your electric rates 6% settle for a 1.5% decrease in your rates? The settlement changed the amount of the $1.1B purchase price consumers will pay by requiring Mon Power to book a $300M+ impairment for a portion of the purchase price. The cost ratepayers will have to pay is $795M. An impairment is an amount that comes out of shareholder dividends, instead of out of your pocket. In addition, the $25M credit for the included sale of Pleasants will be amortized over the first 16 months of new rates, which causes an artificial and temporary rate reduction that will expire at the end of 2014. Without this Magic Math, there would be no "decrease." This resulted in a yearly surcharge (rate increase) of $113.4M. However, this rate increase was offset by a $129.5M yearly credit that FirstEnergy will include in their projected rates through the end of 2014. This $129.5M is based on projections, not reality. At the end of 2014, this projection will be trued up with actual expenditures and the resulting shortfall will turn into a rate increase. From the look of FirstEnergy's unrealistic projections (cooked for the transaction proposal to show what FirstEnergy wanted them to show), it's going to be a BIG rate increase of a magnitude never before experienced. The difference between $129.5M and 113.4M is only $16M. While $16M sounds like a lot of money, it's a very small margin for error at a company whose annual coal costs are estimated at well over $500M and whose annual revenue from off-system sales of Harrison's excess electricity are nearly $300M. If FirstEnergy's calculations are off just $16M, then your rate decrease completely disappears. If they're off by more than $16M, the rate increase starts. In addition, as the proud new owner of a creaking, old coal plant, you're now fully responsible for the expected $244M cost of retrofits to comply with EPA rules. FirstEnergy opted to close other coal plants rather than spend their own money to retrofit, but in this case, they're spending YOUR money. This $244M cost will also translate to more rate increases. So, enjoy your temporary "rate decrease," because the rate increase you're going to receive on January 1, 2015 is going to be a shocker. But, Chairman Albert hopes his re-appointment will be safely in the bag by that time and that you all will have forgotten all about this crappy deal he handed you. |
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
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