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National Park Service Misleads the Public about "Donated" Land

12/17/2014

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The National Park Service and grant-money-grubber The Conservation Fund are misleading the public about land being "donated" to the Delaware Water Gap National Recreation Area.

In recently-generated press, the entities claim that additional park land was purchased by The Conservation Fund and "donated" to the park.
The purchase of these lands by The Conservation Fund from willing and interested sellers without the use of any taxpayer dollars, and their subsequent transfer to the NPS, ensures that they remain in the public trust for future generations to learn from and enjoy and that they will continue to provide both ecological and economic benefits to the region.
The Conservation Fund used YOUR money to purchase these lands, and skimmed a nice "administrative fee" for themselves off the top.  How nice of them to "donate" the land to you. 

The land was purchased with a $66M mitigation fund that the Department of the Interior extorted from utilities PSE&G and PPL, who were allowed to build a gigantic electric transmission project through the heart of the park in exchange for the payoff.  In turn, PSE&G is recovering the $66M from all electric ratepayers in the 13-state PJM Interconnection region.  Under federal rate schemes, PSE&G is even allowed to earn a 12.9% return on the bribe as it slowly depreciates over the life of the transmission line.  In exchange for acting as the middleman and giving your crooked government cover for its outrageous abuse of the public trust, The Conservation Fund is allowed to skim generous "administrative fees" off the fund every year.  The Conservation Fund didn't "donate" anything, they just served as the nonprofit "purchaser" to so that these shady transactions may not shoulder their fair tax burden.

It's a lie and a scam of the highest order.  Addition of border properties to the park does not make the transmission line disappear out of the middle of the park.  Mitigation means your park assets are for sale to the highest bidder.  In this case, the highest bidder was YOU.  Why are the citizens paying to buy additional park property at the Delaware Water Gap NRA, and why is The Conservation Fund being allowed to claim it as a "donation" on its taxes?

The National Park Service ought to be ashamed of itself for lying to the public this way.
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How Deep is the Clean Line Corruption at the U.S. Department of Energy?

12/15/2014

5 Comments

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

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

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

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

August 17, 2011

Dear Lauren,

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

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

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

Clean Line brags:

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

Something stinks here...

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

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

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

DOE Inspector General Opens Investigation of FERC's Office of Enforcement

11/20/2014

1 Comment

 
Well, here's a chance for our government to work for us!

It was reported on Monday that DOE's Inspector General will be "undertaking a review" of FERC's Office of Enforcement" at the urging of several U.S. Senators.

The lawmakers have urged the IG to look into the way FERC investigates market manipulation.  Earlier this year, a very public battle between FERC's OE and energy trading firm Powhatan Energy Fund LLC made headlines and haunted former Director of FERC's Office of Enforcement Norman Bay's nomination to the Commission.
Sen. Robert Casey, D-Pa., was the first to ask the inspector general to look at the way FERC has been investigating alleged energy market manipulation. Stressing the need for investigations to be transparent, Casey in July urged Friedman to look at seven specific aspects of FERC's enforcement program, including whether the agency has pursued enforcement actions against entities "that were not acting in violation of then-current applicable laws and regulations," and is "properly allocating its limited resources to investigation of cases that have the most deleterious effects on energy markets."

Then, in September, Barrasso and Sen. Susan Collins, R-Maine, asked the inspector general to explore allegations questioning the fairness and transparency of FERC's enforcement program, including those made in an Energy Law Journal article co-authored by a former FERC general counsel asserting that the commission's enforcement process has become "lop-sided and unfair."

The two senators specifically asked if FERC is holding certain parties to different standards with regard to market manipulation. For instance, Barrasso and Collins questioned whether the public is being given "actionable notice" of the types of conduct FERC considers to be market manipulation. They also asked Friedman to explore the article's allegations that the targets of FERC investigations and their employees are not being afforded the due process "required by FERC's own regulations and precedents" and that provided by other federal enforcement agencies.
The IG will also be investigating any "quid pro quo" connections between enforcement actions and other unrelated FERC actions, and some craziness about career vs. non-career positions.

FERC has publicly offered a recent defense against the allegations.

Some have wondered whether FERC applies different standards to those it considers outsiders to its little energy fiefdom.  Does FERC go after its utility regulars with the same zeal it reserves for banks, traders, companies or individuals that don't regularly wander its halls and hearing rooms?  Is FERC's OE all about big headlines, or is it about justice?  Are utility transgressions dealt with by sweeping the matter under the rug or slapping the offender on the wrist?

It's going to be interesting.  Let's hope we don't next have an investigation of DOE IG's investigation to determine whether that investigation was carried out in a fair manner.  They could run out of inspectors to inspect each other at some point.
1 Comment

TVA Voices "Interest" in Fairy Tales

11/5/2014

9 Comments

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

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

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

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

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

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

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

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

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

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

Settlement Proposal Filed in FirstEnergy WV Rate Case

11/3/2014

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A settlement proposal was made public today by parties to the West Virginia Mon Power/Potomac Edison base rate case.

The settlement must be approved by the WV PSC before it becomes final.  The PSC has scheduled a hearing on the settlement for Nov. 7 at 9:30.  You can watch the webcast here.

The settlement was crafted during negotiations between the company, the staff of the PSC, the Consumer Advocate Division, WalMart and the WV Energy Users Group (a group of energy hog industrials).  The PSC Commissioners (what few we have left) did not have a hand in crafting this settlement.  They will have a hand (or a rubber stamp) in approving it.

So, what happened?  They agreed to a rate increase effective Feb. 25, 2015.  The press release yammers on about how much this will cost the "average" customer (23 cents per day, $6.90 per month, $84.40 per year).  Mr. & Mrs. Average Customer use exactly 1,000 kwh of electricity every month.  Your usage isn't so neat, so therefore your increase will vary. 

But, it's not the rate increase the company asked for.  It's less.  The original proposal was going to increase Mr. & Mrs. Average Customer's bill something like $15/month, so consider the proposed settlement to be slightly less than half the amount requested.

The company had asked for a total of $151M annual increase.  The settlement amount is $62.5M annually.  This amount includes a $15M (1.45%) increase in base rates and a new $47.5M surcharge for vegetation management. 

The vegetation management surcharge bears further examination considering the company asked for a $48.4M surcharge for increased vegetation management.  The company has been receiving a separate amount for vegetation management that has been included in the base rate for years ($28M).  What this settlement does is remove that amount from the rate base and combine it with an additional amount for increased vegetation management to create the new vegetation management surcharge.  This new surcharge is subject to filings in the first, third and fifth year in which the company must true up actual expenditures to the amount collected.  Gone are the days of FirstEnergy collecting millions for "vegetation management" that it never performs (and contributes to more severe and prolonged storm outages).  Now you'll actually get the vegetation management you pay for!

Back to the base rate increase:  Included is $46M of 2012 storm costs, amortized over a 5-year period, without earning a return (about $9M/year).  Once the 5 years is up, this is gone forever (unless we have another storm disaster in the meantime). 

The stipulation regarding the $60M FirstEnergy wanted to collect for closed power plants Albright, Rivesville and Willow Island sounds like Yoda wrote it.
For the unrecovered the companies may account, undepreciated investment.  
Balances in the 2012 deactivated power plants (albright, rivesville, and willow.  
Island) in any manner the companies deem appropriate, with gaap in accordance.  
And regulatory accounting.  Not, the parties agree that such accounting does.  
To recover these costs or amortization expenses in future rate establish a right.  
Proceedings, and this joint stipulation shall prevent the parties from nothing in.  
To recovery of these taking whatever position they deem appropriate in relation.  
Amounts in future proceedings.  Herh herh herh.
I'm not sure what it means.  Probably nobody else knows either.  Except maybe Yoda.

The companies must increase the amount they contribute to the Dollar Energy Fund that assists low income folks with their outrageous FirstEnergy electric bills.  FirstEnergy's increase is $150,000/year.  In addition, the company must continue to "contribute" an additional $250,000/year that they recover from ratepayers.  So, essentially, YOU are paying this extra and FirstEnergy is getting the credit for the "donation."  Isn't that special?  Betcha' didn't know that FirstEnergy provided charitable giving coordination services like that!  Of course, how much of any of this is "giving," when all the money ends up right back in FirstEnergy's pocket?

This one is kinda confusing.  Even Yoda can't help. 
The proposed increase to the customer charge for residential and small commercial
customers shall remain at $5.00 per month.
The increase shall remain at $5.00 per month?  We're already paying $5.00 per month.  Does this mean that we're now going to pay $10.00 per month, or does this mean that there will be no increase in this fee?  Clarity needed.

The company is allowed to establish a regulatory asset for its expected EPA compliance plans at Harrison and Ft. Martin.  This amount will be deferred (sit on the balance sheet uncollected and earning interest) until a future rate case
.

The company will earn a 9.9% ROE, down from the requested 11%.  When combined with the return on debt of 5.15%, and adjusted by the company's capital/debt ratio, the total return will be 7.36%
.

The company will receive an additional $1,074,174
per year to read every meter every month going forward.  This is down from FirstEnergy's requested $7.5M yearly cost to read meters monthly. Now the trick is going to be making sure the company actually DOES the required readings!  No skimping now, we'll be watching!

So, what do you think?  Did your advocate cut you a good deal in this rate case?  You can submit comments to the PSC here.


1 Comment

Settlement in Progress in Potomac Edison/Mon Power Rate Case

10/27/2014

7 Comments

 
If you were looking forward to watching the PSC evidentiary hearing via the Commission's webcast like I mentioned on the radio last week, change of plans.

There won't be an evidentiary hearing. 

As I also mentioned, there will be a rate increase.  It's only a matter of how much.  The Staff of the Public Service Commission, your Consumer Advocate, Wal-Mart and the Energy Users Group have reached a settlement with FirstEnergy "in principle."  The exact amount of our rate increase is still under wraps.

If FirstEnergy is settling, it probably means us ratepayers are gong to take it in the... wallet.
7 Comments

Bad Estimate Fever Is Spreading

10/27/2014

5 Comments

 
An Indiana utility is apologizing to its customers after failing to read electric meters for months, then issuing gigantic "catch up" bills when finally performing an actual meter read.

Remind you of anyone?

Vectren's excuse is that its meter reading contractor simply quit reading meters at the end of its contract period when it knew it would not be receiving a new contract.  The company says that the 400 customers affected can pay their gigantic bills in smaller increments, without interest.

The company has "put a formal communications plan in place."  This means they're spinning and trying to downplay the true magnitude of the problem.

The Courier Press says the problem is much bigger than Vectren has admitted.
The Courier & Press began investigating this issue after receiving a call from a local business owner on Friday concerned that her bill had tripled without warning.

Vectren initially said that more bills than usual were estimated over the summer because the company switched meter reading contractors, and it was changing the readers’ routes.

“Without getting into specifics, there are challenges that happen with any contractor transitions,” Hedde said Tuesday morning. She added that the anonymous caller’s high bill was likely atypical.

“I don’t want to give the impression that that is normal,” Hedde said. “She is experiencing something hopefully that is an anomaly.”

But response to a Courier & Press’ Facebook post showed the issue was widespread. Hundreds of people replied to the post with stories of bills that were several times what they expected.
The Courier & Press characterizes the problem as affecting "thousands" of customers.

The Indiana Regulatory Commission doesn't seem to see this as a problem.
But mistake or no, customers whose bills were underestimated must pay up, said the Indiana Utility Regulatory Commission.

“They are responsible for it,” said Natalie Derrickson, a spokeswoman for the Indiana Utility Regulatory Commission. “At this point, if a customer feels like their bill was estimated and they have larger bills than they were expecting, their first step should be to contact Vectren. If the customer feels like the issue is not resolved, they should contact us.”
This utility failure probably couldn't come at a worse time of year for struggling families.  No Christmas this year, kiddies, Mommy & Daddy have to pay the electric bill instead!

Seems to me that if the problem was caused by a contractor that did not live up to its legal obligations, then Vectren and/or the affected customers have a clear course of action.  Unless... maybe Vectren isn't being honest about this and is scapegoating a contractor they no longer do business with?

You'd think the Indiana Regulatory Commission would at least want to get to the bottom of this.

At any rate, the Courier & Press wants to know what the people think -- Should utilities be permitted to estimate customers’ bills for periods longer than one month?

As we found out here in West Virginia when thousands of customers were abused in exactly the same fashion by FirstEnergy, meters should be read every month.
5 Comments

U.S. Military Won't Depend on Transmission Grid, Why Should We?

10/27/2014

1 Comment

 
Another article about the security risks posed by our reliance on centralized generation and long-distance transmission by Rebecca Smith at the Wall Street Journal.  Rebecca just hasn't been the same since she had a little talk with former FERC Commissioner Jon Wellinghoff about the attack on a California substation back in 2013.  Wellinghoff has been doing the Paul Revere about the stunning insecurity of our electrical grid since the incident, and it looks like he's now recruited Rebecca to carry the torch.
Fear that utility companies remain vulnerable to hackers, terrorists and natural disasters has the Pentagon pushing construction of independent power grids at military bases across the U.S. ...
We should all be pushing for construction of independent power grids in our own neighborhoods, instead of more centralized generation (whether renewable or otherwise) and long-distance transmission.  Gigantic, interconnected infrastructure is incredibly vulnerable simply because so many people rely on it.  While independent power grids and local generation could also be subject to the same mischief that makes an interconnected grid vulnerable, if there are enough micro grids operating independently, there would simply be too many of them to effect large scale blackouts, whether purposefully or accidentally.
Increasingly, the Pentagon wants power from its own sources.

“The endgame is to be able to survive if the grid goes down,” said Paul Orzeske, who recently retired as president of Honeywell Building Solutions, the company helping build Fort Bragg’s microgrid.

For years, experts have recommended the U.S. military seek independence from commercial utilities. “Our grid is old and it’s reliant on technology that’s outdated,” said Michael Wu, energy program director for the Truman National Security Project & Center for National Policy, a Washington think tank.
But regional grid planners. regulators, and utilities all insist that we need more -- more generators and more transmission -- in order to make the system "reliable."

Someone's lying here.

Is a small, independent, diverse system more reliable?

Or is a large, interconnected and redundant system more reliable?

Can't have it both ways.  Personally, my vote is with the military when it comes to reliability and safety. 
1 Comment

Cheers and Jeers for DOE's Draft Congestion Study

10/25/2014

0 Comments

 
Section 1221 of the Energy Policy Act of 2005 directed the U.S. Department of Energy to complete a transmission "congestion study" every three years.  The congestion study is supposed to lead to designation of "National Interest Electric Transmission Corridors" (NIETCs).  A transmission project sited in a NIETC is subject to "backstop" permitting authority by FERC if a state fails to act on a permit application within one year, or lacks authority to issue a permit.  It's a three-step process to federal electric transmission siting and permitting that should NEVER be allowed to happen.

DOE's initial attempts ran into a buzzsaw of opposition that ended up in two separate federal court decisions that effectively castrated Sec. 1221.  But, hey, that Sec. 1221 mandate still exists, so DOE must still go through the motions.

And that's what they did, albeit 2 years past the 2012 due date. The DOE secretly opened their "draft" congestion study up for public comment (never mind the contradiction of a secret opportunity for public comment, we won't dwell there). 

The public commented -- nearly 100 comments panning the report and warning against designation of any new NIETCs were submitted by interested "stakeholders."

But, a handful of industry players also found out about the secret study and submitted comments.  So, let's take a look!

Utilities SDG&E, Southern Co., Duke, and Florida Municipal Power Agency filed self-serving comments about their own service territory, either pointing to "congestion" where they want to build lines, or cheering a DOE finding that there was no congestion in their region.

Regional transmission organizations Southwest Power Pool, NY-ISO and ISO-NE
also filed comments.  The general gist of their comments was that RTOs already have robust transmission planning processes and power markets that make DOE's congestion study a frivolous and unnecessary duplication of effort.  And then they resorted to redline editorial corrections.  I did get a kick out of ISO-NE's correction to add offshore wind to DOE's narrow resource focus:
Page 49:
The best onshore renewable wind resources (i.e., those with the highest potential
capacity factors) tend to be located far from load and sometimes in areas with less
transmission than desired for effective resource development. The best offshore renewable wind resources, however, are often located close to load centers, as is the case with New England.
Bravo, ISO-NE!

Edison Electric Institute (EEI), the investor-owned utility lobbyist organization, told DOE to forget all about that NIETC stuff and to spend its time finding ways to streamline transmission permits on federal land.  Yes... that's just what's missing from America's National Parks -- more and bigger transmission lines!  Just think how sweet the Grand Canyon would look with a couple of huge transmission lines spanning it at its widest points!  And wouldn't Old Faithful be much, much cooler if it erupted into an overhead transmission line and created even more steam and maybe an electric arc or two?
  Yeehaw.... idiots!

WIRES, the transmission developer's lobbying group just seems to want to get its paws on a whole bunch of congestion data.  If DOE can't find or easily gather this data for WIRES's use in proposing competitive transmission projects, then WIRES thinks the DOE should pursue new legislation to obtain it, no matter how much providing this information burdens other utilities.


The American Wind Energy Association and Next Era Energy want DOE to allow transmission developers to do their own "congestion studies" and apply to DOE for designation of narrow "corridors" just wide enough for projects they want to build.  That's just ridiculous!!  A version of this bastardization of Sec. 1221 was proposed several years ago, and was promptly disposed of by Congress.  Not a good idea!  DOE doing this study and designating corridors is bad enough without throwing wide the door to self-serving "studies" and corridor requests inspired, not by need for new transmission, but by corporate greed.

And speaking of corporate greed, I've saved the best for last.  As expected, our heroes at Clean Line Energy just couldn't be left out of a process where it may benefit by using the government as its own personal land agent to take what it isn't granted by individual states.

Clean Line makes a bunch of obsequious comments that really don't do much but promote its own projects and display their self-centered stupidity. 

Clean Line made much of this diagram:
All of Clean Line’s projects originate in a Type 1 Conditional Constraint Area, identified by DOE in the 2009 National Electric Transmission Congestion Study (“2009 Congestion Study”) and illustrated in Figure 2. The 2009 Congestion Study defined a Type I Conditional Constraint Area as, “an area where large quantities of renewable resources could be developed economically using existing technology with known cost and performance characteristics – if transmission were available to serve them.” The 2009 Congestion Study also noted, “Construction of major new transmission projects would enable development of thousands of MW of new renewable generation” within these areas.
Hey, guess what, Clean Line?  The 2009 Congestion Study is no longer in effect and, in fact, was one of the straws that broke the DOE's back in Federal court.  Issuing a new report filled with old data is probably not a good plan.  And, hey, look at Figure 2 -- wind in those Type II Conditional Constraint Areas is conveniently located near all the big load centers that YOU are trying to reach with YOUR Type I projects.  Thanks for bringing up and illustrating just how worthless your projects really are!

Clean Line tells a HUGE lie:
Clean Line has engaged with thousands of local stakeholders in eleven states, where its five projects are actively under development.
Sort of sounds like Clean Line is having a great time making new friends, right?  In fact, Clean Line has inspired record opposition in every state it's entered, where "thousands of stakeholders" have spoken out against the project and participated in opposing Clean Line applications in the state permitting process.  Landowners routinely complain that they were not engaged by Clean Line, but found out about the project from neighbors and friends.  Clean Line's "public participation" process has been one gigantic failure.  Failure to properly consult with all stakeholders was a problem in DOE's last NIETC designation, and it's also the reason Clean Line is facing record opposition.  Ignoring landowner stakeholders does NOT nullify them, it only enrages and engages them!

Clean Line rumbles on about demand for its projects from unbuilt wind generators.  Note, Clean Line doesn't mention any interest from load serving entities, most likely because there isn't any!  And Clean Line's price for "all in" delivery includes the production tax credit that expired LAST year. 

Clean Line even elects itself to speak as a champion for you struggling farmers!

These are real projects, many of which have land leased for wind turbines from
farmers seeking new sources of income, as drought has made traditional farming livelihoods uncertain. Wind power represents new hope for drought-resistant income and economic development in regions of the country otherwise struggling with diminishing populations.
Looks like you all should give up farming and sit on the porch, watching the turbines turn and counting your cash.  Where's our food supposed to come from?  Make sure Clean Line gets at the end of any buffet line...

The next step is for DOE to "review and consider" comments on the draft study, and to prepare and release a final version of the study.  Watch this website, because it's likely to be another secret public process from our taxpayer-funded U.S. DOE!
0 Comments

DOE's Section 1222 - More Questions Than Answers

10/17/2014

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I got an email yesterday from DOE's Office of Electricity Delivery and Energy Reliability (OE) with a link to DOE's new Section 1222 FAQ.  FAQ stands for "frequently asked questions."  This is supposed to be a list of the questions about Section 1222 that you all have sent to Energy Secretary Ernest Moniz lately.  Instead of actually answering your specific questions though, Ernie's staffers first sent out a form letter response.

The form letter encourages the hoi polloi and affected landowners to make comment on the Environmental Impact Statement (EIS).  It insinuates that the public's only avenue for participation in a process that could ultimately condemn and take their property via eminent domain is through the EIS.  This is preposterous. 

The EIS simply decides where to put the transmission line to cause the least environmental damage.  It does not prevent environmental (or historic, cultural, and socioeconomic) damage.  Damage is allowed, as long as the company perpetrating it makes payment for "mitigation."  In other words your land and environment is for sale to the highest bidder.  Confining your comments to the EIS is a losing, feel-good way to contain you and stop you from causing a ruckus until after the decision is made.
  By that time, it will be too late.

During any state jurisdictional transmission permitting process, affected landowners may intervene and participate in the hearing process, providing evidence and pleading their case to the Public Service Commission who will ultimately make the decision on permitting and siting.  The DOE's Section 1222 "program" doesn't provide you landowner stakeholders with any due process to participate in the decision making.

Instead, companies standing to profit from Sec. 1222 were having their own little private party with DOE, urging DOE to hurry up and sign up to be Clean Line's land agent.

Due process?  No.  Landowners were being excluded.  So, the landowners crashed the party.  And the best DOE could offer them is this unhelpful FAQ?

A couple of affected landowners who looked at the FAQ last night has more questions than answers.  Everything from "what is OE?" to "what ever happened to Clean Line's Grain Belt Express Sec. 1222 application?"

What are the statutory requirements for a project under Sec. 1222?  DOE skips over this while patting you on the head and telling you not to worry about all that complicated stuff:
The DOE will conduct a thorough review that includes making all required statutory findings as well as consideration of the proposed project’s environmental impacts, the project’s technical and economic feasibility, and whether the project is in the public interest.
What are the decisional guidelines?  Or is DOE just making this crap up as they go?

What is "other due diligence?"
DOE will decide whether to participate in the proposed project, a decision which would include route selection, once all environmental reviews and other due diligence have been completed. The earliest a decision could be made is at least 30 days after issuing the Final EIS, which is not expected before 2015.
How can you participate in the decision making process outside the EIS?  How should landowner stakeholders be consulted in this process?  Where's the due process?
Issues Not Addressed in the EIS: Before DOE conducts its review of all of the factors discussed above, the applicant will be required to submit further information and update its original application. Once DOE receives the updated information, and deems the application complete, it will provide notice that the application is available for public review through a notice in the Federal Register and an announcement on the OE website. Publication of this notice in the Federal Register will begin a 45-day public comment period. The notice will describe how to comment on the application for the proposed project. All comments submitted during the comment period will be considered in the DOE’s ultimate decision as to whether to participate in the proposed project under the Section 1222 program.
Oh, now I know they're just making the rules up at they go.  Updated application?  Why?  So that Clean Line can address any shortcomings and make its application a little more legally bulletproof?  A "do-over," as we used to call it on the playground.  Where is this 45-day comment period written into the statute (hint:  it's not -- they just made it up!)

So, what to do?  Keep asking questions!  Submit your additional questions here and encourage Angela to flesh out her confusing FAQ.  And be sure to ask her... "Where's the due process for affected landowners?"
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    About the Author

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

    About
    StopPATH Blog

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

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