Monday, March 12, 2007

CAISO'S EVOLVING POSITION ON LEAPS by Doug. Pinnow Ph.D.

ELSINORE MAGAZINE 1
March 12, 2007
Mr. Doug Pinnow Ph. D. reviewed a 7 page, second report on, The CALIFORNIA INDEPENDENT SYSTEM OPERATOR ( CAISO). "CAISO'S EVOLVING POSITION ON LEAPS." His comments below as follows:
I've reviewed the current document and thought you may be interested in my initial reaction.
Its apparent that the FERC is pushing CAISO to figure out a way to help Nevada Hydro "succeed" in the LEAPS Project. By "succeed" I mean that the FERC wants to get Nevada Hydro paid off for getting the LEAPS Project built while also getting Nevada Hydro off the hook for actually having to operate LEAPS POWER plant (and, likely,being financially ruined because the plant is not economically viable).
The FERC is pushing CAISO for their recommendations on how to "succeed" in a time frame that does not allow CAISO to conduct an independent financial analysis of the LEAPS Project. At best, CAISO can only respond to the FERC with their recommendations on how best to integrate LEAPS into the California grid. As such, this action assures that the LEAPS Project will inch forward without anyone blowing the whistle that this project is an economic disaster.
CAISO has concluded that after the February 6th meeting held with their stakeholders (like SDG&E and SCE), that the only viable option is to get Nevada Hydro off the hook for operating LEAPS would be to haver CAISO auction off the rights to operate LEAPS to their stakeholders and any other qualified organizations. Who ever "wins" the operating rights would have all the economic benefits and liabilities that LEAPS has to offer.
CAISO has shrewdly recognized that there should be limited operating term associated with the auction so that the winning bidder would not be blessed by windfall profits or cursed with huge losses for longer than 2 to 3 years.
CAISO has also shrewdly recommended that construction on LEAPS should not begin until after the initial auction had determined that some organization would be willing to accept the operational responsibilities for the first 3 years.
While all this sounds kind of reasonable, it, nevertheless, opens the door to possible serious abuses. By not addressing the economics of LEAPS head on, there is a possibility that some marginal entity (possibly set up by Nevada Hydro) could win the LEAPS operational contract for the first 3 years. This would allow the LEAPS plant construction to proceed. It would also assure that Nevada Hydro would receive the Federally guaranteed$85 million in payments over the first 3 years of operation that are part of their rate request with FERC. The bad news is that even if the marginal entity that won the operation contract were to go bankrupt in, say, six months, Nevada Hydro would still get their $85 million- and we, the ratepayers would be stuck with paying the bill and suffering the consequences of a shutdown hydroelectric power plant (that is not economically viable) and a power lines through the Cleveland National Forest that will continue to operate (because they are economically viable)
I continue to believe that a good way to deal with all of FERC's "dancing around" the obvious economic problems with LEAPS in order to help Nevada Hydro succeed would be to see if we could get the City of Lake Elsinore to require that Nevada Hydro post a construction bond equal to 5% of the LEAPS total construction cost to be uesd in the event that the hydro plant is shut down ( for any reason) within the first 5 years of operation. This bond would be for approximately $70 million and it would be used to restore the Lake and surrounding area disturbed by LEAPS to a condition acceptable to the City and Elsinore Valley community. It would also take away most ,if not all of Nevada Hydro's Profit potential.
Elsinore magazine adds, that perhaps the Army Corps of Engineers, Fish and Game, Fish and wildlife. should be brought in on the construction bond matter, since they have some jurisdiction about the Waters of The United States, Lake Elsinore.
Elsinore Magazine adds also the City Treasurer Peter Weber has raised the construction bond ISSUE at the City, the ratepayers needs to back him, by, going to the city council meetings and be heard . Mr. Pinnow has so gratefully spent time to review the reports for the ratepayers benefit, the least the ratrpayers can do is stand up for themselves in the interest of their own pocket book protection. It is so disgracefully pothetic that the LOCAL NEWSPAPERS are not willing to ask the hard questions and expose projects like the LEAPS RIP OFF KICK BACK SCAMING THE PUBLIC FOR NON OTHER THAN THEIVERY PROFITS. Back in the day news reporters would help the public from being defrauded. Seems those days are gone. Appears more like NEWS reporter, I join the crooks in defrauding the public. The last story on LEAPS ABOUT A WEEK AGO by The Californian NEWS was very very embarrasing!!! a new one was definitely pulled out of the hat. Why don't you get some guts, get of your lazy and print real stories. The public deserves more than junk!!!

10 comments:

vin said...

Jose Caraval has proven he is to young to understand corruption. A smooth talker with a tie can eaisly fool him. We cant count on him so everone needs to speak up. Why is caiso trying to help nevada hydro that makes no sense seems corruption is all over. Issa's leading the way.

www2 said...

Jose Carvajal writes what Greg Morrison PR person at EVMWD wants him to write regarding LEAPS ; and of course, you all know Morrison is in Darrell Issa's pocket along with his aide Phil Paule. Morrison tells Jose lies and he writes it. When you ask him why - he states that is the information I received and believe it true. Well he is not an investigative reporter. His interrupation of the LEAPS project and the manner in which it is being handled is that of EVMWD and Nevada Hydro and not the citizen's LEAPS affects. Since his stories are for the benefit of EVMWD and Nevada Hydro so cancel the Californian and you won't have to read the lies.

wtf_em3 said...

News Flash!
Jose Caraval to write an article on Domestic Violence, His list of interviewees include Peter Webber the Lake Elsinore Treasure, Ron Artest of the Sacramento Kings, Rock & Roll Hall of fame member Ike Turner, and O.J. Simpson the juice, I can’t think of better company to be associated with.

Anonymous said...

Whats wrong philly cat got your tongue please continue to amuse us.

Anonymous said...

Whats wrong philly cat got your tongue please continue to amuse us.

Anonymous said...

Jose Carvahal has hurt feelings and as you can see he's angry. Think about it this way the truth hurts and it makes us angry, thats how we know its the truth. Get over it Jose stop being lazy grow up and do your job, with emphasis on investigative, otherwise why bother.

Anonymous said...

Jose you need to realize writing quotes stated by a moron about another person will not make a name for yourself. People that like that shit dont read the paper they read Soap Opera Digest. Do the hard investigative work everyone knows the lazy mans way.

Anonymous said...

jOHN bROWN AND pHILL wILLIAMS ARE BOTH CROOKS AND BIG INSTIGATORS OF ILEGAL ACTIVITY. IF YOUR FOOLED BY THEM THEN YOUR JUST DUMB DUMB DUMB AND DUMBER. WAKE UP MR. LLOYD REMEMBER WHAT THEIR TRYING TO DO HERE AND FORGET ABOUT GETTING ALONG WITH THEM IF YOUR GETTING ALONG WITH THEM MR LLOYD THATS A BIG INDICATOR YOUR NOT DOING YOUR JOB. BY SHOWING THEM YOUR SMARTER YOU WILL WIN THEIR RESPECT AND THEY WILL HAVE NO CHOICE BUT TO LIKE YOU PLEASE GET YOUR ASS IN GEAR OR ELSE TURN INTO ANOTHER BEN WICK OR BETTER YET HARVEY IF YOU DONT DO YOUR JOB THEN THATS WHAT YOU WILL BECOME SOME IDIOT SITTING UP THEIR DOING EXTREMELY STUPID THINGS WHICH AMOUNT TO NOTHING EXCEPT WASTE OF THE RATE PAYERS MONEY WHILE TRAVEL IS PAID FOR FOR NEVADA HYDRO AND THE GANG AT RATE PAYERS EXPENSE GET ANGRY MR LLOYD OR GET OUT WE DONT NEED ANOTHER HARVEY. CHRIS HYLAND WAS SMART ENOUGH NOT TO SIGN WHAT YOU SIGNED WHAT WERE YOU THINKING IDIOT!

Anonymous said...

John Lloyd - go out and get another opinion from an outside attorney. Why in the world did you sign that Code of Ethics which was I understand was written to let Phil Williams censor Chris Hyland and stop her from speaking out about LEAPS - is it because he would lose $$$$$ if it were not built?????? Williams, Wicke, and Ryan will continue to do what they have and that is just the opposite of what the Code of Ethics state. They are training Guglieman to do the same because Piglet is so stupid they have to tell her to follow their commands. They are doing to you John Lloyd just what they did to Chris Hyland and John you are a fool if you let that happen but they did not stop her she continued to speak out. Can you believe that the EVMWD Lawyer is telling John Lloyd he can't use toilet paper. Or is it Grover Trask who is now a part of Best Best & Krieger and is responsible for Ethics for their clients?

Anonymous said...

The truth is Grover trask does work for BEST BEST And KRiger in the ethics department. If you dont believe me investigate.This way he can protect all of his friends. The treasurer turned in former assistant city manager to former D.A. Grover trask for stealing. Grover Trask made sure nothing was done to her. Luckily she got scared and ran to Calexico before the city completed its audit on how the officials and staff of city hall were stealing. Mr. LLoyd has no idea what he has gotten himself into. If he's weak these people will walk all over him, ruin his reputation, make him look like a failure, an idiot, a coward, and a fool. Wake up Mr. Lloyd your not going to win over ben wicke and lugi face. Maybe Harvey I dont think he's as greedy as the other two but I could be wrong. Lugi Piglet is there because her friends from Nevada Hydro made her feel important and paid for her campaign thats why piglets in it to travel and collect her 1900 a month. Prove me wrong pig pig pig pigleto. Wickes a greedy bastard. The only person that may be a decent human being that might realize he's being used is Harvey, he may be strong enough to crawl out of the cess pool, but is he smart enough. When the average Joe has power this is what happens were at these idiots mercy unless we recall them. Lugi Pigleto goo goo lani an red kneck wicke cant vote on anything to do with the LEAPS because they took money from Nevada Hydro for their campaigns. Go ahead and try to win these idiots over Mr. lloyd but please do your job in the mean time and the worst thing you can be is a coward, it makes you look like such a fool a dumb fool. Chris Hyland wasn't afraid of them like you are to bad shes not up there to help you out.