Chicago May Lose Its Renewable Surge – Is it as easy as a Wisconsin Energy purchase

Wisconsin Energy (abbreviated here as WE abbreviated on the SEC as WEC)  is buying Integrys Distribution Network which includes Chicago. So the 2 big questions this raises is 1) Will this have an effect on Chicago’s electric rates and  renewable goals. and 2) will the WE offer Chicago a new and improved natural gas deal? We shall see. Ameren must be wondering the same sort of things. Below are a short article link and then a longer treatment.

http://www.marketwatch.com/story/wisconsin-energy-to-buy-integrys-energy-in-91-bln-deal-2014-06-23-7911444?siteid=bulletrss

http://www.chicagotribune.com/business/breaking/chi-wisconsin-energy-to-buy-integrys-in-91-billion-deal-20140623,0,3548279.story

Peoples Gas parent Integrys being bought for $5.7 billion

WEC Energy Group the merged company will be headquartered in Milwaukee, with “operating headquarters” in Chicago, Green Bay and Milwauke.

It was just before Christmas that Gale Klappa, chairman and CEO of Wisconsin Energy Corp., asked Charlie Schrock, his counterpart at Chicago-based Integrys Energy Group Inc., out to dinner.Sitting in a restaurant in Chicago, Klappa didn’t mince words with the head of the parent company for Peoples Gas and North Shore Gas.

“The first thing on my mind that I opened with in my discussion with Charlie is when you look at what the combined company would become in what is clearly a consolidating industry,” he recalled. “Size, scale and the ability to take advantage of the economies of scale is becoming more important.”

On Monday, six months after that dinner, the two CEOS were together again, announcing a $5.7 billion merger agreement that will create an energy company with more than 4.3 million metered electric and gas customers in Illinois, Wisconsin, Michigan and Minnesota.

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Obama Begins To Close The Door On Coal – But is it in time

Ok so he promised this in both 2008 and in 2012 and it is really great that he did it. But the real question is, is it soon enough? We have gone passed the 400 ppm in carbon dioxide in the air mark. So we are now in global warming. Plain and simple. So the question is how far will we go and how hot will it get? Then the bigger issue is when will it start to kill off humans? I mean at one level it is but I mean in the developed world? Not just in the 2nd and 3rd worlds.

http://time.com/2806697/obama-epa-coal-carbon/

White House

New Carbon Rules the Next Step in Obama’s War on Coal

For five years, the coal industry and its fossil-fueled allies in the Republican Party have accused the Obama Administration of waging a war on coal. They claim the administration’s new plan to limit carbon emissions at existing power plants is really about carbon emissions at existing coal plants. They see the carbon rules that the president announced Monday, like his previous rules limiting mercury, smog, and coal ash, as a thinly disguised effort to make coal power uneconomical.

They’re right, of course.

Obamaworld likes to portray its efforts to clean up power plants as a war on pollution in general, not a war on coal in particular, but it just so happens that coal spews most of the pollution from power plants. It’s America’s leading contributor to global warming, producing three-fourths of our carbon emissions from electricity, even though it generates just over one third of our electricity. It’s also the dominant source of mercury and other toxics that foul our air and damage our health. It’s filthy stuff. When Obama said Saturday that his carbon rules will prevent 100,000 asthma attacks in Year One, he wasn’t describing the health benefits of emitting less carbon dioxide; he was describing the health benefits of burning less coal.

So let’s face it: When Obama talks up his “all-of-the-above” energy strategy, he really means all-of-the-above-except-the-black-rocks-below. In the 21st century, any national leader that takes environmental protection and the fate of the planet seriously will need to launch a war on coal, and Obama takes it very seriously. He hasn’t advertised his war on coal—it would be questionable politics in swing states like Ohio or Virginia, and even his home state of Illinois—but he’s fought it with vigor.

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The People Of Illinois Should Be Ashamed Of Fracking – Let’s be clear it is gluttony

And if you do not believe me, then go to the links below and read what they say.

http://www.dangersoffracking.com/

http://theweek.com/article/index/261337/more-proof-that-fracking-is-dirtier-than-advertised

As for what I think:

Hydraulic Fracturing is a drilling process that drills oil and gas wells into shale formations and produces what is referred to as “ tight petroleum fluids”. Principally oil and methane. This process begins by drilling a typical vertical well.  The drill bit is then turned to drill horizontally and moves as far as 3 miles. Then the well is cased with concrete and a slurry of liquids are prepared. We will come back to that discussion in a bit because the fluids pumped into the bore hole are very special. Once the drill is extracted it is replaced with special pipe that is flexible enough to make the turn and has holes in it which are temporarily plugged with ping pong ball  like ball bearings. Once that is done, the fluids  are piped down the well under extremely high pressure. These fluids blast the bearings out of the way and the fluids escape from the pipe and pulverizes the surrounding rock. Then the danger of fracking begins. Because of the  physics of pressure, the fluids  which are now in front of the flow of the oil and methane burst back to the surface and must be contained. After that the dangers only grow. These risks include: Pollution risks, Health risks, Death risks and Financial risks.

The health risks are many. The groundwater risks arise from the fracking itself and the type fluids used. The fluids are extremely toxic.  While I can”t say what exactly are in the fluids because the drilling companies refuse to release them, everyone admits that toxics like diesel fuel, hydrochloric acid, silica, and antifreeze are involved.  For a list of the thousand of chemical used please see  http://en.wikipedia.org/wiki/List_of_additives_for_hydraulic_fracturing .   Will the fluids remain in the area fracked and will the oil and gas flow towards the well head if other avenues are available? This is something no one can guarantee. If even small amounts of the fracking fluids do not return through the bore hole then ground water contamination is possible and well water contamination is all but guaranteed. Surface contamination comes in the form of produced water contamination on the ground and in the nearby waterways. Many wild catters want to just dump those waters in waste pits or worse yet dump them in larger stream and rivers. Even tank storage is problematic. Transportation to a disposal site risks many types of accidents. I believe that all these fluids should be recycled. They contain radioactive materials, heavy metals and poisons like arsenic. Finally there is air pollution. This come in the form of methane and benzene. Many wild catters want to flare the methane and only deal with the oil. This guarantees that methane will be released and methane is one of the most potent green gases around. Exposure to benzene can be lethal as will be discussed later and will lead to lung damage and many cancers.

Some of the health risks were discussed above but there are a set of studies to be considered. You can find these studies easily online but in their gist they ask the question, “Are children in fracking zones healthy”?  The answer is NO. In general children that live within a ten mile area of fracked wells have many more health problems than children that live farther away. Please see this list for a discussion of benzene on human health – http://www.allenstewart.com/practice-areas/gas-property-damage/chemicals-used-in-fracking/   If that is true then how healthy can the adults be? But fracking is so new that it is hard to tell. I know in my heart that taking that plunge over that cliff is not worth the danger. We need to stop now.

Then there are risks of death to the nearby humans. Is that extreme? Not in the least. The increase in the large truck traffic alone and the attendant violations of trucking laws will destroy roads and lead to a large increase in traffic accidents leading to increases in deaths. And of course there will be deaths directly relating to the increase in drilling activity. Drilling for oil is inherently dangerous and the industry has its own mortality rate. We have already seen large numbers of deaths due to train wrecks involving trains pulling tanker cars holding fracked oil. Because of the trapped gases in fracked oil it is a lot more explosive. Who wants to die a fiery death? While pipeline leaks could have been discussed anywhere, the problems of pipelining unconventional oil are clear. Since the oil must be heated under pressure to physically move through a pipeline, any leak means the oil cools rapidly and latches on to anything in its path. Especially if it falls into water it will not float and it must be dug out of the bottom. Wherever it lands it begins to release its toxic chemicals including the ever present benzene. While no deaths have yet occurred, fracking possess the possibility of causing major calamities. The first are earthquakes. Today there is no doubt that fracking can cause earthquakes. The questions is when will they cause a major one? So far no earthquake caused by fracking has been greater than a 4.5 earthquake, so we continue to pray they stay small. Then there is the question of Bhopal On The Prairie. This was not a concern of mine but many people who live near old coal mines raised it with me at events I attended. They said, “What if they frack near an old coal mine or an old uncapped oil well” both of which Illinois has in abundance? Well the answer is, all the stuff that should go up the nrw well bore hole will spew out into the general environment. If you are anywhere near that the methane will kill you. This is unlikely but just one incident could kill many people.

Ever wonder why oil men refer to their business as a “Boom and Bust” business? It is because of their Financial Risks. These risks are not limited to the investors and the drillers themselves. First and foremost any property owners near these wells will see their property values go to zero and if you hold a mortgage on any such property you will be in debt for a worthless property. There is also a growing push to send the fracked oil and its refined products overseas. This means that oil prices will rise and the cost of gasoline will follow along. But ultimately it is the case that  wildcat fracking is a Ponzi Scheme and that costs investors the most money. Small drillers raise money well by well but when the first one “comes in” they divert some of the profits to the next well which enriches themselves. Because fracked wells have such a short life expectancy (possibly as short as 3 years) eventually the level of those losing money on their investments climb and the driller declares bankruptcy leaving those newest investors holding huge losses. Not only that but it leaves the State of Illinois and individual property owners holding the bag for any damages that remains. This also leads to market manipulation on insider information because the upcoming bankruptcies are an open secret in the oil and gas industry itself.

I must end with a plea for Illinois to stop this. Fracking is nothing but a case of gluttony gone wild. These are not resources we need to exploit now. We could leave these resources for future generations that may need them. But in our general lust for fatter and fatter energy girths we will be looked on by future generations with mortification. Again, shame on everyone in Illinois.

Doug Nicodemus

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Solar Power Wins – So much for it being intermittent, or not storable

All the criticisms of alternative power sources were just a bunch of bullshit put out by the fossil fuels industry to try to prevent the widespread use of the. And the proof by god is in the numbers.

http://finance.yahoo.com/news/california-electric-grid-sets-solar-231527788.html

California electric grid sets solar generation record

Reuters

March 10 (Reuters) – California set back-to-back solar power records last week, the state grid operator said on Monday.

The amount of electricity produced from carbon-free solar facilities connected to the grid reached 4,093 megawatts on Saturday, surpassing the day-earlier record of 3,926 MW, the California Independent System Operator (ISO) said in a statement.

With 5,231 MW, California leads the nation in installed solar generation, including thermal and photovoltaic facilities, according to the Solar Energy Industries Association.

Power generated from solar has more than doubled from June 2012 when the ISO recorded 2,071 MW of peak production, the ISO said

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Coal Plants And Nuclear Plants Shutting Down – We are winning the war

I have a saying. If you can’t make it work under capitalism and socialism is already leaving you voluntarily then you are pretty much done for this world. It looks like coals time has come and gone and it is the same with nuclear power too. Thank the gods that be. Now the question is, is it too late? We are walking a tight rope on that one. If we can come up with some remediations we just might pull out of this very steep climate dive. It is going to be close.

http://www.climatecentral.org/news/flurry-of-coal-power-plant-shutdowns-expected-by-2016-17086

Flurry of Coal Power Plant Shutdowns Expected by 2016

A flurry of coal-fired power plants — major sources of climate change-fueling carbon dioxide emissions — could be closed by 2016, according to U.S. Energy Information Administration forecasts.

New emissions regulations and low natural gas prices, partly because of the fracking boom throughout the U.S., are leading utilities to shut down coal-fired power plants and open new ones that burn natural gas. With new Environmental Protection Agency emissions standards limiting mercury, acid gases and toxic metals from coal-fired power plants taking effect in 2015, there is even more impetus for utilities to retire older coal plants, according to the EIA.

Because of those new standards, the EIA forecasts that 90 percent of the power plants expected to shut down by 2020 will actually be shut down by 2016. Those new standards include coal-fired power plants likely having to install flue gas desulfurization equipment, or “scrubbers,” which cost hundreds of millions of dollars each, depending on the size of the plant.

Utilities may decide to shutter a coal-fired power plant if coal prices, wholesale electricity prices and the costs of installing scrubbers do not make economic sense, according to the EIA.

Coal-fired power plants are feeling the heat about carbon emissions, too. Concern about coal plants’ carbon emission contributing to climate change are driving the EPA to write new carbon emissions rules unrelated to the new mercury standards. The EPA has proposed new regulations aiming to curb carbon emissions from future coal-fired power plants and is in the process of proposing similar regulations governing existing coal power plants.

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Corporate Pollution Corrupts North Carolina – Will the south ever ride again

I asked the question last week about how these recent river pollutions reflect on the “environment be damned” attitude that you find in much of the South East. I mean really everyone in the world knows that America is one of the great violators of the environment worldwide. But hell, it is not like the other major countries care. Russia and China are nothing but open sores on the Earths skin and they have been at it longer than we have. Still, when you have the interface between a major polluter and local government like North Carolina then bad things are bound to happen.

http://grist.org/business-technology/ash-decisions-north-carolina-helped-river-ruining-duke-energy-duck-pollution-complaints/

 

Ash decisions: North Carolina helped river-ruining Duke Energy duck pollution complaints

coal-ash-river-north-carolina
Duke Energy

Last year, North Carolina’s top environmental regulators thwarted three separate Clean Water Act lawsuits aimed at forcing Duke Energy, the largest electricity company in the country, to clean up its toxic coal ash pits in the state. That June, the state went even further, saying it would handle environmental enforcement at every one of Duke’s 31 coal ash storage ponds in the state — an act that protected the company from further federal lawsuits. Last week, one of those coal ash storage ponds ruptured, belching more than 80,000 tons of coal ash into the Dan River.

Now, environmental groups and former regulators are charging that North Carolina Republican Gov. Pat McCrory, who worked for Duke for 30 years, has created an atmosphere where the penalties for polluting the environment are low.

The Associated Press reports that McCrory’s Department of Environment and Natural Resources blocked three federal Clean Water Act suits in 2013 by stepping in with its own enforcement authority “at the last minute.” This protected Duke from the kinds of stiff fines and penalties that can result from federal lawsuits. Instead, state regulators arranged settlements that carried miniscule financial penalties and did not require Duke to change how it stores the toxic byproducts of its coal-fired power plants. After blocking the first three suits, which were brought by the Southern Environmental Law Center, the state filed notices saying that it would handle environmental enforcement at every one of Duke’s remaining North Carolina coal ash storage sites, protecting the company from Clean Water Act lawsuits linked to its coal waste once and for all.

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What Is It About The South – They pollute major rivers and nobody does anything about it

I know this area is where the mantra – Government is BAD was born. Mainly because of integration and the regulation of tobacco (not to mention the moonshiners). This attack on all things paid for by taxes has continued unabated for the last 60 years. But really, 2 major rivers have suffer significant contamination in the past month and nothing has been done? Nothing. West Virginia, Pennsylvania, Ohio, and now North Carolina and Virginia, and no legislation has been proposed. We do not even have testing to find out what these contaminates really are. And in the second case no studies into MGHM to say even what the chemical does. Really?

http://news.yahoo.com/nc-river-turns-gray-sludge-coal-ash-spill-024204513.html

NC river turns to gray sludge after coal ash spill

Associated Press

ON THE DAN RIVER, N.C. (AP) — Canoe guide Brian Williams dipped his paddle downstream from where thousands of tons of coal ash has been spewing for days into the Dan River, turning the wooden blade flat to bring up a lump of gray sludge.

On the riverbank, hundreds of workers at a Duke Energy power plant in North Carolina scrambled to plug a hole in a pipe at the bottom of a 27-acre pond where the toxic ash was stored.

Since the leak was first discovered by a security guard Sunday afternoon, Duke estimates up to 82,000 tons of ash mixed with 27 million gallons of contaminated water has spilled into the river. Officials at the nation’s largest electricity provider say they cannot provide a timetable for when the leak will be fully contained, though the flow has lessened significantly as the pond has emptied.

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And earlier this was West Virginia.

Federal grand jury investigates West Virginia chemical spill

By Drew Griffin. David Fitzpatrick and Patricia DiCarlo CNN

(CNN) — A federal grand jury investigation has been launched into the West Virginia chemical spill that left 300,000 people unable to use their water supply, CNN learned Tuesday.

Sources familiar with the grand jury’s activities tell CNN that subpoenas have been issued requiring testimony for what one federal official confirms is a criminal investigation.

Meanwhile, an independent water test conducted at CNN’s request has found trace levels of the chemical 4-methylcyclohexane methanol, or MCHM, remain in both untreated river water and tap water from two homes in Charleston.

The results by TestAmerica found the chemical is within the safe level of 1 part per million set by the Centers for Disease Control and Prevention; whether that level is safe is disputed

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There Are No Criminal Charges For The Frackers – So all they have to do is pay money

No Frackers will go to jail if they violate WHAT LAWS? IDNR might as well give away the state of Illinois to being totally trashed. Where will the Fracking start? In our State Parks?

Day 49   1/2/13

Topic:  Fines penalties, suspensions and revocations

For regulations to work, levied fines must exceed the financial benefit a company gains by violating the rules. None of the rulemaking sanctions meet this criterion. This results in the other 150 pages of rules being essentially meaningless because they will be ignored.   The draft rule sanctions place the Hydraulic Fracturing Regulatory Act (HFRA)  on the road to failure before the first permit is issued.

Examples:

  1. Section 1-100(b) of the law specifies misdemeanor and felony criminal charges for a number of violations of the law.  Yet there are NO criminal charges in the rules
  2. In Section 1-60(a)1-6 of the law, there are six (6) grounds for suspension or revocation of a permit.  These are re-listed with a 7th in section 245.1100 of the rules.  But the very next  section of the Rules–245.1110–reduces the grounds for an immediate permit suspension to one: “an emergency condition posing a significant hazard to the public health, aquatic life, wildlife or the environment.” This is the most stringent requirement of the seven grounds listed in section 245.1100.  Why bother to list seven possible grounds for permit suspension or revocation in section 245.1100 if you then require the Department to identify the most stringent criteria for an immediate suspension.
  3. Section 1-60(b) of the law requires a much lower standard of proof to suspend, revoke or deny a permit than the rules (245.1110).  Under the law, the Department need only serve notice of its action (to suspend, revoke or deny), including a statement of the reasons for the action.
  4. In the law, if a well operator’s permit has been suspended, the burden of proof is on well operator to prove that the identified problem is “no significant threat to public health, aquatic life, wildlife, or the environment” [Section 1-60(d)].  In the rules, this phrase becomes something IDNR must prove before ordering a permit suspension [Rule Section 245.1100(b)3A].
  5. Sections 1-100 and 1-101 of the law have some stiff penalties that accrue on a daily basis until the reason for the fine is corrected.  These fines can go as high as $50,000 per violation and up to $10,000 per day.  These are replaced by fines so trivial ($50-$2500) that it will cost the IDNR more to impose and collect a fine than the dollar value of the fine itself.

Revisions Needed:  Return to the standards of the law with regard to fines, penalties and revocations.

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Frackers Must Pay For Our Lawyers – In our dreams

This probably will not happen, but it can’t hurt to ask.

Here we are at Day 47 (12/31/2013) of the IDNR Comment Period as we close out 2013.   We anticipate hand-delivering 20,000 hard-copy comments to IDNR on either Thursday or Friday afternoon of this week–just trying to firm up the date and time.  We will have a date and time locked in by tomorrow. Thank you, all of you, who have participated in writing comments.  We couldn’t have done this without you.

Today’s Topic: Recouping Attorney Fees

  • Go to: http://www.dnr.illinois.gov/OilandGas/Pages/OnlineCommentSubmittalForm.aspx
  • Click the button:  Subpart C: Permit Decisions (245.300-245.360)
  • In the “Section” dropdown box, click:  245.310 Permit Denial
  • Submit your comment/s (below)
  • Click “Submit”

Comment:

DNR’s rules should include a provision that would authorize the recovery of attorney fees for those who successfully challenge a permit application.

The Statutes:

Section 1-102(c) of the Hydraulic Fracturing Regulatory Act (225 ILCS 752/1-102(c)) allows a circuit court to award attorney fees where a person successfully sues to enforce compliance with the Act:

   “(c) The court, in issuing any final order in any action brought under this Section, may award costs of litigation (including attorney and expert witness fees) to any party, on the basis of the importance of the proceeding and the participation of the parties to the efficient and effective enforcement of this Act.”

Also, section 10-55(c) of the Illinois Administrative Procedure Act (5 ILCS 100/10-55(c)) allows a circuit court to award attorney fees to a party who successfully challenges a DNR rule in court:

   “(c) In any case in which a party has any administrative rule invalidated by a court for any reason, including but not limited to the agency’s exceeding its statutory authority or the agency’s failure to follow statutory procedures in the adoption of the rule, the court shall award the party bringing the action the reasonable expenses of the litigation, including reasonable attorney’s fees.”

The Rules:

But DNR’s proposed rules do not allow for an award of attorney fees for an interested person who hires an attorney and successfully challenges a permit application.  Given the typical situation–a vast disparity in financial resources between the typical industry applicant, on the one hand, and an adversely affected individual landowner or other interested person on the other, the ability to hire and pay for an attorney will be essential to ensuring a fair hearing on a contested permit application.

Needed Revision:

Section 245.310 should be revised to include a provision for the reimbursement of attorney fees to a person who successfully challenges a permit application.

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Fracker Trash Illinois And Run – The will file bankruptcy before they remediate

Just take a look at all the gaping holes the other extraction industry have left in Illinois. Their are parts of Illinois that look like the 10,000 lakes area in Minnesota that used to be valuable farmland. This will be no different.

Day 46  12/30/13

Topic:  Topsoil Replacement Requirements

Comment:

Sections 1-70(b)2 and 1-95(c) of the Hydraulic Fracturing Regulatory Act state that stripped topsoil is to be replaced with similar soil and the site returned to its pre-drilling condition.

Section 1-95(c) of the Act specifically states: “The operator shall restore any lands used by the operator other than the well site and production facility to a condition as closely approximating the pre-drilling conditions that existed before the land was disturbed for any stage of site preparation activities, drilling, and high volume horizontal hydraulic fracturing operations.”

When drilling is anticipated to be completed in less than a year, Section 245.410(d) of the Rules stipulates that the topsoil is to stockpiled and stabilized to prevent erosion.  However, “In the event it is anticipated that the final reclamation shall take place in excess of one year from drilling the well, the topsoil may be disposed of in any lawful manner provided the permittee reclaims the site with topsoil of similar characteristics of the topsoil removed.”

What is missing, and needed, in this section of the Rules is the stipulation that the replacement topsoil will be not only similar in characteristics of the topsoil removed, but also match the removed topsoil in VOLUME.   In fact, there is no place in the rules that requires measurement of the topsoil removed or measurement of the replacement topsoil.  Without such a requirement, it would be easy for an unscrupulous operator to replace the topsoil with smaller quantities than were originally removed.

Revisions Needed:  When final reclamation is anticipated to exceed one year and topsoil is removed from the site, Section 245.410(d) must require measuring the volume of the removed topsoil and stipulate that the replacement topsoil will match both the quality AND quantity of the removed topsoil.

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