ATC recently issued a press release stating that Nino Amato’s call for a six month moratorium and an independent technical study on Wisconsin’s electrical needs was “irresponsible, unnecessary.” It’s not irresponsible and unnecessary. It’s just plain common sense!
What would be irresponsible would be to approve ATC’s overly ambitious construction projects before a fair and an independent study was conducted. This study would consider an integrated approach to dealing with Wisconsin’s transmission, generation and energy conservation needs.
Remember the old adage, “measure twice, cut once.” With $3.3 billion dollars worth of construction at stake, measuring well would seem not only responsible, but fiscally prudent. In past projects, ATC’s has mis-measured. Consider the Arrowhead Weston transmission line, which ATC originally budgeted at $163 million. The price tag has swelled to $420 million, an amazing 258% increase over the budget that the PSC approved, and an expense that we the ratepayers are now responsible for!
The ruler by which ATC is “measuring” is the highly controversial 2005 study conducted by the “Energy Initiative.” ATC has staunchly defended this study, for which they paid participants such as 1,000 Friends of Wisconsin, the Citizens’ Utility Board, Midwest Renewable Energy Association and others a total of $154,000. ATC claims that “The participants . . . were granted the right to form their own conclusions based on the facts and their analysis.” If the participants were truly independent, there would be no need for a profit-driven monopoly to grant them this right.
Worse yet, ATC execs have ignored the findings of their study that don’t directly support their conclusions. Take, for example, page 4, where it states, “the analysis of demand-side alternative was difficult and is incomplete,” or page 6, where it states, “Indeed, a primary recommendation of the EI is that improvement in the ability to conduct such analysis are needed to effectively ensure adequate transmission and other resource planning.” They also missed the part where it states that aggressively pursuing “other cost-effective alternatives would yield substantial financial, risk-mitigating, environmental and societal benefits… (and) will provide a basis to defer or avoid these likely transmission projects.” Ignoring this information is irresponsible and misleading on ATC’s part. Relying on the short-staffed PSCW to be able to independently evaluate ATC’s planning assumptions is impractical.
It seems particularly inappropriate for ATC to deny Nino’s Amato’s suggestion, considering that on page 2 of their own study it states that”. Stakeholders proposing non transmission alternatives need time andresources to effectively participate in any planning process." The sole evidence that ATC uses to justify its massive building spree specifically says that more study is needed! Mr. Amato is exactly right: a moratorium on new lines should be put in place until a truly honest and independent review can be made.
$3.3 billion is a whole lot of money, as is the 12.2% return on equity that ATC is virtually guaranteed once the projects are approved by the PSC. That’s a stunning $402,600,000 annual profit for ATC. No wonder they’re impatient to get started! Who wouldn’t be anxious to get their hands on that kind of cash? But, it’s OUR cash --the ratepayers’ money--and it darn well better be spent wisely.
Linda Ceylor Steve Books
Tom Kreager Paul T. O'Leary
For SOUL Inc. www.wakeupwisconsin.com John Barnes
Dane County Chapter SOUL
Chuck Smiley
Robin Stearns
Howard Stearns Paul Hastil
For Wire Safe Wisconsin www.wiresafewisconsin.org
Camy Matthay
Morgan Sharpe
