Thursday, February 28, 2008

Thruway Corridor

NYRI says the Thruway is not an option, but it's unclear whether they're talking about the Thruway right-of-way or the Thruway Corridor. This is a picture of the Thruway Corridor. It looks like a pretty large corridor to me. The four placemarks are the Thruway, Barge Canal, CSX Railroad, and the Mohawk River.

This is a picture of the New York Susquehanna and Western (NYSW) railroad. Those are large trees on either side of the railroad tracks w/ pasture or cultivated land beyond. Does this look like a "utility" corridor to you?

LBMP

Locational Based Marginal Pricing - LBMP

New York State's electrical energy cost structure relies on a complicated economic model pricing system that probably very few people truly understand. The basic idea is that low-cost energy is obtained first, medium-priced energy is obtained next, and high-priced electricity is obtained only when absolutely needed. The end result is that many of the expensive oil-fired generators in the NYC area aren't used that often, to the point that they have trouble making enough money to stay in business.

The system is supposed to "signal" when generators are needed in certain areas, but it hasn't been working as intended (in part because Article X is defunct). Hence the drive to bring energy in from everywhere else---------upstate New York, New Jersey, Canada, etc. I'm sure if New York City could beam energy in from Mars, they would do so.

The model worked so poorly that new "spinoff" models were developed to include the idea of reliability and congestion. Now we have models on top of models, with groups on top of groups. The benefit of this whole system is that everything is so complicated that everyone can blame someone else if something should go wrong.

The best link I have found so far in explaining how we got to this point is here http://books.nap.edu/openbook.php?record_id=11666&page=124

Wednesday, February 27, 2008

NIMBY and NOPE


NIMBY: Not in My Backyard and NOPE: Not on Planet Earth

NYRI officials like to throw around the NIMBY word.

Q. How do you view the immense criticism the power line has generated?
A. Most of it isn't opposed to the project, just the specific route, you know NIMBY. http://www.recordonline.com/apps/pbcs.dll/article?AID=/20080204/NEWS/802040317

It's a cheap shot because the issues are much more complex, and because those who throw those words around would be the first to NIMBY if they were impacted.

Gov. Spitzer is the one who throws around the NOPE word (http://www.bcnys.org/whatsnew/2000/0925energy.htm). Gov. Spitzer has told our area that the NYRI project won't be built. But I suspect he's known about the NYRI project much longer than any of us who will actually be impacted by it. http://www.nysun.com/article/67421

Steve Mitnick


Mr. Mitnick was Conjunction LLC's CEO http://www.morganenergy.com/artsingle.php?040401
The Conjunction Project was to bring 1,000 MW to the New York City area on an 138-mile AC line, and was to cost $700 million. Do I need to point out that this project would have brought the same amount of electricity to the NYCA at a third of the price of the NYRI project?

Mr. Mitnick was also involved with the study of
Alternatives to the Indian Point Energy Center for Meeting New York Electric Power Needs (2006) ---see page 82. This report discusses the NYRI project, but not by name.

Mr. Mitnick was hired by Gov. Spitzer as Assistant Secretary to the Governor for Energy and Telecommunications on January 5, 2007, but resigned on August 3, 2007 apparently over a controversy which is best read in this attorney general's "Report on the Investigation of Two Allegations Relating to the Public Service Commission"
http://www.ig.state.ny.us/pdfs/Investigation%20of%20Two%20Allegations%20Relating%20to%20the%20Public%20Service%20Commission.pdf

My favorite company, Energy East, is mentioned again:

"On January 24, 2007, Governor Spitzer announced the nomination of Angela Beddoe as chairperson of the PSC. At the time, Beddoe was Vice President for Public Affairs at Energy East Management Corporation, a utility regulated by the PSC. While Beddoe’s confirmation was pending before the Senate, Energy East and its affiliates were involved in at least 38 cases pending before the PSC.
Energy East has had a contentious relationship with the PSC and DPS. In March 2006, after an adverse decision from the PSC regarding a rate increase, a subsidiary of Energy East purchased full-page advertisements in several papers criticizing the DPS. The advertisement termed the auditors at the agency "junior accounting staff." "

Tuesday, February 26, 2008

Decommissioning Costs

Decommissioning costs need to be included as a line item in the NYRI estimate.
http://www3.dps.state.ny.us/PSCWeb/PIOWeb.nsf/a89c0117705349e7852573e0007a0a57/e70c1ca1d196fabc852573f7005fcc0a/$FILE/Exhibit%209_FINAL_2-14-08.pdf

Money should be placed in some sort of reserve fund to take down all the structures when no longer in use. Any substructures should be removed to 4' below the existing subgrade.

There are too many abandoned industrial sites already, and many companies don't have a stellar record of cleaning up after themselves. Harbor Point in Utica (old coal gasification plant now owned by National Grid) is still heavily contaminated. The PCB contamination of the Hudson River by GE is another example to learn from http://www.epa.gov/hudson/

NYSW Abandonment?

NYSW filed a notice of abandonment for the NYSW railroad portion in Madison and Chenango Counties in September of 2006. http://www.stb.dot.gov/filings/all.nsf/7ea069ce3bbeac2e852573fa000602da/d98a7e7778db57e78525722c00638889/$FILE/218107.PDF

"In accordance with the regulations of the Surface Transportation Board at 49 C.F.R. Part 1152, the following is a description of the lines of railroad, as classified and depicted on the abovemap, which The New York, Susquehanna and Western.Railway Corporation anticipates will be the subject of an abandonment or discontinuance application to be filed within three years(Category 1):"

There doesn't appear to be any mention of this in the NYRI Application (although I haven't read through everything). How can you use the railroad to haul all the materials to build the project if it's abandoned? Who would take over the railroad, and who would maintain it?

Monday, February 25, 2008

NY Sells its Infrastructure

National Grid (English/Wales) merged with Niagara Mohawk in 2000. National Grid merged with KeySpan in 2007 http://www.nationalgridus.com/information/index.asp Now Energy East may merge with Iberdrola (Spain) http://www.dps.state.ny.us/Case_07-M-0906.html. There's speculation that Iberdrola may be subject to a hostile takeover from a French company before they even complete their merger w/ Energy East http://www.dps.state.ny.us/07M0906/07M0906MotPstpn2-5.pdf.

Remember Energy East is the company that still lists Walter Rich on their board of directors even though he has been dead for 6 months. http://phx.corporate-ir.net/phoenix.zhtml?c=104038&p=irol-govmanage Being alive must not be a prerequisite for the job.

It wasn't too long ago that there was a boycott on "French" fries, and terrorist talk is never-ending, but no one seems to be too worried that foreign companies essentially have control of our electrical infrastructure.

When I talked to a NYSPSC person about this issue, s/he said "would you rather have all those rich NIMO executives spending massive amounts of money on food/wine/lodging?" I said, "well now all those rich English/Wales executives will be spending massive amounts of money on food/wine/lodging ---but not in the US."

Sunday, February 24, 2008

NYSW Former President

Walter Rich was the former president of the New York Susquehanna and Western Railroad (NYSW). He died August 9, 2007 (apparently from pancreatic cancer), and was a friend of Sherwood Boehlert. http://www.legacy.com/TimesUnion-Albany/Obituaries.asp?Page=Lifestory&PersonId=92386126 & http://www.coopercrier.com/news/stories/2007/08/16/ccrich.html

Some thought Mr. Rich was a great businessman, but I'm not sure why. From what I could tell, he made a lot of money off the taxpayers for services not rendered--see "$400,000 For a Train that Never Came" http://www.syracuse.com/articles/news/index.ssf?/base/news-12/11947752197340.xml&coll=1&thispage=1


Mr. Rich was also on the board of directors of Energy East http://phx.corporate-ir.net/phoenix.zhtml?c=104038&p=irol-govmanage and the chair of the corporate responsibility committee. (wonder when Energy East is going to update their web site?---their corporate board must not be very active). Energy East is the parent company of NYSEG, RG&E, CMP & others) http://www.energyeast.com/OurCompanies/default.html

Obvious to those of us living along the railroad track, train traffic was sparse and NYSW was not making money. Therefore, NYSW made a deal (PILOT program) w/ the County Industrial Development Agencies (IDA's) which went something like this----- The IDA's would own the railroad track; NYSW would lease the railroad for $1; NYSW would not pay taxes; and NYSW could buy the railroad back for $1. Even though the IDA's were (& are?) owners of the track, NYSW makes an agreement (option) w/ NYRI (&/or Pegasus-Niagara Reinforcement?) for property rights for a significant sum of money, which increases every year. Apparently the IDA's were not aware of the NYSW/NYRI agreement. The PILOT program officially expired in 2003, but unofficially, it appears that the PILOT program just continued on it's merry way until the NYRI project became public.

I'm fuzzy on the details, but I do know this. Walter Rich tells some of us that these types of utility options occur all the time; and most of the projects don't get built anyway. He thought the poles would only be about 40' tall, and he is going to talk to the NYRI folks and see if they can lower the poles.

A businessman like Mr. Rich didn't know the difference between a low-voltage line and a 190-mile lateral 400-kv HVDC line? He didn't know that the project would cost over $1 billion dollars? He thoughtlessly signed off on an agreement that would impact thousands?

Shame on you Mr. Rich. You weren't a very good neighbor.

Wind Potential

The NY wind potential map @ a 50m height can be found here http://www.awstruewind.com/files/NY_spd50m.pdf

We looked it up yesterday, zoomed in on the transmission lines, and lo and behold, the proposed NYRI HVDC line appears to be shown on the map. The project hasn't been approved, yet it shows up on this map? The legend doesn't list it as a "proposed" line, either.

The proposed AEP project http://www.aep.com/newsroom/interstateProject.asp appears to be on the West Virginia map too (looks like a slightly different location, but how many 700+KV lines can there be?)

With respect to NY renewable energy generation, the two areas with the largest potential are the southeastern shores of Long Island and Lake Ontario. And yet, a proposed 140 MW wind turbine farm off the coast of Long Island has been cancelled due to high costs. I would point out that 3 of these projects could be built w/ the cost of the one NYRI project.

For the smaller wind farms sprouting up in upstate New York, energy flows to the closest source of demand; only excess would be available for elsewhere. How much excess electricity generated from these wind turbines will be available during the hot, dog days of summer when the peak load typically occurs? And unlike owners impacted by the turbines that get income each year and are essentially sharing in the project’s profit (approximately $2-9K per turbine per year), no adjacent property owners of transmission towers get that same benefit.

Saturday, February 23, 2008

NYRI President #2

NYRI's #2 President is Chris Thompson ---a real man w/ a real face http://www.recordonline.com/apps/pbcs.dll/article?AID=/20080204/NEWS/802040317

The ACI site still has him listed as Sr. Vice President of NYRI on his CV http://www.aciinc.net/Thompson.html (you would think that ACI would have a better web site----it looks pretty lame. Plus, can you trust a company when they don't update their website after they've changed presidents?---let's just say I'm not impressed).

Mr. Thompson is supposed to be an engineer, but he doesn't have a PE after his name, so I'm assuming he's not licensed (not unusual, but......).

He's also the Sr. Vice President of ACI and his contact info is here http://www.aciinc.net/Contact.html

Wonder if Mr. Thompson lives next to any transmission lines? I googled the address but the satellite image is old; it shows no houses. I looked for signs of transmission lines, but didn't find them, but then again, the image is old.

I don't exactly agree w/ many of his statements he gave to the record online, but that's another blog.

NYRI President #1

What happened to Richard Muddiman, the former Canadian president of NYRI? He seems to have been replaced with Chris Thompson, who lives in the US.

I was never sure Richard Muddiman was a real person. He never made a public appearance. He has almost no web presence. Did he ever attend an energy conference and make a presentation? Was he ever on any board? Did he ever make a positive contribution to society? Does he have a face?

I talked to two people who had met him; he did not seem to make a very positive impression (not too surprising).

I did find this: http://www3.dps.state.ny.us/pscweb/WebFileRoom.nsf/0/F8CC0F2C235DACB385256E16006BFD73/$File/doc11304.pdf?OpenElement
Mr. Muddiman was president of the Pegasus project (the trial version of the NYRI project---- the line was to connect all the way to NYC--to the West 49th Street Substation of Consolidated Edison). I wonder why PSEG and Neptune objected to participation by Pegasus Power?

My hope is that Mr. Muddiman is "walking the talk" and living next to his very own transmission line w/ megahigh towers. And of course, he would have paid top dollar for this property because transmission lines don't impact property values. And he has no doubts that those high voltage lines are safe and won't impact his children's current or future health.

NYRI: Reality Check

http://www.nyri.us/pdfs/Reference/NYRI_Project_Update.pdf (pg 22 of 24)

NYRI has ben committed to the state process from day one and continues to work with the New York PSC through the Article VII process.

Of course NYRI is committed to the state process; by law, they must go through the state process. But that doesn't mean they won't go to DOE/FERC to get this project approved.

NYRI submitted a request to the Department of Energy (DOE) on March 9, 2006 that “the Department consider NYRI’s proposed transmission corridor for early designation as a NIETC”. http://www.oe.energy.gov/DocumentsandMedia/nyri.pdf

NYRI submitted their application to the New York State Public Service Commission (NYPSC) on May 31, 2006 .

NYRI should be required to provide a detailed list of lobbyists and historical contacts to all public officials (local, state and federal) concerning the NYRI (& Pegasus) project.

NYRI is a New York company headquartered in Albany that has Canadian investors. NYRI’s activities will be heavily regulated by the NYPSC and the FERC.

Who are the investors and why the secrecy? Does it make any sense for a private company with unknown investors (of unknown citizenship) to be able to use the power of eminent domain on private US landowners?

NYRI’s proposed line and the alternative routes studied do not require that any home be taken by this project. However, like every linear infrastructure project, e.g., the NYS Thruway, some use of eminent domain could be necessary, and would come in the form of easements over property. The NYPSC recognizes the need to use eminent domain to ensure that energy requirements are met. NYRI would provide fair or above market value for such easements.

Unlike a highway or natural gas line in which the adjacent property owners have access to the resource, the proposed NYRI project will not provide power to any community or business along its length; it is a committed line between two substations. Unlike a public, not-for-profit state agency, NYRI is a for-profit company.

NYRI Project

No one should underestimate the size, scope, cost, and complexity of the NYRI project.

To put it into perspective, compare the cost of the NYRI project ($2.1 billion) to the original “Big Dig” estimate ($2.6 billion) http://www.nap.edu/catalog.php?record_id=10629

And for all that money, not one kw-hr of electricity would be generated.