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Maryland Piedmont Reliability Project

6/21/2024

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Well, here's another particularly noxious transmission project weed!  The so-called "Maryland Piedmont Reliability Project" or MPRP.  This industry loves its acronyms!

In 2023, regional grid manager PJM Interconnection devised a suite of new electric transmission projects designed to import new electricity supplies to new data centers in Northern Virginia, and for Frederick County's new Quantum Loophole project.  Data centers use so much electricity, it's equivalent to large cities sprouting up overnight in previously rural places.  New cities need new power supplies, especially because Maryland has been closing all its baseload power plants that run on fossil fuels.  Before Maryland's recent plant closures under their "clean energy" plan, the state was importing 40% of the energy it used.  Now, it needs even more imports!  We're heading toward more than 50% of Maryland's electricity being imported from neighboring states via new high-voltage transmission lines.  The only two states in the PJM region that generate more electricity than they use and can export to Maryland are West Virginia and Pennsylvania.  The MPRP is importing electricity from southeastern Pennsylvania.  Other new transmission projects are exporting electricity from West Virginia's coal-fired plants to Loudoun County's "Data Center Alley.  It's nothing more than a series of enormous electric extension cords for data centers.  In PJM's planning process, it looked like this:
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Frederick County was sleeping the sleep of the uninformed throughout the planning and approval process at PJM.  And now it has manifested.

The project was assigned by PJM to New Jersey utility Public Service Enterprise Group.  Why them?  PJM put its new project requirements out for bid, and PSEG submitted the best project for PJM's needs.  PSEG also offered a certain price for the project.  There's more to this, but let's stop there for now.  Since PJM approved this project and assigned it to PSEG last December, PSEG has been busy devising a route for the project, and now they have finished and want to share it with the public.

PSEG will be holding public "open house" meetings across the project area early next month.  See website for details.  The "meeting" is hardly an actual meeting though.  It's a series of information stations the public is supposed to file through, and you may be handed a card to fill out with your thoughts at the end of the meeting.  Each little station will be populated with PSEG representatives, and you can ask them questions.  But there is no formal presentation or Q&A session where everyone can hear each question and answer.  Go ahead... ask different representatives the exact same question and get wildly different answers.  This is why utilities hold these kinds of meetings.  They will tell you what they think you want to hear, and not be held accountable for any of it.  The main purpose of the "meeting" is to introduce preliminary route maps to the impacted community and receive feedback that could help guide the final route that PSEG files for approval of the Maryland Public Service Commission.

This preliminary route map is floating around social media.
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Not a lot of detail, but it's a damn sight better than PJM's initial map as far as determining where they expect this project to go.  At the open house meeting next month, PSEG will have the detailed aerial maps that you want to see.  The maps may present numerous short route segments that can be pieced together to create a route.  They may ask what you think of them.  Most people will reject routes that impact them, and may be tempted to champion routes that do not.  But, throwing your neighbor under the bus to save yourself is never a good strategy.  The community must come together to oppose ANY of these routes.  If data centers need new electricity supplies, they need to build new power generators near the data centers, instead of plowing through communities that won't receive any benefit.  

The MPRP will likely need new rights-of-way 150-200 feet wide for its 500kV transmission line.  The company will ask landowners to sign easements for a one-time "fair market value" payment for just the land in the easement.  This gives PSEG the right to use your land, but you will still own it and pay taxes on it.  The easement payments are compensation for land you can no longer use, they are not a windfall or profit.

The MPRP website is chock full of propaganda and small bits of information that impacted landowners need to really investigate.  For instance, the website says:
​The MPRP is a 500,000-volt (500 kV) transmission line designed to respond to growing electric needs in Maryland and the surrounding region. Transmission reliability is key to supporting Maryland’s energy future.
They don't tell you that the project is only necessary because of enormous new data center load.  If we didn't build the data centers, or if we built new electric generation near the data centers, this transmission line would not be necessary.   It's not for you, it's for data centers.  This project also has NOTHING to do with clean energy.  It will actually increase carbon emissions in neighboring states that will have to produce more power using fossil fuels in order to import it to new data centers in Maryland and Virginia.

​Here's another:
  • Will PSEG want access to my property before I agree to grant an easement for the project?
  • ​PSEG may request prior access to conduct preliminary work such as a survey, delineate wetlands and/or conduct an appraisal to determine the amount of land needed and the value of an easement. In that case, the land owner will be asked to sign a right of entry document allowing PSEG onto the property for only these limited purposes.
State law allows utilities to access property for limited survey purposes before easements are signed.  However, PSEG wants landowners to sign a document permitting all sorts of surveying and testing, including things that may harm your property, like core drilling.  Think twice about signing this document and giving PSEG unfettered access to do whatever it wants on your property before they have paid you a dime.  Maryland law already gives them access for surveying that doesn't harm your property.  You don't need to sign any document or give them further permissions.

I also didn't notice the words "eminent domain" on MPRP's website, but that's exactly how they intend to acquire land from unwilling landowners.  Easement offers are nothing more than coercion... sign and take the money... or else.  When there's no opportunity to say no, it's not voluntary land acquisition.

PSEG's website, its open house meetings, and its permission forms and easement agreements are written in the company's best interest, not yours!

The best use of PSEG's open house meeting will be the opportunity it gives you to meet new folks who are similarly affected by this project and to exchange contact information and hold further meetings among yourselves to share information of interest to landowners who want to defend themselves against this transmission project.  PSEG is not from here, it doesn't know your community, and at the end of the day it doesn't care what happens to it.  They can't see it from their house in New Jersey!

It's time to circle the wagons, Frederick County!  Later this year, PSEG may file an application with the Maryland Public Service Commission.  When that happens, you have the right to intervene and become a party to the case that can submit testimony and cross-examine utility witnesses with the goal of convincing the MPSC to deny a permit for this project.  There will also be public hearings held by MPSC where you can speak out against it.

Meanwhile, get engaged and stay current on project news.  Talk to your neighbors and others in the community who may be impacted.  Make a plan. Maybe I'll see you at the open house...
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Landowners Are Not a Problem That Needs Solving

6/16/2024

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Academics who have never had a transmission line proposed across their property are at it again, writing their idiotic "reports" that claim to find the reason why transmission projects draw opposition and are not successful.  I've seen many versions of this "save the transmission world" report, and exactly none of them have gotten it right.  I think it's because they are inherently biased to think that transmission is "good" and "desperately needed."  They believe, deep down in their highly educated souls, that impacted landowners are simply speed bumps on the road to transmission "progress" and that they can figure out new ways to make landowners either acquiesce, or advocate for new transmission to cross their properties.  It's nothing but a psy op.

Nobody likes new transmission across their property.  NOBODY!  Anyone who said transmission was a great idea is either not affected, or their advocacy is being purchased with favorable treatment and ego-stroking (and cash helps, too!).

This new report (see "How Grid Projects Get Stuck" at the bottom of the page) makes conclusions about why the Grain Belt Express stalled out for so long and thinks it has now been successful.  Complete lack of accuracy!  GBE is in as much trouble now as it's ever been.  It's got its corporate head shoved too far up the Biden administration's rear end, hoping for government favors to pull itself out of the dumpster.  How much of our tax dollars will the federal government waste on a project that has never been needed?

And, speaking of need, the researchers did not seem to understand what they were told about lack of need for GBE, no matter how much people tried to educate them.  GBE, as a merchant transmission project, has not been found needed by regional transmission organizations for reliability, public policy, or economic reasons. If it had any of those benefits and its cost was less than the benefits it offered, a RTO would have ordered the project.  No RTO ordered GBE because there was no need for it, not because they are biased against outsiders.  If it's not found needed by an RTO, it is not needed.  Everyone (but the researchers) understands that.  GBE was a speculative venture, a value proposition that never could find any customers who thought it provided enough value to sign a contract.  When a project is not needed by a regional transmission planner, and it can't find any customers that think it's an economic value, then it's a completely unnecessary project.  It is like McDonald's eyeing your front yard -- GBE wants to take your front yard so it can build a transmission project for one simple reason -- PROFIT.  Not because it's needed, or because it provides economic value.  Incumbent utilities may be for profit, but they are also public utilities with an obligation to serve.  GBE is not a public utility.  GBE is only trying to create profit, not serve consumers who need electricity.

The researchers honed in on the disrespectful way Clean Line treated landowners, even mentioning the "Marketing to Mayberry" episode.  Skelly gets faulted for his approach to local governments and elected officials before landowners were even notified.  That pretty much set the tone, didn't it?  How different things might have turned out if Skelly approached landowners first and actually paid attention to their desire for the project to be sited along transportation corridors and buried.  It would be operating right now, if it had attracted customers.  Instead, Skelly and then Invenergy, just kept dumping hundreds of millions of dollars into a plan that was badly conceived from the beginning.  GBE didn't listen to landowners.

The things the researchers think GBE did wrong ultimately don't mean anything though because they picked up on the wrong things, things that wouldn't have made a difference in the long run.
  • Regulatory institutions are stacked against new players.
  • Public and regulators' understandings of public interest and public need enable parochialism. 
  • This case highlights a fundamental mismatch between the scale of costs and benefits for long-haul transmission infrastructure. 
  • The traditional model of community engagement, centered around mass meetings and evaluation of alternatives, failed to satisfy either the developer or the community. 
  • Community members are aware of alternative process models and technologies, and they anchor their judgments to their knowledge of these alternatives.
  • Public opinion favors incumbent entities and processes.​
What?  Poor, poor, rich little Michael Skelly.  Everyone was against him!  As they should have been!  He was only interested in plundering for profit.  Landowners have no use for him, and sent him packing back to Houston.  And did our slick willie friend learn anything from his failure?  I doubt it, judging from this article about his new company trying to build a transmission line through Montana.  SSDD.  You can almost smell the failure wafting its way from that article,

State regulators have a duty to consider the public impacts of new transmission.  That's not parochialism, that's doing their job.  State regulators don't work for merchant transmission companies, or electric consumers in other states.  They only work for the public in their jurisdiction.

Projects without benefits will never be accepted by impacted landowners.  Even projects with some supposed benefit for "the public" don't matter when it's your home and your money on the line.

Yes, the utility model of keeping the public uninformed until the project and its routes are set in stone is unhelpful.  Transmission developers that operate in secret fail in public.  But what's the alternative?  Would developers approach communities and ask them upfront what kind of project they should build?  That is unlikely because the whole public engagement process is built on an enormous misconception.  Developers (and researchers) believe that if they can only "educate" (propagandize) impacted communities, that they can turn opposition into support.  That is NEVER going to happen.  Nobody wants a transmission line. NOBODY.  Self preservation is always stronger than bullshit.

The road to success is staring transmission developers, big green transmission advocates, and their government flunkies right in the face.  It's a transmission project that does not need any new land.  No new land, no eminent domain, no impacts, no opposition.

First of all, we should build new power generation near the power load.  When new transmission is needed, it must be routed on existing linear easements, such as road, rail, or underwater.  Building a gigantic network of transmission lines for the sole purpose of connecting wind and solar projects to load in distant cities, and trying to use transmission to make up for the intermittent nature of these unreliable sources of electricity is not going to save them.  Remote wind and solar is an infeasible money pit.  The only thing it's been successful at is making the rich richer.

Landowners who don't want new transmission lines on their property are not a "problem" to be solved.
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DOE's NIETC Information Inadequate for Public Comment

6/15/2024

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The Kansas Heartlander asks if residents are informed enough to comment on the U.S. Department of Energy's National Interest Electric Transmission Corridors proposal?

No, no they are not.

Last week, Missouri Senator Josh Hawley sent a second letter to Secretary of Energy Jennifer Granholm asking for clear and complete information on the NIETC proposal so that his constituents will be informed enough to make comment.  Senator Hawley also requested a 45-day extension of the comment deadline.

​Senator Hawley said...
​Constituents in my state have rightfully complained that the proposal lacks essential information needed to adequately provide comments on the plan. The maps provided are simply not specific enough. Landowners should be notified if the proposed route is going to touch their land. Instead, they are left to guess whether or not their land could be taken by the federal government. And they can only be sure that the corridor is on their land when it is finalized. 
That's because the only information the public has is a vague, not to scale map with a line drawn on it.  And the DOE has done nothing to notify citizens that they may be in a corridor.  DOE has done shockingly little press on its proposal to conscript the land of millions of Americans and turn it into high-voltage electric transmission corridors.  If not for the knowledge of a handful of watchdog citizens, DOE would be getting away with it!

It's not like DOE doesn't have the information, it's just that DOE refuses to disclose the information it used to draw its vague maps.  DOE solicited "recommendations" for corridors from greedy transmission developers back in December 2023.  DOE needs to share the information it received so that citizens can base their comments on the same information DOE will use to evaluate this proposed corridor for designation.  Citizens are drawn into a duel without any weapons.  It's absolutely shameful!

A future NIETC designation is a land use planning decision that changes the use and marketability of land in perpetuity.  Who would buy a home in a NIETC if a future transmission line is planned to destroy it?  Who would buy land and build a house in a NIETC that is subject to federal eminent domain?  How can farmers plan improvements to their businesses when they have no idea if they will even get their investment back?  It's bad enough that Missouri farmers have been threatened with Grain Belt Express for more than a decade, now the DOE is planning more transmission within a 5-mile swath of their remaining properties.  On top of that, there is no compensation offered by the DOE for property taken by a NIETC.  It's private property taken for public use, without just compensation.  The Fifth Amendment to the Constitution prohibits such a taking.  It also prohibits depriving citizens of life, liberty, or property, without due process of law, and DOE is shutting down all due process for citizens impacted by its corridor proposal.

Senator Hawley is not afraid to stand up to the DOE and demand due process for citizens.   But why are the rest of our elected officials asleep?   Bravo, Senator Hawley, and thank you for your work!  I hope other Senators are brave enough to join you!
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Washington Post Says The Quiet Part Outloud

4/20/2024

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Our power appetite is bigger than our power supply.  The "renewable transition" isn't working.  We are losing large baseload power generators and not replacing them and we're adding too much load.  Our electric system is not sustainable.  It's a simple math equation.

Back in January I was contacted by a reporter from the Washington Post who had been writing about the proliferation of data centers in Northern Virginia and wanted to investigate how Virginia's out-of-control building was impacting people in surrounding states.  Virginia's data center problem is no longer just Virginia's problem.  It has now spread to the entire 14 state PJM Interconnection region.

​Here's his story that began back in January.

​
For us, the story began last summer when we found out about PJM's transmission plan for multiple new high-voltage transmission lines to import more power to data center alley.  We followed it through PJM's planning process and though we protested and asked for other solutions, PJM approved three new 500kV transmission lines and a whole bunch of smaller segments and substations.  During PJM's TEAC meetings, I remarked several times that the new transmission was feeding from existing legacy coal plants in West Virginia and was actually increasing emissions and in no way helping the "renewable transition."  Every time I mentioned it, PJM was quick to claim that the new electric supply would come from "all resources, including renewables."  PJM seemed rather sensitive about the reality of its plan and vehemently denied it.  Deny this article, PJM.  It's all there in living color.

Virginia has renewable energy laws that prohibit the building of new fossil fuel generation (gas, coal).  But yet Virginia is building an incredible amount of new data centers that use outrageous amounts of power that is simply not available on the current system.  Virginia's renewable energy plan is a virtue signaling lie.  Instead of building the electric generation it needs, Virginia intends to IMPORT electricity from surrounding states, even coal-fired power from West Virginia.  ESPECIALLY coal-fired power from West Virginia.  How is Virginia's "renewable energy" law cleaning up the environment?  It's not.  It's making the situation worse.

After Tony started working on this story for the Washington Post, FirstEnergy made an announcement that bolstered what I had been saying... PJM's transmission plan is increasing the production of coal-fired electricity in West Virginia.  FirstEnergy announced it was abandoning its goal to decrease its carbon emissions by 2030 by throttling back its Ft. Martin and Harrison coal-fired power plants near Morgantown.  FirstEnergy said it was necessary to abandon that goal because those resources were necessary to provide reliability in PJM.   In other words, FirstEnergy will throttle up its electricity production at those plants in order to provide supply to PJM's new transmission line that begins at the nearby 502 Junction substation and ends at No. Va.'s data center alley in Loudoun County.  Ft. Martin and Harrison directly connect to 502 Junction via dedicated 500kV transmission lines.  Also connecting directly to 502 Junction is the Longview coal-fired power plant in Morgantown and AEP's Mitchell coal-fired power plant in West Virginia's northern panhandle.  It's more than 5,000 MW of hot and dirty coal-fired electricity and if the line is constructed it's heading right for Northern Virginia, along with some smog and air pollution.  Data Centers are filthy!  And PJM is a filthy liar.

Along the way to No. Va., PJM's new coal-by-wire extension cord will expand existing transmission rights-of-way closer to homes, schools, parks and businesses.  Expanding existing easements makes it impossible for the utility to avoid sensitive things like they could if they were siting a new corridor.  Anyone living along the existing corridor, like the Gee family, is going to be steamrolled right over. 

The "using existing rights-of-way" propaganda is another huge PJM lie I brought up over and over during TEAC meetings.  It's a new easement all the way because it cannot be constructed within the existing corridor.

And guess what?  Along with new pollution and new land acquisition using eminent domain, West Virginians will PAY for this destruction/construction in higher electric bills, along with every other ratepayer in the PJM region.

And we get NOTHING for our trouble.  Virginia gets new tax revenue building things they can't power while crowing about how "clean" Virginia is, and the rest of us get the impacts and the bill.  We're NOT your sacrifice zone.

Washington Post reporter Tony Olivo did a fantastic job investigating and reporting on this story.  He spent a day with us here in Jefferson County and drove from one end of the county to the other meeting people, and Washington Post photographer Sal got lots of photos and drone footage along the way.  Then these two guys drove all the way out to 502 Junction and Morgantown to do the same there.  They spent an enormous amount of time on this story and it shows.

One of my favorite images in the story is the new solar "farm" near Charles Town taken from the drone.  It shows how the company building it scraped off all the vegetation and top soil and left nothing but bare earth and erosion that is killing the Shenandoah River.  Clean energy ain't so clean, is it?

And let's talk about that "clean energy", shall we?  Wind and solar cannot create the amount of electricity needed for new data centers, even if they cover Virginia with turbines and panels from end to end.  The data centers need a plentiful and reliable supply they can only get from fossil fuels.  A few solar panels on the roof of the data center won't do a thing to cure this problem.  It may only keep the lights on in the restroom... during the day.  Renewables cannot power our energy intensive society.  We're not replacing the generation we're shutting down in the name of carbon reduction, and there's no chance that we can ever catch up at this point.  Data centers are too big a drain and Virginia can't stop building them.

If you have any doubts, check out the Generation Fuel Mix pie chart on PJM's website at any time.  Renewables provide only a tiny slice of PJM's power supply and it will never change as long as we keep increasing power load with new data centers.

Bravo to Washington Post for exposing Virginia's dirty data center reality!

​And let's get to work, Jefferson County.  We've got a power line to stop!



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I Told You So!

3/7/2024

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This may be the first of several blogs with the same title.

I told you so, DOE!

It seems that one of the first merchant transmission projects that DOE gifted with a capacity contract has gone belly up because it couldn't find any other customers.

FACT:  Merchant transmission capacity contracts are NOT like painting Tom Sawyer's fence... just because the federal government is stupid enough to sign a capacity contract for service doesn't mean anyone else is equally stupid.

Last October, the U.S. Department of Energy announced the first three recipients to be granted transmission capacity contracts paid for by taxpayers.  And I blogged about it here.
DOE is buying something that it doesn't need and won't ever use, but will put a lot of money in the pockets of private investors who otherwise would have no buyers for their overpriced service.  Can I just say "I told you so" in advance?  This program is wasteful, illogical, and unfair.
Taxpayer funded merchant transmission capacity contracts for projects that have no other customers DO NOT inspire other buyers to sign a contract.

I've been telling DOE this since the dawn of this stupid idea.

But they didn't listen, being all concentrated on political nonsense and lacking common sense such as they are.

And this week, I was right.  The Twin States Clean Energy Link was cancelled.  It was cancelled because it couldn't find any other customers besides the U.S. DOE.  That's right, even when the DOE put up our tax dollars to support a merchant transmission project nobody needed, it still didn't inspire any other customers to sign up.  This experiment in propping up unneeded merchant transmission projects with taxpayer dollars is a miserable failure.

Undaunted, the DOE recently issued a second solicitation for more loser merchant transmission project contracts.

Sometimes you just can't fix stupid, especially when their pockets are full of Other People's Money.

Speculative merchant transmission projects are not viable.  Quit wasting our money, DOE!

Did I mention I TOLD YOU SO?
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Grain Belt's Not So Big News

2/23/2024

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Someone sent me this article earlier this week.  It tries to pretend that Grain Belt Express has made some sort of regulatory or procedural progress... like it got things *approved*.  But the reality is that the only things GBE recently got was a well-deserved kick in the behind from the Federal Energy Regulatory Commission and a big nothing from the U.S. Department of Energy.  Big deal.  Must have been a slow news day... or just one ripe for propaganda and fake news.

​Let's go to the DOE thing first.
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That's right... zero plus zero is still zero.  GBE is still a big, fat zero.  FAST-41 is supposed to be a government run program that "speeds up" the environmental review for selected projects.  Except, the government getting involved has never sped up anything!  Government slows everything because of its pendulous rules and process.  GBE's Environmental Impact Statement has already been underway for more than a year, and it's already at least 6 months behind schedule.  And there's no end in sight.  How would anyone even know if FAST-41 speeds up the GBE EIS, since it's already behind the non-FAST schedule?  This is just a waste of time and tax dollars, let's move on to FERC.

The article says
Grain Belt Express is also making procedural headway at the Federal Energy Regulatory Commission.
Say what?  Did this silly reporter even READ the FERC Order he's reporting on?  I'm thinking no, because no sane person would have read that Order and decided it was favorable to GBE.  What GBE got from FERC was nothing but a scolding.

We've known for quite a while that GBE was going to connect to MISO and AECI in Callaway County at the existing McCreedie subtation and also at a new substation it is sharing with Ranger Power's immense solar farm.  The new substation is called Burns.  Burns will be owned and built by incumbent utility Ameren (however I hear that Ranger Power bought the land and scraped all the topsoil off it before handing it over to Ameren).  Ameren has been ordered to build this substation and connect both Ranger Power and GBE by regional grid operator MISO.  Ameren cannot refuse to build it.   In addition, MISO's studies determined that there needs to be two new 345kV high-voltage transmission lines from the new Burns substation to the existing Montgomery substation (in Montgomery Co.) in order for GBE to connect.  The existing line cannot carry enough power and new ones must be built.  Ameren has also been ordered to build these new transmission lines, although GBE must pay for them.

GBE's interconnection to MISO was subject to a Transmission Connection Agreement between the parties.  The TCA is a pretty standard thing that relies in large part on MISO's filed tariff with FERC.  TCAs can be negotiated somewhat and once they are complete, they are filed with FERC for approval.  Except GBE could not agree with MISO on a number of issues so MISO filed the TCA with FERC unexecuted (unsigned).  FERC approved that unsigned TCA.  GBE had asked FERC to make several changes to the TCA and force MISO to do certain things, and for FERC to make Ameren hurry up and build the new transmission lines that GBE needs to make its connection at Burns.  FERC declined to make any of GBE's suggested changes and told GBE it was not necessary to tell Ameren to hurry up.  GBE got NOTHING it asked for here.  GBE was legally smacked upside the head.  FERC has sided with its regional transmission organization, MISO, on all issues.  This really isn't novel or different.  FERC always sides with its pet RTOs.  GBE is just stupid if it thinks it can challenge MISO and get a different result.  Maybe now Polsky will get a clue about why they "don't hear from them" on all the complaints Invenergy has filed against MISO?

Although the TCA was approved by FERC, it doesn't do anything to make GBE's connection happen faster.  It's still scheduled for, maybe, 2030.  GBE had asked FERC to force MISO to connect some smaller portion of capacity in 2027.  Not happening.

Why is this such an issue for GBE?  Here's a quote from the Order:
Grain Belt asserts that, with respect to the reasons for delaying the In-Service Date of the GBX Line, Ameren Missouri did not mention that its affiliate, Ameren Transmission Company of Illinois, was awarded a number of transmission facilities under MISO’s Long-Range Transmission Planning process, which it is constructing with planned In-Service Dates of 2028 and 2030. 
That's right, folks!  MISO ordered Ameren to build new transmission lines to be in service in 2028 and 2030 for the purpose of importing wind and solar energy from Iowa to Missouri and Illinois.  These regionally planned lines are cost allocated to all ratepayers in MISO.  This means that the cost to use them is going to be considerably LESS than the bloated $7B merchant transmission Grain Belt Express.  In fact, ratepayers are going to be paying for the new Ameren lines, even if they choose to use GBE instead.  Let's see... renewable energy on new lines you pay for OR renewable energy on the GBE, which costs a lot more, and then you STILL have to pay for the Ameren lines anyhow.  Doesn't take an energy trader to figure out that problem.

The Ameren lines will be cheaper.  Therefore, GBE is in a big hurry to try to get its bloated behemoth online before Ameren gets those lines built.  Looks like that's not going to be possible.

GBE is stripped bare... it's too expensive and obsolete.  Who would want to be a customer?  And, speaking of customers, GBE still does not have negotiated rate authority to try to find any.  No matter though... GBE can't connect its project until at least 2030, when there will be better options for renewable energy transmission service in MISO.
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More Media Propaganda

1/17/2024

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You just can't trust the media these days.  Instead of impartially reporting the news anymore, many major media outlets are engaged in pushing the propaganda of energy companies and political goals.  Case in point:  This article about a solar farm in Michigan.

The "victim" in this article is a landowner who needed money and decided to lease her ground to a solar company.  Neighbors objected to the solar farm so local zoning got changed and the project was blocked.  Isn't that democracy at work?  The needs of the many trump the needs of the few.  Local governments have become ground zero for land use issues, and the voters drive acceptance or rejection.  But for some reason, the media presented the story to make the voters the bad guys and the few the "good guy."  Of course this isn't how democracy works, but somehow this anti-democratic rhetoric was championed in the name of "clean energy."  That is, the government should be allowed to dismiss the concerns of the voters if it's about a clean energy project.  There, the few rule supreme.  This is about huge multi-national corporations making money building things we may or may not need in our own communities.  We no longer have a voice in our local affairs.  The article touts policies in several states where state level government can overrule local government and direct land use in the locality.  Is this a good idea?  The article tries to make you think so, but if you extrapolate this out to things like data centers, Walmarts, and polluting factories, the supporters of state rule suddenly think it's not a good idea.  It's hypocrisy, plain and simple.

We are constantly told that rural areas must make a sacrifice to create and transmit "clean energy" for urban areas that don't want to put that stuff in their own community because... you guessed it... their voters object to that use of remaining open space.  How about a little empathy?  If you don't want it in your backyard, we don't want it in ours, either.  Urban areas are not "more special" where they can push energy impacts off onto less fortunate and politically-connected communities in order to save themselves.  This is the rich and politically powerful enslaving the rest of the country... so they can live well in their own communities and not give "those people" another thought.  Some of them tell themselves that "those people" like being their slaves and that they should be congratulated for giving "those people" an opportunity to "be heard."  What good is "being heard" when nobody listens?  Giving "those people" an opportunity to shout into an empty well before you run them over is not democracy.

When did our energy system stop becoming democratic?  It never actually was.  It was designed for benefit of corporations, and those corporations are still the ones who benefit.  Pretending that "everyone else" loves clean energy and transmission when it is sited on someone else's property, is not democracy, it's corporate-fueled mob rule.  And somehow rural property owners protecting the land that produces their income are the demons, the NIMBYs.

NIMBY stands for "Not In My Back Yard."  NIMBY is name-calling at its most basic level.  Calling opponents "NIMBYs" does not deal with their arguments in a logical way, it simply directs the reader to dismiss the NIMBY altogether and not listen to his arguments because they must be "selfish."  Who's the real selfish person here?  The person trying to protect himself from invasion, or the person doing the invading in order to protect himself from a similar invasion?  Corporations who stand to make big bucks exploiting rural landowners are quick with the NIMBY label.  They also try to shut down any NIMBY arguments by claiming they are "misinformation."  And they further demonize the NIMBYs by falsely claiming that they are organized and funded by corporations and mysterious "national organizations."  All this adds up to censorship of "those people" by turning them into unacceptable groups who are so extreme that they should not be allowed to speak out or object in any way to the invasion.

Case in point:  This article demonizing NIMBYs.  The author is a real jerk, pretending he's Mr. Science and is somehow figuring out NIMBY motivation.  Poor fella, he has no idea what motivates "NIMBYs" and never will until he actually becomes one himself.  You cannot truly know how another man feels until you walk a mile in his shoes.

He also doesn't get the reason why thousands of unaffected "YIMBYs" don't show up to shout down the NIMBYs, acting as his own personal army.  First of all, use of the term "YIMBY" -- YIMBY stands for "Yes In My Back Yard."  None of the proposed YIMBYs even have a back yard of their own if they're the proposed young and clueless climate protestors.  They are not accepting any sacrifice for themselves, just demanding that others make a sacrifice for them. YIMBY is not the proper word here.  Paid protestor is more apt.  It doesn't take a lifelong study of human nature to realize it is harder to whip up support for something than it is to whip up opposition.  The supporter simply doesn't care enough to go out of their way to support someone else's project.  However, the objector whose property and way of life is threatened will go to great lengths to protect himself.  The only way corporations have been successful in creating supporters is with good, old fashioned cash.  Paid advocates, whether they are handed cash, free dinners, or business favors, will go out of their way to provide support if the price is right.  They will also spread any misinformation they are handed.  They are part of national organizations.
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Despite all the biased media, we've yet to see rural landowners bow down to their wannabe urban masters.  Who do they think they're convincing with this hogwash?
1 Comment

MJMEUC Partners With GBE's Competition

11/11/2023

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Hit it, Alanis...
This is a rather long story, but it is deeply satisfying in an "I told you so" way.

You all know that Grain Belt Express has been in the works for years.  In order to get approval from the Missouri Public Service Commission, GBE offered MJMEUC (now going under the acronym MEC) a sweetheart, below cost deal if only they would sign up for service on GBE.  MJMEUC accepted and has been exclaiming over how much money GBE would save for its customers.  GBE is the bomb, said MJMEUC.

A couple years ago, regional grid planner/operator MISO began to plan a new collection of transmission projects to increase connectivity and reliability across its region, known as "Tranche 1."  Tranche 1 looks like this on a map:
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There's a set of projects in Iowa/Missouri that would import wind energy from Iowa into Missouri.  On the map, it's represented as Orient-Denny-Fairport-Zachary-Thomas-Maywood, the 9, 10, 11 projects on the map.  When MISO was developing this plan, GBE got upset.  GBE insisted that its project was a better deal for ratepayers and would obviate the 9, 10, 11 projects, if only they could build it.  In order to cement its position and prevent these projects from being approved by MISO, GBE began complaining to MISO that if only MISO included a built version of GBE in its planning, then the 9, 10, 11 projects would no longer be necessary.  MISO rejected that idea because it has no control over whether GBE will ever be built.  MISO preferred not to put all its eggs in GBE's transmission basket and proceeded with its plan to build the projects because MISO thought those projects would be a better deal for consumers.

And that's the question -- what IS a better deal for consumers in Missouri?  As you know, the GBE project must be fully paid for by voluntary customers like MJMEUC.  However, the MISO projects would be cost allocated to all consumers across the whole MISO region, with Missouri only paying a portion of the cost of constructing the lines.  Considering the cost differences between GBE ($7B) and the MISO lines ($84M so far), it's a fair question to ask.  Of course, MISO can't touch GBE's special deal pricing to MJMEUC because it is BELOW COST, but that only applies for "up to 200 MW" of service, less than 5% of GBE's capacity.  The remaining 95% would be offered to other Missouri customers at vastly increased rates.  As well, the MISO projects are cost allocated to captive customers.  That means everyone pays a share, whether they use it or not.  MJMEUC (and all Missouri electric customers) will pay for a portion of the MISO lines, even if they sign up to use GBE.  If you sign up to use GBE, you'd be paying for GBE AND the MISO lines and there's nothing you can do about it.

GBE also claimed that MISO's projects would hurt its project's economics.  I can only believe that means that MISO's projects are going to be much cheaper for Missouri customers than GBE.  If MISO is offering comparable service at a lower price, why would anyone sign up to use GBE at full price?

GBE felt so strongly about all this that it filed a complaint against MISO at the Federal Energy Regulatory Commission, demanding that FERC make MISO include GBE in its transmission planning.  FERC has totally ignored GBE's complaint and it has now become obsolete without accomplishing anything. 

MISO moved on and opened an RFP for the #9 project in its Tranche 1, a new transmission line and substation in Missouri known as Fairport-Denny.  Ameren bid to build the project, and as part of its proposal it will be partnering with MJMEUC.  Ameren will sell 49% of the new transmission project to MJMEUC upon completion.  MJMEUC must think MISO's project is a good deal for its ratepayers.  It must be cheaper than additional transmission service on GBE.

MISO recently selected the Ameren/MJMEUC project to be built.  And they're off to the races...

With the MISO project in the works offering transmission service for importing new wind resources into Missouri, why would anyone in Missouri sign up for GBE and pay more for wind being shipped from SW Kansas on a more expensive transmission project?

If not for that "sweetheart deal" MJMEUC received, would MJMEUC even be GBE's customer?  Indicators point to "no".  MJMEUC only loves GBE because it got a sweet deal.  MJMEUC doesn't seem to care if GBE ends up costing other Missouri customers more than the MISO projects.  Isn't that a bit selfish?

And shouldn't MJMEUC re-examine its deal with GBE and compare to taking service on the new MISO lines instead?  MJMEUC can get out of its GBE contract at any time.  But will it stop being selfish long enough to acknowledge its mistake?  Otherwise, MJMEUC is now competing against itself.  Dumb decisions make dumb results.  I told you so.
0 Comments

Transmission "Community Benefits" Don't Help Impacted Communities

10/24/2023

1 Comment

 
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I've written a lot about the new pot of money the DOE was granted by Congress that is supposed to provide "benefits" to communities impacted by the construction and operation of new transmission lines.

​Now here's this... a new proposal to do the exact same thing from some clueless congresscritter, and backed up by some lovely astroturf.
Protect Our Winters, a group formed to safeguard outdoor recreation from the effects of climate change, is advocating a draft bill that would increase fees on Energy Department loans for transmission lines, with the new revenues going for infrastructure projects in communities where the new lines are built.

In doing so, the group is hoping to dispel a “not in my backyard” mentality that has been common in some rural communities, where transmission lines were seen as detriments to the aesthetics of the wilderness frequented by skiers, climbers and outdoor enthusiasts.

The group’s staff, along with outdoor athletes, are seeking support for the draft they partnered on with Rep. Ann McLane Kuster, D-N.H., hoping that it will garner bicameral, bipartisan support when it’s formally introduced. The group came to Washington last week to drum up support.
First of all, who do you think paid for this D.C. party?  Do you think the "athletes" paid for it out of their own pockets?  I doubt it.  There's someone behind this who paid for the whole party, probably a someone who would benefit financially if this legislation is passed.  That's how astroturf works.  The corporate interests behind the scheme fund all sorts of free parties for anyone who will participate.  The participants rarely know anything about what they are "supporting", they're just there for the party to make it look as if "regular people" support the idea.  Has anyone actually asked a community impacted by the construction and operation of new transmission if they would drop their "NIMBY" opposition if there was some new infrastructure somewhere nearby?  Of course not, because this idea does not work!  It didn't work before, and it's not going to work now.  It's just a waste of money.

Do these gladhanders think that the actual people affected by new transmission won't continue to speak up for themselves and make their concerns clear?  As if they can be smothered into silence by a bunch of puppets pretending they are "helping" the community?

This new legislation shouldn't even see the light of day.  It has zero chance of ever being passed.

Meanwhile, the U.S. Department of Energy has extended its deadline to apply for the current "Economic Development Grants" for communities impacted by the construction and operation of new transmission projects.  Probably not because they got so many applications, more like they didn't receive any worthwhile applications and are hoping if they extend the deadline some will magically appear.

The problem with these "community benefit" bribe payments is that the "community" impacted by a new transmission line is narrow and linear.  It never coincides with a traditional cluster "community."  Only those persons who are forced into hosting a new transmission lines, and those living very nearby, are actually affected or impacted.  This linear community doesn't need economic development and it would be impossible to site anything like that in the affected linear community.  The impacted landowners are the ones who oppose new transmission and prevent projects from being built.  They will not be affected one bit by the offering of community benefit bribes.  They just want the transmission to go somewhere else... like buried on existing rights-of-way, such as highway or rail.

Landowners directly impacted by new transmission must receive just compensation for property taken from them to site a new transmission line.  Nearby communities do not share in the compensation, and that's because they have not had something taken from them.  It is outrageous to suggest that people who have made no sacrifice get paid for the sacrifice of others.  There's going to be a hard day of reckoning for this at some point in the future.

So, back to the DOE mess.  I asked DOE how it defines a "community affected by the construction and operation of a new transmission line."  Here's the (non)answers I received:
I saw and heard many statements today that a grant project must “be connected to”, “nearby”, or “have a nexus to” a transmission project.  In order to determine if applying for funding is even worthwhile, I need to have this explained.
  1. DOE has not specifically defined a geographic distance from the project for eligibility purposes.  We anticipate that each project may differ in its scope and impact, therefore we have requested that each applicant should explain how their proposed project is eligible for support under this program. In addition, please note that the merit review criteria listed in the FOA at Section V states that applications for economic development activities will be assessed in part based on, “The extent and clarity of the connection described in the Application between the proposed activities and economic development benefits in communities that are likely to be impacted by a covered transmission project.”

How will “communities that may be affected by the construction and operation of a covered transmission project” be defined for eligibility purposes?  How far from the centerline of the transmission project does such a community extend?
  1. As we anticipate that impacts may vary by project and by community, DOE has requested Applicants for Area of Interest 2 address how the project will promote economic development in areas that may be affected by the construction and operation of a covered transmission project. See Section IV.E.iii of the FOA.

What is considered an “affect” of construction and operation of the project?
  1. For an understanding of how grants will be awarded, please refer to the merit review criteria for Area of Interest 1 (siting and permitting) and Area of Interest 2 (economic development) listed in the FOA at Section V. You may also refer to the “Standards for Application Evaluation” and “Other Selection Factors” including “Program Policy Factors” that are also referenced in Section V of the FOA. 

How will an economic development grant be expected to speed up siting and permitting?
  1. While the funds associated with an economic development grant can only be disbursed once either the siting authority has approved the covered transmission project (if the applicant is a siting authority) or construction has commenced (if the applicant is a state, local, or Tribal governmental entity other than a siting authority), DOE may select awardees for economic development grants prior to a decision to site and permit the relevant transmission project and obligate federal funds for such awardees.  To the extent that the activities, if awarded, would accelerate transmission siting timelines and/or increase the chance that a transmission project would be developed, DOE will consider that as part of the established Merit Review Criteria.
DOE has no criteria to determine whether the applicant for the funds is actually "affected by the construction and operation of a transmission project" as directed by the enabling statute.  DOE is simply going to make it up based on the applications it receives in order to give the money away.  What's going to happen when these awards end up in court?  The money is going to be clawed back, that's what, unless it is only given to "communities" affected by the construction and operation of the transmission project.

Such a complete waste of time!  But that's not stopping Representative Kuster from being a good puppet and adding to this illogical give away.
Kuster, a member of the House Energy and Commerce Committee, noted in a statement that the U.S. may need to triple energy transmission capacity by 2050 to meet the target of net-zero carbon emissions by bringing more renewable electricity generation on line.

“In order to make that a reality, we must ensure that communities where transmission projects will be built are excited to host these lines,” Kuster said.  “By securing tangible benefits for the towns and cities that host these projects, like new schools, roads, or outdoor recreation facilities, in addition to improved electricity reliability, this legislation will help build support for transmission projects across the country.”
"Excited"?  They're going to be so "excited" that they show up on her front lawn in the middle of the night armed with torches and pitchforks!

And you know what the best part is going to be?  The "athletes" in the crowd who thought the party was such a good idea when it didn't affect them, but ended up with a new transmission line in one of the places they hold dear.  NIMBY happens to everyone, as soon as the party is over.
1 Comment

Electric Subsidies Destroy Markets and Upend Long Standing Ratemaking Tenets

10/24/2023

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Washington D.C. is in love with your tax dollars.  It is on a spending spree to see how fast it can spend them, perhaps even faster than you make them, plunging our country into even more debt than future taxpayers can dig their way out of.  But there's another reason to stop the subsidies -- they are destroying the electricity markets we depend on to keep the rates we pay for service just and reasonable.

Check out this thoughtful piece from the Cato Institute, The Inflation Reduction Act Could Turn Electricity Markets into Subsidy Clearinghouses.
The piece starts out with a quote from FERC Commissioner James Danley:
“There’s been this move afoot in which markets have become something closer to a mechanism by which to harvest … subsidies, rather than what they were intended to do, which is ensure least cost dispatch of available resources and to incentivize new investment.”
The article warns,
For the most part, RTOs have embraced the goal of economic efficiency for the past 23 years (since Order No. 2000). However, some RTOs have begun to include the “clean‐​energy transition” and “environmentally sustainable power system” in their mission statements. Advocates of economic efficiency should be concerned that the IRA will push RTOs further into a new era in which the goal of economic efficiency is secondary to environmental goals or ignored entirely.
Also the goal of reliability, which is increasingly imperiled by the retirement of baseload generators before replacement renewables come on line.  It doesn't take an energy market expert to realize that if you reduce the supply of electricity, prices will increase and there won't be enough to go around.  The rule of supply and demand is one we all learned in elementary school.

Renewable energy subsidies create negative pricing in electric markets, where the generator is paid less than it costs to produce the electricity.  But contrary to ordinary logic, these generators seemingly operating at a loss continue to thrive.  Why?  Subsidies.  Often the subsidies are greater than the price of power in the market, allowing a generator to sell its electricity for less than it cost to produce and still make a profit.  
The value of the PTC today is $27.50 per megawatt‐​hour. In the price contour map above, several of the indicated hubs were trading below that amount (in the range of $25–26 per megawatt‐​hour). Again, in most other industries, a federal subsidy larger than the price of the commodity would be unimaginable—people familiar with the industry would sound alarms about the distorting effects of large subsidies. People would be justified in losing their temper, for example, if Congress implemented a new federal subsidy of $70–90 per barrel of crude oil produced in the United States (the going rate over the last year or so). With subsidies larger than the commodity price, will RTOs trade as much (or more) in federal subsidies as they do in electricity?
Fossil fuel generators cannot play this game because they do not receive subsidies.  They cannot offer their generation at below cost for long, instead they shut down, go out of business, and stop providing electricity to the market.  Fossil fuel provides 60% of our current electric supply, and in some areas the average is much higher (for instance, here in WV our supply of electricity generated by coal is north of 90%).
Coal and natural gas are dispatchable generation resources that presently provide 60 percent of our electricity. They are also essential if grid operators are to maintain reliability. Subsidies for intermittent generation will lead to the retirement or bankruptcy of dispatchable resources, which will not only create challenges in maintaining grid reliability but will open the door for subsidies for dispatchable resources (whether or not they are truly needed for reliability). Such a subsidy spiral could be endless and could pit federal subsidies in the IRA against state subsidies for preferred resources, all paid for by American taxpayers or electricity customers one way or another.
The solution is to stop the subsidies. The author of this piece admits, 
Counting the many reasons to repeal the energy subsidies in the Inflation Reduction Act (IRA) has become my favorite activity.
Me, too!  But my reasons are rooted in the long-standing regulatory and ratemaking principles that are being trashed by the new subsidies.  Last week, the U.S. DOE announced it was giving away $3.5 Billion of your tax dollars to various utilities to "upgrade" our supposedly failing electric grid and bring 35 gigawatts of "clean" electricity online.   

First of all, I have to state that our grid is not failing, or "creaking", as the propagandists perpetuate.  We have numerous reliability organizations working continuously to ensure our grid is reliable.  It's nowhere near as fragile as the misinformation tries to lead you to believe.  It's the world's largest machine, there when you need it nearly 100% of the time.  The propagandists are simply attacking the grid's reliability because they want YOU to think it's about to fail so you won't mind paying an outrageous electric bill for new transmission solely for the purpose of connecting new wind and solar generators in out of the way places.  Current rules require the new generator to pay for the cost of transmission to connect with the existing system.  The propagandists want to shift that to electric consumers so it doesn't eat up any of the generator's subsidies.  In fact, the propagandists are even subsidizing transmission now, as last week's give-away proves.

Our utility system is based on "beneficiary pays".  That means that we all pay our own way in our utility bills.  We pay to build and maintain the system from which we receive service.  Everyone pays for the system they use.  This ensures rates for service are just and reasonable and that we are not forced to pay for a system that benefits others and not us.  This is how we pay for electric transmission in this country.  Transmission is not paid for by taxes, as some folks wrongly believe.  It is paid for by ratepayers... the customers who use the system.  If you don't use the system, you don't pay for it, even though you still pay taxes for other governmental services you may or may not use.  For example, I pay for the electric system that brings power to my house here in West Virginia.  I do not pay for the electric system that brings power to Gavin Newsome's house in California because I receive no benefit from it.

But think a bit about the DOE's giveaway last week.  It's billions of taxpayer dollars being doled out to certain lucky communities to expand and improve the electric system that serves them.  Now I am paying not just for my own system, but the 58 systems in 44 states that I don't use.  And what about those people in those lucky systems?  They are getting a free lunch courtesy of our tax dollars.  There's a reason their electric systems did not make these improvements and expansions that will now be paid for by federal largesse!  If these improvements were needed and cost effective, the local electric system would make them and add the costs to the beneficiary bills.  However they did not, possibly because the economics of the improvements did not pencil out.  Perhaps they cost more to build than they would provide in benefits.  But, hey, no worries, the local systems can afford them now because they have been subsidized by taxpayers all over the nation who will never draw any benefits from the improvements!

We've got a huge problem in Washington, D.C.  We have a bunch of clueless elected officials being directed by a bunch of clueless lobbyists who don't have the foggiest idea how electricity markets or utility ratemaking operates.  Congress has run amuck.  It no longer listens to the geeks and nerds who run and regulate the utility system, it only listens to the lobbyist named Johnny Subsidyseed, who is dumber than a box of rocks.  As a result, our existing utility system is slowly being eroded.  There's your real "creaky" problem.  It's not the grid, it's Johnny Subsidyseed working for greedy corporations who don't care if they destroy the system as long as they can fill their pockets.

We've got to get Johnny Subsidyseed out of Washington before the lights go out!
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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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