# Iowa Utilities Board



Weekend open thread: Terrible predictions edition

What’s on your mind this weekend, Bleeding Heartland readers? This is an open thread: all topics welcome.

In the real world as well as on social media, many Iowa Democratic activists have been talking about Rich Leopold this week. Since announcing his candidacy for governor on Wednesday, Leopold has reached out to county chairs and other local leaders in a bunch of towns. I hope his early, aggressive campaign will drive other Democrats thinking about this race to start pounding the pavement sooner rather than later. I’m all for a spirited, competitive 2018 primary.

Longtime Johnson County elections office worker John Deeth wrote a must-read “deep dig” about the real-world implications of “the proposed voter ID legislation, with the Orwellian name ‘Voter Integrity,’ launched by Secretary of State Paul Pate on Thursday.” Key point: county auditors of both parties are not fans of voter ID, “because they’ve been on the front lines of dealing with the public and they know that it doesn’t solve anything and that it will make it harder for the public.” Bleeding Heartland’s take on Pate’s solution in search of a problem is here.

Des Moines Register statehouse reporter Brianne Pfannenstiel published a heartbreaking account of her mother’s terminal illness during the presidential campaign, a “sudden and devastating” ordeal that still “hurts like hell every day.”

Along with most Iowa politics watchers, I’m gearing up for the 2017 Iowa legislative session, which begins on Monday. First, let’s take care of some unfinished business from 2016. Like many political writers and a fair number of Bleeding Heartland readers, I had a horrendous year for predictions.

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Senate should demand full disclosure of Branstad donors before his confirmation

The Branstad-Reynolds Scholarship Fund, which collected money to pay for Governor Terry Branstad’s 2011 and 2015 inaugural celebrations, has not disclosed the names of donors who contributed $1.1 million in 2015, Ryan Foley reported today for the Associated Press. That information should have been included on the non-profit’s 2015 tax return. However, the return filed on November 15, 2016 named only one donor: Principal Financial Group, which gave $25,000.

Before considering Branstad’s nomination to be U.S. ambassador to China, the Senate Foreign Relations Committee should insist that the governor bring his non-profit into compliance with federal law. Senators should also scrutinize all donations to the group, to see whether Branstad did any political favors for individuals or businesses that bankrolled his inaugural.

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Energy centers got their money from the Iowa Utilities Board this year

During the first week of December 2015, an unexpected political scandal went out with a whimper as the Iowa Energy Center and the Center for Global and Regional Environmental Research finally received the remittances the Iowa Utilities Board had collected on their behalf from gas and electric utility companies. For many years, the board had transferred those funds without incident, as stipulated by state law. But in her first year as Iowa Utilities Board chair, Geri Huser took the “unusual, perhaps illegal, step of withholding funding […].”

Huser’s power play was aimed at the Iowa Energy Center affiliated with Iowa State University. (Its leaders denied her unsupported claim that they had refused to provide sufficient financial information to the board.) Because funds for both centers are calculated and released at the same time, the unprecedented board action also delayed resources for the Center for Global and Regional Environmental Research at the University of Iowa. Huser backed down a week after Ryan Foley of the Associated Press exposed the controversy to a wider audience.

Having heard nothing about the energy centers’ funding lately, I reached out this week to Iowa Utilities Board communications director Don Tormey. He sent documents showing that in accordance with the usual formula for splitting the remittances, the board disbursed $4,123,150.49 to the Iowa Energy Center and $727,614.79 to the Center for Global and Regional Environmental Research. The board sent warrants (paper checks) using regular mail, as had happened in 2015 for reasons I still don’t understand. Before last year, the board typically transmitted those funds via wire transfer.

Communications staff at the state universities confirmed that the energy centers received checks in the mail last month for $4,123,150.49 and $727,614.79, respectively. Those totals comprise the remittances from utility companies but not the interest accrued on those funds. John McCarroll of Iowa State University noted, “In the letter with the check, IUB said they will be forward[ing] the interest payment in June 2017 as they close out the fiscal year. This is how they handled the interest in 2016.”

The board has faced criticism on other fronts this year after approving the Dakota Access (Bakken) pipeline and allowing its construction to commence this summer, when Dakota Access did not have all applicable federal permits. Pending lawsuits are challenging the board’s authority to use eminent domain for the pipeline, saying a 2006 Iowa law does not allow a company that isn’t a utility to condemn farmland. It would have been foolish for Huser to stir up more trouble by flexing her muscles at the energy centers’ expense again. Also possibly relevant: former Iowa Energy Center executive director Mark Petri, with whom Huser had tangled, left Ames this summer to take a new job as director of the Critical Infrastructure Resilience Institute at the University of Illinois at Urbana-Champaign.

Branstad urged Army Corps to give last green light for Bakken pipeline

Governor Terry Branstad denied in September that he’s a friend to Big Oil interests seeking to build the Dakota Access (Bakken) pipeline across four states, including Iowa.

But in a move his office did not announce last week, Branstad joined North Dakota Governor Jack Dalrymple and South Dakota Governor Dennis Daugaard to urge the U.S. Army Corps of Engineers not to delay approval of the final federal easement needed to complete the pipeline.

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Bakken pipeline received final federal permit; land use lawsuit pending

The U.S. Army Corps of Engineers has granted the Texas-based Dakota Access company a federal permit to build the Bakken pipeline across Iowa.

Although opponents plan various forms of direct action, the best remaining chance for stopping the pipeline is a lawsuit challenging the Iowa Utilities Board’s authority to use eminent domain for a project with no legitimate public purpose.

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Iowa DNR allows Bakken pipeline to run under Indian burial site

The Iowa Department of Natural Resources amended a permit to allow Dakota Access to run the Bakken pipeline under a sensitive area in the Big Sioux River Wildlife Management Area, William Petroski reported for the Des Moines Register on June 20. The amendment means Dakota Access is no longer subject to the stop-work order the DNR imposed last month. DNR spokesperson Kevin Baskins told Petroski the company will run the pipeline “about 85 feet underground” to avoid disrupting sacred ground, which may include American Indian burial sites.

State Archaeologist John Doershuk said in an email last week to DNR Director Chuck Gipp that the proposed directional boring construction method is a satisfactory avoidance procedure from an archaeological standpoint that he supports in this case. However, Doershuk emphasized he could not speak for American Indian tribes that have expressed concerns about the pipeline project.

Energy Transfer Partners, the parent company of Dakota Access, maintains that a 2004 archeological review of the site in question did not turn up any areas of cultural significance. Gavin Aronsen posted that document and comments from a company spokeswoman at Iowa Informer.

Now that the DNR has lifted the stop-work order and the Iowa Utilities Board has changed its stance to allow pipeline construction before Dakota Access has all federal permits in hand, only two legal obstacles stand in the way of completing the project across eighteen Iowa counties. The U.S. Army Corps of Engineers has yet to issue permits covering a small portion of the Iowa route–though I would be shocked to see the federal government stand in the way once construction has begun. A series of landowner lawsuits are challenging the use of eminent domain for the Bakken pipeline, saying a 2006 Iowa law does not allow farmland to be condemned for a private project by a company that is not a utility.

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More lawsuits challenge eminent domain for Bakken pipeline

Owners of two farms in Cherokee County filed lawsuits on May 20 seeking to block the Texas-based oil company Energy Transfer Partners from seizing their land for the Dakota Access (Bakken) pipeline, William Petroski reported for the Des Moines Register. I enclose excerpts from his story below.

Like a separate lawsuit filed in Polk County last month, these legal claims are based on a 2006 Iowa law, which was designed to protect farmland from being condemned for private development. The plaintiffs argue the Iowa Utilities Board erred when it authorized a private company that is not a utility to use eminent domain.

Regardless of how district courts decide these claims, the Iowa Supreme Court will likely be the final voice on whether state law allows the use of eminent domain for this project.

Dakota Access started Bakken pipeline construction in North Dakota, South Dakota, and Illinois this week, but the Iowa Utilities Board denied the company’s request to start building here. O.Kay Henderson reported for Radio Iowa that the board’s legal counsel noted the oil company “has not filed all the necessary permits and associated verifications to begin construction.” Although the board approved the permit to build the Bakken pipeline in March, as did the Iowa Department of Natural Resources, the Army Corps of Engineers has not yet approved permits for portions of the pipeline that would cross federal land.

Brian Morelli and Rod Boshart reported for the Cedar Rapids Gazette on the Private Property Rights Coalition’s work to educate landowners along the pipeline route about the eminent domain process and “legal options if they refuse to voluntarily sign easement agreements with the oil company.” One of that group’s leaders is Keith Puntenney, who has not signed an easement for his farmland in Boone and Webster counties. Puntenney is also the Democratic challenger to State Senator Jerry Behn in Iowa Senate district 24.

More resources for landowners and citizens who oppose the pipeline project are available on the website of the Bakken Pipeline Resistance Coalition, uniting more than two dozen Iowa non-profit organizations. I expect Bakken opponents to make their presence known when U.S. Senator Heidi Heitkamp of North Dakota comes to Des Moines as the featured guest for the Iowa Democratic Party’s Hall of Fame event next month.

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Landowners challenge use of eminent domain for Bakken pipeline

Pipes intended for use in the Dakota Access pipeline being stored in Jasper County, Iowa during 2015. Photo provided by Wallace Taylor, used with permission.

The Iowa Utilities Board issued a permit for the Dakota Access (Bakken) pipeline on April 8, after declaring that Dakota Access LLC “has substantially complied with the requirements” of the board’s March 10 order. The same day, a group of agricultural landowners filed a lawsuit challenging the board’s use of eminent domain for the pipeline, intended to carry oil roughly 400 miles across eighteen counties from northwest to southeast Iowa. Litigation grounded in environmental concerns about the pipeline is expected later this year.

Follow me after the jump for more details on the land use lawsuit and ongoing efforts to block the pipeline at the federal level.

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Market forces may kill Bakken pipeline despite likely Iowa Utilities Board approval

Pipes intended for use in the Dakota Access pipeline being stored in Jasper County, Iowa during 2015. Photo provided by Wallace Taylor, used with permission.

UPDATE: As expected, the board voted unanimously to approve the permit. Scroll to the end of this post for more details and reaction.

The Iowa Utilities Board will meet this afternoon to issue a decision on the proposed Dakota Access pipeline. Everyone I know in the environmental community expects the three board members to approve the permit for this project, better known as the Bakken pipeline. Litigation is sure to follow, as opponents charge the Iowa Utilities Board’s eminent domain powers may be used only in the service of a “public good,” not “to privilege a private corporation.”

Other legal hurdles include the need for a permit from the Iowa Department of Natural Resources, because the pipeline route would cross “four areas in Iowa that have been identified as sovereign lands.” The Sierra Club Iowa chapter has been pushing for a thorough Environmental Impact Study and archaeological review. (Too many Iowa politicians from both parties signed a letter to the utilities board opposing an independent environmental impact assessment.)

Iowa State University economist Dave Swenson has long cast doubt on the “bloated” economic impact numbers Dakota Access has used to market the project. Click here for Swenson’s detailed analysis on the pipeline’s “purported economic and fiscal benefits to the state of Iowa.”

A growing number of observers believe the project no longer makes economic sense even for Energy Transfer Partners, the parent company of Dakota Access.

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16 Iowa politics predictions for 2016

Hoping to improve on my percentages from last year, I offer sixteen Iowa politics predictions for 2016. Please spin your own scenarios in this thread.

I finally gave up on trying to predict whether Governor Terry Branstad will still be in office at the end of the year. Although his close adviser David Roederer “emphatically” says Branstad will serve out his sixth term, I am convinced the governor will resign early. But I can’t decide whether that will happen shortly after the November 2016 election or shortly after the Iowa legislature’s 2017 session.

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The 15 Bleeding Heartland posts I worked hardest on in 2015

As I mentioned on Tuesday, writing is a labor of love for me. Some posts are much more labor-intensive than others.

All of the pieces linked below took at least a couple of days to put together. Some were in progress for weeks before I was ready to hit the publish button. (No editor, deadlines, or word limits can be a dangerous combination.) A few of the particularly time-consuming posts required additional research or interviews. More often, the challenge was figuring out the best way to present the material.

Several pieces that would have qualified for this list are not included, because they are still unfinished. Assuming I can get those posts where they need to be, I plan to publish them during the first quarter of 2016.

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The 15 Bleeding Heartland posts that were most fun to write in 2015

While working on another piece about Iowa politics highlights from the year, I decided to start a new Bleeding Heartland tradition. Writing is a labor of love for me, as for many bloggers, but let’s face it: not all posts are equally lovable.

The most important political events can be frustrating or maddening to write up, especially when there is so much ground to cover.

Any blogger will confirm that posts attracting the most readers are not necessarily the author’s favorites. The highest-traffic Bleeding Heartland post of 2015–in fact, the highest-traffic post in this blog’s history–was just another detailed account of a message-testing opinion poll, like many that came before. Word to the wise: if you want a link from the Drudge Report, it helps to type up a bunch of negative statements about Hillary Clinton.

Sometimes, committing to a topic leads to a long, hard slog. I spent more time on this critique of political coverage at the Des Moines Register than on any other piece of writing I’ve done in the last decade. But honestly, the task was more depressing than enjoyable.

Other pieces were pure pleasure. Follow me after the jump for my top fifteen from 2015.

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Following up on the Iowa Utilities Board and funding for two energy research centers

In the spirit of the Russian proverb “Trust, but verify,” I checked last week to see whether funding the Iowa Utilities Board promised before Thanksgiving to release had reached energy centers housed at Iowa’s state universities.

Good news: the Iowa Energy Center at Iowa State University and the Center for Global and Regional Environmental Research at the University of Iowa have both received all of the remittances the IUB collected on their behalf from gas and electric utilities. The centers do not appear to have in hand all of the interest payments to which they are entitled under Iowa Code, but IUB spokesperson Don Tormey assured me the agency “will forward the additional interest funds” to the energy centers, if any more interest accrues.

Strange news: the IUB chose an unusual way to send this year’s funding to the energy centers, and I don’t fully understand why. I’ve enclosed what I learned below, along with details on the money sent to the Iowa Energy Center and the Center for Global and Regional Environmental Research so far, and what may yet be owed to them.

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Three reasons Geri Huser should not have picked the fight the Iowa Utilities Board just lost

Geri Huser photo Geri_D._Huser_-_Official_Portrait_-_83rd_GA_zpszhoxeda1.jpg

The Iowa Utilities Board (IUB) announced yesterday that it “has started the process to transfer funds earmarked for the Iowa Energy Center (IEC) at Iowa State University and the Center for Global and Regional Environmental Research (CGRER) at the University of Iowa.” The retreat came less than a week after a spokesperson had insisted, “The board will disburse the funds when they are satisfied (the centers) have answered all the board’s questions.”

Restoring the flow of money means the centers charged with promoting alternative energy and efficiency and “interdisciplinary research on the many aspects of global environmental change” no longer face possible staff layoffs or program cuts. But yesterday’s climb-down won’t erase the damage done by IUB Chair Geri Huser’s unwise and unprecedented decision to withhold funding, in the absence of any legal authority to do so. She miscalculated in three ways.

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Iowa Utilities Board Chair Geri Huser's disturbing power play

In an unprecedented and “perhaps illegal” step, Iowa Utilities Board Chair Geri Huser is “withholding funding from the state’s renewable energy research center until its leaders satisfy her questions about its programs and finances,” Ryan Foley reported today for the Associated Press.

Huser’s overreach reflects a serious misunderstanding of her role as a member of the Iowa Energy Center’s advisory council. Her power play also raises questions about why Huser would go to such extraordinary lengths to disrupt activities at a center that has been promoting energy efficiency, conservation, and renewable technologies for nearly 25 years.

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Pella Electric Cooperative drops discriminatory charge for solar users

The Pella Electric Cooperative has told the Iowa Utilities Board it will no longer seek to charge some customers using solar panels a much higher “facilities fee,” Karen Uhlenhuth reported today for Midwest Energy News. The rural electric cooperative had informed members in June that customers installing new solar panels after August 15 would be charged a monthly fee of $85, which is $57.50 higher than what most of the Pella Electric customers pay. Those who had already installed solar systems would be exempt from the higher fee for five years, but would have to start paying it in 2020.

The cooperative’s action provoked an outcry from renewable energy advocates as well as from the handful of Pella Electric customers who would have been immediately affected. Uhlenhuth noted that the non-profit Environmental Law & Policy Center intervened with the Iowa Utilities Board, saying “a fee levied only on customers with distributed generation facilities ran counter to two provisions in Iowa law.” The Office of Consumer Advocate (part of the Iowa Attorney General’s office) asked the cooperative to provide data supporting a much higher monthly fee for solar users. The cooperative had refused to release its “cost of service” study last month.

To all appearances, the coop backed down once leaders realized they were on shaky legal ground, much like Alliant Energy reversed its position on net metering for some solar projects, shortly after critics had intervened with the utilities board. Uhlenhuth quoted a statement released by the Pella cooperative, which sounds like an unconvincing attempt to save face. The coop’s chief executive officer John Smith claimed it is “incorrect” to depict the higher facilities fee as “discriminatory.” He is sticking to his story that charging solar users more was merely an effort to be “fair” to other customers. While not admitting that the cooperative was wrong, the statement said it is withdrawing the proposal “until such time that we can better educate our members and the community as to the fair and equitable recovery of fixed costs.”

A press release from the Environmental Law & Policy Center, which I enclose in full below, notes that the Pella cooperative already benefits from solar panels installed by its customers, because it “buys excess solar energy at a rock bottom price” of 3.3 cents per kilowatt-hour and “sells it at a premium” price of 10.1 cents per kWh. (I’m an active supporter of the ELPC, but I have no role in drafting their public statements or legal strategy.)

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Pella Electric Cooperative trying to discourage customers from installing solar or wind

Solar power made big news in Iowa today, as former Secretary of State Hillary Clinton spoke in Des Moines about ambitious goals for installing solar panels. In a forthcoming post, Bleeding Heartland will compare the Democratic presidential candidates’ proposals to combat climate change by increasing renewable energy production and decreasing carbon emissions.

Iowa has tremendous potential to generate electricity from the sun. Recognizing that fact, large bipartisan majorities in the Iowa House and Senate “triple[d] the size of Iowa’s successful solar tax incentive program” in 2014 and during this year’s session increased available solar energy tax incentive funds by another $500,000 to $5 million per year.

But some segments of the utilities sector have been slow to embrace solar power. One of Iowa’s major investor-owned utilities persuaded the Iowa Utilities Board to block certain financing arrangements that made it easier for customers to install solar panels. An appeal of that administrative decision went to the Iowa Supreme Court, which overturned the Iowa Utilities Board last year.

Rural electric cooperatives, which supply electricity to roughly 650,000 Iowans, have approached renewable energy and solar power in vastly different ways. Farmers Electric Cooperative in the Kalona area installed the largest solar farm in Iowa last year.  

But as first reported by Karen Uhlenhuth at Midwest Energy News last week, the Pella Electric Cooperative is seeking to penalize customers who choose to install new solar or other renewable technology. Lee Rood picked up the story on the front page of today’s Des Moines Register. The cooperative’s new monthly charge for a handful of consumers is brazen and probably illegal.  

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No single issue is worth risking the Iowa Senate majority

Shortly before the end of this year’s legislative session, former State Representative Ed Fallon announced “political action” to stop the proposed Bakken Oil Pipeline. He warned that if the Iowa House and Senate did not approve a bill to block the use of eminent domain for the project, he would organize and fundraise “to help defeat one or two Democratic Senators and one or two Republican Representatives” who oppose the bill.

On June 5, the Iowa House and Senate adjourned for the year without passing an eminent domain bill in either chamber. Last week Fallon confirmed that he is sticking to his goal of defeating one or two majority party members in both the House and Senate, adding that he had already raised $4,500 toward the cause.

All I can say is, count me out of that political crusade.

Come to think of it, I have a few more things to say on the subject.

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Iowa Utilities Board chair won't recuse herself on Bakken pipeline

Iowa Utilities Board Chair Geri Huser “will help decide whether to build a major oil pipeline even though her family law firm has represented a landowner trying to block it,” Ryan Foley reported yesterday for the Associated Press. Shortly after Governor Terry Branstad named Huser to the utilities board in March, Foley reported that Huser’s brother R. Bradley Skinner “has represented farmers who oppose the $3.8 billion [Bakken] pipeline that would transport crude oil from North Dakota across Iowa.” Skinner is no longer the landowners’ legal counsel, and Huser has said she wasn’t aware of her brother’s involvement in the Bakken pipeline dispute.

The latest AP story notes that Huser’s decision not to recuse herself

means all three [Iowa Utilities] board members will vote on whether to approve the $3.8 billion underground pipeline, avoiding a possible deadlock. But legal experts say parties may request Huser’s recusal due to the appearance of bias, and if she declines, the issue could be raised during any appeals of the board’s decision.

I have a bad feeling that any appeals of the board’s decision will come from pipeline opponents rather than from Dakota Access, LLC, the subsidiary of Energy Transfer Partners that wants to build the Bakken pipeline through eighteen counties from northwest to southeast Iowa.  

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Ed Fallon arrested after sit-in at governor's office over Bakken pipeline (updated)

Former state lawmaker Ed Fallon is in police custody tonight after he refused to leave Governor Terry Branstad’s office at the close of business today. Fallon went to the governor’s office this afternoon demanding a meeting to discuss “eminent domain legislation that would help landowners along the path of the Bakken Oil Pipeline.” More details are in a press release I’ve enclosed after the jump. Branstad’s legal counsel Michael Bousselot came out to talk with Fallon, who insisted on a meeting or phone conversation with the governor himself. Brianne Pfannenstiel reported for the Des Moines Register,

When the statehouse closed at 5 p.m., Iowa State Patrol troopers approached Fallon and asked if he would be willing to leave, or be arrested for criminal trespassing. Fallon declined to leave, so he was escorted out of the building and arrested outside.

A supporter posted on Facebook this evening that Fallon has a “jail support team attending to all his needs” and “will probably be released sometime tomorrow.” When Fallon served in the Iowa House from 1995 through the 2006 session, land use issues were a focal point of his legislative efforts. During and since that time, Fallon has opposed various proposals to use eminent domain to seize farmland for use in for-profit ventures. Earlier this year, he walked from the southeast corner of Iowa to the northeast corner along the proposed pipeline route to raise awareness and mobilize landowners and others who oppose the project. The No Bakken website and Facebook page represent a coalition of some two dozen non-profit groups that oppose the project.

The eminent domain bill Fallon wants Branstad to support is Senate File 506 (previously Senate Study Bill 1276), which passed the Iowa Senate Government Oversight Committee on May 6 with support from Democratic State Senators Rob Hogg, Brian Schoenjahn, and Kevin Kinney, and Republican Jack Whitver. Branstad warned state lawmakers in January not to “get politics into this” debate over the pipeline. The governor wants to leave the decision to the Iowa Utilities Board, which is considered likely to approve the pipeline. The Sierra Club Iowa chapter plans to fight the project before every state and federal agency that would be involved.

UPDATE: Fallon was released from jail the same evening he was arrested. In a press release I’ve posted below, he says he’s due in court on May 27 and hasn’t decided “what legal route to take yet.”

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Branstad names Geri Huser to Iowa Utilities Board, demotes Libby Jacobs (updated)

I missed this story last week, but Ryan Foley didn’t: Governor Terry Branstad is replacing Sheila Tipton with Geri Huser on the Iowa Utilities Board. Not only that, Branstad appointed Huser to chair that three-member board, demoting current Chair Libby Jacobs for the remainder of her term, which runs through April 2017. A recent board ruling that disappointed MidAmerican Energy, an investor-owned utility serving a large area in Iowa, precipitated the governor’s decision.

Details from Foley’s report are after the jump, along with background on Huser and first thoughts on her chances to be confirmed by the Iowa Senate.  

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Bakken pipeline links and discussion thread

The proposed Bakken pipeline is one of the most urgent issues facing Iowa’s environmental community. The Texas-based company Energy Transfer Partners wants to build the pipeline to transport crude oil from the Bakken oil fields in North Dakota to Illinois, crossing eighteen Iowa counties in the process. Governor Terry Branstad has made clear he won’t support any legislative action to stop the pipeline. That will leave the initial decision up to the Iowa Utilities Board, though approval by other state and federal agencies would be needed later; more details on that are below.

Two dozen non-profit groups have formed a coalition to fight the pipeline. You can keep up with their work on Facebook or at the No Bakken website. I’m active with several of the coalition members and enclosed the full list after the jump. The Sierra Club’s Iowa chapter outlined some of the key concerns concisely and explained how members of the public can submit comments.

Former state legislator Ed Fallon, who ran for governor in 2006 and for Congress in 2008, is kicking off a 400-mile walk along the proposed pipeline route today, starting from southeast Iowa and heading northwest over the next several weeks. I’ve enclosed below an excerpt from his first e-mail update about the walk, in which Fallon recounts a conversation with Lee County farmers whose land lies along the proposed pipeline route. Click here to view upcoming events, including a public meetings for residents of Lee County this evening, for Van Buren County residents in Birmingham on March 5, and for Jefferson County residents in Fairfield on March 6.

The latest Iowa poll conducted by Selzer & Co for the Des Moines Register and Bloomberg Politics found that a majority of Iowans support the Bakken pipeline, but a larger majority oppose using eminent domain to seize land for the pipeline. Excerpts from the Iowa poll findings are at the end of this post.

Any relevant comments are welcome in this thread.

P.S. – The company that wants to build the pipeline has claimed “the project would have an Iowa economic impact of $1.1 billion during two years of construction, creating enough work to keep 7,600 workers employed for a year.” Economist Dave Swenson explained here why such estimates are misleading.

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Supreme Court ruling will speed up small solar projects in Iowa

The Iowa Supreme Court on Friday affirmed a lower court ruling that will make it easier for small-scale solar projects to move forward in Iowa. The up-front cost of installing solar panels has long been a barrier to unlocking Iowa’s huge potential to generate solar power. Now municipalities, home or business owners will be able to have solar panels installed through a “third-party power purchase agreement,” whereby they pay for the electricity generated after installation.

Follow me after the jump for background on this case, key points from the majority ruling, and reaction to the decision. Advocates for solar power in Iowa and elsewhere are enthusiastic about the potential for more small-scale renewable energy projects (sometimes called “distributed generation”). Utility companies are warning that the ruling will drive up electricity costs.  

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The most brilliant Iowa political moves of 2011

It’s the most list-making time of the year. Let’s start talking about Iowa political highlights of 2011.

This thread is devoted to master strokes. I don’t mean our elected officials’ wisest actions, or the policy choices that affected the greatest number of Iowans. I mean acts of such skill that even opponents had to grudgingly acknowledge their brilliance.

My top picks are after the jump. Tomorrow Bleeding Heartland will review the year’s most bewildering acts of incompetence. On Thursday we’ll look at the events that are likely to have the greatest long-term impact on Iowa politics.

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Dandekar will easily be confirmed to Iowa Utilities Board

At the Moving Planet climate change event in Des Moines on Saturday, I heard a few activists talk about organizing against former State Senator Swati Dandekar’s confirmation to the Iowa Utilities Board. The Iowa Senate will consider her nomination during the 2012 legislative session.

I would advise environmentalists not to waste their time on that particular hopeless cause. Senate Democrats may be unhappy that Governor Terry Branstad jeopardized their control of the chamber by nominating Dandekar, but they are not going to block her confirmation.

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Swati Dandekar resigning, forcing Iowa Senate district 18 special election

Democratic State Senator Swati Dandekar is stepping down from the legislature in order to accept an appointment to the Iowa Utilities Board, the Des Moines Register reported today. Her resignation forces a special election this fall in Iowa Senate district 18, which covers suburban and rural areas in Linn County.

Democrats currently hold a 26-24 Iowa Senate majority, so a Republican victory in the special election would deadlock the upper chamber for the 2012 legislative session. Follow me after the jump for a district map and first take on the race to replace Dandekar.

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Catch-up thread on Branstad appointments

Governor Terry Branstad announced some important personnel decisions in the past few days, naming former State Representative Libby Jacobs to chair the Iowa Utilities Board and three new members of the Board of Regents, including Bruce Rastetter.

Follow me after the jump for more on those and other Branstad administration appointments.

UPDATE: On March 1 President Barack Obama named Branstad to co-chair the Council of Governors, “established by the National Defense Authorization Act in 2008 to strengthen further partnership between the Federal and State governments as it pertains to national security.” Branstad will serve a two-year term as co-chair.

SECOND UPDATE: Branstad announced more than 200 appointments to state boards and commissions on March 2. Bleeding Heartland covered the four appointees to the Environmental Protection Commission here; all have ties to large agribusiness.

Another name that caught my eye was Eric Goranson, a lobbyist and parochial schools advocate whom Branstad named to the State Board of Education. He has been a leading critic of the Iowa Core Curriculum (see here and here). The Under the Golden Dome Blog argues that Goranson’s appointment may violate Iowa code, which states, “A voting member [of the Board of Education] shall not be engaged in professional education for a major portion of the member’s time nor shall the member derive a major portion of income from any business or activity connected with education.” Several of Goranson’s lobbying clients represent religious private schools or Christian home-schooling parents.

THIRD UPDATE: I forgot to mention Branstad’s two appointees to the State Judicial Nominating Commission: Helen St. Clair of Melrose and William Gustoff of Des Moines. I have been unable to find any information about Helen St. Clair, but a Maurice St. Clair of Melrose was among Branstad’s top 20 individual donors, contributing more than $45,000 to the gubernatorial campaign. I assume he is related to Helen St. Clair and will update this post if I confirm that. William Gustoff is a founding partner of the Whitaker Hagenow law firm, which includes Republican former U.S. attorney Matt Whitaker and State Representative Chris Hagenow. Branstad’s legal counsel Brenna Findley also worked at Whitaker Hagenow last year.

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Weekend open thread: Job news edition

Last week’s horrible nationwide jobs report for June is another danger sign for the U.S. economy. Charles Lemos put the numbers in perspective here. The U.S. unemployment rate doesn’t appear to be rising, but that’s mainly because discouraged workers have stopped looking for a job. Other pieces of the economic picture aren’t looking great either, and some analysts think we are on the brink of a double-dip recession.

In terrible news for central Iowa, Wells Fargo announced on July 7 that it is “eliminating Des Moines-based Wells Fargo Financial and 3,800 positions nationwide.” From the Des Moines Register report:

Wells Fargo Financial will eliminate 2,800 positions in the next six months. The majority of those will come with the closing of 638 Wells Fargo Financial stores around the country, including 12 in Iowa. Only 14 of the initial layoffs will be in the Des Moines headquarters.

Wells Fargo also will eliminate an additional 1,000 positions in the next 12 months, most of those positions in Des Moines, said David Kvamme, president of Wells Fargo Financial. […]

Currently, Wells Fargo Financial has approximately 14,000 team members throughout the country, and 3,500 in Des Moines. The remaining 10,600 jobs will transition to other Wells Fargo units, including mortgage and community banking.

Laid off employees will receive 60 days’ working notice and a severance package.

Affected Wells Fargo employees also are encouraged to apply for other jobs throughout the company. Wells Fargo currently has more than 400 open positions in the Des Moines area, Kvamme said.

Wells Fargo is Iowa’s largest bank in terms of deposits and Central Iowa’s largest private employer with about 12,900 employees in the Des Moines area.

The Des Moines area is far from the worst place to do job-hunting; unemployment and the cost of living are pretty good compared to other medium-sized cities. Still, that’s a lot of people who will hit the job market at the same time.

Here’s some good news from the past week: the Iowa Utilities Board adopted “rules to encourage the development of more small wind generation systems across Iowa,” the Newton Independent reported.

One prominent Iowan got a new (unpaid) position this week, as President Obama appointed Vermeer Corporation president and CEO Mary Andringa to his 18-member export advisory council. Heavy-hitter Iowa Republicans tried to recruit Andringa to run for governor last year, and she is a chair of Terry Branstad’s campaign.

The celebrity job story of the week was of course LeBron James abandoning the Cleveland Cavaliers for the Miami Heat. I haven’t watched an NBA game in years, but I think James should have stayed in Cleveland, or at least not humiliated his hometown on nationwide television. A couple of good takes on the unprecedented dumping via tv special: Bill Simmons for ESPN and Matt Taibbi for Rolling Stone.

Some enterprising person was able to make google searches for “Terry Branstad” turn up ads for cheap drugs from Canada. The ads look like they are coming from Branstad’s official campaign website. Luke Jennett of the Ames Tribune got the scoop. As of Sunday morning, the problem still hadn’t been fixed.

This thread is for anything on your mind this weekend.

UPDATE: Who else watched the World Cup final? I was rooting for the Netherlands, but at least it wasn’t decided by penalty kicks. Spain scored a goal in the final minutes of extra time to post its fourth straight 1-0 victory. (Paul the psychic German octopus was right.) I’m happy for Spain, because they looked like the better team for most of the game, but it’s incredible to think that they are the World Cup champions after scoring eight goals in seven games.

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Year in review: Iowa politics in 2009 (part 1)

I expected 2009 to be a relatively quiet year in Iowa politics, but was I ever wrong.

The governor’s race heated up, state revenues melted down, key bills lived and died during the legislative session, and the Iowa Supreme Court’s unanimous ruling in Varnum v Brien became one of this state’s major events of the decade.

After the jump I’ve posted links to Bleeding Heartland’s coverage of Iowa politics from January through June 2009. Any comments about the year that passed are welcome in this thread.

Although I wrote a lot of posts last year, there were many important stories I didn’t manage to cover. I recommend reading Iowa Independent’s compilation of “Iowa’s most overlooked and under reported stories of 2009,” as well as that blog’s review of “stories that will continue to impact Iowa in 2010.”

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Background on new Iowa Utilities Board Chairman Rob Berntsen

Governor Chet Culver made two appointments to the Iowa Utilities Board this week. He named Rob Berntsen as the IUB’s new chairman, replacing John Norris. Norris stepped down from the IUB in order to serve as chief of staff for Agriculture Secretary Tom Vilsack.

Culver also reappointed Krista Tanner as one of the IUB’s three members. Culver appointed her in 2007 to serve out the remainder of someone else’s IUB term, which expires at the end of April. Now she will serve out the remainder of Norris’s term, which ends in April 2011.

The governor named Berntsen for the full six-year term that begins on May 1 and expires in 2015. (The third IUB member, Darrell Hanson was appointed by Culver in 2007 for a term that expires in 2013.)

Join me after the jump for more background on the new IUB chairman, along with some speculation about what can we expect from the board.  

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The Marshalltown coal plant is dead

Here’s some good news for the environment and public health:  

Interstate Power and Light on Thursday canceled plans for a $1.8 billion coal-fired power plant in Marshalltown, citing the economy and uncertainty over state regulations. […]  

“At the end of the day it’s economic condition, uncertainly regarding future regulatory and legislative treatment of environmental issues, meaning greenhouses gases,” said spokesman Ryan Steensland.

Other factors were terms placed on the power plant by the Iowa Utilities Board, including a 10.1 return on equity for investors. “It would have made it very challenging to attract the capital necessary to build these types of investments. The cost and the return laid out by the board just did not wet the appetite of the investment community to move forward with this project,” Steensland said.

 

Economic concerns prompted a different company to pull the plug on a proposed coal-fired power plant near Waterloo earlier this year.

Thanks to all the environmental and public-health advocates who have worked so hard for years to defeat both coal plants, including the Sierra Club, Plains Justice, the Iowa Environmental Council, Physicians for Social Responsibility, Community Energy Solutions, the Iowa Renewable Energy Association and Iowa Interfaith Power and Light.  

I am still annoyed that the Iowa Utilities Board approved an application to build the Marshalltown plant last spring, but at least the IUB’s recent ratemaking decision helped doom the project.

Please disregard my action alert regarding public comments on the DNR’s draft air quality permit for the Marshalltown plant.

UPDATE: At Century of the Common Iowan, noneed4thneed points out that the coal plant would have created 85 permanent jobs as well as providing a lot of temporary jobs during its construction. I sympathize with people who are upset about losing those jobs. However, I do not support making a 50-year investment in the wrong direction on energy production, which would also result in more respiratory illness, mercury pollution and higher utility bills for thousands of Iowans, all for the sake of some jobs in the Marshalltown area.  

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Alliant may walk away from the Marshalltown coal plant

On Wednesday the Iowa Utilities Board delivered a long-awaited ruling on “ratemaking principles” for the coal-fired power plant that Interstate Power and Light (a subsidiary of Alliant Energy) wants to build near Marshalltown. The ratemaking principles determine how much of a return the investor-owned utility can make on its investment. A higher return for the utility means the company can pass more of the cost of building a new plant onto customers.

The Iowa Utilities Board’s decision was well below what Alliant requested and not far above what the Iowa Consumer Advocate’s Office was seeking. The Cedar Rapids Gazette quoted an energy industry analyst:

“We expect LNT (Alliant Energy) will not accept the ratemaking principles as approved by the Iowa Utilities Board, instead allowing the proposal to die,” said David Parker of Robert W. Baird in Milwaukee. He said Alliant will probably look instead to building more wind and natural-gas electric turbines.

At Century of the Common Iowan, noneed4thneed links to an article from the Marshalltown Times-Republican that similarly suggested the future of the project is in doubt.

Alliant’s official statement left options open but made clear that the company was not happy with the ratemaking ruling. Excerpt:

In its decision, the IUB established a return on equity of 10.1 percent and a cost cap of $2816.00 per kilowatt, excluding AFUDC. IPL had requested a return on equity of 12.55 percent and a cost cap of $3483.00 per kilowatt, excluding AFUDC. IPL has proposed to own 350 megawatts of the facility’s output, with the remaining output owned by other partners or included in purchased power agreements.

“We will need to review the IUB’s written order to determine our next steps,” states Tom Aller, president-IPL. “However, the conditions placed by the IUB on the proposed hybrid power plant present a number of challenges in today’s financial climate, and we are disappointed that this decision seemingly does not take that reality into account. We will continue to work with our partners to determine how today’s decision will impact our respective companies’ long-term generation plans. IPL remains committed to pursuing safe, reliable, environmentally responsible and cost effective energy supply options to meet Iowa’s future energy needs.”

I would not be surprised if Alliant follows the lead of LS Power, which opted last month not to pursue a proposed coal-fired power plant near Waterloo. Alliant’s subsidiary in Wisconsin may ask state regulators to allow an emergency rate hike because the economic slump has reduced demand for electricity:

Utility executives said the increase would be needed to offset a dramatic decline in power sales because of the recession.

With the closing of the Janesville General Motors plant and other factory cutbacks, the utility is forecasting power sales to drop 6% this year.

“It is understandable that our customers find it frustrating that the economic hardships many of them are experiencing could in turn compel us to increase their electric bills,” said Patricia Kampling, the utility’s chief financial officer, during a conference call Thursday.

Think about that for a minute. All along Alliant and their boosters in Marshalltown have been telling us that a new coal-fired power plant is needed to meet increased electricity needs. But future demand is almost surely going to be below what they have projected.

We could reduce our baseload needs further with an aggressive energy efficiency policy.

While several analysts interpreted Wednesday’s ratemaking ruling as bad news for Alliant, it’s worth noting that Plains Justice had a different take:

“The Iowa Utilities Board has missed an important opportunity to protect our state’s economy and shield  Iowa consumers from a significant electricity rate increase,” said Carrie La Seur, President of Plains Justice.

“New coal power plant proposals are being canceled across the country because they cost too much and pose too many financial risks. The IUB has really let Iowans down by opting for an expensive, polluting coal plant instead of the available cheaper alternative of aggressive energy efficiency programs,” she added.

I put the full text of the Plains Justice release after the jump.

On a related note, Plains Justice passed along this news via e-mail a few days ago:

Last week, the Iowa Utilities Board (IUB) denied a petition to re-open the generating certificate proceedings for the proposed Marshalltown coal plant. The generating certificate grants permission for the power plant to be built.

A petition for re-hearing had been filed by the Iowa Office of Consumer Advocate and joined by Plains Justice on behalf of Community Energy Solutions, Iowa Environmental Council, Iowa Farmers Union, Iowa Physicians for Social Responsibility, and Iowa Renewable Energy Association (the Coalition). Now that the petition has been denied, the IUB’s decision to grant the generating certificate can be appealed in state court although it is not yet known whether anyone will appeal.

A lawsuit would only add to the delay and expense of building this power plant.

Meanwhile, the Iowa Department of Natural Resources is expected to issue a draft air permit for the Marshalltown plant very soon. Opponents of this 50-year investment in the wrong direction on energy will want to make their voices heard during the public comment period on that permit. Coal-fired power plants are a major source of fine-particulate matter pollution, which is linked to various respiratory illnesses.

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Norris to leave Iowa Utilities Board, work for Vilsack again

John Norris will become Secretary of Agriculture Tom Vilsack’s chief of staff at the US Department of Agriculture, Iowa Independent reported today. Norris was Vilsack’s chief of staff early in his first term as governor.

In November, Norris’s wife, Jackie Norris, accepted an offer to become chief of staff for First Lady Michelle Obama.

Before Barack Obama announced his plan to nominate Vilsack to run the USDA, John Norris indicated that he was interested in being appointed to the Federal Energy Regulatory Commission.

Norris’s departure means that Governor Chet Culver will need to make two appointments to the three-member Iowa Utilities Board this spring. Norris currently chairs the IUB. Someone will need to fill the remainder of his term, which expires in April 2011.

IUB member Krista Tanner has been serving out the remainder of a term that expires in April 2009. I do not know whether she will ask to be reappointed to a full six-year term on that body.

Last year Tanner and Norris cast the deciding votes to approve an application to build a new coal-fired power plant near Marshalltown. However, the IUB has yet to issue a ruling on ratemaking principles for that plant. Reuters reported last March,

Ratemaking principles define how construction costs will be recovered in utility rates throughout the life of the generating facility. [Interstate Power and Light] is requesting a 12.55 percent return on common equity as part of the filing.

Several environmental organizations have intervened with the IUB regarding the ratemaking for this proposed plant. The board’s decision could affect whether Interstate Power and Light proceeds with this project or abandons it as unprofitable. LS Power recently announced that it no longer plans to build a coal-fired power plant near Waterloo.

If you know any qualified candidates who are interested in serving on the Iowa Utilities Board, encourage them to submit their resumes and supporting materials to the governor’s office as soon as possible.  

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