Monday, December 7, 2015

Jimmy Glotfelty, Habitual Bifurcator

Let’s talk about Jimmy Glotfelty, the habitual bifurcator. 

Bifurcation is splitting a process into two parts.  The Iowa Utility Board has denied the Rock Island Clean Line request to split the process into two parts, not once but twice.  Now Clean Line has made the request for a third time to split the process into two parts. 

Come on, Jimmy.  The law is the law.  No other real utility has had a problem with the transmission siting process in Iowa. Should Iowa legislatures write public utility laws to conform RICL’s desired business model? 

Seriously, this is ridiculous.  Clean Line suspends its work in Iowa and has its public relation machine put out stories that it is circling its wagons.  A week later Clean Line makes a third request to split up the process of approval into two parts again. 

When does “NO MEAN NO?” How many times will Clean Line request this be split in two parts?  How many ways will RICL rephrase "bifurcation"?

Iowa has made it fairly clear the process of transmission siting cannot be split into two parts. The law is the law.  If Clean Line wants to remake the law, then work within the legislation process and circumvent Iowa residents to make the process suitable for Clean Line Energy Partners llc. 

Kinda wonder what else “Jimmy the Bifurcator” likes to split into two parts.   Maybe he is a chronic bifurcator and has to split everything into two parts.    He’s probably the kind of guy who eats all his vegetables before eating his meat.

Jimmy Glotfelty, Gallant Gallstone … and Registered Bifurcator

It’s getting a bit tiresome and sickening reading how Clean Line Energy claims to be so “gallant” in attempts to provide “clean” energy and wants to build privately owned for-profit transmission lines.  It’s a for profit powerline with a desire to obtain right of ways at the lowest price to maximize profits.  There’s nothing gallant about it.   This entire process of opposing Clean Line is probably more comparable to a gallstone, being uncomfortable at best, painful and causing worry in many.   At best, Clean Line is a gallant gallstone.  It’s a gallstone that thinks it is the center of the body.  It’s a gallstone that believe the body is there to serve its needs. 

Two interesting things happened last week.  The appeal of the Illinois Commerce Commission ruling that the Rock Island Clean Line (RICL) is granted public utility status under 8-406 of the Public Utility Act held oral arguments at the Third District Court of Appeals in Ottawa, Illinois.  RICL was granted approval by the ICC under 8-406 but denied under 8-503.  The latter is the road to eminent domain.  Ironically, the qualifications in the written law are to same and mystifying how the ICC can approve one and deny the other. 

While briefs and such have been filed, the oral arguments before the three judges was an interesting sparring match.   The Illinois Land Owners Association, Illinois Farm Bureau and Exelon were opposing RICL’s attorney.  The ICC attorney was in a tough position in the middle.  The ICC attorney clearly didn’t want to make any forward focused statements supporting RICL’s intentions.  Unfortunately for the ICC attorney, all Clean Line has is intentions.  They own nothing that can be considered a public utility.   

This placed the ICC attorney in a very awkward position.  Even more awkward, The Illinois Landowners Alliance, Farm Buruea, and Exelon are opposing the ICC decision, and not directly Clean Line’s llc. 

While the oral arguments are only a small part of the case and process of the appeal, my personal opinion is things went well for the residents of Illinois.  RICL’s request for approval under 8-503 died at the ICC and Clean Line did not choose to appeal that decision.  In my personal opinion there is a very good chance the Appellate Court will deny RICL’s request for Public Utility Status under 8-406. 

Arguments lasted about an hour fifteen minutes or so.  Here are some quotes from the oral arguments.  Each side had about 15 minutes to present their arguments with a final fifteen minutes for a rebuttal from the attorney representing the ILA, IFB, and Exelon. 

Attorney representing those groups opposing RICL
Rock Island got the certificate a year ago.  They haven’t even filed the purported financing documents that are supposed to be filed in the future.  They weren’t a utility then.  They aren’t one now, and they didn’t commit to ever be one.

They would not commit to ever building the project.  In fact they would only build the project in the words of their CFO “if it could find adequate market financing and that market financing would depend on whether or not that project would make profitable sense at some point in the future.

Judge:  Rock Island is not operating as a utility…
Attorney: No where.  No where.  No where in the world.

But the point is, that in Mississippi River (Fuel Corporation), there was assets, there were customers, that there was utility service, but because there was no pledge to serve the public, even that caused the Illinois Supreme Court to rule that it wasn’t a utility.   Here there are none of the six characteristics apply and again there is no commitment, no promise, no pledge to ever have them apply. 

You don’t grant a license to someone who doesn’t qualify in the hope or belief that years down the road they may be retroactively be qualified. 

ICC Attorney
This is a good example why we are all here.  This case is certainly unusual and bordering on unprecedented.

RICL Attorney
Iowa is a little strange.  ….In Iowa they seem to require you to go out and acquire the land and ask for eminent domain first and then present to the commission whether your project is needed and an appropriate transmission project.
Judge:  And your think that is strange?
Well it is just unusual in my experience.  When you look at it, why should it be an important issue, argue about getting eminent domain on someone’s property when the utility board hasn’t even ruled that you have a project that meets the criteria under our statute for being a public utility project.   

So ah, I don’t represent Rock Island in the Iowa proceedings, but it is my understanding that they are spending considerable amount of time with the commission trying to come up with a procedure that will result in the commission first deciding that the project is what we would call a Certificate…I don’t know what they call it there…and then addresses eminent domain so that it would be more consistent with Illinois …and both states together…so that there is a procedure in file that its…I would say it is moving forward but slowly attempting to resolve this sort of threshold.

Attorney representing those opposing RICL
To quote their president from the record,  “If the project wasn’t worth investing any further, then we would abandon it.”
From there CFO Mr. Berry “Rock Island will not be able to proceed with the construction of the project in the absence of sufficient transmission contracts to support the financing necessary to construct the project.”   That’s the financing they don’t have.  Neither of those things has happened and unlike every other utility including Ameren Transmission Company, they make no pledge to ever serve anyone. 

Even the 25% is an auction.  Highest bidder wins.  Everyone else is left without service.  That is not serving the public.  Now with respect to Ameren in particular, I also want to point out that Ameren started by building one line.  That line was built jointly according to the Commission’s order …. Makes clear that is was going funded, constructed, and operated in conjunction with Ameren IP, the existing utility, and it committed to build the project to serve Illinois customers, which Rock Island does not.  

So we briefly talked about the financing.  However useful that condition is, it is a future condition and it can’t ever replace a statutory requirement.  In 8-406B requires a showing of present capability and there isn’t.  It is not, I submit, the kind of case that warrants expanding, twisting , and disregarding the plain language of the statute.

Seriously, this entire RICL thing is getting old.   Time for this gallstone to be removed.