Tuesday, April 24, 2012

Letter to PUCT

23 April, 2012
Public Utilities Commission of Texas
Chairman Donna Nelson,
My name is Jon Koonsman and I am 6th generation rancher in Erath County, Texas.  I am also an opinion columnist for the Stephenville Empire Tribune.  Though I’ve been a relatively popular writer in this area for some time, it seems that lately I’ve developed a growing but somewhat less enthusiastic readership in your neighborhood as well.
Beginning in October, 2011, I’ve written a series of columns about my family’s dealings with Lone Star Transmission and our efforts to save a place that is sacred to my family.  This area contains a magnificent live oak tree that is 200+ years old (some estimates place it over 300 years old) and my writings have chronicled our dealings with LST in an effort to save it.  We have buried our pets there for generations and taught our children lessons of love and loss, and of celebrating life.  It is our most cherished place.
LST initially assured us that, by their own estimation, the ‘Big Tree’ was a full 50’ south of their proposed ROW.  Weeks later, and without notification of any kind, the ROW was moved south where its path would take it directly over the big tree.  When contacted LST initially feigned surprise, then gave us a variety of conflicting explanations before ceasing contact.  This has been their standard operating procedure. 
Following the publication of my column on October 23, 2011, LST immediately contacted my family and proposed an alternate route that would move the ROW to a location south of the big tree.  We asked that the route be surveyed, but when we didn’t agree to LST’s proposed settlement for surface damages the proposal was subsequently retracted.  This took place shortly before our March 14, 2012 Special Commissioner’s (Condemnation) Hearing.
Ironically, the Special Commissioner’s Hearing was our first real opportunity to have an extended conversation with a representative of LST.  We found LST’s attorney, Ms. Sue Ayers, to be professional, cordial, and even likeable.  However, the day’s proceedings only served to reinforce the fact that LST had been not only been disingenuous and inconsistent, but blatantly deceptive.  LST’s first witness, Mr. Johnnie Melton, repeatedly made false statements under oath concerning the necessity for moving the ROW to the south – and even eventually was forced to admit that the boundaries for the existing pipeline ROW had never been determined.  Mr. Melton’s testimony was interrupted when Special Commissioner David Dickerson asked for a short recess.  After the recess, Mr. Melton was no longer made available for questioning.  
Incidentally, the Special Commissioners (all Erath County appraisers) assessed damages of almost 4x those offered by LST.  As you are aware, the Commissioners were compelled to work with LST’s own appraisal (we did not present one).  LST is currently appealing the decision.
Chairman Nelson, I’ve read the PUCT’s mission statement.  The first three words are “we protect customers”, and I have no reason to believe that you don’t take that statement seriously.  However, I believe we have some cause for concern as LST’s incestuous beginnings took place in the very office that you now hold.  I’ve compiled hundreds of pages of documents concerning the creation of CREZ, the PUCT, ERCOT, and the origins of LST.  I’ve bored myself to sleep at night reading draft minutes of the ERCOT Board of Directors Meetings and CREZ legislation, and there is one thing for certain.  When you look at these things retrospectively, the appearance of impropriety by Mike Grable and former PUCT Chairman Barry Smitherman is overwhelming.  I believe that prudent Texas voters, already sensitive to issues concerning conflict-of-interest, would draw the same conclusion.
As I am aware that Mr. Grable and Mr. Smitherman are familiar acquaintances of yours - I will attempt to clarify the situation without the inherent fogginess that comes with familiarity and insight into their good intentions.  Mr. Grable and Mr. Smitherman, by their own estimation, have been instrumental in implementing CREZ legislation through their positions at both the PUCT and ERCOT. These same positions were influential in establishing the state’s self-imposed green energy mandates.  Mandates from which Mr. Grable stands to reap significant profits. 
When Mr. Grable returned to the private sector and went to NextEra Energy for financial backing, it must have been a pretty easy pitch.  Not only was NextEra looking to expand cronyism to the grass roots level, but Grable’s old boss was still at the head of the PUCT and instrumental in choosing utilities to build the CREZ system.  It must have been too much for Lew Hay to resist.
It would appear that not only has Mr. Grable exploited his positions at the PUCT and ERCOT, but he is profiting from a market that he helped create.  The Certificate of Convenience and Necessity for this project was based largely on satisfying self-imposed mandates, not on ensuring or improving reliability for Texas ratepayers.  Most reasonable Texans understand that wind energy does nothing to improve or protect electric reliability; if anything, winds inherent intermittency does just the opposite.  In fact, if the political climate changes and subsidies for wind energy cease; the public perception will go from that of a bad investment with taxpayer money – to the appearance of government sponsored cronyism in an industry with a very predictable lack of commercial viability.
In a recent written statement to the Stephenville Empire Tribune, LST noted that “Contrary to what you might have read, the transmission line that we are building is not a ‘wind only’ line.  All forms of power generation will flow across this line …”
The reason it is contrary to what we might have heard, is because it is contrary to what we have been told by LST, PUCT, ERCOT, CREZ, and Texas Lawmakers (I’ve spoken to county officials in Erath County, and they were not aware of this information either).  This is contrary to the stated intent of CREZ and undermines the integrity of both ERCOT and PUCT.  Though it is probably necessary to meet reliability standards, it creates a significant credibility problem for both agencies and cast an even more ominous shadow on the relationship between LST and Mr. Smitherman.  This information could have implications for everything from the bid process and award, to a half billion dollars in federal stimulus funding.  It’s a pretty big deal – Texas voters don’t like being lied to.
I’ve become somewhat of a “reluctant advocate” for other landowners affected by LST.  I have spoken with dozens of landowners and chronicled cases of deception, bullying, and even retaliation on the part of LST.  I would consider my family among those that have experienced each of these.  I’ve been contacted by other newspapers along the corridor for requests to reprint my columns and have recently begun granting permission.  We’ve been contacted by both print media and television media, and to date have declined speaking with them.  I suppose that my family was foolish enough to believe that LST would eventually honor their original promises to us and we would just return to our otherwise peaceful existence.  I’ve precious little faith that is going to happen. 
Chairman Nelson, I don’t envy your position.  You’re left with only three real choices.  You can police your colleagues.  You can allow the PUCT to appear negligent.  Or, you can allow the PUCT to appear complicit.  Citizens of this great state are tired of cronyism, and this is a fairly sensational case of it. 
By the way, I certainly don’t intend to imply any wrongdoing on your behalf and I understand that you were appointed to this position by Governor Perry.  Re-election is not a concern for you, but it is for Barry Smitherman and Gov. Rick Perry – and this case bleeds conflict-of-interest.
I’m not an ideologue; this issue has a simple solution.  LST can go around the big tree and honor their original commitment to my family.  And they can pay us a fair sum for the easement and surface damages.  Pretty simple.  But if that big tree falls, it’s going to wreck a couple of promising careers beneath it.
I am not a man of exceptional means, but I am a man of extraordinary determination.  As folks in our neck-of-the-woods might say, “I just ain’t got no quit.”  I will expect a resolution or a phone call by 12:00 p.m. (noon) tomorrow, April 24.  At that time I will begin sending a copy of this letter and supporting documents to every media outlet in the Austin and Dallas/Fort Worth area.  Thank you in advance for your prompt attention.
 Best Regards,

Jon Koonsman
(254) 967-2157
jonkoonsman@yahoo.com

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