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Befuddled Clean Line Executives Spreading "Miscommunication"

5/2/2014

2 Comments

 
Clean Line's latest public relations mantra is to accuse its opposition of spreading "misinformation."  It's a desperate, failed attempt to group its forthright and knowledgeable adversaries as unacceptable and to characterize them as liars, a propaganda technique known as "name calling."

But who is really spreading "misinformation?"  Two of Clean Line's most recent one-sided media excursions contained information and quotes from company executives that were outright lies.

First, the "miscommunication" in Arkansas Business about the Plains and Eastern Clean Line:

It has been in the works for the past half-decade and will build two lines intended to connect the Midwest’s wind resources to surrounding areas with less potential to generate wind, such as Missouri and southern Indiana. About 7,000 megawatts of power in Oklahoma would become available to surrounding states.
Clean Line quickly fell on its sword here, and the publication corrected its article to remove this reference.  Supposedly there is only ONE line on this project, with a capacity of 3500MW.  But then the company turned right around and signed a certain legal document with the same error in it!  How many lines does Clean Line intend to build, exactly?  "Misinformed" minds want to know!

The second lie was apparently just a "miscommunication" in the St. Louis Post-Dispatch editorial.  Matthew Stallbaumer from Kansas has been chasing that one around all week.  What he found was a shocking lack of honesty.  In Matthew's own words:
"Mr. Lawlor has been through this before, in Kansas, where he says the company has completed buying the land it needs for that portion of the line."

The landowners know this isn't true. But there was some hope on my end that our land would no longer be impacted, so I called the St. Louis Dispatch and spoke with Deborah Peterson, Editorial Writer, who told me she was involved with writing the editorial. She assured me that what was printed was what Mr. Lawlor communicated to her.

So I tried to call Mr. Lawlor, his reputation for not answering his phone or responding to messages is accurate, so I called Clean Line's office and waited on hold rather than leave a message. I spoke with Grain Belt Express representative Ally Smith. She admitted they are still negotiating easements in Kansas, which conflicts with Mr. Lawlor's statement, and promised to check into the situation and call me back the next day to explain how something so wrong could be communicated/printed.

Three days go by, no call back. I called Ms. Smith again, but had to leave a message, no call back. Finally, this afternoon, Ms. Smith answers her phone, she claims to have tried to call me earlier in the day (I had no missed calls on my phone) but let bygones be.

Turns out there was a "miscommunication" between Mr. Lawlor and the STL Dispatch editorial board. That was the extent of the explanation. No mention of what he really meant or said, but to me it seems pretty hard to confuse anything with owning all the property they need in Kansas. (I wonder if lies count as miscommunication, I guess one could argue they do, I wonder, was Ms. Smith miscommunicating to me?).

I asked Ms. Smith about Clean Line's Code of Conduct found on their website and these lines specifically:

I c. Do not misrepresent any fact.
II h. Do not represent that a relative, neighbor and/or friend have signed a document or reached an agreement with Grain Belt Express Clean Line.
III b. Do not discuss your negotiations or interactions with other property owners or other persons.

It's pretty evident that some if not all of those codes have been ignored by Mr. Lawlor. I asked Ms. Smith who is responsible for enforcing those codes and what the penalty is. I was asked to be put on hold. Then she made efforts to dodge the questions, instead offered that they had contacted the paper to report the error, that it may or may not be corrected, and there is nothing else they can do. I asked again who enforces the code and what the penalty is, doesn't seem like that tough of a question for a company who touts their transparency and integrity and efforts to inform every chance they get, but Ms. Smith couldn't answer the question beyond "it's a managerial process". Perhaps Mr. Lawlor will enforce the code upon himself and penalize himself. I was told I must file a complaint regarding the code and their internal managerial process would determine its merits. I thought I was filing a complaint with my initial call, but it turns out it has to be in writing. I asked whether she could file a complaint on my behalf as she is aware of the situation now, turns out Clean Line employees can't file a complaint, they aren't in a position to hold themselves or each other accountable regarding their own Code of Conduct. So, how can their managerial process result in any penalty if they can't enforce it upon themselves?

Does anyone still think Clean Line will be accountable for any other promises or statements they make to property owners, commissioners, press, politicians or investors?
Miscommunication is defined as "failure to communicate adequately."  For instance, giving your instructions in French to an employee who only speaks English.  "Miscommunication" is also a weasely synonym for not being truthful.  For instance, politicians and bureaucrats are never dishonest, they simply "miscommunicate."

In Mayberry, we just call that "lying."
2 Comments

Clean Line Gets Desperate

4/26/2014

6 Comments

 
Things are not going well for our friends at Clean Line Energy Partners.

Opposition to its Rock Island Clean Line, Grain Belt Express, and Plains & Eastern Clean Line projects continues to grow at explosive rates.  This isn't just a handful of NIMBYs in an isolated tool shed, but an active, educated, cohesive, movement numbering in the thousands and stretching across eight states (and beyond!)

Clean Line's biggest problem is its desire to wield the power granted to entities acting in the public interest by the Fifth Amendment of the U.S. Constitution.
nor shall private property be taken for public use, without just compensation
See where it says "public use?"  Clean Line is not a "public use."  It is a privately held investment vehicle that desires to build a for-profit project that has not been found necessary by any transmission planning entity acting under the auspices of our government.  Any yahoo can wake up in the morning and decide to build a transmission line, but the idea does not make it "needed."  Clean Line is a private entity who intends to sell transmission capacity to other private entities through privately negotiated contracts. 

Whether granted by a state, or by the federal government through Sec. 1222 of the Energy Policy Act, giving eminent domain authority to Clean Line is just wrong.  And the people will continue to loudly protest until the threat is removed.

Clean Line is failing in the all-important court of public opinion, which powers the legislative stance that drives approval or rejection of Clean Line's state regulatory applications.  Clean Line hates it when the voters connect with their elected representatives because Clean Line has spent lots of time and money wooing your legislators to support its project with inflated claims about jobs and economic development.  Clean Line has also been busy trying to slant the news coverage of its projects by meeting privately with editors and reporters in order to present them with a one-sided set of "facts" that support the project.  News sources practicing ethical journalism seem to be immune, but every once in a while Clean Line hits the mark with an editor motivated by politics or good ol' boy business glad handing.

Yesterday, the St. Louis Post-Dispatch posted one such editorial, so full of political pandering that it probably didn't require the additional lies that it printed.  The Editorial Board went wandering off about repeal of state renewable portfolio standards, the Koch brothers, foreign oil, commercial hog farms, Keystone XL, and oil subsidies.  None of these topics have anything to do with Clean Line, but the paper tried to use these political topics to paint the opposition it knows nothing about as unacceptable and therefore not worthy of being heard.  The St. Louis Post-Dispatch also quotes Grain Belt Express project manager Mark Lawlor as claiming he has purchased all the land he needs in Kansas:
Mr. Lawlor has been through this before, in Kansas, where he says the company has completed buying the land it needs for that portion of the line.
This is an outright lie.  Did Lawlor really say that?  Or was that the editor's creation?  Clean Line better clear this up before it comes back to bite them in a future eminent domain condemnation proceeding.... because that's the only way Lawlor is going to get his hands on some of the land he needs in Kansas.

The editorial was so bad that it has inspired more than 80 comments, almost all of them from real people knowledgeable about transmission and opposed to Clean Line.  Go ahead, read the comments, and see the people educate Clean Line's sparse supporters in Missouri.

And if you think that editorial is bad, check out this article in the Cherokee Chronicle Times where reporter Loren G. Flaugh tosses journalistic ethics out the window to openly insult one of Clean Line's opponents in Iowa.  The reporter inserts personal opinion into the story, calling Preservation of Rural Iowa Alliance board member Jerry Crew "befuddled," "mistaken," and says his group "doesn't understand" the project's business model.  And the reporter bases his inexpert understanding on talking points from Clean Line.  I wonder, would that hold up in court?

Crew wanted elected officials to tell him what was on the line when the wind doesn't blow.  No one could give him a correct or logical answer.  The reporter concludes that when the wind doesn't blow, the line will be de-energized.  I think the reporter is the one "befuddled" by Clean Line's bullsh*t.  If wind farms are contracted to purchase a certain amount of capacity on the line, and they aren't producing anything, they will most likely re-sell their capacity in the secondary market to try to recover some of their cost.  Who would buy it?  Any generator who wants to connect into the series of regional feeder lines supplying Rock Island Clean Line's starting point converter station, that's who.  And it could be ANY kind of generator -- coal, oil, gas, solar, wind.  Clean Line cannot guarantee that its line will be... "clean."

Jerry Crew is absolutely correct, and the reporter is misinformed.

My, my, my, how desperate Clean Line has become as it stoops to new lows in the media.  A viable project wouldn't require tossing journalistic ethics out the window.  Clean Line is more closely imitating the death throes of a bad project.  Surrender, Clean Line.
6 Comments

Rock Island Clean Line Could Lock Chicago Area Residents into Paying More for Dirty Energy

4/21/2014

4 Comments

 
That's the headline the Chicago Sun Times should have used on its recent article about Clean Line's Rock Island project.  Instead, the Sun Times reporter took the lazy way out by printing the unverified and grandiose claims of RICL developer Hans Detweiler as if they were facts.

The correct information was right there for the reporter's perusal on the Illinois Commerce Commission docket, or she could have looked at some of the testimony quotes on BlockRICL's website.  BlockRICL doesn't have to rely on spurious sound bites to spin the media, only the truth of the testimony at the ICC.

So, let's take a look at where the Sun Times reporter resorted to lazy "journalism":
Within three years, some Chicago area residents could be saving money on their electric bills, thanks to power generated 500 miles away.

Adding wind energy to the grid should push wholesale electricity prices down, Detweiler said. He thinks Illinois consumers could save about $320 million after the line’s first year.

“Wind is stranded because of a lack of transmission lines,” said David Kolata, executive director of the Citizens Utility Board, which represents the interests of utility customers in Illinois.

The Clean Line, he added, “has the potential to bring in a lot of low-cost power.”

The savings suggested by Detweiler are an estimate, but “there’s no question that it would reduce prices in Illinois,” Kolata said.
Rock Island Clean Line has no generators and no contracts.  There's absolutely nothing to back up all these statements about "low-cost power."  None of the people quoted have any idea how much the electricity RICL proposes to import to Chicago will cost.  The only thing that's certain is that the power will have the cost of building the transmission line added to its price.  RICL has estimated that its line will add $25 MWh to the delivered generation cost at its proposed injection point south of Chicago.  Additional transmission charges will be added from that point to ultimate end users.  RICL doesn't care if its delivered price is higher than other available sources in the Chicago market because that market isn't RICL's real target.  RICL is aiming to be competitive in east coast electricity markets, where electricity is much more expensive than in either Illinois or Iowa.

When there is a glut of power in a constrained market, prices remain low because generators must compete with each other to serve a smaller load.  However, when new pipelines are opened from the cheap, constrained market for power to flow to higher priced markets, it has the effect of levelizing prices between the two markets.  While the recipients of RICL's load on the east coast could see a reduction (and even that is doubtful), the markets on the source side of the transmission lines will see their energy prices go up as local load must now compete with the higher priced markets to the east.  RICL will absolutely increase electricity prices that would exist in Iowa without the project, and since Chicago is not RICL's intended market, but only a pit stop to inject power into the PJM grid, RICL will also raise prices in Illinois.

Note also that the Citizens Utility Board guy isn't even a party to the RICL case at the ICC.  His "unquestionable" claims about prices aren't based on evidence.  The actual ICC evidence shredded Detweiler's cost savings claims.
The $2 billion Rock Island Clean Line would take 3,500 megawatts of power created by thousands of wind turbines in Iowa and deliver it to Illinois. The project could be completed by 2017.

“As a nation [we] are moving toward renewable energy resources. We need a grid that reflects where those energy sources are found,” said Hans Detweiler, director of development for the project.

Wind-generated electricity could help Illinois meet renewable energy standards. By law, one-fourth of the energy used in Illinois must come from renewable sources by 2025.

And there is demand for renewable energy sources. Some Chicago suburbs seek out green energy through a process called “aggregation,” in which the suburb buys green energy in bulk for the community and passes along the savings, if any.

In Evanston, aggregation saved the average household $264 in its first year, said Jonathan Nieuwsma, vice president of Citizens for Greener Evanston.
There is no guarantee that RICL will deliver even one electron of renewable power.  Under federal open access transmission rules, RICL must offer capacity on its transmission line to all generators.  RICL is assuming that wind generation will be built in the resource area, and in such quantities that wind generation can supply a constant 3500 MW of energy.  RICL plans to sell capacity on its line to wind generators, who may only use a fraction of their purchased capacity due to the variable output of wind generators.  This will create a secondary market for transmission capacity that may be purchased by steadier, base load fossil fuel-generated electricity, even if RICL sells all available capacity to these as yet unbuilt wind farms.  Will these wind farms actually get built?  Without government subsidies, who knows?  Every time the PTC expires, so does the desire to build a wind farm.

Clean Line's claims that its project will deliver renewable electricity are just as spurious as their claims that the project will lower prices.  In fact, Clean Line's renewable power fan dance is under protest at FERC.

The reporter did no analysis on whether or not RICL is needed to meet Illinois renewable portfolio standards, nor whether it is the cheapest renewable resource available.  In fact, Clean Line is looking hungrily at RPS in east coast states
, where it believes its product may be cost competitive.  While Clean Line may have played with the numbers to make it look like this was true several years ago, the reality is that more renewables are coming online in the east, and renewable prices are falling.  And what happens if RICL is no longer economic when it comes time to sign power purchase agreements?  The company won't build it.  But yet, the company is asking Illinois regulators to ORDER it to build the project so that it may take land from the people of Illinois at cheap prices.  The cheaper RICL's land purchases, the lower its delivered price will be.  RICL is asking the state to take from its citizens in order to make a private investment company profitable.  That's not the intent of eminent domain authority for utilities.

Aggregation is just a fancy word for deregulated electricity markets, where political subdivisions can use their collective buying power to negotiate lower prices from competitive suppliers.
  Aggregation may have saved consumers money overall, but more expensive renewable energy had nothing to do with that.

The Sun Times article also contrasts the opinions of two landowners who will be affected by the project... without ever using the words "eminent domain."  And that's the biggest sticking point of this proposed project.  It intends to keep its development cost low by taking land through eminent domain at ultra-low prices.  One landowner "thinks" he will be treated fairly, but he hasn't seen "the numbers" yet.  While visions of dollar bills dance in that landowner's head, hundreds of others have instead become educated and have fully participated in opposing the project at the ICC, such as landowner Paul Marshall. 

Marshall and the Illinois Landowners Alliance have chosen to make their case in the proper legal venue, while RICL seems to prefer to try its case in the court of public opinion, hoping against hope that its misinformation will be enough to fool the ICC into approving its project.  The Sun Times ought to be embarrassed at how they were used by fast-talking wind lobbyists.
4 Comments

The People Have Had Enough

4/15/2014

1 Comment

 
Eminent domain.  Two ugly little words.

Here's two more:  Clean Line.

Mary Mauch of BlockRICL was on the radio this afternoon talking about Clean Line's proposals to take 3,000 miles of new transmission line right of way through eminent domain in numerous states across the Midwest.
Historically, we haven't spent too much time worrying about the right of public utilities to take private property using eminent domain.  It was a necessary evil to bringing electric service to every citizen in the last century.

But, let's take a look at where we are now in order to understand that transmission line eminent domain has reached the tipping point, where revolution is imminent.

It's no longer about bringing electricity to Mr. Smith's remote farmstead so he can read seed catalogs after the sun sets.  It's about trading electricity as a commodity, as new transmission lines get bigger and costlier.  It's no longer about providing a necessary service, it's about supporting markets and investor profits.

Transmission lines "ordered" by regional grid planners for reliability, economic or environmental reasons are bad enough, but one could argue that they are still ostensibly serving a "public" purpose by stabilizing the grid, the market, or saving the planet.  These projects are paid for by all users  of the electric grid, therefore there is some justification for the use of eminent domain in order to keep ratepayer cost in check.

And then we have the merchant transmission projects, like Clean Line.  This company is proposing transmission that has not been vetted or approved by regional grid planners.  They simply want to build a transmission line because it would be profitable.  Merchant projects are paid for entirely by their owners.  The merchant recovers its costs by selling capacity on the line to generators or load serving utilities (who then pass it on to the users of the project).  The merchant enterprise depends on the cost of building the line being less than the amount of profit to be derived from selling capacity.  If the cost of the line is greater than the profits, then it isn't an economic endeavor and it won't be built.

A merchant transmission developer has an interest in keeping its costs low to increase profit and make the project economic.  But a merchant transmission project isn't a public necessity.  It's a profit center, plain and simple.  That a successful merchant project would transmit electric power for purchase by utilities if the price is right does not a "public purpose" make. 

Clean Line proposes that state regulators anoint it with public utility status and its attendant power of eminent domain so that it may take whatever property it needs for its project at a low price.  This would keep the costs low for Clean Line, so that it could increase the amount of profit it may derive from operation of its line.

This is where the disconnect starts.  A merchant project that depends purely on economics for its purpose should be required to operate completely on an economic basis.  If Landowner A requires 150% market value for property, then that is the cost of the transmission line.  An economic project absolutely cannot rely on the power of the state to make itself profitable.

Landowners across Iowa, Illinois, Kansas, Missouri, Indiana, Oklahoma, Arkansas and Tennessee have taken a stand.  No eminent domain for privately financed economic projects.  The landowners are becoming highly educated about electric transmission, property rights and civic engagement.  And it's spreading like wildfire.

As a result, we are reaching the tipping point where absolutely NO transmission is going to be built, even that which may be needed.

The urban decision-makers with their quarter acre plots maintained by hired landscapers and gardeners simply cannot understand a farmer's or rancher's connection to his land.  Or why they are prepared to fight for their livelihood.
1 Comment

Landowner Accuses Grain Belt Express Clean Line Land Agents of Violating Code of Conduct

4/3/2014

1 Comment

 
Just saw the following message on facebook with the request to share it.  So, I shall:
URGENT!!!!!!!!
We have just been told by an elderly landowner that they had been contacted by Clean Line and were told that the project was a done deal and that he has to come in and sign an easement. This could not be farther from the TRUTH!!!! If they ever get Public Utility Status, and they are a LONG way from getting that, then it would be crucial to consult with an attorney! PLEASE, PLEASE, PLEASE share this with elderly landowners especially those in nursing homes. Please share, if we had not talked with this landowner, he would have signed with Clean Line!!!!!
Remember Grain Belt Express Clean Line's "Code of Conduct?"  We were discussing it just the other day.  Serendipity!

The "Code of Conduct" was plagiarized from the former Allegheny Energy (now multi-state energy holding company FirstEnergy), who used it for their TrAIL and PATH projects as a placebo to deny responsibility for shady land agent conduct.

The company hides behind its "Code," pretending that its contract land agents are supposed to follow it.  When a land agent is caught in a violation, the company acts all shocked and "fires" the land agent.  Responsibility for the violation is pinned on the land agent, not the company.  Therefore, the company is free to continue to violate its own "Code" as many times as necessary.

Land Agents are trained in psy ops.  Landowners usually resist utility overtures to purchase land or right of way.  It's all a psychological game by the land agent to trick the unwilling or unwitting into signing on the dotted line.  Land Agents attend continuing education sessions where they learn:
Understanding Behavioral and Personality Styles for Negotiation Success

Using practical and personal exercises, this session will provide attendees with a framework for understanding the behavioral and personality styles used for negotiation. Attendees will develop a better understanding of behavioral styles and how they can recognize and relate to the diverse styles of people they deal with.
The conference sessions have instructors like Dr. Mazie Leftwich, Psy.D.
With 20 years of experience in the right of way and land management consulting business, Dr. Mazie Leftwich is a nationally known presenter and corporate trainer in the energy industry. Dr. Leftwich serves as Director of the CLS Professional Development Institute and has been the catalyst behind CLS's extensive employee training, project training, and team-excellence programs for supervisors and managers. In addition to her work at CLS, Mazie maintained a limited private counseling practice for over 30 years, specializing in organizational and personal relationships and executive coaching. Her education includes a Bachelor in Psychology, a Master's in Administrative and Clinical Social Work and a Doctorate in Applied Psychology.
Dr. Mazie works for Contract Land Staff, the company Clean Line has been using for right of way acquisition.

Land agents will say or do anything necessary to get their job done.  The story from Missouri tells us that perhaps they will even lie and violate the "Code" of the company that contracts them.  Perhaps the land agents even troll nursing homes, preying on the elderly.  Nothing more despicable than that.

Remember, the "Code" was developed as part of a legal settlement between Allegheny Energy's TrAIL transmission company and the Pennsylvania Office of Consumer Advocate.  The settlement was the end result of a vicious court battle over the reprehensible way landowners in Pennsylvania were lied to and manipulated by land agents.

The "Code" is not enforceable by any authority.  It's a worthless piece of paper designed to give a false sense of security to landowners and regulators.  However, please do document and report any violations to your state consumer protection authorities, such as your Attorney General, because any despicable tactics perpetrated will most likely be a violation of your state's consumer protection laws.


Just don't talk to land agents.  There's no rush to enter agreements before a project has all its permits.  If you sign early, the company will still have a right to your property, even if the transmission line is never approved or built.  Do you really want that encumbering your property forever and making future sales or use difficult for you and your heirs?

There's plenty of time to negotiate a deal, with the recommended help of your own attorney, AFTER a project has all permits to begin construction.  In fact, if you wait to negotiate, chances are that the price you will receive may be greater than folding early in the process.  The longer you hold out, the more powerful your bargaining position becomes.

Don't be victimized by any possible Clean Line Grain Belt Express strong arm tactics that may be used.  Get educated, and more importantly, educate your friends and neighbors!
1 Comment

David Crane's Manifesto

3/27/2014

1 Comment

 
Have you read NRG CEO David Crane's manifesto of consumer empowerment in the electricity sector?

You should.

Crane envisions a sustainable future where energy consumers become energy producers.  His "manifesto" provides the road map for how he intends to get there.  Here's one of his ambitious thoughts:
Just a few years ago, the prevailing wisdom was that the path to a clean energy economy depended on our collective willingness to build a nationwide high-voltage transmission system in order to transport electricity in vast quantities from the relentlessly windy and brutally sunny parts of the country, where people generally don't live, to the more temperate places where Americans tend to congregate.

The folly of that idea thankfully was realized before anyone actually began to build such an expensive and pointless white elephant. Now we are headed for the same goal, but in the opposite direction: down the path toward a distributed-generation-centric clean energy future featuring individual choice and the empowerment of the American energy consumer.
While I fully share his enthusiasm, a whole bunch of transmission developers don't seem to have gotten Crane's memo on this.  They persist in attempts to cover the Midwest with wind turbines and transmission lines. 

But, the biggest monsters always do seem to go out with a final, terrible roar.  Hang on, transmission opponents, the monster is weakening and the future is coming!

We expect to be soon to market with a robust platform offering rooftop solar to homes and businesses and other forms of sustainable and clean generation that will offer our customers the ability to dramatically reduce their dependence on system power from the centralized grid.
I bet Michael Skelly wishes he'd thought of this back in 2009...
1 Comment

Missouri Landowners Alliance Files FERC Protest and Missouri PSC Complaint Against Grain Belt Express

3/20/2014

2 Comments

 
The Missouri Landowners Alliance has retained excellent counsel to defend its interests against the intrusion of Texas-based Grain Belt Express.

After a long career with a big utility, attorney Paul Agathen brings a wealth of experience to the Alliance's legal team.  Paul has gone on the offensive with a Protest of the Grain Belt Express Application for Negotiated Rate Authority at the Federal Energy Regulatory Commission and a Formal Complaint before the Missouri Public Service Commission alleging that Grain Belt Express has violated and continues to violate the Commission's rules regarding ex parte communications.

First, let's take a look at the FERC Protest.  As a merchant (self-funded) transmission project, Grain Belt Express must concoct its own rate scheme to recover its cost of building and operating its proposed transmission line from customers.  GBE's rate scheme is under the jurisdiction of the FERC and must adhere to FERC's rules, including its non-discriminatory open access transmission rules.  GBE's rate scheme proposes that the company be allowed to negotiate rates with willing transmission customers in a open and non-discriminatory bidding process.  FERC's job is to review and approve GBE's proposed negotiation process BEFORE it occurs.

And, according to the protest, that's just the problem.  Although GBE hasn't "officially" initiated its "open season" for potential customers, GBE has already started soliciting interest from its preferred customers via a "Request for Information" directed solely toward wind project developers in Kansas.  Directing its solicitation to only wind developers discriminates against other forms of electric generation, such as solar or gas, that could potentially bid for capacity on GBE's transmission line.  This discrimination violates FERC's open access transmission rules.

GBE has been doing an elaborate fan dance with FERC, promising to provide access to all forms of generation, while touting its project as a "wind only" transmission line and soliciting interest from wind developers.

The Alliance's Protest asks that the Commission determine that GBE's proposed solicitation of customers is unduly discriminatory and dismiss GBE's application for negotiated rates.

Without negotiated rate authority from FERC, GBE will have no way to collect its cost of service.  No money, no GBE.

Moving on to the Missouri PSC Complaint, the Alliance alleges that GBE has been violating the Commission's ex parte rules.  Ex parte means "one side only" and refers to communication between the decisional authority and only one of two (or more) parties in a case.  It's like one person getting to have a private conversation with the judge in order to sway his opinion against the other person.

But that's not exactly the way the Alliance alleges GBE has violated this rule.  The ex parte rules state:
It is improper for any person interested in a case before the commission to attempt to sway the judgment of the commission by undertaking, directly or indirectly, outside the hearing process to bring pressure or influence to bear upon the commission, its employees, or the presiding officer assigned to the proceedings.
The Complaint alleges that GBE violated this rule through its extensive public relations campaign intended to influence public opinion through statements on its websites, the gathering of boiler plate letters of support for its project, public statements and media interviews, and meetings with local government officials.

The Alliance is not objecting to GBE providing legitimate information to the public:
The Alliance is not objecting here to  everything on the two Grain Belt websites.
It recognizes, for example, that it is perfectly acceptable for Grain Belt to provide  nonargumentative factual descriptions of the Line and its supporting towers; to include maps of the alternative routes of the Line; to provide information for potential suppliers of
component parts for the line; and to address any other matter which is not likely to be a
contested issue at the forthcoming  Commission hearings.
The Alliance is objecting to GBE's elaborate public relations campaign:
As is apparent from all of the above, Grain Belt has engaged and continues to engage in an elaborate PR campaign designed to sway public opinion on matters which it will litigate in the forthcoming Commission proceedings. Their campaign is extensive, it is expensive, and it is professionally managed in all of its various aspects. They have even incorporated Facebook and Twitter into their PR arsenal, and added links in their website to a number of video presentations.

For example, it its Application to the FERC for approvals regarding the proposed Line, Grain Belt refers to their video "that describes the need for the Project and how Grain Belt Express will bring significant economic benefit to states through much-needed transmission expansion for new wind energy projects .... " (Exh. 23, p. 8).

This description of the Grain Belt PR efforts is not intended in the pejorative sense at all. The Grain Belt publicity campaign is undoubtedly effective, and will no doubt accomplishing two of its principal goals: to sway public opinion on the Line in Grain Belt's favor, and to thereby convince members of the public to sign on to the computer-generated letters of support which Grain Belt will file with the Commission.

The letters may have no effect at all with the Commission. However, the ultimate impact of Grain Belt's efforts should not be the deciding question here. If Grain Belt has violated the Commission's ex parte rules, their conduct should not be excused by some sort of "no harm, no foul" escape clause.

We may never know how many people in Missouri were exposed to and influenced by Grain Belt's one-sided presentation on issues which they themselves will raise later at the Commission. Nor could the Alliance ever hope to present its own position to all of the people reached by Grain Belt. Grain Belt has been waging an extensive PR campaign for about four years, and will likely win that battle.

Just how Grain Belt has gone about doing so is illustrated in materials presented at a recent conference in Houston, where participants spent two days learning various techniques for "selling" a transmission project to the public.
A copy of the initial brochure for that  conference is attached here as Exhibit 18.
As noted on the first page, the conference was held this past January, and was to be
hosted by Grain Belt's parent company- Clean Line. As noted at page 3 of that brochure, the keynote speaker at the conference was to be the Executive Vice-President of Clean Line.

According to the brochure, this is a sample of what those involved with building and siting transmission lines were to learn in Houston:

• How best to utilize social media to "engage the public", including who you can expect to reach, and how to go about doing it. (Exh. 18, p. 4) Not surprisingly, an expert in social media from Clean Line was to be one of the two speakers on this subject.
• How to deal with people disparagingly referred to as "NIMBYs" and "BANANAs". Ironically, the audience at that session was also told that a driving force behind the emergence of community-based opposition groups has been the push to build more infrastructure to support more renewable energy. (Exh. 18, p. 4).
• In "Marketing to Mayberry" the attendees would learn, among other things, how to talk down to people in small town, rural America, by communicating with them "in a conversational tone rather than corporate tone ... "  Presumably, these techniques were designed with the citizens of rural northern Missouri in mind.
• "How to frame and 'sell' infrastructure projects ... ", and how to use "effective
strategies and tactics, and share in critique of on-camera training ... "
• How to deal with the media, including:  "Getting into a reporter's head"; "How to answer questions you don't want to be asked"; and how to "position" your message to the media. (Exh. 18, p. 6)
• Finally, the Executive Vice President from Clean Line was to explain "how to ensure that our stakeholders feel they are informed and part of the process". (
emphasis added). Apparently, it is not important to Clean Line that stakeholders actually be informed, or actually be involved in the process, so long as they are somehow made to feel that they are.

The Complaint asks the Commission to find that GBE violated the ex parte rules, order it to revise its websites to conform to the rules, "that the letters of support included by Grain Belt with its Application for
Commission approval of the Line constitute the fruit of a poisonous website, and be therefore stricken from the record in that case,"
and other just and reasonable relief.

Everyone needs to read this Complaint.  The uneven playing field on which transmission owners and the public who oppose them do battle has been clearly defined as unfair.  This is the new normal of transmission opposition, so transmission developers may as well get used to it and turn over a new leaf to play fair.
2 Comments

The Improbability of Rock Island Clean Line

3/18/2014

3 Comments

 
The filing flurry on RICL's Illinois Commerce Commission application has finally ended.  RICL didn't hold up very well under careful examination.  It's all a house of cards, a fantastical "business plan" that relies on speculation, or as counsel for the Illinois Landowners' Alliance phrased it, "bold, lofty aspirations."

ILA points out the fragility of this company's plan and the unlikelihood of its success by taking apart RICL's stack of Matroyshka dolls to reveal the true impossibility of RICL ever being built.
Rock Island wants this Commission to grant its requests for a CPCN and Section 8-­‐503 order despite, among other things, (i) not having any generation, or commitments for the development of generation, to connect to the western terminus of the proposed line; (ii) not yet having any commitments for shippers, or customers, to take service on the planned transmission line; (iii) not having commitments from any equity or debt
providers to construct the Project; (iv) and not having completed interconnection studies and agreements needed with MISO and PJM.
Despite RICL's "build it and they will come" game plan, ILA points out that a real business plan needs actual commitments, not simply a string of dominoes that may or may not fall in line when the first one is toppled.

RICL's possible future financing to build the transmission line is dependent upon it having committed customers, or shippers.  RICL supposes that as-yet-unbuilt wind farms will sign contracts to purchase capacity, creating a revenue stream for the company that will enable it to obtain financing to build RICL.  In turn, the potential wind farms must obtain their own construction financing before they can sign contracts with RICL.  In order to obtain financing, the wind farms must secure their own revenue stream by having committed customers sign agreements to purchase power. 

RICL is supposing that unidentified utilities will sign contracts to purchase power from unbuilt wind farms that will in turn sign capacity contracts with an unbuilt transmission line.  Never going to happen.  There's too much risk involved here for any investor's comfort. 

Utilities don't like risk.

3 Comments

Cheers for the Green Belt Express!

3/17/2014

1 Comment

 
Do you suppose our friend Mark Lawlor is humming the Cheers theme song this morning?

He should be, after a national news story about his transmission line project got the name of the project wrong.
Sometimes you wanna go...
Where everybody knows your naaaaaaaame
And they're always glad you caaaaaaaame...

Ain't that right, Waldo?
Check out one of the hundreds of identical AP stories that have been distributed coast-to-coast:  Wind Power Line Proposal Irks Some Midwest Farmers.

The story pits "Green Belt Express Clean Line" against "some farmers" that don't want the transmission line on their land.  But, it's more than that... the farmers hold title to the land "Green Belt" desperately wants, and they're not giving in.  This situation has resulted in an epic battle over a private company's use of eminent domain for its speculative, privately-owned, for profit project.  This isn't just "some farmers," but thousands of landowners all over the Midwest who are opposing all of the Clean Line projects.
Many along the route worry that a private company could simply take over land that in some cases has been in families for generations.

"We have sacrificed everything for this land," said Jennifer Gatrel, 33, who, along with her husband, Jeff, farms a 430-acre cattle ranch in western Missouri. "We don't go on vacation. We don't go out to eat. Everything we have is tied up in this land. The idea that somebody can come in and take it from us is appalling and it goes against what it is to be an American."

Lawlor said the company prefers not to use eminent domain and wants to reach agreements with landowners. He also cited studies showing that power lines and towers have no effect on property values.

"When they sit down and talk to us and get the information about the reality of the project, I think we're succeeding in clearing the air," he said.

Not as far as Gatrel is concerned.

"There are already significant barriers to farming," Gatrel said. "This would be another major barrier."
Lawlor is only kidding himself about succeeding in clearing the air.  Opposition to his project is growing by leaps and bounds and nobody seems willing to sit down with him in the first place.  Maybe he needs to offer some free ham?  Pulled pork?  The truth?

"Negotiating" with landowners while threatening them with eminent domain condemnation is not negotiation.  As the Illinois Farm Bureau stated in their ICC brief:
In addition, if granted § 8-503 relief, what Rock Island characterizes as “voluntary” easement negotiations with farmers will actually sound something like “Rock Island has been directed by the Commission to construct a transmission line on an approve[d] route, which crosses your land.” Characterizing the easement negotiations as voluntary under these facts is kind of like giving someone the option of jumping off of a cliff before you push them.
The AP reporter did about as good a job fact checking the snowstorm Lawlor dumped on him as he did listening to the name of the project.

But, all press is good press, and this story moves the struggle for landowner rights to the national stage, where the truth is revealed:
The biggest hurdle for these projects is their intent to use eminent domain for pecuniary gain. Traditionally, utilities have been bestowed with eminent domain to build transmission for reliability reasons. But these "renewable" projects are not necessary for reliability or economic reasons -- they are solely an attempt to increase the percentage of "renewable" energy consumed in far-flung areas remote from the generator. And further, these particular "Clean" Line projects are an attempt to corner the market on "renewable" energy so that urban communities are precluded from developing local renewables. Instead of investing in our own communities, "Clean" Line proposes that we send all our energy dollars to midwestern states and into "Clean" Line's pockets. "Clean" Line has publicly stated that its transmission line will add considerable cost to the energy delivered and has provided no proof that the energy it proposes to transport will be economic or competitive with local renewables in the east. Stating that "Clean" Line will "drive down electricity costs" is disingenuous when "Clean" Line has no idea how much its delivered product will cost. It is just as likely that "Clean" Line will drive up electricity costs. "Clean" Line calls itself a merchant transmission company. A merchant transmission company depends on the free market to make itself competitive. "Clean" Line is depending on eminent domain to keep its cost of building the project down (cost of project shows up in the cost of delivered energy) and on renewable portfolio standards in other states to force utilities to purchase its product at any cost. In addition, this company has made noises about passing the cost of its project on to captive ratepayers, or using federal eminent domain authority to override state authority to site and permit its projects. Not the actions of a company depending on fair market competition for its success or failure! Right now, there is no market for "Clean" Line. There are no generators, and no purchase agreements. Opposition to "Clean" Line by affected communities and elected officials is increasing, and with each new opponent, the chance of success decreases just a little bit more.
When is "Green Belt Express Clean Line" going to quit dumping its investors' money down this rat hole?
1 Comment

RICL's Rose Colored Glasses

3/11/2014

0 Comments

 
Oh, the lies these chuckleheads tell themselves...

Someone sent me their recently received issue of Clean Line Express, your direct line to Rock Island Clean Line updates.

It's a happy world of fantasy and denial at RICL!  In fact, I've been wondering if we're all speaking the same language.

The Clean Line Express tells me: 

An agreement was announced with a "preferred supplier" of transmission structures in Iowa.

The rest of the companies that build transmission negotiate supply contracts based on price, quality and suitability of the materials, not on how the geographic location of the factory influences the local political process.  Did RICL get the best price and quality of materials?  It must be pure serendipity that an Iowa company was making just what RICL needed at the right price!

The Clean Line Express tells me:

Two public hearings were held in Illinois and that "[t]he
Clean Line team listened to the diversity of perspectives
of community members and will continue to work with
the community to answer questions and address
concerns about the project. Click here for some of the
comments shared by attendees."

That's funny.  I heard that the Clean Line guy was slumping down in his seat feigning sleep/boredom and playing with his iPhone before leaving the auditorium to harass high school kids and go shopping for a chore coat.  No, I didn't click for "some of the comments."  I have a feeling mine aren't there and I have no urge to go read some of the canned speeches Amy Kurt was handing out to her orange-clad lemmings.  I can only conclude that the Clean Line Express reporter and I were at different ICC hearings last fall.

The Clean Line Express informs me that ICC decision is pending!  Yes!  But why wasn't there a link to briefs from Com Ed, the Farm Bureau, the Illinois Landowners' Alliance, or the ICC staff?  How come my only option is to click to see some "supportive comments from environmental groups, labor unions, and wind
energy groups"? 
Does RICL think that if they don't mention those other briefs that the ICC will simply ignore them?  Whoopsie!

RICL also thinks it participated in IUB-required landowner meetings "[a]fter more than three years
of working with stakeholders in Iowa to find the best route for the Rock Island Clean Line...
"
  Are landowners not considered "stakeholders" or something?  None of the landowners at the meeting had been aware of RICL for three years, nor were they consulted about the route before the meeting.  In fact, the landowners didn't seem happy about the whole idea of RICL.

The Clean Line Express also wants you to know that wind energy prices continue to drop and market continues to grow!  Except, the accompanying map graphic shows
why RICL will never be competitive or economic.  The price of wind in Iowa is $32/MWh, however, the cost of building RICL will add $25/MWh to the market price of wind delivered by RICL, for a total of $57/MWh, which is more than the average price of $56 for the Northeastern states.  The map did not show a price for RICL's target zone of the Southeast.  This proves... ???

Well, that was informative.  Now I know that RICL is best viewed through special rose colored glasses.  I hope its investors have some.

0 Comments
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    About the Author

    Keryn Newman blogs here at StopPATH WV about energy issues, transmission policy, misguided regulation, our greedy energy companies and their corporate spin.
    In 2008, AEP & Allegheny Energy's PATH joint venture used their transmission line routing etch-a-sketch to draw a 765kV line across the street from her house. Oooops! And the rest is history.

    About
    StopPATH Blog

    StopPATH Blog began as a forum for information and opinion about the PATH transmission project.  The PATH project was abandoned in 2012, however, this blog was not.

    StopPATH Blog continues to bring you energy policy news and opinion from a consumer's point of view.  If it's sometimes snarky and oftentimes irreverent, just remember that the truth isn't pretty.  People come here because they want the truth, instead of the usual dreadful lies this industry continues to tell itself.  If you keep reading, I'll keep writing.


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