CHARLESTON, W.Va. -- A recent report finds huge planned gas pipelines could cost some ratepayers many times what they would otherwise pay.

"The Art of the Self-Deal" looks at federal filings for four proposed lines. Kate Addleson, director of the Sierra Club in Virginia, said Dominion electric customers would pay 3.5 times more to fuel power plants with gas from the Atlantic Coast Pipeline than from current lines.

She said the Mountain Valley Pipeline could cost Con Ed ratepayers $60 million extra per year. Addleson said federal rules allow energy companies to pass on the high cost of the new lines plus a hefty profit if they say the system of current pipelines is too small to meet demand.

"The truth is that it's just not. The existing pipelines are not currently being used to capacity,” Addleson said. "These companies can create the illusion of demand by selling the pipeline's capacity to their own subsidiaries."

The corporations backing the projects argue they're needed to fix a bottleneck slowing the flow of Marcellus gas to the market. They say there is rising demand in North Carolina and along the Virginia coast.

Addleson said current pipelines could carry much more gas with a few, comparatively small additions and connections. On the other hand, she said, the Atlantic Coast Pipeline by itself could double the carbon footprint for Virginia's electricity - at a time when the state and the nation already are moving to less polluting options.

"Electricity demand has been flat,” she said. "We are continuing to use more energy efficiency and conservation measures, as well as ramping up the use of renewable energy."

The Atlantic Coast and Mountain Valley Pipelines would run hundreds of miles across West Virginia, Virginia and North Carolina - and cost billions. Backers say the pipelines would reduce energy costs and spark economic growth, but Addleson said, they put water quality and property at risk.

"As folks have to see higher electric bills, the detrimental impacts on property values, the loss of public lands - at the end of the day, this is not a good deal,” she said. "There are cleaner, safer ways to meet our needs."

"The Art of the Self-Deal" is from Oil Change International, Public Citizen and the Sierra Club. The report says in 2016, federal regulators approved enough new pipeline capacity to carry a quarter of U.S. production.


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Environmental groups are seeking greater input as California puts the finishing touches on its application to become a hub for hydrogen fuel production. This is billed as a big step toward a zero-carbon emission future. The project is being managed by a public-private partnership called the Alliance for Renewable Clean Hydrogen Energy Systems, known as ARCHES.

Monica Embrey, energy director for the California Sierra Club, called this a good opportunity to advance climate progress but only if certain guardrails are put in place.

"If they use existing pipelines, they would have to really upgrade them quite a lot. And we want to make sure that those have safety mechanisms in place so that communities get to say whether or not a pipeline near them actually gets used for hydrogen. We want leakage monitoring, we want really strict standards," she said.

Hydrogen is extremely explosive and is a major greenhouse-gas pollutant if it leaks or is burned and will not be used for homes or commercial buildings, but instead will be targeted to medium and heavy-duty vehicles, ports and power plants, which are especially difficult to decarbonize, ARCHES said.

In addition, ARCHES said hydrogen will be produced using renewable power and will not be blended with natural gas within pipelines.

SoCal Gas and Chevron have been consulting on the application. The ARCHES website calls for meaningful engagement with community groups and environmental justice advocates.

Bahram Fazeli, director of research and policy with the nonprofit Communities for a Better Environment, said the planning process has been vague to date.

"They have done a very poor job of prioritizing environmental justice or public health in their process. They're not open to California's open-meeting laws and public participation. They only have one environmental-justice representative on the 11-member board, " Fazeli said.

The application to the Department of Energy is due April 7th. New hydrogen hubs could bring more than $1-billion in federal investment to California, supporters said.

A bill designed to fight price-gouging at the gas pump is expected to pass the California State Assembly today and be signed by Gov. Gavin Newsom soon after.

Senate Bill X1-2 would create a watchdog at the California Energy Commission empowered to set a "reasonable" profit margin for gasoline and assess penalties for price-gouging.

Meghan Sahli-Wells, former mayor of Culver City and California director of the group Elected Officials to Protect America, said oil companies must be held accountable.

"What we've seen is behind these price hikes aren't the external forces that the big oil companies have blamed for the humongous price spikes," Sahli-Wells asserted. "What we've seen are refineries that have doubled their profits."

The Western States Petroleum Association has slammed the bill, blaming high gas prices on a supply shortage linked to a lack of investment in refining capacity and necessary infrastructure.

Gas prices last summer and fall hit an average of $6.42 per gallon in California, more than $2.50 higher than the national average.

The oil and gas industry is behind a ballot measure to roll back a California law passed last year requiring new drilling permits to include setbacks from homes and schools. Sahli-Wells argued the state needs to cut air pollution from burning fossil fuels, adding she does not like recent mailers blaming higher gas prices on state regulation.

"The industry itself is going hot and heavy on propaganda to scare people into dialing back environmental protection," Sahli-Wells contended. "It does feel somewhat like an 'oil war' is happening in California. But we know that if we are to win, that oil must lose."

The new watchdog would also have the power to subpoena business records in order to root out price manipulation.

California lawmakers hold a hearing in Sacramento today on a bill to hold oil companies and gasoline refiners accountable for alleged price gouging.

According to the Office of Gov. Gavin Newsom, gas prices in California hit an average of $6.42 per gallon last fall, which was $2.61 more than the national average. And it happened even as crude oil prices dropped and state taxes and fees remained unchanged.

Farrah Khan, mayor of Irvine, said she supports Senate Bill 2, which would establish an independent watchdog within the California Energy Commission.

"It's going to establish a new division to provide independent oversight and analysis of the market," Khan explained. "This new division would have the power to subpoena information deemed necessary to root out and address any of the abuses of market power."

The Western States Petroleum Association said in a statement, "This new windfall penalty in this proposal is actually worse than the original bill. The Legislature would be giving away all its authority to a group of unelected bureaucrats who will have the power to set gasoline prices and impact fuels markets. [This] will likely lead to the same unintended consequences as his initial proposal - less investment, less supply, and higher gasoline prices for Californians."

Steven Hernandez, mayor of Coachella, said it is a matter of fairness to the families who live paycheck to paycheck.

"People struggle to afford gas and rent, and to pay medical expenses," Hernandez pointed out. "When we're mindful of the working class, I think we're better off as a society."

The California Energy Commission watchdog would analyze data to look for patterns of misconduct or price manipulation. The bill would also start a rule-making process at the Commission, to set a reasonable profit margin and impose a penalty for price-gouging above the margin. Any fines would be returned to taxpayers.


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