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