Our recent experiences with the West Virginians for Reliability front guys, reminded me of a post I did last July titled “The System Is Not Outdated, Just Misused”. The post contains a link to an article by Eric Lerner in the journal The Industrial Physicist that explains the reasons why there are problems with today’s transmission grid.
Lerner presents the science, not the propaganda. What does Lerner say? He says that deregulation engineered by big energy traders has caused current grid problems, not old lines or inadequate capacity. We have plenty of transmission capacity to meet our electrical needs. We don’t have capacity for energy traders who are bent on using our grid to generate new sources of profit.
Here is a link to the article. See for yourself.
So if the power companies want West Virginia land owners like the Ives to “get over it,” is this because there is some great national interest in grid reliability?
Or is it really about AEP’s new plans for a national transmission company that gets FERC subsidies and guaranteed profits? Last year, on an investor conference call, AEP CEO Mike Morris documented the losses AEP took as demand for electricity fell. Except for one bright spot –
So Barbarados [ph] commercial office people deserve a great deal of credit. The Energy Trading Group has been conservative but successful.
It really looks like Mr. Morris supports the national interest (sarcasm alert). The AEP Energy Trading Group, the most profitable division of AEP in 2009, is based in Barbados so it doesn’t have to pay US taxes.
So West Virginia land owners can rest assured that they are giving up their land for a “higher interest”, but that isn’t the national interest. The ones benefiting from TrAIL and PATH are the tax dodging power companies like AEP.