Gina Raimondo – Page 2

August 17, 2016August 26, 2016

Court kills pipeline tariff in Mass, RI still considering

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As the Rhode Island Public Utilities Commission considers a request from National Grid to have ratepayers help subsidize a controversial pipeline project, the Massachusetts Supreme Judicial Court ruled against such pipeline tariffs in a decision released Wednesday.

“This is an incredibly important and timely decision,’ said David Ismay, the Conservation Law Foundation’s lead attorney on the case. ‘Today our highest court affirmed Massachusetts’ commitment to an open energy future by rejecting the Baker Administration’s attempt to subsidize to the dying fossil fuel industry. The course of our economy and our energy markets runs counter to the will of multi-billion dollar pipeline companies, and thanks to today’s decision, the government will no longer be able to unfairly and unlawfully tip the scales in their favor.”

The ruling by the Massachusetts Supreme Judicial Court may have an impact on National Grid‘s proposed “pipeline tariff” here in Rhode Island. The Massachusetts court deemed “it unlawful for Massachusetts to force residential electricity customers to subsidize the construction of private gas pipelines, requiring the companies themselves to shoulder the substantial risks of such projects rather than allowing that risk to be placed on hardworking families across the Commonwealth,” according the the Conservation Law Foundation (CLF) who brought the case.

The CLF was the plaintiff in the Massachusetts case. The CLF maintained in their motion to intervene in the Rhode Island case that “an electricity distribution company” entering “into a contract for natural gas transportation capacity and storage services” and receiving “cost recovery for its gas contract from electricity ratepayers” is “something that has never occurred in the United States since the Federal Power Act was enacted in 1935, during President Roosevelt’s first term in office.”

Megan Herzog, one of the two lawyers representing the CLF before the RIPUC said in a phone call that the “pipeline is a bad deal for the whole region and that the Massachusetts court affirmed that.” Though the judge ruled on the case using Massachusetts law, there are statutes in Rhode Island that reflect similar principles.

According to Craig S. Altemose, a senior advisor forthe anti-LNG advocacy group 350 Mass for a Better Future, “It is unclear how much this will be a fatal blow to any of Spectra’s proposed projects, but we have absolutely undercut their financing (to the tune of $3 billion), called into question similar pipeline tax proposals in other states, [italics added] and have given Spectra’s investors greater reason for pause. Either way, we have unambiguously won a victory that the people’s money should be not used for private projects that further commit us to climate catastrophe.”

“Today’s decision reinforces what we already know: it’s not in the public interest to subsidize new fossil fuel infrastructure. It deals a serious blow to companies like Spectra who wanted to subsidize their risky projects with handouts from ratepayers. Communities facing an onslaught of fracked gas projects in their backyards like those in Burrillville have good reason to feel hopeful right now. We urge Governor [Gina] Raimondo and the Rhode Island PUC to follow the lead of Massachusetts and reject the pipeline tax,” Ben Weilerstein, Rhode Island community organizer with Toxics Action Center said.

Though the ruling in Massachusetts has no statutory value in Rhode Island, it may establish some lines of legal reasoning that will be helpful as the Rhode Island Public Utilities (RIPUC) Commission decides on Docket 4267, the Rhode Island part of National Grid’s ambitious plan to charge electrical ratepayers not only for pipeline infrastructure investments, but also to guarantee the company’s profits as they do so.

National Grid responded with the following statement: “This is a disappointing setback for the project, which is designed to help secure New England’s clean energy future, ensure the reliability of the electricity system, and most importantly, save customers more than $1 billion annually on their electricity bills. We will explore our options for a potential path forward with Access Northeast and pursue a balanced portfolio of solutions to provide the clean, reliable, and secure energy our customers deserve. While natural gas remains a key component in helping to secure New England’s long-term energy future, the recently passed clean energy bill also presents a welcomed opportunity to support the development of large-scale clean energy, such as hydro and wind.”

Yesterday The RIPUC held a hearing on Docket 4627, asking National Grid to explain why it used such a “broad brush” in redacting information in its application. In the meeting announcement it was said that RIPUC Chair Margaret Curran thought “it is not intuitively clear how the information redacted falls within the exception to the Access to Public Records Act.” Much of what National Grid argues that much of what it wants to keep secret falls into the category of trade secrets, and releasing the information would put it at an unfair disadvantage with competitors, such as NextEra Energy Resources, LLC (NextEra).

As pointed out previously, National Grid will not release how much money ratepayers will be on the hook for if this idea is approved by the RIPUC.

Here’s full video of the hearing:

NextEra brought a separate motion to allow its lawyers access to highly confidential parts of National Grid’s application.

Here’s the full video of that hearing:

The Conservation Law Foundation (CLF) released the following statement today in response to the favorable decision from the Massachusetts Supreme Judicial Court in Conservation Law Foundation v. Massachusetts Department of Public Utilities (DPU):

‘This is an incredibly important and timely decision,’ said David Ismay, CLF’s lead attorney on the case. ‘Today our highest court affirmed Massachusetts’ commitment to an open energy future by rejecting the Baker Administration’s attempt to subsidize to the dying fossil fuel industry. The course of our economy and our energy markets runs counter to the will of multi-billion dollar pipeline companies, and thanks to today’s decision, the government will no longer be able to unfairly and unlawfully tip the scales in their favor.’

According to the opinion by Justice Cordy, DPU’s 2015 rule (“Order 15-37”) allowing Massachusetts electric customers to be charged for the construction of interstate gas pipelines is prohibited by the plain languages of statutes that have been the law of the land in Massachusetts for almost two decades.

In his opinion, Justice Cordy wrote, Order 15-37 is ‘invalid in light of the statutory language and purpose of G. L. c. 164, § 94A, as amended by the restructuring act, because, among other things, it would undermine the main objectives of the act and reexpose ratepayers to the types of financial risks from which the Legislature sought to protect them.’

August 11, 2016August 26, 2016

Department of Health hears testimony on Burrillville power plant

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The Rhode Island Department of Health (RIDOH) held a public comment hearing in Burrillville Tuesday to solicit opinions on the potential health effects of building Invenergy‘s proposed $700 million fracked gas and diesel oil burning power plant. RIDOH has been tasked by the Energy Facility Siting Board (EFSB) to create a non-binding advisory opinion on potential public health concerns relating to the project, including but not limited to biological responses to power frequency, electric, and magnetic fields associated with the operation of the power plant, and the potential impacts on the quality of drinking water associated with the construction and operation of the plant. The final report is due in early September.

RIDOH has released a first draft of their report, which was consumed by Burrillville residents opposed to the plant. Much of the public comment centered around the idea that RIDOH wasn’t taking into account the compounded effects of the gas infrastructure in and around Burrillville but was instead concentrating on the proposed power plant by itself.

Perhaps the most dramatic moment of the evening came when Stephanie Sloman rose to give her testimony.

“I had a whole speech prepared,” said Sloman (see video #20 below), “but I noticed that Invenergy’s sitting over there, and I refuse to speak and read my speech in front of these people. I don’t think they should even be here, frankly.”

The evening’s meeting was made harder on residents of the town because at the same time as this meeting there was a meeting of the Harrisville Fire District and Water Board. This meant that some people (including me) had to run out to the other meeting and then return to the RIDOH hearing, still in progress.

Several Burrillville residents noted that Governor Gina Raimondo, during her visit to Burrillville in July, recommended that residents get involved in and trust the process. That seems awfully hard to do when two important meetings are scheduled at the same time .

Below is all the video from the event.

August 9, 2016

Hedge funds continue to hamper RI pension fund

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Click on the image to learn more about the Rhode Island Retired Teachers' Association. — Click on the image to learn more about the Rhode Island Retired Teachers’ Association.

Rhode Island’s pension fund lost money for the second straight year because of the hedge fund gamble Governor Gina Raimondo made when she restructured the system as the state’s general treasurer in late 2011.

“This is precisely what we predicted four years ago,” public pension expert Ted Siedle told Jim Hummel on WPRO recently.

The pension fund fell 5.9 percent – or $466 million – thanks in large part to a 6.94 percent decline in hedge fund assets.

Along with switching from a defined benefit-type pension to a defined contribution-style plan, the investment in hedge funds was the most controversial component of Raimondo’s plan to overhaul the state pension system. Siedle told Hummel, “The gamble has not paid off. It has been a massively costly gamble for taxpayers.”

According to Siedle, investments in hedge funds have cost Rhode Island $2 billion since Raimondo revamped the pension plan in late 2011, or $4,000 per taxpayer. Meanwhile, California, the largest public pension plan in the US, has stopped investing in hedge funds and New Jersey has taken $9 billion out of hedge funds. “But in your state,” Siedle said, “the losses continue to mount because of this reckless gamble that Gina Raimondo began and Seth Magaziner has continued.”

Siedle said the continued investment in hedge funds could have more to do with campaign contributions than pension solvency.

“This is a politically motivated decision to invest in hedge funds,” Siedle told Hummel. “This is about campaign contributions, this is about politics. This is not about investment theory or investment philosophy. You’ve got terrible performance but massive political donations. You figure it out.”

July 28, 2016July 28, 2016

Raimondo: Clinton nomination ‘a historic moment’

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It’s too easy to make a mountain over Mika Brzezinski‘s mistake in referring to Governor Gina Raimondo as a Republican. (I engaged in this myself on Twitter when I first heard the news, learning the hard way that @MorningMika is a woman.) But far more should be made of Raimondo’s statement regarding her rushing home so that she can watch Hillary Clinton‘s acceptance speech with her daughter.

“I’m racing home tonight to watch [Clinton’s] speech with my 12-year old daughter because I want to be there with my daughter. This is real. This is an historic moment,” said Raimondo.

Love Hillary Clinton or hate her, Governor Raimondo is right, this is a historic moment. The first woman presidential nominee from a major party in the history of the United States is accepting the nomination this evening. As the father who attempted to instill a confidence about their full equality in his two daughters, I can’t help but feel this historic moment intensely.

The election will play out as it must, and the politics will be dark and dirty and full of terrible reveals. I don’t expect a Clinton campaign to solve the problems of misogyny any more than Obama’s presidency solved the problem of racism. Should Hillary Clinton become president, I don’t expect her to be a great progressive leader any more than Governor Gina Raimondo, the first woman governor of Rhode Island, is. I’m not naive about the politics, or the stakes in this election.

But let’s pause a moment on this historical day and reflect.

Here’s Gina Raimondo’s full appearance on Morning Joe.

July 27, 2016

LNG as bad as coal, or worse says new report

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2016-07-27 Toxics 3062 — Ben Weilerstein

A new report released by Toxics Action Center, Frontier Group, Environment America and more than a dozen community groups across New England finds that burning gas for electricity is as bad for the climate as coal, or worse.

The report, titled “Natural Gas and Global Warming: A Review of Evidence Finds that Methane Leaks Undercut the Climate Benefits of Gas,” shows that older claims that gas has a modest impact on the climate are wrong, as they fail to account for the greenhouse gas effect of methane and high rates of methane leaks from gas infrastructure.

Ben Weilerstein, eastern Massachusetts and Rhode Island organizer with the Toxics Action Center, held a press conference outside the RI State House with Kathy Martley of BASE (Burrillville Against Spectra Expansion). Martley has been fighting the expansion of fracked gas infrastructure in Burrillville for years, and was the woman responsible for getting Governor Gina Raimondo to visit the town to discuss Invenergy‘s planned $700 million fracked gas and diesel oil burning power plant.

“For years, communities on the frontlines of proposed pipelines, power plants, compressor stations, and LNG terminals have been told by the fossil fuel lobby and politicians that gas is a low-carbon bridge to a clean energy future,” said Weilerstein. “Today, it’s clearer than ever that this is not the case. New fracked gas infrastructure proposed across the region threatens our climate future, our health, and our neighborhoods. It’s time to double down on clean local renewable energy sources right here in New England.

“Methane can leak during every stage of natural gas production – during drilling, processing, and even from the pipeline,” said Elizabeth Ridlington of Frontier Group in a statement. Ridlington wrote the report, saying, “Our review of the evidence suggests that these leaks may have an annual global warming impact equivalent of up to 250 coal-fired power plants, enough to nearly or completely offset any other climate benefits of natural gas.”

Released simultaneously in seven New England cities and towns today, the report emphasizes that methane is a much more powerful greenhouse gas than carbon dioxide, trapping 86 to 105 times as much heat as CO2 over a 20-year period. Making these findings even more concerning, the report authors found flaws in studies that reported very low rates of methane leakage, finding evidence instead of high rates of methane leaks from gas infrastructure.

Kathy Martley noted that reports like this have been coming out for years, and that it’s time for the Governor Gina Raimondo and Rhode Island Senators Sheldon Whitehouse and Jack Reed to read these reports and act. “For health and environmental reasons we need to stop LNG now,” said Martley.

July 25, 2016July 25, 2016

RI Progressive Dems urge Clinton to withdraw Raimondo appointment

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The Executive Board of the Rhode Island Progressive Democrats wishes to express extreme displeasure that Hillary Clinton would name Governor Gina Raimondo as a co-chair of the Democratic convention. While this role is purely ceremonial, it indicates that some of Clinton’s advisors may consider Raimondo an acceptable figure within the national Democratic party, a sentiment that would be deeply chilling. Raimondo’s politics represent a brand of conservatism well to the right of basically anyone of prominence in the national Democratic party. Deeply unpopular in Rhode Island, Raimondo is known for her aggressive push to restrict women’s access to abortion coverage through plans sold on Rhode Island’s exchange. She is also one of the most aggressive proponents of pension cuts, which Democrats just voted to oppose in our party platform. She has been a feisty advocate of expanding fossil fuel infrastructure, and she even opposes repealing Rhode Island’s tax cuts for the rich. A former private equity executive, Raimondo epitomizes an extreme type of Wall Street politician. After the withdrawal of banker Antonio Weiss, the national party has had an informal rule against Wall Street appointees for top posts. Raimondo appears to violate that rule.

We ask that the Hillary Clinton campaign withdraw this appointment. We believe it is crucial for the Hillary campaign to send a signal that they will not be considering Raimondo for any posts in a Hillary administration, an event that would place the even more right wing Dan McKee in power. McKee is such a far right Democrat that we took the completely unprecedented step of urging voters to support his Republican opponent Catherine Taylor, and the AFL-CIO went further and openly endorsed Taylor.

Moreover, we urge Hillary to make it clear that she, the national Democratic party, and the DSCC will oppose Raimondo in the primary should she attempt to take a US Senate seat in the future. Raimondo is so unpopular in Rhode Islanders that she could easily lose to a Republican. In fact, she only won by four points against a weak GOP opponent in a state that Obama won by 27 points. A Raimondo nomination is the GOP’s only path to a US Senate seat from Rhode Island, and it is of utmost importance that the national party prevent such a debacle. The national party has often intervened in primaries to stop weak nominees from jeopardizing a Democratic US Senate seat, most recently in Pennsylvania. We urge Hillary Clinton to make clear she will do the same in Rhode Island to prevent a Raimondo nomination and a GOP victory, should Raimondo attempt to take a US Senate seat.

July 23, 2016July 24, 2016

Wikileaks dump shows DNC had concerns about RI primary

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[Edit: 5pm: This story has been updated with additional information and a statement from the Secretary of State.]

When Rhode Island Board of elections chose to open only 144 of the state’s 419 polling stations for the April 26 primary, some cried foul. The move was seen by some as an attempt to stifle voters who might turn out for Bernie Sanders instead of Hillary Clinton. (On the Republican side, a Donald Trump victory was never in question.) RI Secretary of State Nellie Gorbea, vice chair of the Democratic National Committee (DNC) Platform Committee, was cast as a political insider working for the Clinton campaign, though all polling locations were and are determined by local municipalities and the RI Board of Elections.

With the release of a giant crop of leaked DNC emails from Wikileaks, Gorbea appears to be exonerated from the charge of electioneering. However, the emails do seem to indicate that operatives within the Democratic National Committee were interfering in the election on a national level, placing more than a thumb on the scales in Clinton’s favor, even as they attempted to manage the public’s perception of their interference. Favoring one candidate over another is a violation of DNC rules.

The Wikileak emails show that ahead of Bernie Sanders’ big win in the Rhode Island primary, highly placed operatives in the Democratic National Committee were worried about the optics of the RI Board of Election’s decision to not open more than a third of the polling places, mistakenly believing that Gorbea was the one who made the decision.

On April 25 DNC Deputy Communications Director Eric Walker wrote to his boss, Luis Miranda, “Bernie leads Hillary by 4 in the latest poll. If [Clinton] outperforms this polling, the Bernie camp will go nuts and allege misconduct. They’ll probably complain regardless, actually. We might want to get out in front of this one with an inquiry to [Rhode Island Governor Gina Raimondo], even though she’s one of ours.”

By “one of ours” let’s assume Walker simply meant, “a Democratic governor”.

The next day was April 26, the day of the actual primary. Having been informed by DNC Northeast Regional Political Director Erin Wilson that, “We’ve got a pretty close relationship with Nellie,” Walker suggested contacting Gorbea directly.

“Was thinking a letter so that if press asks us about it, we can show we are responsive and active,” wrote Walker, “If we’re crying foul in AZ, we might need to do the same – at least nominally – in RI so we don’t look like hypocrites.”

This prompted DNC National Political Director Raul Alvillar to write, “I am fine with that. Before we do that we should talk to [Gorbea] to get all of the details.”

Walker responded, “I would like to be on this call, but first, I don’t think we even need a statement. We just need something to cover ourselves.

“I think when we start getting inquiries, if we have a letter to the [Secretary of State] that we can point to, it will show that we are engaged and that we don’t just pipe up when it’s a Republican administration closing poll locations.

“We can make the point to reporters individually off the record that it’s not apples and oranges: Arizona more serious because the state was covered under [Voting Rights Act] and has had a history of problems – Rhode Island doesn’t have those same historical issues.”

The primary in Rhode Island was in full swing just before 1pm when Erin Wilson came back with more information. “[Pratt Wiley, DNC National Director of Voter Protection] and I were reminded that in RI, the Secretary of State doesn’t manage elections, but they’re run by the Board of Elections that are appointed by the Governor. Apparently the number of polling locations they’ve opened are consistent with the numbers opened in 2008 and 2012, and they’ve also increased the number of poll workers, ballots and booths to accommodate any unexpected surges. For example they’re telling us that they printed 300K ballots for an expected turnout of 180K. Again, these decisions are made by the Board of Elections.

“The Secretary has been traveling to polling locations all morning/afternoon and they haven’t seen any issues. Apparently the longest wait they’re seeing is 25 minutes.

“So, if we do write a letter, it would need to be to the Board of Elections. I’d be a little cautious about pulling the trigger on it too soon. Can we give some of this info on background to show we’ve made inquiries to the state if we start getting calls and then punt it back to RI?”

Eric Walker, now having been in contact with Gorbea, writes, “To be clear – no inquiries yet, but RNC will be pushing it.

“Pratt just swung by my desk – [Secretary of State Nellie Gorbea is] ready to go on record with these points defending their approach, which is good.

“I think that if DNC press office gets inquiries about hypocrisy between AZ / RI then we can direct them to RI [Secretary of State] comment, and explain on background that it’s not as dire as AZ and that RI doesn’t have the same VRA baggage.”

The final email on Wikileaks regarding the issue came from DNC National Political Director Raul Alvillar, who wrote, “Perfect. This is good.”

Of course, the entire issue of whether or not the Board of Elections declined to open more polling stations to favor Clinton in the primary went away when Sanders clobbered Clinton, taking 55 percent of the vote. This upset caught local machine Democrats completely off guard and surprised national pundits.

From reading the emails, it seems clear that Gorbea answered concerns from the DNC and coordinated a response to criticisms of the Board of Election’s decision as to the number of polls to open, but no evidence of outright collusion for the purpose of electioneering can be seen in them.

According to Nicole Lagace, Senior Advisor and Communications Director to the Secretary of State, “The DNC reached out to Secretary Gorbea on April 26 to inquire about the decreased number of polling locations in Rhode Island for the Presidential primary. We explained that we do not oversee polling locations and that was the end of that correspondence.”

[Andrew Stewart contributed to this reporting.]

July 19, 2016July 24, 2016

Visiting Burrillville’s MTBE contamination site

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2016-07-19 Burrillville MTBE Site Visit 013 — Thomas Sylvester

During the three day march from Providence to Burrillville, ahead of Governor Raimondo’s meeting with residents, the people protesting Invenergy‘s planned $700 million fracked gas and diesel oil burning power plant made one small detour to the site of the 2001 MTBE disaster that affected and even destroyed so many lives in Pascoag. On the site of a long dead ExxonMobil Gas Station, overgrown with weeds and bushes, where only rubble and dirt remain, the marchers gathered to refresh themselves and listen to the stories of an environmental disaster.

Pascoag resident Thomas Sylvester laid out the scene for everyone. The gas station is on a hill. The contaminated water wells are about a quarter mile down the road. “Under where we are standing there is shell ledge and bedrock that is permeated with gasoline,” said Sylvester, “we speak about MTBE but really what we’re talking about is a gas spill.”

The wells that were contaminated were new. It took only months to reveal that they were contaminated. “What this means is that this gas station was leaking for a long time before those wells ever went in,” said Sylvester, “MTBE is a tracer, it’s the first contaminant to come out.” This means that the rest of the gasoline, and all the “really nasty stuff” that makes it up, is right behind the MTBE. In truth, the MTBE is only a small part of the problem, and a sign of bigger problems ahead.

Opening the well down the hill won’t remediate the area, says Sylvester. If someone were truly interested in remediating the water, the would put a well “almost where we are standing.” Using the well down the hill will only draw more contaminants down the hill, the “really nasty stuff” that right now is contained beneath the long dead Mobil station. The plan currently under consideration by Invenergy will draw more contaminants into the aquifer says Sylvester. Residents with their own wells might find their water becoming contaminated years from now.

There were a thousand homes and 4000 residents affected by the MTBE contamination. It took years for the state to be involved. People hired their own water safety experts, hired their own lawyers. There was no Energy Facilities Siting Board to hear their worries.

Sylvester first noticed the contamination when his wife was nursing their son, and the baby’s face became red and irritated where it came in contact with his wife’s skin. She had recently taken a shower, and the MTBE was hurting her baby. The sweet smell of the contamination filled the house. Sylvester began putting saran wrap over the toilets. He used bottled water in his house’s steam heating to minimize exposure to the well water. He and his family bathed and did laundry at their relative’s homes. They went without water, except for toilets, for 248 days.

Terri Lacey told the story of her niece and nephew, who “lived right around the corner.” They had a little girl at the time. Lacey’s niece developed thyroid cancer and her nephew developed Hodgkin’s lymphoma. Her nephew was given last rites four times before a treatment finally sent his cancer into remission.

“I remember being in the shower and feeling something, I couldn’t even describe it. The water didn’t feel right on my skin and there was a smell….”

Invenergy “is not remediating [the well] for us, they’re opening a monster for us.”

2016-07-19 Burrillville MTBE Site Visit 006 — The marchers arrive in Burrillville

2016-07-19 Burrillville MTBE Site Visit 010 — Arriving at the MTBE site

2016-07-19 Burrillville MTBE Site Visit 019 — Where the Mobil station stood

July 19, 2016July 19, 2016

Raimondo in Burrillville

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When Governor Gina Raimondo came to Burrillville Monday evening to hear the concerns of residents regarding Invenergy’s proposed $700 million fracked gas and diesel oil burning power plant, the people greeted her with applause, cheers, and gifts. Over the course of the two hour meeting, the Governor assured the people that she had not just listened to them, but had truly heard them.

The people rose and told them their stories, many of which those who have attended meeting after meeting in Burrillville had heard before. But Governor Raimondo was hearing them, in person, for the first time. She told the six hundred people gathered at the Burrillville High School that though she understood the problems with the MTBE in the water, that to hear the stories first hand was very powerful.

She heard them, she said.

Time and again Governor Raimondo assured the people that the power plant was “not a done deal.” For the first time the governor publicly walked back her support for the plant, saying that it was important that she maintain neutrality during the process of approving the plant. She told the people that there was a process, that the Energy Facilities Siting Board (EFSB) was holding a series of hearings and meetings. She urged the people to get involved and let their opinions be known.

Here, I think, Governor Raimondo stumbled. The people of Burrillville could not be more involved in this process. Her visit to Burrillville is a testament to their involvement. The visit is the result of months of work by Kathy Martley of BASE (Burrillville Against Spectra Expansion) and Nick Katkevich of the FANG Collective. If anything, the people of Burrillville understand “the process” better than the governor ever will. They attend the meetings of the EFSB, the Burrillville Town Council, the sewer board, the DEM, the DOH and countless others. There are many people in in Burrillville who dedicate every moment of free time, the entirety of their non-working lives, to this power plant.

This is what Invenergy has already stolen from the people of Burrillville: Every free moment of their lives.

Governor Raimondo urged the people to ”trust the process” but if the people don’t trust the process, it’s not out of some perverse anti-authoritarian impulse, it’s out of first hand experience with the very process she’s telling them to trust in. The people understand the process intimately, and they know that the process favors Invenergy, not the people.

Governor Raimondo was not asked to come to Burrillville as an advocate for “the process” she was asked to come to Burrillville to become an advocate for the people.

Additional thoughts:

As people were let into the Burrillville High School, after waiting outside in the parking lot in the ninety degree heat for hours, security informed them that no more than one person would be allowed in the restrooms at a time. Each restroom accommodates at least seven people. I asked the man in charge of security why this was the case. He told me “Security reasons.” I asked how two people in a men’s room might threaten security in a way that one person couldn’t. He became angry and said, “I’m not going to debate you, I already answered your question.”

Raimondo in Burrillville 020 — Dave Layman

The event was moderated by retired newscaster Dave Layman, who volunteered for the mission. Layman set the rules for the meeting, but did so in a way that was infantilizing. This wasn’t a high school full of children, this was a high school full of engaged residents who were very familiar with the ways in which public meetings work. This was a high school auditorium full of people who understand how to behave at a public forum, yet Layman decided to devote no small amount of time to explaining the importance of a Norman Rockwell painting about civil civic engagement. It was elitist and condescending and a poor way to set the tone.

But, despite these caveats, once the meeting got under way, it seemed to go well. The people of Burrillville stood tall, hit hard and did not back away from calling the governor to account. She stayed through the end and beyond, coming off the stage after the meeting and greeted the people one on one.

The people of Burrillville have been treated as afterthoughts in this process, then as agitators and then as children. But by the end of the night Governor Gina Raimondo was forced to see them as people, and recognize their full humanity.

Here’s the full video:

Senator Paul Fogarty

Representative Cale Keable

Dave Layman sets the rules.

Kathy Martley

Raimondo in Burrillville 005 — The marchers from Providence arrive

Raimondo in Burrillville 010 — Only one person allowed in here at a time

Raimondo in Burrillville 012 — The gift baskets presented to Governor Raimondo

Raimondo in Burrillville 013 — The opposition

Raimondo in Burrillville 019 — David Layman

Raimondo in Burrillville 021 — Super serious about the timing

July 16, 2016

FANG Collective begins their long march to Burrillville ahead of Governor’s visit

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The FANG Collective began their three day march to Burrillville Saturday morning, leaving from the State House in Providence just before 10am. The march is a protest against the Invenergy‘s planned $700 million fracked gas and diesel oil burning power plant, currently supported by Governor Gina Raimondo and opposed by the vast majority of Burrillville residents. The march also serves as a greeting of sorts to the Governor, as Raimondo is scheduled to meet with Burrillvillians and hear their concerns at the Burrillville High School on Monday night at 6pm.

Ahead of the march members of the FANG Collective and others distributed signs, spoke to reporters and provided instructions to participants about staying healthy during the long march, as temperatures were expected to be in the 90’s throughout the weekend. The importance of sunscreen, staying hydrated and being aware of any physical problems was stressed.

The marchers hope to cover about six to eight miles a day. They expect to arrive at the Greenville Public Library by 1pm. On Sunday, they will begin their march at 3pm at the Greenville Public Library to Village Bean Cafe and hope to arrive in Gloceter RI by 7pm.

The final leg of their trip, on Monday, begins at 12:30pm at the Village Bean Cafe and then to 24 North Main Street in Pascoag, the site of the MTBE spill that poisoned the water supply in Burrillville 15 years ago. It is this well water that Invenergy hopes to use to cool their power plant, under the promise that the water will be purified. After a short ceremony at the site of the MTBE spill, the marchers will continue to the Burrillville High School, in time to greet the governor.

The march is expected to grow by the day, with people participating as their schedule and ability allows. On Monday, many more Burrillville residents will be joining the march.

July 15, 2016July 18, 2016

Teacher absenteeism related to failing school infrastructure

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The answer to why public school teachers are absent so often is easily explained if you ever walk into our under-funded school buildings that have gone decades without serious renovations and are host to a variety of workplace hazards.

Perhaps Gov. Raimondo is right to be concerned.

“I use the example that our buildings are extremely run-down and they’re not well-kept and they’re not really clean,” said Providence teachers’ union president Maribeth Calabro. “I know of several teachers, myself included, who, somewhere in September, get sick with bronchitis and the last bout of bronchitis that they have is somewhere in February or March. There’s been years where I’ve had bronchitis three and four times, just me personally.

She added, “But I also know other teachers who, when you go to the doctor, the doctor says ‘Are you a teacher? Are you in an older building?’ So we have a lot of respiratory illness, a lot of asthma, a great deal of bronchitis, and it just wears people down. It wears their immune system down to be working in environments that are not clean.”

Click the player below to listen to this interview

Calabro said all stakeholders know the biggest issue in urban education is the facilities.

“I’ve walked our buildings with school committee members,” she said. “I’ve walked our buildings with Senator Pichardo and other members. I’ve walked them with George Nee and Mr. Sabatoni. We all realize, it’s abundantly clear that our buildings are in disrepair, to the point of being just disrespectful in the fact that we think that kids should just come here and feel good about themselves when the building is so run down. There’s an acknowledgement at the state and local level that this is in fact the case. The issue is, and it always comes down to this, it’s the money. So there was a moratorium put on construction funding for schools for a good long time and that moratorium served to further exacerbate the issues that are in schools. We have holes in ceilings, holes in floors, missing screens, you name it. Peeling paint, I can’t even tell you how much peeling paint there is, mold, etc.”

“So all of those things cost money and I realize that and the building trades realize that and I think the public in general, John Q. Public, realizes that it costs money. But there has to be a way sustain and maintain these buildings through funding from the state and/or city that doesn’t hinge upon the whim of the person who is in political office and the fact there is no money. So we don’t have a rainy day fund, we don’t save specifically for schools, we don’t do anything in particular to support school construction that is not charter-like. So all of those things exacerbate the situation in that we have basic needs of our kids and they’re not being met because of financial obligations.”

Last year PTU Treasurer Alex Lucini described how some buildings in his district are supposed to be legally condemned:

“They always pick and choose a topic area every year to focus on and it’s typically never anything positive, it’s always the negative angle which vilifies teachers for whatever reason,” says Providence teachers union president Maribeth Calabro. “I think that it’s very interesting that the conversation just focuses on the word ‘absences’ but it doesn’t talk about reasons for absence.”

If you like my reporting, please consider contributing to my Patreon!

July 15, 2016July 18, 2016

What Governor Raimondo should expect in Burrillville

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With the opposition to Invenergy‘s proposed $700 million fracked gas and diesel oil burning power plant intensifying every day, Governor Gina Raimondo might be worrying about the reception she’s likely to receive when she visits Burrillville Monday evening. Having visited Burrillville many times myself, and having met and chatted with dozens of residents there, I can safely say that the Governor can expect a strong rebuttal to her support for the plant, but also a courteous and respectful reception.

This may be a career defining moment for Governor Raimondo. Does she listen to the concerns of her constituents, or does she cave to the desires of foreign billionaires? She says that the ultimate decision as to whether the plant gets built is in the hands of the Energy Facilities Siting Board (EFSB), but if she drops her support, that will go a long way towards stopping the plant.

Residents are looking forward to her visit. It’s not often that the state’s leaders get to Burrillville, especially on an issue of such grave concern. Residents are rolling out the red carpet for her visit. She can expect to be well treated.

The residents of Burrillville have been polite to a fault when dealing with Governor Raimondo. Her invitation, by Kathy Martley from Burrillville Against Spectra Expansion (BASE) was accompanied by a flower and a home made card. When protesters hold signs at her events, they don’t attempt to disrupt the event, they simply remind the governor of the public’s concern.

This is not to say that Governor Raimondo can expect to charm Burrillvillians into accepting the power plant. The residents there have done their research, and they know that Invenergy has not been honest about the proposed plant’s environmental impact or about the need for the plant in the first place. She should expect to be confronted by the recent RIDEM data requests, which accuses Invenergy of submitting an application that contains, “several confusing and conflicting assertions about the purpose and need for the project.” She should expect to hear about the research that’s been done, the environmental tragedies Burrillville residents have already endured, and a case for saving the world from the ravages of the fossil fuel industry.

But though the meeting is bound to be emotional and the arguments will be made with passion, Burrillville is a town of good people.

July 14, 2016July 14, 2016

RIDEM issues blistering critique of Invenergy’s power plant application

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RIDEM’s third data request to Invenergy, released yesterday, reads as a devastating critique of the proposed $700 million fracked gas and diesel oil burning power plant. If Governor Gina Raimondo was serious when she recently told ecoRI News that, “…if there are issues then the plant won’t go forward,” then the project is dead on arrival.

In addition to “missing info” that renders the application incomplete, on page 3 the Rhode Island Department of Environmental Management notes that impact of the the various projects in Burrillville has been fragmented, making the cumulative impact of Invenergy’s proposed power plant; Spectra Energy’s Aim Project; Eversource Energy, National Grid and Spectra Energy’s Access Northeast project and TransCanada’s Ocean State Power difficult to determine.

“For the purposes of comparing costs and benefits to wildlife, all of the existing and proposed work related to increased natural gas operations (processing and transport) in Burrillville should be reviewed as a single and complete project,” says RIDEM, “Piecemeal review of related projects in different stages by different applicants undercounts their cumulative impacts from loss of forests and fragmentation, air, noise and light pollution etc. in an area of the state that has been a longstanding conservation priority.”

On page 7, RIDEM alleges that the “applicant makes several confusing and conflicting assertions about the purpose and need for the project…

“The emissions and cost-benefit analyses both primarily only list benefits. A proper analysis should include costs, yet there is no mention of loss of forests, biodiversity, ecosystem services etc… This seems particularly important since the application notes that the majority of the benefits outlined (e.g. construction jobs and energy costs savings) would be rather short-lived and the majority of the foreseeable costs would be long term or permanent.”

When it comes to selling the idea of a fracked gas power plant, the RIDEM data request accuses Invenergy of circular logic. “A pointed example includes dismissing hydropower in the Power Generation Alternatives section (and omitting it from all other sections) solely because it would not be appropriate on the proposed [power plant] site, which was selected for proximity to the gas line, and then dismissing alternative project locations because they do not have the desired natural gas infrastructure.”

Further, the “premise that natural gas is the only way to meet [New England’s energy] demand is not borne out by the information provided,” says RIDEM.

RIDEM’s report to the Energy Facility Siting Board (EFSB) will be shaped by Invenergy’s answers to these and other questions. Though these questions raise serious doubts about the need for the new plant and Invenergy’s integrity in preparing its application, ultimately the EFSB takes RIDEM’s report as advisory only, meaning the board could choose to approve the project despite these issues.

Yet Governor Gina Raimondo’s words, that “if there are issues then the plant won’t go forward,” ring loudly here. The issues raised in this set of data requests are serious, and the questions raised must be addressed honestly.

July 11, 2016July 12, 2016

Protesters march from PVD to Burrillville ahead of Governor’s visit

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From July 16th to 18th local activists and residents will be marching from the Statehouse to the Burrillville High School to protest the 1000 MW fossil fuel power plant proposed for the town. The three day, 23 mile march, will coincide with Governor Gina Raimondo’s July 18th open meeting in Burrillville where she will discuss Invenergy’s proposed power plant with residents. Hundreds of people are expected to attend the meeting which begins at 6pm.

Temperatures are expected to reach into the 90’s through the weekend, but the marchers are undeterred. “We want the Governor to know that people from across the State support the residents of Burrillville and their fight against Invenergy’s toxic power plant. This is the Governor’s climate and environmental legacy moment, and the whole State is watching.” Sherrie Anne Andre, of The FANG Collective, the group organizing the march.

The march will head west on Route 44 and then head north on Route 100. The march will make a stop at the site of a chemical spill in Pascoag before continuing on to the Burrillville High School in time for the event with the Governor.

In 2001, a spill at a gas station in Pascoag led to MTBE, a now banned gasoline additive, contaminating one of Burrillville’s main water supplies. The contaminated water wells were capped by a Superior Court order after MTBE levels in local drinking water soared above the federal legal limit. Invenergy, the Chicago based company who has proposed the power plant, plans to uncap the MTBE wells and use up to 900,000 gallons of the water a day at the plant, drawing the ire of local residents.

“There are many health and environmental concerns with the proposed power plant. But the fact that Invenergy wants to use the MTBE water at the plant, and the lack of any thorough study on the potential impacts of this, is shocking and deeply concerning”. Kathy Martley of Burrillville Against Spectra Expansion (BASE), who lives a quarter mile from the site of the proposed plant.

Opposition has been steadily growing to the proposed power plant with hundreds of residents attending recent public hearings on the project. Last month, legislation that would have given Burrillville residents the ability to vote on any tax agreement reached between Invenergy and the town council stalled in the Senate Judiciary Committee. The Governor agreed to meet with Burrillville residents after months of protests and actions led by FANG and BASE.

“We are excited that the Governor has agreed to come to Burrillville and meet with those that would be most impacted by Invenergy’s power plant. But beyond just listening to the concerns of residents, we need the Governor to use the visit to revoke her support of the toxic Invenergy project once and for all,” said Nick Katkevich, of Providence, RI from the FANG Collective.

You can join the Facebook event here.

Here’s the schedule for the March:

July 16th: 9am-1pm – RI State House to Greenville Public Library

July 17th: 3-7pm – Greenville Public Library to Village Bean Cafe in Gloucester RI

July 18th: Noon – 430pm – Village Bean Cafe to Burrillville High School
– Noon-230pm Village Bean Cafe to 24 North Main Street in Pascoag (site of the MTBE spill)
– 230-3pm Ceremony at the site of the MTBE spill
– 3-430pm March from 24 North Main Street to the Burrillville High School

July 9, 2016July 9, 2016

Rhode Island’s response to Dallas defines our priorities

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2016-07-08 PVD BLM Dallas 003 — **Angel Reyes**

At a meeting to plan a Rhode Island response to the killing of Alton Sterling and Philando Castile, the moderator, a black man, made the point that many in his community feel these deaths – of people they don’t know who live far away – as personally and intensely as they feel the death of a cousin or a friend.

“White people,” he said, “don’t understand that.”

This is true. None of us truly understands the day to day prejudice experienced by people of color in our country absent actually experiencing it. This solidarity of experience escapes most, if not all white people in this country. The bond created across time and distance by systemic oppression is intense, and personal.

I can feel some of this. When Trayvon Martin was murdered, he was about my son’s age. They both wore hoodies and both liked Mountain Dew and Skittles. I felt Trayvon Martin’s death acutely, but my reaction was blunted by my privilege. I didn’t then and don’t now fear for my son’s life the way parents of black children do. My son is white. I have the luxury of keeping my parental fear levels at the lowest setting.

2016-07-08 PVD BLM Dallas 015 — Steven Paré

“A part of us died last night,” said Providence Public Safety Commissioner Stephen Paré at a press conference Friday afternoon, “when five colleagues in Dallas, were shot and killed.”

Paré can acutely feel the deaths of police officers far away. He sees the police officers killed in Dallas as colleagues, and can certainly imagine the nightmare of losing five officers in Providence.

But the analogy ends there.

When police officers were murdered in Dallas, Governor Gina Raimondo called a press conference of police and community leaders well within 24 hours. Two United States senators offered words of calm and condolence. Flags were ordered to fly at half mast by government order.

No press conferences were planned for Alton Sterling and Philando Castile. It took the death of police officers to do that. That alone signals our priorities as a culture.

Police can call for back up. They can get the National Guard and the full power of the United States military flown in if necessary. Police can attach bombs to robots and kill by remote control if necessary.

The unlimited force and power of the United States can be brought to bear against those who kill police officers, but when it comes to the extra-judicial murders of people of color by police…

… there is no back-up.

2016-07-08 PVD BLM Dallas 001 — Janelle organized a small protest in Kennedy Plaza Friday morning.

2016-07-08 PVD BLM Dallas 002 — Thirty feet from the protest PVD Police were arresting a black man.

2016-07-08 PVD BLM Dallas 007 — This woman berated the protesters. “All lives matter,” she said, “not just black lives.”

2016-07-08 PVD BLM Dallas 010 — Senator Sheldon Whitehouse was at Governor Gina Raimondo’s press conference.

2016-07-08 PVD BLM Dallas 011 — Reverends Eugene Dyszlewski and Donald Anderson

2016-07-08 PVD BLM Dallas 012 — Moira Walsh and son

2016-07-08 PVD BLM Dallas 013 — Governor Raimondo reiterated her call for the passage of justice reform and gun control legislation.

2016-07-08 PVD BLM Dallas 014 — Jim Vincent, Kobi Dennis, Jack Reed

2016-07-08 PVD BLM Dallas 016 — Steven O’Donnell

2016-07-08 PVD BLM Dallas 017 — Kobi Dennis

Here’s the full video from the press conference:

July 6, 2016July 13, 2016

Meet RIRTA, the folks at the forefront of advocating for pension solvency and security

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The following is sponsored content published in collaboration with the Rhode Island Retired Teachers Association.

Are you an Employees Retirement System of Rhode Island (ERSRI) pensioner, someone who is paying into the pension, or do you know someone who is either of these? We wanted to introduce you to some of the people who are at the forefront of advocating for the solvency and security of the fund.

The Rhode Island Retired Teachers Association (RIRTA), a retiree advocacy group and not a union, founded in 1954, was created to advocate for the needs and well-being of former educators. But through a chain of events deceptively called “pension reform” by a venture capitalist-turned-General Treasurer named Gina Raimondo, they have ended up becoming something much more than this.

Over the last few years, they have been working alongside Edward Siedle’s Benchmark Financial Services and a few other key groups in the state to see what exactly is going on with the pension and specifically the pension fund. The results have been impressive, to say the least.

When Raimondo took over the Treasury, that was in reality a major achievement for one of her rich campaign benefactors, a former Enron trader named Jon Arnold. Apparently Arnold has serious complaints about the social contract that emerged from the New Deal, including the idea of him being taxed to finance public pensions. So, Arnold has invested big money into a cunning and deceptive bipartisan campaign that first engineered a false narrative of a nationwide “pension crisis” and then put into office politicians, including Raimondo, who would “reform” the various systems by investing them in high-risk, high-fee hedge funds to help out friends of Raimondo and Arnold. In other words, the pension is being raided by Wall Street, pure and simple.

But some people just refuse to tolerate such things and resistance comes from the most surprising places.

“It is like living in limbo and the future is scary,” says one member. Another says, “There are over 20,000 of us suffering our own recession.”

Perhaps these are words that describe your own situation as a retiree. Or perhaps it describes your fears for your own future or that of someone you care about. Either way, the folks at RIRTA are smart enough to know there is a problem and are working hard to advance and protect the solvency and secure the pension fund.

They have been financing a series of forensic audits by Benchmark that name the names and tell the truth about who is winning and losing on the pension. They have also amended their membership rules to include Associate member, a retired person who is receiving a pension from ERSRI fund. This means that those people you have been thinking about who put their money into the pension can now join up with one of the hardest-working groups in the state that wants to make sure the fund remains solvent and secure.

Click Here To Download Their Membership Enrollment Form!

And even if you are not involved with the fund, you still can donate to this group and help fund their efforts. Donations (checks preferred, made out to RIRTA- memo line LDF) can be mailed to PO Box 7631, Warwick, RI 02887 or sent via PayPal (see below).

We will be bringing you, in the coming weeks and months, a series of articles that explain to you both how the pension policies continue to impact people while also helping readers develop a better grasp of these concepts so that we all understand what it all means and what to expect from our elected leaders in maintaining the solvency and security of the fund.

July 5, 2016July 5, 2016

Power plant opposition dominates Ancients & Horribles Parade

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Opposition to Invenergy‘s proposed $700 million fracked gas and diesel oil burning power plant, planned for Burrillville, dominated the 90th annual Ancients & Horribles Parade in neighboring Glocester on the 4th of July. First and second prize for best in show went to floats opposing the power plant.

The prize for “Most Politically Incorrect” float went to a truck emblazoned with a “Trump” campaign sign that displayed a series of posters of State House leadership that cited a series of political scandals and unpopular decisions. This was followed by two trucks full of Trump supporters, with one man waving a large Confederate Flag in support of the putative Republican presidential nominee. The presence of racist Confederate Flags in the parade was disturbing. I counted at least four.

Governor Gina Raimondo, perhaps sensing that her presence would not be appreciated, did not march in the parade. Her presence was felt, however, in every float that expressed dissatisfaction with her close association with corporations like Invenergy and Goldman-Sachs. Tracey Potvin Keegan rode a bike dressed as the governor, with bags of Goldman-Sachs money hanging like saddlebags and a $700 price tag on her head.

Marching in the parade were Senators Sheldon Whitehouse and Jack Reed and Representative James Langevin. Whitehouse did not escape criticism for his early support of Invenergy’s power plant. A woman marching with the power plant protesters held a sign with a quote from Whitehouse that said, “If I look back 20 years from now and I can’t say I did everything possible, I’ll never be able to live with myself.”

After first supporting the power plant, Whitehouse later back tracked, saying that weighing in on the issue would be inappropriate. Many in Burrillville and the surrounding areas feel betrayed by Whitehouse’s position, feeling that his reputation as the Senate’s strongest environmentalist is mere political posturing.

Almost as unpopular as the governor are the gypsy moths, who have infested the area and strip entire trees bare of foliage. One group of marchers came dressed as a gypsy moth caterpillar, with the words, “It’s raining poop” on it’s tail end.

The parade featured an appearance by Tony Lepore, the Dancing Cop. Lepore sported his new uniform, emblazoned with a special “Dancing Cop” patch, instead of his former Providence Police Officer uniform. Lepore’s career has been in free fall since he interjected himself into the incident late last year when a Dunkin Donuts employee wrote “Black Lives Matter” on a police officer’s cup. As a consequence of his words and actions Lepore lost his annual gig directing traffic downtown and lost out on a replacement gig directing traffic in East Providence.

Governor Raimondo is due to meet with Burrillville residents on July 18.

2016-07-04 Ancients and Horrbles Parade 002 — Whaitehouse, Langevin and Reed

2016-07-04 Ancients and Horrbles Parade 003 — First “No New Power Plant” sign in the parade

2016-07-04 Ancients and Horrbles Parade 007 — Tony Lepore

2016-07-04 Ancients and Horrbles Parade 010 — The first anti-Invenergy float came from BASE and the Fang Collective

2016-07-04 Ancients and Horrbles Parade 024 — BASE and the Fang Collective won second place.

2016-07-04 Ancients and Horrbles Parade 041 — Most politically Incorrect

2016-07-04 Ancients and Horrbles Parade 048 — This was by far the most disturbing thing in the parade

2016-07-04 Ancients and Horrbles Parade 049 — First place for best in show…

2016-07-04 Ancients and Horrbles Parade 051 — Burrillville State Rep Cale Keable

2016-07-04 Ancients and Horrbles Parade 052 — “Governor Gina Raimondo”

2016-07-04 Ancients and Horrbles Parade 067 — Nice play on Trump’s campaign slogan

2016-07-04 Ancients and Horrbles Parade 068 — The specter of death haunts America?

2016-07-04 Ancients and Horrbles Parade 069 — Another Confederate Flag.

2016-07-04 Ancients and Horrbles Parade 070 — Here are close-ups of the “Most Politically Incorrect” float

2016-07-04 Ancients and Horrbles Parade 076 — “Best in Parade”

2016-07-04 Ancients and Horrbles Parade 086 — “Second Best in Show”

June 27, 2016

Clean Water Action ‘deeply disappointed’ with Raimondo, Archambault

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The RI Sierra Club made a bold move when they revoked their endorsements of Senators Steven Archambault and William Conley over their Senate Judiciary Committee votes against the people of Burrillville in their fight against a proposed power plant in their town. Clean Water Action has also endorsed Archambault and in addition, they have backed Governor Gina Raimondo, the strongest supporter of the power plant among the state’s elected officials.

I asked Clean Water Action’s Rhode Island State Director Johnathan Berard if his group was willing to revoke their endorsements.

Berard commented that his group is “deeply disappointed” but stopped short of revoking the endorsements Clean Water Action gave out during the last election.

Clean Water Action ardently opposes the construction of any fossil-fuel burning power plants in Rhode Island and we are deeply disappointed that these general assembly members and the governor, who we supported in 2014 based on their promise of environmental leadership, have chosen to ignore the will of the majority of Rhode Islanders, as well as the environmental and public health communities, by forging ahead with the development of new natural gas infrastructure projects across the state.”

Compared to the position taken by the Sierra Club, this is a soft response. Clean Water Action seems to have a process to endorse candidates, but their endorsements lack any teeth when it comes to holding elected officials accountable.

June 27, 2016June 27, 2016

Why should Burrillville care about Invenergy’s bad financial decisions?

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At the most recent Burrillville Town Council meeting, Town Councillor Kimberly Briquette Brown made some curious remarks about Invenergy’s obligations to ISO-NE, the organization responsible for managing the supply of electricity to Rhode Island and neighboring states. Invenergy is planning to build a $700 million fracked gas and diesel oil burning power plant in the town and residents of Burrillville strongly oppose the plant.

“It’s my understanding,” said Brissette Brown, “from speaking to Mike McElroy and learning about this just as much as everybody else has been over the last few months, that once the ISO had granted the power capacity in February to Invenergy, that regardless of whether not they enter into a tax agreement with the town, if they do not go forward with building the power plant they’re going to be fined, substantially, it’s my understanding, and I could be wrong, millions of dollars. At the time… there was a concern about the financial ramifications of leaving the bill to people that thought that by voting no to a tax agreement that they’d be basically sending the power company packing.”

The gist of her remarks seems to be that Burrillville town attorney Michael McElroy convinced her that the town might be on the hook financially for the fines that Invenergy might suffer for not delivering on its obligations to ISO-NE. I couldn’t see how this was possible, so I asked Jerry Elmer, senior attorney at the Conservation Law Foundation (CLF), for his insight. The added emphasis is all mine:

By way of background, I explain in general that the results of FCA-10 show that the Invenergy plant is not needed, here.

And I am well aware of the fact that the mechanics of these FCAs can be complicated and difficult to understand; I provide some general background, here.

“In FCA-10, Invenergy bid both of its turbines, or 997 MW, into the ISO’s auction. However, in the actual auction, Invenergy cleared only one turbine, or 485 MW. Thus, Invenergy acquired a CSO of 485 MW. Invenergy agreed to provide electricity to the regional grid operator, ISO-NE, for a one-year period of time running from June 1, 2019 through May 31, 2020. This period of time is called Capacity Commitment Period 10 (CCP-10), and it corresponds to FCA-10. In return for agreeing to be available to the regional grid operator during that specified, future period, Invenergy will receive a stream of payments called capacity payments.

“In effect, Invenergy is selling a commodity, capacity, in return for a stream of money, called capacity payments. (And those links above provide some needed background that may help readers understand this.)

“In order to be allowed to participate in the ISO’s Forward Capacity Auction (FCA), Invenergy (or any other entity) had to first “qualify.” In order to qualify to participate in an auction, Invenergy (or any other entity) had to show that it had a realistic chance to actually build its proposed plant. (The ISO requires this, because the ISO is responsible for keeping our electricity grid reliable. ISO cannot keep the grid reliable if entities that acquire CSOs cannot actually build and operate power plants.) Invenergy (or any other entity) also has to put up a huge amount of “Financial Assurance” to even be allowed to participate in an FCA. FA is a kind of bond, a way of securing (guaranteeing) that Invenergy will be able to perform its obligation. FA would be forfeited if Invenergy (or any other entity) acquired a CSO (in an auction) but then did not actually have a plant built by the beginning of the CCP.

“So, now that Invenergy did acquire a CSO in FCA-10, is Invenergy irrevocably committed to building the proposed plant in Burrilville? The answer is unequivocally not.

“Could Invenergy abandon its proposed plant in Burrillville completely, and not lose the FA (bond) posted with ISO? The answer is unequivocally yes.

“To be sure, Invenergy could not just walk away from the plant. However, between today and June 1, 2019 (the beginning of CCP-10, when Invenergy’s CSO kicks in) the ISO will hold three separate Reconfiguration Auctions. One will occur about 2 years before June 1, 2019; one will occur about a year before June 1, 2019; and the last one will occur just before the start of CCP-10. At each of these Reconfiguration Auctions, buyers and sellers buy and sell CSOs to each other.

“Invenergy could – if it wanted to – sell out of its CSO in any one of those Reconfiguration Auctions. Of course, because the ISO is still responsible for keeping the New England electricity grid reliable, any entity that wanted to buy Invenergy’s 485-MW CSO would have to be qualified by the ISO to participate in the Reconfiguration Auction. The qualification process would be very similar to the qualification process for participating in an FCA – show that you either have a power plant already or could realistically build one in the remaining time allowed, and post FA.

“Invenergy could elect to sell out of its CSO in any of the next 3 ISO-run Reconfiguration Auctions for any one of a variety of reasons. For example, Invenergy could decide that the political climate in Rhode Island has turned against it, and that the plant might not be permitted by the Energy Facility Siting Board. (This could happen, say, if Governor Raimondo were persuaded to oppose the proposed plant as a result of overwhelming constituent pressure.) Or Invenergy could decide that the New England energy market is less lucrative than it thought it would be, and it is not worth building the plant. (In fact, the auction clearing price crashed from over $17 per kilowatt-month in FCA-9 to $7.03 per kilowatt month in FCA-10.) Or, Invenergy could sell out of its CSO for no other reason than that it thought it was profitable to do so. (Remember that whatever entity buys the CSO from Invenergy would be buying the right to a future stream of income. This is a valuable commodity, and it is entirely possible that Invenergy simply flips the CSO for a quick profit. Note that in that last sentence I mean “possible” as being completely within the ISO Market Rules; I am not suggesting that this is a likely course for Invenergy – only that it can be done.)

“In fact, Invenergy could sell out of its CSO in any one of the next three Reconfiguration Auctions for any reason it wanted to do so. The fact is that, having acquired a CSO on February 8 does not mean that the plant must inevitably be built, and does not mean that Invenergy is powerless to walk away without forfeiting the huge bond it posted with the ISO.

“In this scenario, the Town of Burrillville would not be on the hook for any of Invenergy’s CSO. In fact, the Town of Burrillville could almost certainly not be qualified by the ISO to buy Invenergy’s CSO. But, in any event, if Invenergy sold out of its CSO, the Town of Burrillville would have no liability for the CSO.”

So, in summary, the Town of Burrillville is in no way responsible for Invenergy’s bad decision to buy into a forward capacity energy market before being sure that they would be able to supply the energy required.

Invenergy made the promise, not Burrillville.

So I ask again, “Why should anyone in Burrillville care about bad decisions made by a Chicago based energy company? How is it possible that Burrillville should be liable for Invenergy’s bad business decisions?”

June 23, 2016June 23, 2016

Labor concerns over RI’s GEM Realty investment

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The RI State Investment Commission voted to invest $20 million with GEM Realty Capital, despite the company’s claim that the health and safety of employees at the Sofitel Los Angeles Hotel in Los Angeles, one of the many properties owned by the company, is not something they can have any affect on.

GEM Realty describes itself as a real estate investment company that invests in “private-market real estate assets and publicly traded real estate securities”. At the meeting on Wednesday morning, two GEM Realty representatives admitted that there were problems at the Sofitel Los Angeles Hotel, but said that as they are not the majority investor in the enterprise or involved in the day-to-day management of the business, there is little they can do to effect positive change in the way workers are being treated at the properties they invest in.

Treasurer Seth Magaziner lead the questioning of the company reps about the allegations of unsafe and un-sanitary labor conditions at the hotel and Commission member Marcia Reback asked about the use of a firm known for union busting to prevent workers from unionizing. The GEM Realty reps assured the Commission that the union-busting firm was no longer employed by the hotel and that the health and safety issues were in the process of being resolved via the National Labor Relations Board (NLRB).

On April 25 employees filed a complaint with the CA Division of Occupational Safety and Health complaining about the hotel’s failure to provide safety equipment to employees charged with cleaning medical waste from Sofitel Los Angeles Hotel rooms. Many guests receive treatment at a nearby hospital and leave medical waste behind. Though management shows an instructional video every year about the proper disposal of needles and bloodied linens, employees say “the hotel does not provide the safety equipment shown in the video”.

The Sofitel LA Hotel has also drawn “multiple Unfair Labor Practice charges that are currently being investigated by the regional office of the NLRB alleging that since employees raised the health and safety issues, hotel management has responded by threatening and surveilling employees and in one case illegally firing one of the employee leaders,” says Jim Baker coordinator for Unite Here. These case can be accessed here.

Then there’s the class action lawsuit seven employees have brought against the hotel alleging wage theft. Business Wire reports, “Six of the plaintiffs allege being paid less than the minimum wage while working at the Sofitel Los Angeles at Beverly Hills. A former barback, as well as three housekeeping workers, a banquet worker, and a restaurant server, allege that management underpaid or have been underpaying them by up to $5.37 per hour.”

Aside from the allegations of deplorable labor practices, there may be sound financial reasons to avoid investing in GEM Realty, says Sam Bell, executive director of the Rhode Island Progressive Democrats of America, has concerns about the very idea of private equity investments for our pension funds.

“With their high fees, private equity investments are a bad deal for our pension fund,” says Bell, “As Treasurer, Gina Raimondo, who made her fortune in this controversial industry, made a big move into high-fee funds, and that decision continues to drive our pension fund’s poor performance. Seth Magaziner campaigned on a new kind of politics. Expanding private equity investments, while other funds are pulling out of high fee options, would represent a move back to the aggressively pro-Wall St. policies of the previous Treasurer.

“Real estate private equity funds are especially poor choices, given their distinctive record of pushing policies that hurt American families,” says Bell, ” In the case of GEM Realty Capital, it is aggressive violations of workers’ rights that stand out, but across the real estate investment industry in general there is a serious and pervasive culture of immorality.”

Though the GEM Realty reps were asking for a $30 million investment from the state, the board seemed to feel that a $20 million investment was more in line with their investment strategy.

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