Romance vs. Reality
The Trib makes the reasonable point today that it is insane that Tim Gregori is still spending taxpayers’ and co-op members’ money on the HGS site. Good for them.
Unfortunately, they meander to that point only after several florid paragraphs about “embark[ing] upon the rocky road to energy independence” and how the city and co-ops “set out upon that road with good intentions and big plans…” Well, perhaps the editorialists are being sublimely understated.
Let’s be clear on a bit of history since, at this moment when certain City staffers are talking about renegotiating ECP contracts, we so often seem bound to repeat past mistakes: Electric City Power had a disaster of a business plan from the get-go. No utility or co-op in Montana would set fixed rates for their customers even while, on the other end, they’ve contracted for power delivered (as by Southern) on a shifting-cost basis. This obvious flaw with the ECP business plan has had its consequences: $4 million on paper by the end of this fiscal year, and with the huge unknown of the debt which, if Southern defaults on its Prudential loan, could pass down to the city and co-ops whose wholesale power contracts are listed as securities. I remain stunned that the city staff, two mayors and a gaggle of commissioners, several Great Falls businesses, the Tribune, would not have seen a flaw which, in fact, opened the City up to far greater risk than it would have faced had it stayed with the utility.
It’s what one energy lawyer in Montana recently described to me as a “competence gap” between our municipal electric company and others in the business. Quite simply, it’s hard to run an energy company.
Readers are aware that I’m not head-over-heels for the regulatory state. That said, a lot of the decisions that put ECP and Southern in jeopardy–fixed rates, disobedience of the filed-rate doctrine, unassigned base-load generation from the original coal plant–would certainly have been disallowed by the PSC if NorthWestern tried to pull such a thing.
And that’s not even touching on issues like subsidizing big businesses’ electricity through water credits to make it seem like the customer was getting a good deal, even while the taxpayer would be (and now is) being made to eat it on the back end of things.
Certain people need to realize they got caught up in a “monorail” moment when hope and speculation overcame reason and facts. Quite honestly, every Great Falls citizen who was mad about how NorthWestern handled itself in the early 2000s, should be twice as furious at how ECP has been run.
Good post Travis and right on target as usual. What is also very disgusting in that In the end the taxpayer pays for this travesty even though the public has warned these leaders for years of this impending train wreck. Is their any accountability in government, local or otherwise? Answer, a big NO…..
On target Travis and thanks. As we recall, Ms. Balzarini stated she spent 16 hours a week on ECP business (and that’s with ECP losing), so ‘who’ is now handling that amount of staff-time that was dedicated to that? Even the B & M consultants said HIRE a professional to make it work, but where are we now? We all DO want the ECP/Commission to succeed and yearn for action PLEASE, even some beginning
steps in a phased, orderly withdrawal just like we’re doing
in Iraq that I’ve worked on call OPERATION RESPONSIBLE DRAWDOWN.
Also, Luke 14:28-33 very appropriate.
What possibly could Ms. Balzarini offer to current ECP customers in order that they would be willing to pay more for the electricity they are receiving than they are required to pay by their existing contracts with ECP?
Walter, the only thing she could offer is fixed rates over a series of years, extending beyond the July 1, 2011 switch to a supply cost-based rate. And this offer would be exactly the type of thing that got us in trouble Þo begin with.
http://www.google.com/hostednews/ap/article/ALeqM5hQxCqxInbrr0pOirzSSKaNVojJtQD9H4SMG00
Travis, what are your thoughts on condemnation to take land from Montanans to ship power out of state? There are plans in the works to start the Rim Rock wind project north of the Glacier Wind Farm. I believe that power is dedicated to San Diego. See: http://cleantech.strategyeye.com/article/RKCaAYy8R/2010/07/23/sdge_plans_usd600m_wind_farm_investment/
I leave it to the courts to adjudicate matters of eminent domain, though I will say that virtually any transmission line or pipeline would be impossible to construct without eminent domain. MATL is no exception.
And ship power out of state? I sure hope they do. Montana is a net producer of power and, anyways, Montanans can’t afford — in terms of price and reliability — much of the power MATL will be shipping off to elsewhere. The real choice is between building up an energy-export market, or not.
That said, many of the claims made by this UPTAG group — I gather a Canadian environmentalist organization which must be quite well-heeled — are certainly things which I have never heard before. For instance, there’s the claim that this line will be carrying coal-fired electricity. If that’s coming from sources within Montana, then we have a problem. But my impression has always been that MATL’s financing was secured on the basis of contracts with the large wind farms.
Unfortunately, I’m leaving town to go flyfishing with friends today, and I will likely not have a chance to attend the UPTAG meeting this evening at the Holiday Inn, 7 p.m. If anyone does attend, I’d love an update — and will post it here on the blog!
Also, a cursory Google search unearths an article from an Edmonton source talking about how the transmission line is really a conspiracy to export cheap electricity from CANADA into the US markets.
http://vueweekly.com/front/story/are_new_public_power_lines_designed_to_supply_us_market/
Travis, the more I dig into Rim Rock the more it begins to resemble SME issues: http://www.signonsandiego.com/news/2010/jul/21/sdge-wind-plan-concerns-group/
The siting of this project, although great for wind, has serious issues to be addressed. Travis, I suggest you dig into this.
Travis,
Super post. There is even more to this than most people could possibly imagine. If the truth ever becomes public…… hold on for the ride. WE THE PUBLIC NEED TO ASK QUESTIONS!!!!!!!!!
KP
Amen, Travis.
“Quite honestly, every Great Falls citizen who was mad about how NorthWestern handled itself in the early 2000s, should be twice as furious at how ECP has been run.” Travis
NW was willing to go back to the contracts that were canceled. The MLCT, director said, ‘No thanks, we’ll take the cash.” The city’s portion of the cash, as much as $500,000 was used (thrown down a rat hole) to take control of our energy future. We have control. We’re in the driver’s seat. How many tickets and impaired driving charges can we rack up before we get out from behind the wheel?
Indeed ‘anon’ and our city attorney KNOWS that as he was in Helena at the time working for then Governor Martz when
NW Energy struggled thru Chap 11, but DID offer the opportunity. FYI, a co-op coal plant was being considered BEFORE NW Energy’s troubles in 2003, and that incident was
the pretense for the evolution of SME…it’s all in the black boxes and other public documents. IGNORANCE IS NOT
BLISS
Ok so I know how patient everyone has been trying to get info but I say enough is enough. Let’s just get the Feds involved. I have had to do this before with great success with a large national Bank. The only problem is that I really think there will be jail time for some individuals, whose names I will not mention. Of course as I stated before “hold on for the ride”. I thought that the pocket lining days were over but I understand that I am deeply mistaken. Shame, shame, shame!
How are we going to “just get the Feds involved,” Kelly? If it’s that easy, please do it.
It is quite a lot of work actually, but ok.
Incidentally, if the money was there for the Natatorium (and the city weren’t so poorly managed) I would not be bothering. Since, however that is clearly not the case and the children, disabled, elderly and everyone else will most certainly suffer from the loss of the Nat I feel compelled to find some money. This is just the best and fasted place for me to look. When taxes fund the city it is not entitlement, rather it is about transparency and good, effective management. It is pretty obvious who is still running the city really.
Kelly, I’d suggest you search (both have search/index features) Electric City Weblog, Cataract City, examine the precise and informative essays and articles of Larry Rezentes, read the ECP minutes (on city website), KFBB/KRTV archives and come to the ECP meeting this coming Monday
at 5:30PM at the Civic Center Gibson Room and meet the concerned citizens who’ve been coming to all these meetings
since 2005…….Mr. Rezentes had a superb guest editorial
in last Monday’s Tribune, and it catches the essence
of the community’s dilemna and ECP’s collateral damage.
Thanks Richard,
I’ve been following this and certainly welcome all the help and suggestions offered. I do think that there are clearly Federal violations, as you know, and please know that there is a Federal agency who will take this on. Enough is enough. If city legal counsil has no balls then well the city might want to grow some. Ask questions. That is exactly what the city is afraid of. Ask and ask and ask again. Unfortunately I was emailed that if I thought there was a crime pertaining to the city management and or deptartment management I should report it to the police. I was rolling on the ground laughing at the sheer stupidity of that statement. I did take note that it should be reported, however, to the Feds that is.
The ECP agenda and board packet for this coming Monday shows a another ‘wonderful whopping’ loss of almost $200,000.00 dollars for May and June…just lovely and we
expect action please…..
It appears the NEWLY self anointed ECP board members are DOA just like the morons they replaced!
Ladies and Gentlemen,
Those gangsters in the crowd who think that a death threat is going to stop me should cease and decist. Please be forwarned that those types of calls are illegal, monitored and shall most certainly result in criminal prosecution.
If you think that I am scared for one minute please remember that I am of Irish descent. Please also note that what goes around comes around. You want to threaten me then you better move somewhere where you cannot ever be found.
Alternately you can turn yourself in for your gangster criminal activity, because I assure you in no uncertain terms that I am. You will GO DOWN.
And thank you on behalf of the citizens of Great Falls for sufficiently pissing me off. Shall I order your grave markers or shall you?
Kelly P, I am sorry that you too have been threatened and coerced by these bums. Many of us whom have helped exposed the situations you are now getting into have had the same treatment from these little people. Some have even lost jobs and been forced to move. Most or all of this will come out one day and the bums better have their bus tickets ready to go or face the old fashioned rail with all the trimmings…..
Kelly, many outspoken and earnest citizens have been harassed, intimidated, mocked by public officials, lost
employment and or threatened to lose it, and threatened by phone calls and e-mails to home addresses by SME attorneys, all actions condoned by the previous regime at city hall, and sincerely hope the new leaders will not tolerate. In fact, citizens were threatened with litigation in PUBLIC
in city hall in the presence of our elected leaders two years ago.
NIHIL BASTARDI CARBORUNDUM