Sunday, September 8, 2013

GBE, KCC, Rainbows & Unicorns

I was reading the STOPPATH WV blog and it got me thinking just how naively foolish the Kansas Corporation Commission appears to be.  They actually think the GBE powerline will be beneficial for the state.   Lets stop and think about this for a minute.

How many anchor tenants will GBE have?

Who is going to pay for the distribution lines to feed GBE.  Weare talking about 4,000 MW's of distribution lines to feed into GBE.

Will Sunflower renew their plans to build more coal fired generation to feed GBE?

OK. So there will be a certain amount of anchor tenants.  How much of the current generation produced in Kansas will leave the state?  Does anyone really think all 3,500 MW's will come from new sources?

Anchor tenants will need a secured source for their energy out east.  The real opportunity will be for all the current energy generators in Kansas.

If the price on the output side of GBE is higher than the local Kansas price of energy, there is going to be an exodus.   Put simply, if the demand is higher at eastern states, Sunflower and other energy produces in Kansas will send energy east.  This will reduce the supply in Kansas and the price of energy in Kansas will go up.

This will likely create a scenarion where Kansas will find themselves competing for the energy currently produced in their state.  An ENRON scenario is more likely where each buyer is played off the other, the price is manipulated and the loser will be the ratepayers of the state.  Does the KCC realize they will be encouraging manipulation by speculators and energy traders? 

But hey, the eastern states will appreciate the Jayhawks sacrifice as they can have energy and without any negative aspects of production in eastern states.  Let the energy be produced in a land far far away.  Kansas is just pne of those flyover states.  Fill Kansas up with windmills.  South Carolinian won't have to be burdened with millmills off their coast in the Atlantic.  We all need to sacrifice for the majority of people who live near the coastlines.

Seriously, the KCC really needs to think and study what negative effects this powerline can create.  Inspite what the CLE reps claim , it's not going to be all rainbows and unicorns.  This can very easily be the new Enron price manipulation model.  Yes, the KCC can believe they are doing a good thing while practicing "shove-it down-there-throats" with a surplus of potential wind energy, but they better consider the negative side.  This cozy arrangement with the Clean Line people can turn ugly very fast.

Look how Clean Line is treating residents who question them.  Does the KCC think Clean Line will be less deceitful with them?

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