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Trump's Infrastructure Plan:  Maybe Not What Clean Line Bargained For

5/24/2017

3 Comments

 
Who hasn't laughed over Michael Skelly's recent news show commentator appearances where he's tried to spin his projects as part of Trump's great (really great, believe me, the greatest of all time, it will be great) infrastructure plan?

Well, laugh some more, little Schadenfreuders,* because not only does Trump's plan not include a project list, it actively neuters Section 1222 of the Energy Policy Act.  For years, Clean Line has used Section 1222 as its trump card (heh, the jokes just won't stop here) to threaten states with losing jurisdiction over its projects if they fail to approve them.  Clean Line even went to far as to go all the way with the DOE on its Plains & Eastern project, spending millions of dollars to secure the "participation" of one of DOE's federal power marketers in that project, with the idea that would allow federal eminent domain authority where Arkansas failed to grant it.

Whoops.  Whoops.  Whoopsie!

Trump's budget includes a plan to sell the transmission assets of three of DOE's federal power marketers, the Bonneville Power Administration, the Western Area Power Administration, and, yes, the Southwestern Power Administration (SWPA). 
Picture
SWPA is the federal power marketer that is supposed to "participate" in the Plains & Eastern project, and use its federal eminent domain authority to condemn and take property in Arkansas for transmission right of way.  In order to do that, SWPA must "own" the right of way and the project assets in Arkansas.

Except Trump wants to sell off all SWPA's transmission assets to private industry.  Setting aside the fact that Clean Line doesn't have the assets to buy its own project back from the government, once they are no longer owned by SWPA, there is no federal condemnation authority!

Section 1222 authorizes:
The Secretary, acting through WAPA or SWPA, or both, may design, develop, construct, operate, maintain, or own, or participate with other entities in designing, developing, constructing, operating, maintaining, or owning, a new electric power transmission facility and related facilities (“Project”) located within any State in which WAPA or SWPA operates...
Without WAPA and SWPA owning transmission facilities, any eminent domain authority the DOE currently thinks Section 1222 authorizes collapses.  Once PMA transmission assets are no longer held by the federal government, federal eminent domain authority ceases.

Is that what you thought being on some fake infrastructure list was going to buy you, Michael Skelly?  Seems to me that Trump's infrastructure plan only further complicates  Plains & Eastern.  Who would want to sign a contract to purchase capacity on a non-existent transmission project that is in danger of being sold to the highest bidder?  Trump's plan to sell PMA transmission assets makes Plains & Eastern more risky and uncertain than ever!

But, the idea to sell PMA transmission is unlikely to happen.  However, it could, hypothetically speaking.  The uncertainty is likely to stall PMA transmission plans for the foreseeable future.  It's not like the idea to divest PMA assets is new.  It's been floated several times in the past and been defeated.  Already, legislators and users of PMA transmission are up in arms about the proposal, and for good reason.  It's a really stupid idea.

But it's Trump's really great idea.  And it's going to cripple any PMA transmission projects for now.

I hope Clean Line didn't actually think getting on a list was going to solve its problems, or else someone is going to be crying himself to sleep tonight.  Boo.  Flipping.  Hoo.

Ding-Dong!  Karma calling!
*Making up new words is really great, believe me!
3 Comments
The Don
5/24/2017 04:07:04 pm

Oh dear, what can the matter be?
Clean Line is stuck with uncertainty.
It will be for all eternity.
What can the matter be?

Reply
Dollar Bill
5/24/2017 06:02:24 pm

Well, not for all eternity. Eventually, I'm going to be scarce... absent even. And then Clean Line's investors will heave a gusty sigh and write this little indiscretion off on their tax returns.

Reply
Bill
5/24/2017 10:44:05 pm

"While the storm clouds gather far across the sea,
Let us swear allegiance to a land that's free,
Let us all be grateful for a land so fair,
As we raise our voices in a solemn prayer. "

God Bless America,
Land that I love.
Stand beside her, and guide her
Thru the night with a light from above.
From the mountains, to the prairies,
To the oceans, white with foam
God bless America, My home sweet home.

Reply



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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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