Wednesday, May 8, 2013

Transmission and Teamwork





A recent TWEET by "Clean" Line Energy listed the above link and "Transmission and Teamwork".  After reading it, the implication was Rock Island “Clean” Line has a grassroots organization!  

Now maybe I'm jumping to conclusions here, but the twitter tweet and the blog sure implied the Council for Rural Affairs is the companies "grassroots" organization.  That is so cool.  Things were getting so boring around here. Clean Line Energy found a “grassroots” organization in Nebraska claiming to represent farmers and landowners in South Dakota and also this organization is partnering with the Iowa Environmental Council.

Somebody should have told this “grassroots” organization that Nebraska is a far-far away land from Illinois.  The Rock Island "Clean" Line doesn't even go through Nebraska!  Heck, why doesn’t RICL just go ahead and claim they have an Illinois “grassroots” organization with the Environmental Law & Policy Center in Chicago? At least this front group for Goliath Wind Business is in Illinois.

It’s good to see “Clean” Line Energy is sticking to the script and finding Astroturf organizations claiming to represent stakeholders (but not landowners…the other stakeholders).  Things were getting a tad…well quite.  Having a phony "grassroots" organization in Nebraska for a powerline through Iowa (though a route hasn’t been officially named yet) and Illinois is great. 

When is "Clean" Line Energy going to name a primary route through Iowa?  Are they waiting and hoping to optain public utility status in Iowa first, like Kansas?
  
Anyway, Plains & Eastern needs a “Clean” Line approved “grassroots” organization to represent Arkansas also!  I’m looking out for you here.  I think there was a great grassroots organization in West Virginia.  PATH used them but I'm having trouble coming up with the name.   

I found it!  The Coalition for Reliable Power!   As I understand it, they were quite an effective organization for AEP & First Energy when they attempted to build the PATH powerline.  I wouldn’t recommend "Clean" Line using the Arkansas COALition for Affordable and Reliable Energy.   ACARE looks to be either captured or another artificial group for a coal plant.  Their probably not an ideal group for “Clean” Line Energy in Arkansas, but they are a good example how several big energy companies need or create their own “grassroots” organizations in an attempt to downplay true grassroots opposition. 

The Coalition for Reliable Power is probably a much better fit for “Clean” Line Energy.  If “Clean” Line Energy doesn’t want to recognize BLOCKRICL for the preferred state grassroots organization, I’d recommend looking into the Coalition for the Illinois or Arkansas grassroots organization.

OK, I can’t go on with this.  It would be a violation of my own "social media rules".  The Coalition of Reliable Power was a “grassroots” organization created by some schmuck at Charles Ryan Associates, the PR firm hired to represent AEP & First Energy with the PATH powerline.  The PR company failed to register the name in West Virginia.  As I understand it, after the PATH powerline was declared dead, a few enterprising people in West Virginia claimed the name.  It was a brilliant move.  Take a phony grassroots organization name and turn it into something real.  Nice website.  Go there and see for yourself.

At least “Clean” Line Energy is smart enough to find an actual organization for its "grassroots" organization. It’s just from a state where the Rock Island Clean Line doesn’t pass through.  By the way Mike, you really need to hire a PR firm.  You’re getting clobbered in Illinois and having the Arkansas House propose a resolution that basically says “We don’t want “Clean” Line Energy in our state" isn’t good public relations.   

David Loomis and those Crazy JEDI Economic Models



Loomis and those Crazy JEDI Economic Models

David Loomis’ use of JEDI Economic Modeling is interesting and quite a creative use of voodoo economicsJEDI Economic Modeling was developed by the National Renewable Energy Laboratory, a federal agency to explain the alleged economic impact and job creation of projects, such as a wind farm.  Economist David Loomis claims the Rock Island Clean Line project will create 5,000 construction jobs and 500 full time jobs.  Sound to me like this claim of 500 “Full Time Equivalent” jobs is a lot of “train the model” to create the desired outcome.   


It’s interesting to note the U.S. State Department acknowledges the Keystone Pipeline will only create 35 full time jobs.   How does David Loomis conclude a powerline will create 1,429% more jobs than the Keystone Pipeline?  Creative model training and number manipulation perhaps.  Compared to the State Department’s number for Keystone these numbers provided by David Loomis, Ph.D. are ludicrous.  Can a single Clean Line Energy powerline really provide more jobs than the Keystone?  Really?


Ph.D. David Loomis is misapplying JEDI Modeling.  He is taking an economic model which can be manipulated like clay, that was specifically made for wind farms and using it for a powerline.  David Loomis is arguing that the Rock Island “Clean” Line powerline could carry 4,000 nameplate MW’s of wind turbines, therefore he is assuming Illinois will receive the economic benefit of creating a single wind farm of 4,000 MW’s in Iowa.  There is no JEDI model for a powerline just as there is no JEDI model for a pipline.


This is a gross abuse of JEDI economic modeling for David Loomis to assume a powerline’s economic benefit is the same as over 200 square miles of wind farms.  This is absurd and makes a person wonder why the U.S. State Department didn’t use similar economic modeling for the Keystone Pipeline.  Perhaps it is because the U.S. State Department under Hillary Clinton and John Kerry’s leadership isn’t so naïve to make such a boastful claim.


It’s is also interesting to note that David Loomis with his misinterpretation of JEDI Modeling also neglects to consider the negative economic contributions of the RICL project.  Loomis only considers the positive of gross contributions and not the net contributions after the economic losses are considered. 


Once again, like the Center for Renewable Energy, the line between David Loomis the private consultant and David Loomis the PhD Economist for Illinois State University gets real blurry.  While  this study submitted as evidence before Illinois utility regulators is from the Loomis consulting company, he is clearly riding the coattails of his university credentials. 

Any JEDI project will have a positive economic outcome if one fails to consider the economic dark side of the project.

Tuesday, May 7, 2013

David Loomis, Big "Clean" Wind Energy Business, Center for Renewable Energy, and Pay-to-Play



David Loomis, Big “Clean” Wind Energy Business, Center for Renewable Energy and Pay-to-Play

Some say Pay-to-Play is dead and it left Illinois with the Blago administration.   Most assuredly Pay-to-Play is still thriving in Illinois.   Maybe the Office of the Governor isn’t as active as Blago was, but it’s still around.  There are those who act as lobbyists and being paid by lobbyist and companies trolling Springfield looking to assist anyone in “need” and are willing to pay.


Now enters David Loomis.   He’s an interesting fellow.   His day job is an economics instructor at Illinois State University.   Is he a “professor” “fellow” or “chair” in the technical sense, I don’t know.  His exact title and position at Illinois State University doesn’t matter enough.   I’d hate to offend him by giving him an improper title.   Let’s just leave it as “instructor” though I think he has a PhD.   We’ll just say he is an “economist”.  Like so many other instructors in Illinois’ community college and university system, Mr. Loomis understands his job is to not only teach economics, but to teach and train young students to become a working part of society.   He trains young people to be prepared for entry level jobs and start a career.  


Unfortunately, it looks like David Loomis has lost his focus and realized there are benefits individual to focus on one industry.  David Loomis has focused on fostering growth in the wind industry.  At Illinois State University holds several other titles.  He is also the “Director” for the Center of Renewable Energy.  According to David’s own words “The Center is a facilitator for the Illinois Wind Group.”


According to the Center of Renewable Energy’s website;
“The Illinois Wind Working Group is an organization whose purposes are to communicate wind opportunities honestly and objectively, to interact with various stakeholders at the local, state, regional and national levels, and to promote economic development of wind energy in the state of Illinois.


At this time it should also be noted that the Centers website (or perhaps more accurately the Illinois State Universities website) also claims;

The Illinois Wind Working Group, its members, board members, Director, agents and other representatives expressly disclaim any responsibility for the accuracy or completeness of information posted on this site…


I guess “honesty” and “objectivity” mean nothing with such a disclaimer for “any responsibility of accuracy or completeness….”  What kind of website affiliated with a University needs a disclaimer that basically says “Yeah, we might possible full of ca-ca here and shouldn’t be held responsible?”


So how does someone become a member of the Center for Renewable Energy?


Write a check.  They don’t call Illinois the Pay-to-Play State for nothing.  A $50,000 check to the Illinois State University Foundation allows a company to become a “Founding Member”.  Zilkha Renewable Energy (a.k.a. Horizon Wind Energy) under the leadership of Michael Skelly and ownership of Michael Zilkha was the first Founding Member for the Center of Renewable Energy.  After Michael Zilkha sold the company, EDP Renewables is now listed as a Founding Member.


Pay-to-Play in Illinois is kind of like being friends with “benefits”.  Being a “Founding Member” and the $50,000 check buys a seat on the Board of Advisors, input in the research direction, and a paid intern for three years.  Perhaps this is where Clean Line Energy bought its Illinois-Intern-Rob.  It also appears very likely Clean Line Energy’s close ties the Center and David Loomis has also bought provided letters to Illinois regulators in the Springfield supporting the Rock Illinois Clean Line from Loomis’ student base at Illinois State University.   

So $50,000 buys a company “legitimate” research from an accredited university.  In return David Loomis is a profit center for Illinois State bringing in cash from “clean” energy companies.  Hand Detweiler and Charlie Ary of Clean Line Energy are both listed as members of the Center for Renewable Energy.   While the Center’s website does not state Hans was a board member, I believe he sat on the board for at least 3 years before employed by Clean Line Energy.

According to Loomis and the Center for Renewable Energy’s website, $50,000 buys a company “input” or influence in research and the allusion of legitimate research from an “unbiased” university.  Just exactly how biased is this Illinois State University research into the value of wind energy?  

Perhaps a better question would be “Who funded the study that says Illinois needs more wind-power manufacturing?”  Seriously, Dave Loomis did such a study and came to that conclusion.  Why not do something useful and relevant and have an Illinois State University economist do a study that determines Illinois State University would be the perfect site for the Ringling Bros Clown College.  Just as absurd was the study concluding property values do not fall because of a neighboring wind farm.  (We’ll come back to that one later.  Sounds like it was quite a circus when Loomis went to a county zoning board meeting to explain that one!)

With all this going on, David Loomis still develops a private consulting company.  He becomes an “expert” witness for aspiring utility companies like “Clean” Line Energy before state utility boards.  Loomis has authored an economic impact study for Clean Line Energy claiming the “benefits” of a powerline across Illinois.  This study looks remarkably similar to another called Economic Impact; Wind Energy Development in Illinois developed for the Illinois State University and the Center of Renewable Energy.

If you want to read a real economic study Exelon commissioned a study about the affects of Negative Pricing the wind industry is having on the rest of the energy generation industy where the wind industry continues generation just to obtain income from the Production Tax Credit when the market price is so low other generators cannot make a profit.  It’s basically predatory pricing by the wind industry.  Exelon was thrown out of the American Wind Energy Association for that report.   It’s a great report worthy of reading and shows just how poorly written a Loomis study really is. 

Heck, if Loomis wanted to do a real economic impact study, it would be fascinating how overpriced wind energy from the 20 year power purchasing agreements have negatively impacted the purchasing power of Illinois ratepayers.  Particularly interesting would be the adverse effects of paying too much by the low income households in Illinois. 

How does Illinois residents compete with the Loomis brand of Pay-to-Play? As residents and taxpayers, we fund the Illinois State University, while David Loomis uses the University for personal gain.  Do consumers have to pay $50,000 per seat to the Illinois State University Foundation to obtain the truth and honest research from the university and Center for Renewable Energy?   Exposing David Loomis and his Culture of Corruption is the first step for ratepayers to compete with the Loomis Industry and his shameless marketing of “clean” wind energy through dirty tactics.