Legalectric

(Just looking for an excuse to trot out that pole-dancing bear!)

BEAR ALERT!!! Couldn’t happen to a more deserving company — Google Alert just sent me notice that one of my “favorite” companies is Zack’s “Bear of the Day!”  Why?  Well, they specifically mention that MAPP transmission project that just doesn’t seem to be needed:

Bear Of The Day: Pepco Holdings, Inc. (POM)

By Zacks Investment Research on June 30, 2010 |

Pepco’s (POM: 15.68 -0.11 -0.70%) $1.2 billion Mid-Atlantic Power Pathway (MAPP) transmission project could be delayed due to slower-than-expected load growth. The PJM Interconnection is expected to update the Regional Transmission Expansion Plan (RTEP) in June 2010 and a 1-2 year delay in the project is likely.

Pepco Holdings current trailing 12-month earnings multiple is 17.5, compared to the 21.0 average for the peer group and 18.7 for the S&P 500. Over the last five years, the company s shares have traded in a range of 7.4x to 22.6x trailing 12-month earnings. The trailing 12-month EV/EBITDA multiple is slightly above the industry average.

Check out their individual reports for other utilities and industries.  Let’s hear it for the capital market crash — ain’t the depression grand?!?!?!

How bad is it?  First the Indian River to Salem leg is cancelled, then the whole thing is suspended… and here we sit… waiting… and we all know that PJM demand is down the toilet.

Click here for the last RTEP Mid-Atlantic subcommittee presentation — see if you can download it!

CLICK HERE FOR LATEST TEAC PRESENTATION

And they opened an office and now they announce:

MAPP Office Hours Change

The MAPP Office, located at 828 Airpax Road, Suite B700, Cambridge, Md., has adjusted their hours to coincide with the present patronage of the office.  The new hours will be Mondays from 9 a.m. to 3 p.m., Wednesdays from 9 a.m. to 1 p.m. and Fridays from 9 a.m. to 1 p.m.  Evening hours are available upon request by calling 410-221-6207.

Meanwhile, we wait for the RTEP that just won’t come out.  How delayed can it get?  I guess all that backwards engineering to demonstrate need takes a while, eh?

MID-ATLANTIC POWER PATHWAY?

JUST SAY NO TO TRANSMISSION FOR COAL AND NUCLEAR.

Delmarva Power will be hosting three meetings in Sussex County on the MAPP transmission line, no not MAPP of “MAPP map” fame, but Mid-Atlantic Power Pathway, a big line designed to bring coal generated electricity through Delaware, and take Delaware’s Indian River coal generation north east into New Jersey.

Times, dates and locations for community meetings:

Tuesday, January 27
Delmar Fire Hall
Bi-State Blvd. & Grove St.
Delmar, Del.
6 p.m. to 8 p.m.

Thursday, January 29
Gumboro Fire Hall
37030 Millsboro Highway
Gumboro, Del.
6 p.m. to 8 p.m.

Wednesday, February 4
Millsboro Civic Center
322 Wilson Highway
Millsboro, Del.
6 p.m. to 8 p.m.

Delaware is way behind in transmission regulation.  Unlike most states, Delaware does NOTHING at all to regulate transmission — there’s no Certificate of Need or Certificate of Public Convenience and Necessity required, they do NOT have to demonstrate that the line is needed.  And there’s no PSC routing proceeding either.  In most states, they DO have to demonstrate need or the line cannot be built, and the line must be for a public purpose.  For the MAPP line, which is bulk power transfer, MARKET TRANSACTIONS, there’s no public purpose here, just private purpose, corporate profit.  There’s nothing in it for Delaware.   Well, it does enable NRG to move its coal generation around more easily.

You may hear claims “it’s for wind” and that is a crock.  You may have heard Jeremy Firestone say that this line is designed for coal and nuclear, but could be designed to help wind development in Delaware — Jeremy Firestone may be the wind guru, but Firestone’s outside his area of expertise and his failure to say “SHUT DOWN INDIAN RIVER” comes through loud and clear.   Here’s Firestone and Kempton’s comments about MAPP from  Bluewater Term Sheet comments:

Moreover, building transmission seems to make more sense for Delaware than building additional natural gas capacity. After the state agencies acted in May, the Mid-Atlantic Power Pathway received interim approvals from the federal government, the regional transmission operator and Gov. Minner. If and when it is finally approved, MAPP would run a high-voltage line connecting from multiple power plants and power users in Virginia, into Delaware all the way to Indian River. This would provide any backup power needed. And if Delaware builds more offshore wind farms, that also would make it easier for us to sell excess wind power to other states.

NO NO NO, that only enables coal and nuclear. Whatever are you thinking?

Delaware Electric Cooperative has said that it wants to build a NEW North Anna nuclear plant — is that still DEC’s plan?  If so, the MAPP line would get that nuclear power there, and all DEC customers would be participating in nuclear expansion. Is that what you want?  This is an issue for Sussex county to weigh in on now!

Shutting down NRG’s Indian River Generating Plant is the logical step to help wind development in Delaware, both in market development and transmission access.   And of course it’s the logical step to reduce toxic emissions in Delaware — the Indian River Generating Plant is the largest point-source polluter in Delaware.  To quote Muller:  DELAWARE NEEDS TO STOP BURNING COAL.

How would shutting down the Indian River plant enable wind?   Indian River’s two smallest plants will be shut down in 2009, and removal of that generation leaves enough transmission infrastructure generation and reservations for the Bluewater Wind project.  If Indian River was completely shut down, there’s room for a lot more off-shore-wind generated electricity than Bluewater plans — several times the MW of the Bluewater Project.   Let’s get to it — shut down Indian River now — and if NRG’s bid for gas generation to back up wind is approved, that would be sited there — just the right place back up wind and provide reactive power for the system.

And a little sidebar — though many Renewable Energy Standards passed, ALL have a fatal flaw — not a single one is linked to any shut down of fossil fuel generation.  So for a 25% RES, we’re looking at adding that above current generation, not cutting generation, so the numbers look like this: 100% demand + 25% RES = 125% rather than 100% demand -25% fossil fuel + 25% RES = 100%.  That may seem simple… so why are all RES’s missing this important connection?

What this MAPP line does is enable coal generation from the other end of the line and coal generation at Indian River to continue, and to be sold on the market, so that even if Delaware does not use the generation, they can sell it elsewhere.  Even if CO2 externalities add to the cost, on the spot market they can sell it anywhere and still make a lot of money.  Yeah, good idea.

Once more with feeling — Two points here:

1) SHUT DOWN ALL OF NRG’S INDIAN RIVER COAL GENERATING PLANT AND MAKE ROOM FOR WIND!

2) JUST SAY NO TO TRANSMISSION FOR COAL!

Here’s Delmarva’s blurb published nearly verbatim in the Sussex Countian:

DP&L will update community on proposed power pathway

Here’s the Delmarva from a PR service:

Mid-Atlantic Power Pathway Meetings Scheduled for Sussex County, Del.

2009-01-21 20:01:02 –

Delmarva Power, a subsidiary of Pepco Holdings, Inc., will hold community informational meetings in Sussex County, Del., on Tuesday, Jan. 27; Thursday, Jan. 29; and Wednesday, Feb. 4, to provide information and respond to questions about the utility’s proposed 230-mile interstate electric transmission line.

More than 100 miles of the Mid-Atlantic Power Pathway (MAPP) project will be built in Delaware, with much of the route constructed along existing rights-of-way. The segment from the Maryland border to Indian River is expected to be completed by June 2013. PJM Interconnection, the operator of the Mid-Atlantic power grid, is still evaluating the in-service date for the portion from Indian River to New Jersey. Each phase of the project will be placed in service as it is completed, providing immediate electricity reliability benefits to the region.

“We believe this line is vital for providing residential and business customers with access to more affordable and reliable energy as the region continues to grow,” said Vince Maione, MAPP Project Manager. “It is important that Sussex County residents understand that most of the route will be built on or adjacent to existing rights-of-way. These meetings are an opportunity for residents to learn and ask questions about the project.”

Maione will brief residents on the MAPP process and provide detailed information on how the project will benefit Sussex County. Residents will have an ample opportunity to review project maps, voice concerns and question Maione and other Delmarva Power experts.

Times, dates and locations for community meetings:

Tuesday, January 27
Delmar Fire Hall
Bi-State Blvd. & Grove St.
Delmar, Del.
6 p.m. to 8 p.m.

Thursday, January 29
Gumboro Fire Hall
37030 Millsboro Highway
Gumboro, Del.
6 p.m. to 8 p.m.

Wednesday, February 4
Millsboro Civic Center
322 Wilson Highway
Millsboro, Del.
6 p.m. to 8 p.m.

Pepco Holdings, Inc. (NYSE:POM) is one of the largest energy delivery companies in the Mid-Atlantic region, serving about 1.9 million customers in Delaware, the District of Columbia, Maryland and New Jersey . PHI subsidiaries Pepco, Delmarva Power and Atlantic City Electric provide regulated electricity service; Delmarva Power also provides natural gas service. PHI provides competitive wholesale generation services through Conectiv Energy and retail energy products and services through Pepco Energy Services.

Delmarva Power
Matt Likovich
410-860-6203 (office)
866-655-2237 (pager)
matthew.likovich@delmarva.com