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Transmission Politics

1/8/2015

1 Comment

 
Coming across common themes over and over tells me something... maybe I should write about it?

I've seen a whole bunch lately about the politics of transmission line proposals, more precisely how politics affects the state public utility commission process.

This morning, I read something that pushed the issue into blog post status.

Iowa Governor Terry Branstad has warned his state legislature not to interfere in the business of the Iowa Utilities Board.
Branstad, who appoints the members of the utilities board, warned against "political interference" into the administrative review process by which a pipeline carrying Bakken crude oil and a transmission line transporting wind-generated electricity could be approved.

"It would be mistake to get politics into this," Branstad said. "We should abide by the processes that have been put in place."
Maybe Branstad doesn't understand those "processes?"  Our government is separated into three branches:  The Executive Branch carries out existing laws and recommends (but does not alone create) new ones.  It administers our government.  The Legislative Branch makes laws, at the will of the people it represents.  The Judicial Branch interprets existing laws.  Branstad is a member of the executive branch.  The Iowa legislature is a member of the legislative branch.  The IUB is a member of the judicial branch, although unlike a regular court, a utility board can make up copious rules about how they're going to carry out the laws made by the legislative branch.  Trying to figure out which one is more powerful is an exercise in futility... and politics.

Branstad, as Governor, appoints the members of the IUB.  This is a political process.  A member of the executive branch will appoint those he believes will carry out his mission.  Once appointed, IUB members are supposed to serve independently as they interpret utility laws, however, a crafty governor can control this process by allowing appointments to expire while the incumbents continue to serve at the daily whim of the governor, who can remove the incumbent and replace him at any time.  I have no idea if this is the situation in Iowa, but I have seen just this situation perpetuate in several states.  When it happens, the judicial branch comes under the thumb of the executive branch and can be easily influenced to make certain decisions on a political basis in order to remain in place.

The legislature makes the laws that direct the actions of an independent, quasi-judicial utility board.  The judicial branch cannot create laws, but receives its marching orders from the legislative branch.  If the legislature is displeased by the actions of the Board, it can make new laws to shape the decisions of the Board.  In this way, the legislature can influence the judicial branch.  However, there's more protection on this side of the coin, because the legislative branch is operating at the will of the people, and must obtain consensus from many to create new laws.

I don't know why Branstad believes it's not already "political."  The state utility board process is about as political as it gets.  While he warns the legislature not to get involved in a situation he controls, what the legislature eventually does will be political.  It's all political!

So, if you want to influence your state utility board process, you must engage in politics.  You can talk to your legislators to gain their support to make new laws that guide the decisions the utility board makes.  You should probably talk to your governor about refraining from getting involved in the utility board processes.  Branstad has it completely backwards!

Politics is described as:
the activities associated with the governance of a country or other area, esp. the debate or conflict among individuals or parties having or hoping to achieve power:
Companies proposing new transmission projects hope to influence the judicial process as much as individuals or groups opposing the transmission project.  In order to do so, they push the legislative or executive branch to shape the judicial decision.  Despite plenty of denial, the judicial processes of a utility board are heavily influenced by politics.  It's the reason transmission developers spend so much lobbying your representatives to support their projects AGAINST YOUR WISHES!

Public opinion drives political decisions.  A legislator is carrying out the will of the people.  If enough people become involved in a utility board process, they can shape the process through their legislators, who may be more interested in their duty to the people than the free lunches and campaign contributions transmission corporations provide.  The bigger the public push back, the better your chances.

Transmission developers also court other groups and individuals to take a position supporting their proposal.  Sometimes a quid pro quo situation develops.  This happens because a utility board is unlikely to approve even the best project if it is under political fire not to do so, therefore the transmission developer needs allies to create, at least, an appearance of support.

So, can a large, loud uprising of the people affect the decision of a utility board?  You bet'cha!  But don't get confused by the difference between public opinion and public comment.

Public opinion is an aggregate of public comment.  The public comments citizens make to a utility board, in isolation, rarely drive the decision of the Board because they are typically not based on legal arguments about the laws the Board must follow in its findings.

Utility law guru Scott Hempling recently pondered the effectiveness of public comments in his monthly essay.  This month, he featured several questions that he will use as projects for his utility law students.  Here's one:
Engaging the public:  Candor requires an admission:  The lay citizenry's views do not count as "substantial evidence," required by courts to sustain agency orders.  Does that fact make public hearings (i.e., the non-technical hearings) shams?  If not, then what is the value of public participation?  What are ways to create that value, at reasonable cost?   Traditionally, agencies announced public hearings in the newspaper's "legal notices."  How useful is that approach today?  What are an agency's responsibilities to educate the public and seek its views?
The "substantial evidence" Hempling mentions must come through the legal process, either through an attorney or individuals acting pro se.  While a utility board's decision is politically-driven, it must back up its decision on a legal basis.  The utility provides its proposed legal basis for approval through the evidentiary hearing process.  Opposition must therefore provide its own legal basis for denial in this same venue.  The utility board, thus armed, can choose from whichever body of evidence it needs to to back up its decision (and hopefully make it stick.)  It's pretty hard to make a decision that's not legally sound stick through appeals.  It would be doubly-hard for a utility board to make a decision that denies evidence of future reliability issues coming from a supposedly independent third party, such as a regional transmission organization.  Therefore, a utility or RTO may choose to find new information upon which to withdraw its proposal, instead of forcing a utility board into a denial.  But, again, this is a political process that takes place that allows utilities to withdraw and save face (and money, but that's another story).

So while your own individual comment may not carry much legal weight, when combined with the comments of thousands of others, it is a very powerful, political tool!

If Branstad truly wants to keep "politics" out of utility board decisions in Iowa, he should start a little closer to home.  The legislature, as the body tasked with making laws, can make any laws it chooses, whether Branstad likes them or not.  Sure, he could veto a new law, but doing so to a new law widely supported by the people would come at his own political peril.
"Never doubt that a small group of thoughtful, committed citizens can change the world;
indeed, it's the only thing that ever has."
- Margaret Mead
1 Comment

"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

Promises, Promises

12/31/2014

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More bad decision-making on the part of the Illinois Commerce Commission brought to light, this time courtesy of the Request for Rehearing filed by Exelon subsidiary ComEd.

Because nobody trusts Clean Line Energy Partners to actually remain a merchant project, the ICC conditioned its recent approval on Clean Line having to come back before the ICC for approval before the cost of RICL can be allocated to Illinois ratepayers, either through PJM or MISO's planning process.

(Raise your hand if you suspect Clean Line is approaching the permitting and cost allocation process backwards -- getting its state permits first before approaching PJM and/or MISO to have its project added to the regional plan and cost allocated to consumers).

The allocation of transmission costs to ratepayers is a FERC-jurisdictional process.  It is not decided by individual states (except it may be addressed through the RTO planning process, but good luck there, Illinois, if RICL gets included in a regional plan).

ComEd has taken issue with this stipulation:
Throughout this proceeding RI has claimed that Illinois customers will not pay the
Project’s costs. Because this fact is critical not just to protect customers, but also underlies RI’s economic case, the Order includes a condition stating that RI must seek Commission approval “prior to recovering any Project costs from Illinois retail ratepayers through PJM or MISO regional cost  allocation[.]”  While ComEd agrees fully with the Commission’s intent, this condition cannot be relied upon to protect customers, for several reasons.

FERC has exclusive authority over  transmission rates under federal law. It is far
from clear that FERC or a federal court would find that Illinois can require an applicant to waive the ability to petition FERC to approve any specific type of transmission rate, or could enforce such a waiver against a FERC finding that it was “just and reasonable” to pass costs on to customers. 

Even if the Commission could void the CPCN if RI (or a successor) made such a request to FERC, it is not clear what effect that “remedy” would have on customers’ rates. By then, the costs would be incurred and the line would be transmitting power in interstate commerce.

The Order’s condition does not apply to other parties (e.g., generators, shippers) who
could ask FERC to modify the rate to shift costs to customers, even if RI never did.

Similarly, the Order does not limit the  authority of FERC itself, which could sua
sponte revise RI’s rates, either in a RI-specific or a more broadly based investigation
proceeding. FERC has the power to “determine the just and reasonable rate … to be
thereafter observed” (16 U.S.C § 824e (2012)) in response to such a complaint or
upon its own motion, not just a filing by RI.

At a minimum, given the critical importance of shielding Illinois customers from Project
costs, the viability of this condition as a means of protecting customers – and potential
alternatives including financial security – warrants deeper examination on rehearing.
In other words, the ICC has been had by empty promises.  FERC can order Illinois ratepayers to pick up the RICL costs and there's nothing the ICC can do about it, except be sucked into a prolonged legal battle at FERC. 

Meanwhile, the ICC's condition does NOTHING to protect ratepayers in other states from having the cost of RICL foisted upon them.

Let's hope the ICC thinks this one through a little more.
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How Transmission "Competition" Hurts Reliability and Costs Consumers More

12/31/2014

3 Comments

 
FERC is in love with the idea that "competition" between transmission developers will result in lower costs for consumers, but that's not necessarily true.  While competition between developers for a project identified in a regional plan could provide lower cost projects, it completely fails when developers create and submit projects before any need for them is independently recognized by the RTO, or when merchant developers propose transmission projects outside of regional plans.

Hopefully we've seen the last of the transmission projects designed simply to increase profits for a vertically integrated utility that is conceived before the RTO determines a "need" for it.  In this cart before the horse scenario, the RTO will create a smokescreen of need for an unneeded project and "order" it to be built.    These projects usually fall apart when they are examined with any amount of sincere effort.  When this happens, the RTO will cancel the project, but not before millions are spent for a transmission project that will never be built. 
When an RTO "orders" a project, its cost is allocated to ratepayers in the region.  How much are ratepayers paying each year for cancelled projects resulting from bad planning?

But an even more serious problem is developing as a result of merchant projects proposed outside the regional planning process.  These projects are never submitted into the regional planning process, therefore there is no need for them, either reliability, economic or public policy.  The only review they get from regional planners looks at how their interconnection will affect reliability.   These projects are not "ordered" to be built by regional planners. They are constructed at the expense and initiative of their owners, who recoup their costs through charging negotiated rates for transmission service.  The only goal of merchant lines is to make money.  If they aren't economically feasible, they won't be built.  The choice to build them lies entirely with their owners, even after they have a permit in hand.

But a merchant project proposed outside the regional planning process is never "ordered" and must prove itself "needed" to state and federal regulators in order to receive necessary permits or eminent domain authority.  In that instance, the state or federal regulator is stepping into the regional planning position to determine the need for a transmission project.  State and federal regulators are ill-equipped to make such a determination because they lack the kind of expertise found at an RTO.  The best a regulator can do is rely on the evidence submitted by experts in the case.  Merchant transmission developers can afford any number of experts who will say whatever they're paid to say.  Regulators can only afford in-house expertise, or rely on the experts hired by other parties. The decision is not based on any inherent knowledge, but on expert testimony.

So, what happens when a state finds a merchant transmission project serves some purpose and issues it a conditional permit to construct?  Now we've got two competing regional transmission planners with different projects in their plan.  The RTO version of the plan includes projects it has ordered that it has determined are needed for reliability, economic or public policy purposes, and these projects are being paid for by ratepayers.  The state uses the same plan, but it also includes the permitted merchant project, that doesn't serve any RTO-identified need.  Isn't this too much transmission?

What happens to the ordered regional plan if the merchant project is constructed?  Sometimes this effect is modeled into the plan so that other "ordered" projects may not be needed after all.  A permitted merchant project could cause cancellation of transmission projects in the regional plan before they are completed (but long after they start collecting their costs from ratepayers).  But, remember, a merchant project that has not been "ordered" by a RTO may never be built.  So, if a merchant project causes the cancellation of one or more RTO projects, it could jeopardize reliability if it is suddenly abandoned by its developers before being built.

Dilemma!  Perhaps FERC should take notice of the mess it has created and find a remedy.  I would suggest that projects must be part of a regional plan (whether RTO/ISO or other existing planning authority), and that unneeded merchant projects be prohibited.

Think I'm just nuts?  The Illinois Commerce Commission's recent conditional approval of the Rock Island Clean Line merchant transmission project is already causing doubt about other regionally planned transmission projects that are currently before the ICC.  As the Illinois Farm Bureau pointed out in its recent request for rehearing of the RICL decision, the RICL order is already having "a negative impact on consumers."  The IAA says that the RICL approval is having an immediate effect on two other transmission projects currently before the ICC, a MidAmerican project and an Ameren project, where the ICC staff has suggested that RICL's approval draws into doubt whether these two projects are needed.  And who pays for the other two regionally planned projects if they are cancelled by RICL?  Consumers.
As multiple intervenors have pointed out in this docket that Rock Island’s failure to produce a needs analysis from PJM and/or MISO hurts all of the stakeholders, it seems like this problem could have easily been avoided. The absence of this global analysis produces increased unpredictability and either slows or jeopardizes other legitimate transmission projects. This risk to the consumers could have easily been prevented.
In addition, the IAA points out that there has been no comparative analysis by the ICC as to which of these projects are necessary to promote the development of an effectively competitive electricity market that operates efficiently, are equitable to all customers, and are the least cost means of satisfying those objectives.  Regional planners say that the MidAmerican and Ameren projects are the best options.  The ICC has determined that RICL is the best option, without any attempt at making a fair comparison.

So, what shall it be?  Should we cancel regionally planned projects that conflict with merchant plans and hope the merchant projects are eventually built?  Will the lights go off if none of them get built?  We simply cannot have it both ways. 
Now, other potentially viable and successful transmission projects will have to wait on the sidelines to see if Rock Island can get its act together by, among other things, finding money, qualified employees, suppliers, and numerous regulatory approvals. None of this benefits Illinois consumers, the market, or the reliability of the electric system. Instead, it puts everything at greater risk.
Independent transmission projects based on greed are now actively hurting consumers.  This game must stop.
3 Comments

What Society Can Learn From Dr. Luther Gerlach

12/2/2014

3 Comments

 
A while back, I shared a little bit about Dr. Luther Gerlach and his work studying public response to electric transmission projects and how it produces debate about and shapes our energy future.  I included a link where you could download his short film, Grassroots Energy.

Now I'd like to share more about this amazing man, how he works, and how he created Grassroots Energy. 
Luther and Ursula Gerlach doing research in early 1970s on a protest of long haul truckers against high cost of their diesel fuel.  They made a 16mm film of the truckers' strike.
Dr. Gerlach explains how and why Grassroots Energy was made:
In the late 1990s, I made 12 videos for a distance learning version of my course Ecological Anthropology at the University of Minnesota, Twin Cities. I made these with the assistance of my wife, Ursula, my colleague Paul Eide in University Media Resources, and research assistant Tis Stringer.  To make these videos, we used 16 mm movie film, 35 mm slide/still film, and audio tape that Ursula and I had taken over years of anthropological field research in the USA, Kenya, Germany, and other places.  Our practice has been to complement written note taking with film and audio recording during this field research.  We draw upon our film and tape library to present lectures in class and also to make films and videos for use in class and in distance learning.  In recent years, we have digitized film and analog tape to make programs that can be presented via computer. 

It is thus that we made the Ecological Anthropology program Grassroots Energy.  I introduce and then conclude the movie with still photos and voice over narration. The movie itself is 27 minutes long, originally a 16 mm film.  We filmed during our field research.  We began research and recording in August 1974, shortly after farmers and townsfolk in West Central Minnesota learned that Cooperative and United Power had applied to state authorities for permits to build a +/-400kVDC line from a mine mouth plant in North Dakota across their land to a AC converter facility in a Minneapolis suburb.  We continued research and recording through the construction and energizing of the line and early response in 1980.  The film focuses on the period 1976-1978, when resistance to the line was most intense and widespread. 

Filming in the field and making slide shows and movies in the era before digital imaging presented problems not experienced by the users of digital cameras.  Instead of being able to take countless pictures and see the results immediately, one had to ration film and wait until processing to determine if one “got it or not.”  One had to keep film – and batteries - cool in the summer and warm in the winter.  And it was obvious to all that one was taking pictures or recording audio.  In any event, we observed the cardinal and ethical rule of anthropology: to get informed consent of those photographed.  

Before we released the film about the CU transmission line issue and resistance to it, we showed it to those involved in the resistance. 

A citizen’s organization in Wisconsin concerned with electricity production, distribution and use asked me if it could show the Grassroots Energy movie for a fundraiser.  After some deliberation, I agreed.  I then also agreed that a blog concerned with electricity transmission issues could provide access to this movie.  Further, I have included clips from the movie as well as other information about the CU case in a presentation to a workshop on transmission held in part by Edison Electric Institute.

I am now working to make available more of my published and unpublished material, print and audiovisual, on transmission and other energy issues.

Luther P. Gerlach, PhD
Professor emeritus of Anthropology, University of Minnesota

Biosketch

My studies of public response to electricity transmission lines is part of my broader study of the interplay of social movements and established orders in the management of technological and ecological risk and resource use locally, regionally and globally.  Thus, I examine how the interplay between advocates and opponents of transmission grid expansion produces debate about the energy future and shapes this future.

I have studied social movements, ecological adaptation, and related cultural change in the USA, Germany, and along the Kenya coast.  Following undergraduate and graduate study at the University of Minnesota, I served as a US Army officer in the Far East and a US government researcher in Germany. I then attended the University of London, particularly its School of Oriental and African Studies and also its London School of Economics, receiving certificates in African Law(Islamic Law Option) and Swahili, and a PhD in Cultural Anthropology (1960), following field research in Kenya.  In addition to my professorship in Anthropology at the University of Minnesota, I have been visiting professor at the Environmental Quality Lab of the California Institute of Technology, the Aspen Institute of Humanistic Studies, Oak Ridge National Laboratory, Science Center, Berlin, Germany.
If you haven't watched the film yet, you can download it here.

Luther's research, writings and film come closest that I have ever seen to capturing the feelings and purpose of people and groups who oppose transmission lines.  He has an understanding and appreciation for both sides of the energy debate, and studying his work should propel us along toward solutions. 

Instead, it appears that we are poised to make the same mistakes about centralized renewables that we made with centralized fossil fuel generation decades ago.  Why must the few sacrifice for the many when there are better solutions available?  Only when we understand social movements and energy equality can we learn from history and stop making the same mistakes over and over.

Dr. Gerlach has a huge body of work, some of which I've had the pleasure to read and ponder, and I hope he continues to make more of his published and unpublished works available.  There's so much to be learned!

Some of Dr. Gerlach's publications pertinent to social movements and energy for further reading:


Gerlach, Luther P, 2014. Public Reaction to Electricity Transmission Lines, Reference Module in Earth Systems and Environmental Sciences, Elsevier, 2014. 21-Mar-14 doi: 10.1016/B978-0-12-409548-9.09111-9.

Gerlach, L. P. (1999). The structure of social movements: Environmental activism and its opponents.  In Waves of Protest: Social Movements since the Sixties.  (J. Freeman and V. Johnson, Eds.), pp. 85–97. Rowan & Littlefield, NY

Gerlach, Luther P., and David Bengston. 1994. “If Ecosystem Management Is the Solution, What Is the Problem?” Journal of Forestry 92, no. 8 (August): 18–21.

Gerlach, L. & Palmer, G. (1981). Adaptation through evolving interdependence, pp 323-381 in Nystrom P.C, & Starbuck W.  Handbook of organizational design, vol 1. Adapting 0rganizations to their environments. New York, Oxford Press

 Gerlach, Luther P. (1979). Energy Wars and Social Change, in Predicting Sociocultural Change, Susan Abbot and John van Willigen, eds. Southern Anthropological Society Proceedings #13. Athens: University of Georgia Press 

Gerlach, L.P. 1978  Gerlach, Luther P. (1978). “The Great Energy Standoff.” Natural History 87 (January).

Gerlach, Luther P., and Virginia H. Hine. 1973. Lifeway Leap: The Dynamics of Change in America. Minneapolis: University of Minnesota Press.

Gerlach, Luther P., and Virginia H. Hine. 1970. People, Power, Change: Movements of Social Transformation. Indianapolis: Bobbs-Merrill.

 Gerlach LP and Eide P (1978) Grassroots Energy, 16-mm 27- minute, sound, color film. University of Minnesota Media Resources. Distributed by Penn State University Film.

We all owe Dr. Gerlach and his wife many thanks for their capable documentation and thoughtful commentary on our energy wars.  Now, let's do it better this time around as we move toward a cleaner, more democratic energy future!
3 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

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

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.
2 Comments

The More Things Change, The More They Stay The Same

11/2/2014

0 Comments

 
It has been my pleasure to work with Dr. Luther Gerlach a couple of times over the past few years as he continues his studies of transmission line opposition groups.  Dr. Gerlach is professor emeritus of anthropology at the University of Minnesota, and has been studying transmission opposition since the 1970s. 

In 2013, Luther updated his encyclopedia article, Public Reaction to Transmission Lines  (EEI has made the article publicly available for download here).  After it was published in 2014, the Edison Electric Institute invited him to present at their recent Utility Siting Workshop.  I again participated in discussions with Luther over several months as he put together his presentation for the workshop, Transmission Lines: Characteristics and Effects of Opposition.

Discussion with Luther has a way of making you think!  During the most recent discussions, Luther shared with me a film he narrated in the 1990s from footage he had acquired during the CU power line fight in Minnesota in the 1970s.  This battle was the subject of Paul Wellstone's book, Powerline: The First Battle of America's Energy War, which is sort of a transmission opposition primer.  A lot of us have read it to analyze what went wrong with their fight so we can improve on our own.  If you haven't read it yet, go get a copy!

I downloaded Luther's film, Grassroots Energy, and settled in to watched it by myself. 

Then I invited a fellow transmission opponent over to watch it with me a second time so we could discuss the similarities to our own fight.

Then, with Luther's permission, I shared it with a few other transmission opposition leaders across the country.

Now, I can share it here... Download and watch this film!  For even more fun, watch it with your transmission opposition buddies and plan a discussion afterwards.

Although it's been 40 years since the CU battle, I was struck by how much we're still reacting to new transmission proposals with the same emotions and actions that formed these opposition groups many years ago.  We still share information with others, and we still try to find better solutions. 

Now I'm going to go watch it again... while waiting for better solutions!
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.

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