2001 05 14

2001 05 14 updated 2001 06 25

Global Merging Shark feeds on your unaware local children

The federal Energy Policy Act of 1992 enabled deregulation on a statewide basis that this year hit Ohio. Indiana remains regulated as does Kentucky. Pressure to deregulate Kentucky is minimal, since, of all 50 states, the cost of electricity for Kentuckians is 3rd lowest (due to abundant coal). Nevertheless, the effects of deregulation are obviously now having an impact on communities in these regulated states.

The primary effect of deregulation is consolidation. Merging is occurring in the context of a national 10% surplus of electricity generating capacity of 346BW (Billion Watts). (Total is 3,452BW)

This map depicts our national and regional energy scenario:

http://www.forbes.com/2001/04/23/powermap.html

Ohio, with minor deficit of -10BW, neighbors energy surpluses:
Kentucky +14,
Indiana +27,
West Virginia +58, and
Pennsylvania +72.

Perhaps Ohio has been more effective at protecting residential environments from power generation pollution. The feeding frenzy apparent in Kentucky and Indiana cannot be explained by the small deficit in Ohio, as much as by the power grabbing utilities greedily striving to be more attractive merger partners.

In Kentucky, the two principal statewide agencies, Louisville Gas & Electric and Kentucky Utilities of Lexington, merged prior to acquisition last year by the $20-Billion British conglomerate PowerGen, which had considered Cinergy. On 2001 April 9, the $36-Billion German-based E.ON Corporation tendered its current offer for PowerGen. Thus, as local offices of Kentucky Utilities close, most Kentuckians will pay utility bills to Dusseldorf.

North of the tri-state, $55-Billion American Electric Power, based in Columbus, Cinergy's primary competitor, recently acquired $5-Billion, Texas-based Central & Southwest Corp, adding to its existing holdings: AEP Generating Co., Appalachian Power Co., Columbus Southern Power, Indiana Michigan Power Co., Kentucky Power Co., Kingsport Power Co., Ohio Power Co., Wheeling Power Co.

The poor wittle 8.5Billion Cinergy shark is in the crush of 2 whales.

http://inquirer.com/editions/2001/03/10/fin_cinergy_in_merger.html:

Cinergy has reportedly had merger talks with a number of potential partners over the past few years. "You dance with a lot of different people before you select a partner. We've been doing a lot of dancing," Mr. Rogers told the Enquirer in April 1998. Last summer, he told Bloomberg Business News the utility was still seeking a merger partner and expected to be in a better position to complete a deal after Ohio's electric deregulation law took effect. The law, allowing customers to chose their electric supplier for the first time, took effect Jan. 1.2001

$8-Billion Cinergy is the holding company comprising the 1994 merger with PSI of Indiana, and may be continuing talks opened in March with $20-Billion New Jersey Public Service Enterprise Group of NJ. PSEG actually was granted a permit for a 1130MW gas turbine plant in Lawrenceburg, IN. now underway.

http://www.in.gov/idem/oam/permits/powerplt/map.html

http://www.pseg.com/companies/power/lawrenceburg/announce_lawrenceburg.html

5 other merchant plants are underway in SE Indiana, including CinCap7 in Cadiz, which currently is actively opposed by the small farming community visited by Erin Brockovich last year on April 15. Appeal is underway.

And we need 86 more? 86MW is enough to juice all homes in Kenton County which grew over the last decade at a whopping 6.7%. Does KY and OH have anything to say for being the dumping ground for IN revenue? Does KY have anything to say about being the exhaust pipe for Warren County, OH?

Apparently, Governor Patton will enable some thoughtful review.

Both Indiana and Kentucky have discovered its citizens vulnerable. Noted Kentucky author Wendell Berry "likened our communities to rabbits forbidden to have holes at the same time the hunting dogs are turned loose. Out-of-community, out-of-state, and out-of-country ownership is the order of the day." [City, Kentucky League of Cities, Sylvia Lovely] Representative Jon Draud is developing new legislation to better protect Kentucky residents from the global merger sharks infesting the defenseless state.

If Northern Kentucky needed more power, its power provider Union Light, Heat & Power, would pursue a permit from the Kentucky Public Service Commission by way of Kentucky Revised Statute 278.020 and .025. KRS 278.025 (6):

(6) In granting or denying the application for a certificate of environmental compatibility, the commission shall consider the community needs, the industrial development, customer requirements and the economics of the facility, all of which shall be balanced against any adverse environmental factors.

We, in Northern Kentucky are the victim of SinnerG CinCap9. CinCap9, directed by Michael Cyrus, chose the route of lesser citizen review, duping Erlanger, exploiting weak legislation controlling the Division of Airheads inadequately protecting environmental Quality, while petitioning PSC for Declaratory Order to be exempt from PSC in order to sell Electricity to the wholesale market principally serving Ohio.

CinCap6 represents 30MW in Pennsylvania which was sold to Sunbury Holdings, a subsidiary of WPS Power Development. There is no telling which holding company on which continent will ultimately be responsible for operation of this CinCap9 plant in Erlanger. What is the status of CinCap 1-5, 8, and 10? Each CinCap is a Limited Liability Company, specifically exploiting the law to minimize personal responsibility for any catastrophe that may occur.

In the May 14 Cincinnati Enquirer, VP Cheney "has called for 1300 - 1900 new power plants in the next 20 years. It sounds like a tall order, but nearly half of those are in the works already, utilities and environmental groups say."

At the rate of this stupid feeding frenzy, Cheney's order will be complete in 4 years!

Northern Kentucky must unite in steadfast opposition and absolute intolerance of this merger-mad merchant quest for a little more asset in its global portfolio, enhancing the probability of transfer well out of our reach or control. Who do we call when a gas explosion rocks the heart of Northern Kentucky extinguishing innocent lives at the new library? We may need to speak another language.