Tuesday, January 16, 2018

Hubris: Clean Line's Michael Skelly and the End of the Plains and Eastern Project...

Another joint update from Ali and Dave...


THIS = Michael Skelly:




See the smoldering ruins behind Michael Skelly over there? The twisted steel and scorched concrete trailing behind him? Those are the bridges he burned in Arkansas. Well, rhetorically, of course... because Michael Skelly never actually built anything here, except a list of enemies.

There’s a difference between innovation and hubris, reality and fantasyland. Maybe you need a bit of both to pull off the project of Skelly’s dreams, but somewhere along the line… between attempting to circumvent state authority and bluffing about local tax payments, Clean Line Energy Partners, LLC, managed to make their project so toxic no one seems to want anything to do with them.

To recap the events of recent weeks: Plains & Eastern, Clean Line’s regulatory crown jewel and the only of its projects to be fully (if questionably) permitted, is DEAD in Arkansas. Hallelujah. Don't take our word for it, though. Let's look at a little evidence:

Clean Line Withdraws from TVA's Interconnection Queue:

Just a little background: Clean Line has three points of interconnection for it's project - at Southwest Power Pool (SPP) in Oklahoma for its proposed converter station at the beginning of the line, at Midcontinent Independent System Operator (MISO) for its proposed converter station in Pope County, Arkansas, and at Tennessee Valley Authority (TVA) for its proposed converter station in Shelby County, Tennessee. All three are vital to the Project's ultimate success. As you can see in the following screenshot, Clean Line has withdrawn its position in TVA's interconnection queue.





What's missing from the second screenshot (TVA's current interconnection queue)? #219 and #220 (Clean Line). Now, Skelly will likely attempt to say that the position can simply be revived later, but that's not really how the process works according to TVA:
3.5 Withdrawal.

The Interconnection Customer may withdraw its Interconnection Request at any time by written notice of such withdrawal to TVA. In addition, if the Interconnection Customer fails to adhere to all requirements of this LGIP, except as provided in Section 13.5 (Disputes), TVA shall deem the Interconnection Request to be withdrawn and shall provide written notice to the Interconnection Customer of the deemed withdrawal and an explanation of the reasons for such deemed withdrawal. Upon receipt of such written notice, the Interconnection Customer shall have fifteen (15) Business Days in which to either respond with information or actions that cure the deficiency or to notify TVA of its intent to pursue Dispute Resolution.

Withdrawal shall result in the loss of the Interconnection Customer’s Queue Position. If an Interconnection Customer disputes the withdrawal and loss of its Queue Position, then during Dispute Resolution, the Interconnection Customer's Interconnection Request is eliminated from the queue until such time that the outcome of Dispute Resolution would restore its Queue Position. An Interconnection Customer that withdraws or is deemed to have withdrawn its Interconnection Request shall pay to TVA all costs that TVA prudently incurs with respect to that Interconnection Request prior to TVA’s receipt of notice described above. The Interconnection Customer must pay all monies due to TVA before it is allowed to obtain any Interconnection Study data or results.

TVA shall (i) update the OASIS Queue Position posting and (ii) refund to the Interconnection Customer any portion of the Interconnection Customer's deposit or study payments that exceed the costs that TVA has incurred. In the event of such withdrawal, TVA, subject to the confidentiality provisions of Section 13.1, shall provide, at Interconnection Customer's request, all information that TVA developed for any completed study conducted up to the date of withdrawal of the Interconnection Request.
There goes Clean Line's proposed end point.

Clean Line Withdraws from MISO's Interconnection Queue:

This is the one we've been waiting for. A withdrawal from MISO's interconnection queue removes the Project's midpoint (the Pope County, Arkansas, converter station connection point) from the equation. Go here and search for "J319." The evidence:




There goes Clean Line's proposed mid-point.

Long story short: No connection point in Tennessee and no connection point in Arkansas = NO PROJECT IN ARKANSAS. This is fantastic news, Arkansas landowners. The multi-year fight has been unnecessarily taxing and expensive, but this is looking good for you.

In spite of Skelly’s many, many protestations, the simple fact is, absent the Oklahoma portion of the line, whatever Frankenmonster he intends to “someday” cobble together is NOT Plains & Eastern. The Project, as pitched, hyped, and sold to the U.S. Department of Energy, no longer exists, whether or not Skelly believes he could somehow manage to get back into line at the TVA or MISO.

Do Skelly, et al, (meaning those few scraps of leadership left in his company) really not comprehend what they’ve done by selling Oklahoma to NextEra? Who gave this man their investment money? And for goodness sake, why?

Why a company that had the hubris to assume they could jump the appellate queue all the way to the Illinois Supreme Court… a company that never misses a chance to appeal an unfavorable decision, would assume dedicated landowners would stop with a district court ruling is beyond us. This company spent years, YEARS, holding Arkansans hostage. You think we’re going to let the first judge be the end all? Not likely, princess.

No, Mr. Skelly, you will not be allowed to sit in Houston and twiddle your thumbs until a magic buyer comes along. You will not be allowed to hold onto your “permit” with one hand while selling off pieces of your company with the other. You will not be allowed to fail to file updates with regulatory agencies and simultaneously claim the project is still alive. You will not be allowed to do that to so many Arkansans.

Now, the ten-ton elephant in the room falls on NextEra: What about our good friends in Oklahoma? What are your intentions there, NextEra? We think you owe Oklahomans an explanation about what your true intentions are. Are you actually proposing a different transmission line? Maybe to compete with AEP's "Wind Catcher" project? If so, where might that project stop in Oklahoma? Again, these landowners deserve an explanation from you... sooner, rather than later.

And what about the reporters who continue to give this company so much deference? Don't you feel like it's time to do a little bit more digging and put this to bed for landowners in Arkansas and Oklahoma? It's time for you to stop handling these guys with kid gloves, isn't it?

So, go back to your firehouse, Michael Skelly… maybe do a little more glory hounding and dream up your next snake-oil scheme. With the exception of greeniacs like Dr. Smith (BTW, I’m sure Bill Johnson is shaking in his boots. *eyeroll*), everyone can see right through you.

Michael Skelly is now living in a world filled with hubris and fantasy. We'll update you again with more when we know more.