Thursday, October 29, 2015

Jimmy Glotfelty - Roosevelt Republican or FDR Private Socialist

Jimmy Glotfelty at Clean Line Energy used to claims to be a “Roosevelt Republican”.  This is obviously a reference to Theodore Roosevelt as a capitalist who was also environmentally engaged.   A more interesting comparison would be from considering Franklin D.  Roosevelt would call Jimmy Glotfelty something less flattering.  FDR fought hard to pass the Public Utilities Holding Act (PUHCA).  In the public utility sector, President Roosevelt saw a sharp rise the abuses of Holding companies, or rather a company with limited liability that owns a company with less liability that owns a company with further less liability….and so on and so on.
During the George W. Bush administration, Mr. Glotfelty lobbied heavily for the recall of federal oversight of utility companies.  In February 2004 Jimmy Glotfelty testified before the Senate Energy Committee on the 2003 Blackout.  Jimmy proudly said the following during his testimony;

"I just got back from spending from spending two days in New York City meeting with investment bankers ... and time and time again we heard that repeal of PUHCA was necessary for more investment in the transmission sector."

Jimmy …with the Department of Energy….meeting with New York City capital/speculation investments…back in 2004.   We all can’t help but wonder who Jimmy was meeting with back then in New York City.  Ziff?  David Och?  

After aggressively lobbying Congress to abolish PUHCA, four months later, Mr. Glotfelty abruptly resigned from his position at the Department of Energy.  He went to work for an energy consulting company in Houston, Texas with IFC.  Sometime later, he quietly moved three blocks down the street to Clean Line Energy, the venture capital company that would not exist BUT FOR Jimmy’s lobbying effort to Congress.  (It’s too bad the Cheney Energy Task Force notes were never made public.) 
PUHCA was created during the Franklin Roosevelt administration to protect the public from venture capital companies like Clean Line Energy from manipulating the energy markets.  Without PUHCA, the SEC does not watch over venture capital companies like Clean Line Energy who work in multiply states.  Regulated utilities and energy because the playground of speculation and price manipulations without the protection of little and obscure PUCHA.  Without this regulation, Rock Island Clean Line, who is owned by Rock Island Wind, who is owned by Clean Line Energy, who is owned by who is owned by Michael Zilhka, Clean Line Investments, and Clean Line Investors, who is owned by ZAM Ventures, who is owned by ZBI Ventures, who is owned by Ziff Brothers Investments, who is owned by the actual Ziff Brothers.  Without PUCHA one simple speculation company is divided into 14 LLC’s.   

The number of companies involved in the ownership Clean Line Energy Partner’s project are beyond belief.  Clean Line Energy still does not produce a product or create added value to the economy.  None of these companies own one mile of cable.  They do not own one electric pole.  This is exactly the kind of company President Franklin Roosevelt called evil and a private socialist.   Clean Line doesn’t even have the funding to make it through 2016 and procure the right of way easements for 3 of their 5 projects.  Clean Line doesn’t even have a financial line of credit to buy the easements, but the Department of Energy sees this company as a bonafide public utility. 

Even Ken Lay of the former ENRON would be proud of the number shell companies created in this one simple Clean Line Energy Partners!

Plains & Eastern Clean Line desires to be classified by the federal government as a “public utility” to obtain the power eminent domain to take the property of individuals in order to give it a select few billionaires (Michael Zilhka and the three Ziff Brothers) and National Grid ( a British corporation).  This is indeed what FDR referred to as private socialism.  Perhaps the modern term is crony-capitalism where the private property of man is taken and given to politically connected.

Perhaps President Franklin Roosevelt said it best in his letter to Congress recommend regulating public utility holding companies.

I am against private socialism of concentrated private power as thoroughly as I am against governmental socialism.  The one is equally as dangerous as the other; and destruction of private socialism is utterly essential to avoid governmental socialism.

Because Plains & Eastern Clean Line llc is a HVDC powerline, there is only one start and one finish.  Between the start and finish, the market access is limited with potential to influence the price of energy through this powerline.   Those at Clean Line Energy would likely say these is no relationship between Jimmy Glotfelty’s successfully lobbying Congress to repeal PUHCA and Jayshree Desai petitioning the Department of Energy to take regulating powers away from states Public Utility Boards, and Commerce Commissions. 

Clean Line Energy would also likely claim it is just a coincidence Jimmy Glotfelty’s resume ends at an and energy industry venture capital company after he lobbied Congress to end PUHCA, yet the relationship Clean Line Energy Partners LLC (CLEP) has to the former Enron business model is more than a coincidence.

The CLEP model is strictly profit oriented as they intend to sell the company’s llc’s once the easements are secured.  The problem arises when current energy regulations were written for the more traditional electricity producers and actual utility company.  If a traditional energy producer wants to build a new transmission line, they must first PROVE a need for it.  Current state and federal regulations were built to protect consumers within the traditional cost allocation model.  Hypothetical Merchant Transmission business models, such as CLEP,  did not exist in the past.

Our existing laws and regulations were both designed for this traditional utility company model.  It is only through a slow and steady process of deregulations that we now have the potential for such companies as Clean Line Energy.
Clean Line Energy and its RICL project recognizes this opportunity to take advantage of deregulation and argue the current rules do not apply to them as a privately held venture capital merchant transmission line.  Unfortunately, this opportunity for Clean Line Energy comes at the expense of the Illinois public and landowners. 

Is Jimmy Glotfelty a “Roosevelt Republican”?  No.  He is a private socialist!  Then again, maybe Jimmy is just eager to get in bed with anyone tramping around.   Looks like the newest investor in Clean Line sees it a means to put natural gas on Plains & Eastern Clean Line.

And more regulation and oversight is needed with companies like Clean Line around!

No comments:

Post a Comment