What’s Wrong with the TrAIL Agreement?
This comes from the Consumer Advocate Division of the WV PSC. That’s the group that is supposed to look out for consumer interests, but … well, read for yourself.
Bill Jack Gregg, the counsel for the Consumer Advocate, defended the deal he and his office made with Allegheny Power April 15 on our behalf.
As you read it — and it’s not really that long — ask yourself why there are such obvious, glaring holes in logic and fact.
It boils down to five arguments:
- Makes the electricity grid more reliable.
- It is in the interests of the ratepayers.
- Interests of the citizens directly affected, like us.
- Environmental impacts are reasonable.
- It benefits the state economy.
Let’s take these one at a time:
Grid
For instance, how does West Virginia benefit from this?
Well, it helps the electrical “grid” — but excuse us, we are not sucking the life out of the grid. The folks in eastern Pennsylvania and New Jersey and Delaware and all those big cities and suburbs along the East Coast are doing that.
We’re not sucking the life out of the grid. The big cities are. Put the power plant in or near the cities that need the power. You don’t have to be a genius to figure that out.
So, let me get this straight. The folks next door smoke in bed; their house starts on fire; and you want to run the hose through our living room instead using the fire hydrant in front of their house. And now we’re safer because the hose is sitting on our TV?
How do we benefit?
Ratepayers
This is a good one. We not only have to permit this monstrosity to run through our communities … WE HAVE TO PAY FOR ITS UPKEEP FOREVER!
The good news: We don’t have to do it for seven years. So, if you plan to move or die in the next seven years, you get a good deal.
Otherwise, you and yours and your descendants will keep paying and paying and paying for this thing … and never get any use out of it. What a deal!
Impact
Free electricity for all property owners where the TrAIL line runs … up to 12,000 Kwh. That’s 12,000 Kwh for all affected properties, total. And if those properties combined use more than 12,000 Kwh, then what? Well, they pay, of course.
$5 to the person who can tell us how many Kwh he or she uses in a year; and $50 for the person who can tell us how many Kwh their neighbors use. (No peaking at your electric bills.)
My father told me there was no such thing as a free lunch. I still believe him.
Also, $2.5 million in “energy conservation programs” for low income customers.
Let’s see, the state pays for electricity assistance for the low income. So the energy conservation actually just helps the state. Where’s the benefit again?
If Allegheny wants to be generous, just spend the money now. They have it.
Environment
This refers to the Grafton Area Route bypass.
Economy
Allegheny will put 100-150 — so, probably just 100, if that — “additional professional jobs in north-central West Virginia.”
As the agreement says, this will “obviously benefit the state’s economy.”
Are you kidding?!
One hundred stinkin’ jobs.
And how about the impact of all those tourists, weekenders and vacationers who decide that “Wild, Wonderful West Virginia” does not conger up the vision of 120-foot tall electric towers?
One hundred lousy jobs? That was the best you could do? 100?
Oh, and that $2.5 million for the low income.
Allegheny Energy earned $412 million last year — that is six and one-half (6.5) times as much as the company made just two years ago.
And in October, it reinstated its dividend for shareholders for the first time in five years.
One hundred lousy, stinkin’ jobs is the best you could do!
Mr. Gregg, you and your staff may think you got a good deal. But truly, sir, you need to attend more yard sales on the weekend. ‘Cause that vacuum cleaner you just bought sucks … just not in the way you think it does.
And, Mr. Gregg, we implore you. Do not go near a poker table. You will walk away naked.
Defending the Indefensible
Here is Billy Jack Gregg’s defense of his deal with Allegheny.
This statutory framework clearly envisions a balancing of various competing factors, The terms of the Joint Stipulation provide the necessary balance between these competing factors that would allow the Commission to issue a certificate for the TrAIL project. These competing factors include: reliability of the electric grid; the interests of utility ratepayers; the interests of citizens affected by the line; reasonable environmental factors; and the impact on the State’s economy.
Reliability of the Electric Grid - There is little doubt that the addition of the TrAIL line will enhance the reliability of the electric grid in the mid-Atlantic region, which includes West Virginia. This will benefit all electric customers in the region. At the same time, construction of the TrAIL line across more than 100 miles of West Virginia will impose costs and impacts on
utility ratepayers, property owners and the State as a whole. With the agreements contained in
the Joint Stipulation, the costs imposed by the line have now been adequately mitigated.Utility Ratepayers - Under the current cost allocation methodology for PJM network
facilities, West Virginia ratepayers are responsible for paying a percentage of the annual costs of
the TrAIL line. Upon completion of the line, this allocation is expected to amount to several
million dollars each year. The Joint Stipulation provides a significant benefit to the West
Virginia ratepayers of TrAILCo’s utility affiliates, Monongahela Power Company (Mon Power)
and Potomac Edison Company (PE) by eliminating the rate impact of the cost of TrAIL for a
period of at least seven years. The estimated value of this benefit is approximately $3 1.2 million.Citizens Affected by the Line - In January 2008, the CAD and TrAILCo submitted a
Partial Joint Stipulation that provided, inter alia, for landowners with property traversed by
TrAIL with up to 12,000 kwh of free electricity per year. Some parties interpreted the wording of
this provision in the Partial Stipulation to exclude property owners who refused to voluntarily
sign agreements with TrAILCo. Although that was never the intention of the parties, the current
Joint Stipulation makes clear that the ‘free electricity’ provision applies to all property owners
whose land is traversed by TrAIL. The Joint Stipulation also imposes an obligation on TrAILCo
to work with affected property owners to find micro-siting solutions to site-specific routing
issues. Finally, the Joint Stipulation provides for $2.5 million in increased funding of energy
conservation programs for low income utility customers in the counties impacted by the
construction of TrAIL.Environmental Factors - Pursuant to the Joint Stipulation, TrAILCo agrees to construct the transmission line using the Grafton Area Route (GAR). This route has less impact on the
environment than the original proposed route because it re-uses and parallels existing rights of
way rather than creating new rights of way. The GAR also avoids the Laurel Run watershed and
other areas of concern to citizen interveners in this case. . The Joint Stipulation also requires
TrAILCo to abide by the vast majority of the construction and operation conditions proposed by
the Commission Staff and CAD.State’s Economy - TrAILCo, Mon Power and PE have agreed to locate 100 to 150
additional professional jobs in north-central West Virginia. This employment commitment will
obviously benefit the State’s economy. An additional benefit to the State’s economy will come
from TrAILCo’s agreement to contribute $2.5 million to low income energy assistance
programs. These contributions will benefit thousands of West Virginia utility customers who
experience difficulties paying their utility bills.