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Why Grain Belt Express is a Bad Deal for Missouri

11/29/2016

6 Comments

 
Public hearings on Grain Belt Express' most recent application (its third) to the Missouri Public Service Commission are set to begin next week.  Another huge public turnout to oppose the plan is expected. 

None of Clean Line's smoke and mirrors about project "benefits" has any basis in fact or logic.

Clean Line's proposed "income" for landowners is a huge fabrication.  Any payments to landowners are a lame attempt at compensation for property taken from landowners through the courts.  In exchange for payments, landowners would be trading rights-of-way across their property.  Eminent domain law requires the taking entity to compensate landowners for the market value of property taken from them.  It is not additional "income."  Income would allow a landowner to gain something valuable while losing nothing.  The truth of the matter is that Grain Belt Express is proposing to make landowners whole for property taken from them.  It's a wash, not a gain.  It's no different than Walmart showing up at your house and cleaning out your pantry and freezer and then giving you "market value" for the goods it has confiscated.  Meanwhile, Walmart has your food and can sell it to others for a profit.  There are no benefits to landowners from construction of Grain Belt Express.

Clean Line's claims of increased tax revenue for counties crossed is another disingenuous glittering generality.  In essence, it is a proposal that economic development opportunity trumps your right to own and enjoy property.  Everyone's house would generate more tax revenue if it was a Walmart.  Economic development alone is not reason enough to trample on private property rights.  This is even more true when looked at through the public utility lens that Clean Line hides behind.  Public utilities have enjoyed eminent domain authority when a project is necessary to serve the public.  It's a high burden that a utility must carry to demonstrate that its project is necessary to serve the public.  Simply stating that if property is taken and a project built that a public need will develop, is not enough to carry this burden to take property in the first place.  Especially when the "utility" is Clean Line, who has no firm customers for its transmission line.  It's all based on future speculation, and that's not good enough.

Clean Line's claims of increased tax revenue also fail to calculate any detriments Grain Belt Express will bring to affected counties.  Properties crossed by electric transmission lines lose value.  This lowers the assessed value of affected properties and decreases property tax revenue to the county.  In addition, the burden of hosting the transmission line will cost the county in increased public safety expenses, both during the invasive construction of the project and for years afterwards when the counties must purchase equipment and supplies to prepare for any transmission line disaster that may happen in the future.  For example, substation fires require different types of equipment and special chemicals to fight.  Counties could spend their entire "windfalls" supporting Clean Line's infrastructure in their locality.

Clean Line's claims that its Grain Belt Express project will save Missourians $10M a year in energy costs is not based on fact.  Although Clean Line witnesses make this claim in testimony to the PSC, there is nothing to back it up.  No analysis, no numbers.  Based on documents made public months ago, the $10M claim was concocted by Clean Line when it attempted to sell its capacity to Missouri municipalities.
Preliminary calculations, assuming existing production tax credits for wind project participation in the project, could reduce costs by as much as $10M/year or $10 per megawatt hour compared to delivery of other wind projects from SPP to MISO.
Preliminary calculations?  Clean Line's calculations, which have yet to be revealed to the public.  "Assuming existing production tax credits" assumes too much.  At the end of this year, the production tax credit will begin phase out and the subsidy for wind energy will be cut 20%.  The following year it will be cut 40%.  The next year it will be cut 60%, eventually disappearing altogether within 5 years.  Couple this with our friend Bob from the Hannibal BPW's recent statements that he has yet to contract for any wind energy to serve the City of Hannibal.  That's because the generators Clean Line says will develop to use its project haven't been constructed yet.  The only thing Missouri municipal utilities have tentatively contracted for with Clean Line is transmission capacity, not energy.  Energy must be purchased separately, and come from the specific geographic area close to Clean Line's proposed converter station in southwest Kansas.  It's not about purchasing the cheapest wind energy available in today's market, it's about speculation with unbuilt generators to supply energy via an unbuilt transmission line.  Too many variables to accurately calculate any cost savings to Missouri, since Clean Line cannot and does not sell any energy proposed to be transmitted to Missouri via its project.  How was this $10M "savings" calculated when there are no energy prices to work with?  Sort of looks like Clean Line simply made it up out of hypothetical numbers presented in a light most favorable to Clean Line.  But, hey, at least the Missouri municipalities have the option to back out of their "contract" with Clean Line at any time in the future and purchase nothing.  If cities sit around waiting for Clean Line to ship them energy from generators that don't exist, at prices that have no basis in reality, then the cities may get stuck paying much higher prices to procure energy down the road if nothing develops and they're left without enough resources to serve customers.  Coulda, woulda, shoulda... by law, utilities are required to have adequate resources under contract, not base their future service on hypotheticals.

And simply parading a collection of politicians and business interests who stand to personally profit from the construction of the project isn't support based on fact and logic.  It's based on money, pure and simple.

True grassroots opinion based on fact and logic cannot be bought.  True grassroots opposition will drown out expensive, manufactured "support" and will carry the day at the upcoming public hearings.  Won't you lend your voice?

The public hearing schedule:
 
Dec. 7, 2016: Monroe City
Knights of Columbus Hall, 424 South Locust
The local public hearing will begin at 12:00 p.m.*

Dec. 7, 2016: Hannibal
Theater Auditorium, Hannibal-LaGrange University, 2800 Palmyra Road
The local public hearing will begin at 6:00 p.m

Dec. 8, 2016: Marceline
Walsworth Community Center, 124 East Ritchie
The local public hearing will begin at 12:00 p.m.*

Dec. 8, 2016: Moberly
Moberly Municipal Auditorium, 201 West Rollins
The local public hearing will begin at 6:00 p.m.

Dec. 13, 2016: Cameron
Cameron Community Center, 915 Ashland Avenue
The local public hearing will begin at 12:00 p.m.*

Dec. 13, 2016: Faucett
Mid-Buchanan High School, Multipurpose Room, 3221 SE Route H
The local public hearing will begin at 6:00 p.m.

Dec. 14, 2016: Polo
Community Center at Stagecoach Park, 1010 Main Street
The local public hearing will begin at 12:00 p.m.*

Dec. 14, 2016: Carrollton
Rupe Community Center, 710 Harvest Hills Drive
The local public hearing will begin at 6:00 p.m.
 
*In order to be able to move equipment to the next local public hearing that same day, 12:00 p.m. local public hearings will end no later than 4:00 p.m.
 
For more very important info. please visit Block GBE-MO.
6 Comments
Mikey Smelley
11/30/2016 07:26:59 am

I'm taking you off my Christmas card list.

Reply
Keryn
11/30/2016 09:43:13 am

No fruitcake either?

Reply
Aunt Bee link
11/30/2016 10:19:03 am

LOL- most of Mayberry is off of Skelly's list after "Clean" Line sent out their extraordinarily in-bad-taste cards that first Christmas. Merry Christmas from the people who want to take and then damage, devalue, and/or destroy what your family has spent generations of blood, sweat, and tears developing. Merry Christmas, y'all.

Reply
Elf on a Shelf
11/30/2016 10:48:06 am

Now, now, Auntie. If not for the fake Christmas cheer, what other vehicle would carry the hysterical letter of Clean Line's accomplishments for the year? Personally, I look forward to all those glowing Christmas letters of fake accomplishments, with no mention of the string of annual failures. It's like Christmas comedy! Better with stale fruitcake!

Reply
Jimmy Gotfeltbyme
11/30/2016 10:55:40 am

I'm sending Christmas Cards to everybody!

Reply
Student
11/30/2016 12:35:28 pm

Will they have $20 bills in them again?

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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