State Journal reporter Judy Newman contributed to this report.
Obama’s Transmission BS in the News
October 5th, 2011
What does Obama’s transmission “streamlining” “fast track” agenda mean for states’ authority over need for and routing of transmission?
What does Obama’s transmission “streamlining” “fast track” agenda mean for federal agencies charges with NEPA environmental review of these transmission projects?
What does Obama’s transmission “streamlining” “fast track” agenda mean for public participation and due process?
Does Obama have a clue how many landowners/voters are affected by CapX 2020?
$$$$$$$$$$$$$
These are TWO of my transmission projects he’s targeting, TWO, the CapX 2020 Hampton-LaCrosse transmission line and the Susquehanna-Roseland transmission line. Here’s the Dept. of Interior Press Release:
Obama Administration Anounces Job-Creation Grid Modernization Pilot Projects
Susquehanna-Roseland in the news:
Obama backs power line upgrade that passes through Morris County
I guess we know why he was in Cannon Falls… at least part of it… I hate to think what else might have been on the agenda.
Here’s what’s flying out in the press about Obama’s Transmission Toadyism and CapX 2020, many are pretty much just a cut and paste of the White House press release:
Rochester Post Bulletin: Obama Administration to fast track CapX 2020, other power-line projects
Minnesota Public Radio: Obama seeks fast track for powerlines in Minn., elsewhere
Here’s one with some substance:
Feds step up power line projects in 12 states, including one in Wisconsin
Once more with feeling:
What does Obama’s transmission “streamlining” “fast track” agenda mean for states’ authority over need for and routing of transmission?
What does Obama’s transmission “streamlining” “fast track” agenda mean for federal agencies charges with NEPA environmental review of these transmission projects?
$$$$$$$$$$$$$
ILSR’s Farrell on Fed Transmission Scam
June 29th, 2011
ILSR’s John Farrell is halfway there – he recognizes the federal part of the transmission equation, but the state part is missing, for example, Minnesota’s special eminent domain exemptions for “Public Service Corporations” (particularly where the transmission is for private profit, NOT public service), rate recovery for “Construction Work in Progress” and state regulators refusal to examine the interstate nature of transmission proposals. And the third part of that unholy trinity — in the Midwest, bulk power transmission would not be being built but for the Settlement Agreement – ME3(Fresh Energy), Izaak Walton League (and Walton’s program Wind on the Wires), Minnesota Center for Environmental Advocacy, and North American Water Office. This glut of transmission is their legacy. It takes all three to build transmission.
From Grist, today:
Feds running a high-voltage gravy train for power transmission
by John Farrell
28 Jun 2011 6:00 AM
Even as distributed generation shows economical and political advantages over centralized renewable energy, the Federal Energy Regulatory Commission (FERC) is running a high voltage gravy train in support of expanded transmission. FERC’s lavish program is expanding large transmission infrastructure at the expense of ratepayers instead of looking at more economical alternatives.Since 2007, FERC has had 45 requests for bonus incentives for transmission development — authorized under the 2005 Energy Policy Act — and has provided all or most of the requested incentives in more than 80 percent of the cases. With the bonuses, the average return on equity for utilities for their new transmission investments is nearly 13 percent. This high rate of return is a full 2.5 percentage points higher than the median utility return on equity [PDF], a value considered just and reasonable by state public service commissions in ordinary times. However, these rewards came during a time when unemployment doubled, the stock market tumbled, and most corporations were lucky to have any profit.The ratepayer impact of these bonuses is significant. In a November 2010 criticism of FERC transmission awards, Commissioner John Norris noted that the 2 percent bonus FERC provided to the PATH high-voltage project on the Eastern seaboard would “cost [Maryland] ratepayers in PJM at least $18 million per year.” The bonus payments were also given in concert with other incentives that reduced risk, including rate recovery during construction and guarantee of payment if the facilities were abandoned for reasons outside utility control.
PATH transmission challenged by WVa PSC staff
December 18th, 2010
Click map for larger version:
PATH, the Potomac Appalachian Transmission Highline, is in trouble… AGAIN…
The good news is that the West Virginia Public Service Commission staff is challenging need for the PATH line, which was already postponed by PJM. And then there’s these pesky states questioning the need, like Maryland, which challenged the corporate organizational form, noting that it wasn’t a utility so “get outta here!”
Now it’s time for the West Virginia PSC staff to raise its eyebrows and deliver a solid Motion to Dismiss:
For the entire docket, go here:
And here’s the way it looks in the press:
$2B PATH project faces dismissal by W. Va. regulators
GRE & Xcel are hustling for $$$$$
October 20th, 2010
Apparently Great River Energy and Xcel Energy are outlooking for money. Gee, I wonder why? I remember the snorts and hoots that broke out in the room way back during the CapX Certificate of Need hearing when they admitted to presenting their CapX 2020 financing dog & pony show to Lehman Brothers.
As for GRE, from Monday’s article in Finance & Commerce:
Xcel just made an SEC filing that shows some creative efforts:
“Secondary purpose of the Plan…” (click the quote for the full filing) “Secondary purpose…”
Yup, uh-huh… …WHAT… EVER!
Here’s the full article from Finance & Commerce about GRE’s capital raising efforts:
Great River Energy to sell $450M in mortgage bonds
Posted: 4:35 pm Mon, October 18, 2010
Faced with declining power-usage revenues and rising utility-plant costs, Maple Grove-based Great River Energy (GRE) on Monday issued $450 million in taxable first mortgage bonds to meet costs and pay down debt.
The mortgage bonds are intended to fund capital spending for the utility’s power generation and transmission as well as paying off $325 million of GRE’s $2.4 billion outstanding debt, said Susan Brooks, GRE treasury director.
“It’s part of our long-range plan to meet member costs in the most cost-effective manner,” said Brooks, who expects bond pricing to be set today.
The mortgage bond sale is the second such transaction in 2010 by GRE, which in April announced it would sell $106 million in tax-exempt first mortgage bonds issued by McLean County, N.D.
It’s not unusual for utilities to sell mortgage bonds to help make ends meet at a low cost. Such financing makes sense because GRE is making additions to its system and paying for generation and transmission improvements in the wake of the recession.
For example, GRE’s 2009 revenues fell $42.1 million to $787.8 million at the same time the utility was paying to develop a coal-fired plant in North Dakota and helping develop the CapX2020 system of transmission lines with 10 other state utilities.
Fitch Ratings assigned an A- credit rating to the $450 million mortgage bond sale. Fitch noted that, “while GRE’s debt level remains a concern, (it) has been effective in managing the higher debt loads, even in what has been a difficult operating environment.”
Background information on GRE’s mortgage bond offering from Fitch stated that GRE is working to lessen its debt-load by paring its five-year capital spending plan by $350 million.
GRE serves more than 645,000 residential and small-commercial customers through 28 member cooperatives. The utility maintains 3,647 megawatts of generation capacity, of which 2,751 megawatts is owned by GRE.
Additional capacity is expected to come online in 2012 when Spiritwood Station, a coal-fired plant near Jamestown, N.D., begins operation.
The start-up of Spiritwood, which has a peaking capacity of 99 megawatts, was delayed until early 2012 earlier this year because plans for an ethanol plant to use steam from the nearby coal plant failed to materialize.
Therese LaCanne, GRE spokeswoman, said Spiritwood also will provide steam for a Cargill Malt plant in the industrial park.
Of GRE’s 2009 power generation, 78 percent was coal-fired, with the remaining 22 percent coming from 7 percent renewable energy, 1 percent natural gas and 14 percent other energy sources.
Combined with the planned firing up of Spiritwood and wind energy contracts, GRE projects it will have adequate capacity to meet its member needs beyond 2020.
The utility projects compounded average annual peak load growth of 1.4 percent from 2010 to 2020, according to Brooks.
ALJ: Underground Hiawatha Project
October 9th, 2010
Underground Xcel’s Hiawatha Project transmission. That’s BIG, it’s good news, except for one thing — “Who pays?” is still a question:
ALJ Heydinger’s Recommendation for Xcel’s Hiawatha Transmission Project
Problem is, cost allocation isn’t dealt with specifically, only explained, so no recommendation regarding that.
If the PUC went ahead, would it be spread across the Metro area, the full Xcel rate base, or???
For the SE Metro, and for the Chisago Transmission Project, if they cities would have agreed to shoulder the cost, undergrounding was no problem. But that’s not feasible for a city to pay. So now what? Will the PUC actually order undergrounding, with a broad rate base recovery?