Monday, December 18, 2017

Does Clean Line not love Arkansas anymore?


Well, it’s happened. Clean Line doesn’t love Arkansas anymore. “The markets have shifted," Mario says. First, we got friend-zoned (remember when they were just going to use us as an doormat for their extension cord to Tennessee?), then loved us no matter how much we didn’t want it (baby, I’m gonna give you all the taxes-not-really-taxes-voluntary-payments and jobs you can handle), and now Clean Line is moving on and trying to sell (kind of like multiple interested parties always said they would) this debacle of a project to American Electric Power (AEP) to "help" facilitate their proposed "Wind Catcher" project. We could go on for a while about what exactly "Wind Catcher" is, but this article by Jeffery Tomich of E&E News very effectively summarizes what it is and gives a brief summary of what Clean Line is now seeking:
Clean Line did disclose an unusual offer to a potential customer last week in an Oklahoma regulatory filing. 
In testimony filed at the Oklahoma Corporation Commission, the company suggested that the Plains and Eastern project provide the transmission for Public Service Co. of Oklahoma's piece of American Electric Power Co.'s Wind Catcher project.

The $4.5 billion AEP project would be able to provide wind energy to its utility customers in Arkansas, Louisiana, Oklahoma and Texas from a 2,000-MW wind farm being developed in Oklahoma and 350-mile high-voltage transmission line (Energywire, July 27).

Clean Line supports the Wind Catcher project and its ambitions to bring utility customers access to low-cost wind energy in the same way that utilities such as Xcel Energy Inc. and MidAmerican Energy Co. are doing, Hurtado said.

"It just happens that we're a number of years ahead on our project compared with the [transmission line] that they proposed back in July," he said. "We think our project can provide a lower risk and ultimately a lower-cost option to move that power that they want to serve their customers."

Clean Line, which has been an evangelist for the benefits of DC technology for long-haul transmission projects, even said it's willing to use alternating-current technology if that's what AEP wants to do.


"We didn't want the discussion about the benefits that this project brings to be focused on a technology discussion of AC versus DC," Hurtado said.

So far, Clean Line's very general proposal to play a part in Wind Catcher is just that.
Read that again. One more time. I had to read it four times to grasp exactly what Mario was saying here. And then I did a little research because I like to know what Mario and crew are up to. ;) In my search, I was able to locate the Wind Catcher docket at the Oklahoma Corporation Commission (OCC). By the way, OCC, you really should update your system so it can be more easily searched. Here's a small tutorial about how to view the whole docket:

1) Click Here. After the page loads, do this:


2) After the results have loaded, do this:



3) Viola! You now have access to the Wind Catcher docket at the OCC. I'm a pretty simple person, but this took me a decent amount of time. It shouldn't have, OCC. You should be able to search for terms such as "Clean Line" or "AEP" to bring up results. If the case number is unavailable or difficult to find, the "Search" function is pretty much useless.

Now that your chin is on the floor and you've learned how to access the Wind Catcher docket: click here and read. It is, at times, vomit-and-laughter inducing, but it's also revealing. Let's examine a little bit of that testimony, shall we? It's really important.

1) The "market has changed" and there is currently no demand for the Plains and Eastern project east of Oklahoma:


Translation: Clean Line STILL has no customers. This is something we've been trying to say for a long time, but it's pretty satisfying to see it finally coming from the horse's mouth directly. Something else is also revealed:

2) Clean Line is more than willing to re-route the project away from its current route and terminate the project at Tulsa. A "second phase could be built at a later date if market demands warrant such action."

Let that sink in for a moment. This has always been about HVDC, how great that technology is, and how this project is designed to "deliver the best wind energy to the mid-south and southeast" through a converter station in Pope county, Arkansas, and Shelby county, Tennessee. It's almost like Mario would have you believe everything that's happened for the last seven years didn't actually happen. Now, Mario is essentially saying: "Arkansas and the southeast United States, PSSSSH!, this thing is GREAT for Oklahoma. Did I mention this is GREAT for Oklahoma? We will do anything if you'll just get this thing off our hands, AEP. Please - BUY THIS. No, but seriously, we'll do ANYTHING. We'll even change it to AC, move the route so it stops at Tulsa, and we don't even care if we own it. In fact, we'd probably just rather sell it":


This is a fundamental change, folks. New territory. In fact, Mario made it sound so much like the project was pre-designed and destined for Oklahoma that he mentioned the word "Oklahoma" 119 times in his testimony. Arkansas got the short end of the stick with 2 mentions. You're hurting our feelings over here, guys. I could go on and on, but there are a couple key things to take away from this: 

1) Clean Line is proposing to do something altogether different than it has been for the past 7+ years with its Plains and Eastern project. It should be both frightening, as well as reassuring that Clean Line will literally do ANYTHING at this point to salvage something out of this project. Their desperation is becoming harder and harder to hide.

2) If you are a landowner that has been impacted by this debacle and are interested about where it is going, it is imperative that you follow the Wind Catcher docket at the OCC. Why? Because AEP is scheduled to respond by the 22nd of this month. We'll find out very soon if this is some off-the-wall proposal by Clean Line to AEP that will be laughed away, or if AEP is actually seriously considering Mario's sales pitch... which could almost completely re-write the route of this project and what it intends to accomplish.

If someone at AEP is reading this, I can give you a simple analogy about what Clean Line represents:

I am a car guy. Clean Line is what I would call a "fifty foot car." If you've ever purchased a used car before, you can relate. Let's say you are driving along the road, and you see a car for sale that catches your eye. It looked GREAT when you drove by. So, you decide to turn around and have a look. When you start looking it over, you notice that the paint is nice and shiny, but there's hail damage on the roof. You look at the tires and they're worn out. You climb underneath and notice that there are oil leaks everywhere, and it's obvious that things have been leaking for a long time. You open the doors and look inside, and the interior looks pretty nice, but there are cigarette burns on the seats and it smells like someone just smoked a pack of cigarettes in it. Then you look at the odometer and it reads 200k miles... just right at that point where, if you don't spend a lot of money replacing some core things, you're going to HAVE to spend more money changing those things later, likely after it's left you stranded on the side of the road in the bad part of town somewhere a couple hundred miles from home.

Now, let's say you make it past all of that because the current owner is offering you a killer deal. So, you decide to take her for a test ride! You start it up and it has a rough idle and it smokes a little bit. You put it in reverse and the differential makes a loud "click." You put it in drive and take off and the transmission doesn't shift properly. It's making a lot of noise, and the steering doesn't feel right. You make it back to where you started and you have to make a fundamental decision: Do I really want this car? Is the amount of work and money I am going to have to put into this car going to be worth what I am paying for it? Am I ready to accept all of the problems that it has, despite my better judgement telling me to RUN? You get the point.

AEP: Clean Line Energy Partners is a "Fifty Foot Car." She looks pretty good at fifty feet away but, upon closer inspection, she's really just an eight year old car that is rife with problems... past, present, and future. It would probably be a better decision to buy a newer model because this one is worn out. And, on top of all that, she's been owned by a few jerks her whole life. We'll all find out within the next few days if AEP is considering taking Clean Line for a test drive, or maybe deciding to RUN and look for a newer model. Unless, of course, the case is dismissed altogether as the Oklahoma AG has requested. Only time will tell.

Clean Line: Arkansas has been wanting to break up with you for a loooooong time now. We're beyond ready to call you an "ex." 

Mario Hurtado: Here's what I (and many other landowners) think of your quote...
Furthermore, the Plains and Eastern team has received many questions from landowners and other stakeholders in Oklahoma about the Wind Catcher project. The team has been asked if Plains and Eastern can be involved or assist in the Wind Catcher project given that Plains and Eastern has a construction-ready, long-haul transmission project that runs from the Oklahoma Panhandle to the east and has acquired easements on more than 750 parcels in Oklahoma.


I am calling BS.

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