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Clash of Titans, Viewed from Below

by 10x25MM • April 15, 2015 • 0 Comments

Part III – Clash of Titans, Viewed from Below

Fortunately, the greed political acumen of DTE and CMS Energy is coming to your rescue. Both utilities are seeking full reregulation of Michigan’s electricity market. They are issuing thinly veiled threats about brownouts ‘reliability’ of supply unless Michigan forces the fortunate 10% back into our utilities’ waiting arms. And with President Obama’s hobbling of coal-fired power stations ramping up, they actually have a point. So the fortunate 10% will have to seriously reengage in Michigan’s electricity rate debate or their electricity costs will skyrocket.

The environmental wackos haven’t been idle either. The new model, term limited, Governor Snyder has evidently made up with our ur-RINO and is now endorsing a 40% RPS by 2040. To keep Michigan’s serfs in line – and avoid impeachment – he is specifically not calling for this to be a mandate, rather calling it a ‘goal’. Coming from Michigan’s Governor, this is a distinction without a practical difference. Snyder appoints the three MPSC commissioners who oversee electricity policy and MPSC operates under the aegis of LARA. Think Governor Duggan, Snyder’s designated successor, will change this policy? Other Michigan politicians are splitting the difference, proposing RPS mandates intermediate between 10% and 40%.

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Conservative News, Democrats, Michigan, Michigan Politics, Rent Seeking, Republicans

Clash of Titans, EPA Wrecks the Electricity Grid

by 10x25MM • April 14, 2015 • 6 Comments

Feds Step In, Things Get Much Worse

Part II

Things may have quieted down in Michigan after Proposal 3’s demise in 2012, but President Obama’s EPA were furiously developing their ‘War on Coal’ to dramatically increase the cost reduce pollution of electricity generation. The Mercury and Air Toxics (MATs, also known as MACT) rule requires scrubbers on all coal-fired power plants nationally, costing something north of $ 1 million per steam boiler. The Cross State Air Pollution Rule (CSAPR) requires Michigan coal-fired power plants to reduce their thermal efficiency during peak summertime generating periods to reduce oxides of nitrogen at a yet to be determined cost.

In 2014, EPA’s ‘Cooling Water Intake Structures’ rule finally went into effect after a decade of legal wrangling, requiring that Michigan’s electrical utilities take some very expensive steps over 8 years to protect the Great Lakes’ beloved zebra mussel and round goby populations.

At the end of 2014, EPA imposed newly restrictive rules on the disposal of coal combustion residuals (CCRs), commonly known as coal ash, from coal-fired power plants. Almost unique in the history of Federal regulation, EPA admitted in their final CCR rule that it had a negative cost-benefit ratio. Fly ash, the most abundant CCR, is actually a remedy for the alkali-silica reaction (ASR) which causes premature failure of many MDoT concrete structures. So EPA managed to simultaneously increase Michigan’s cost of electricity generation and reduce the lifespan of our roads and bridges. An Obama ‘two fer’.

EPA expects to finalize its ‘Effluent Limitations Guidelines and Standards for the Steam Electric Power Generating Point Source Category’ in September 2015. Known by the acronyms SEEG or ELG, these rules will change the way all electrical power stations handle cooling, process, and steam condensate water. These rules cover all steam powered turbine operations, but will most severely affect coal-fired power stations whose MATs required scrubbers and CCR required ash handling systems will generate a lot of waste water.

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All the Other Stuff, Conservative News, Cronyism, Democrats, Michigan, Michigan Politics, Rent Seeking, Republicans

Clash of Titans Coming to Michigan

by 10x25MM • April 13, 2015 • 0 Comments

After Proposal 1, After Plan B, Electricity Front and Center

Part I: Background

Later this year, Michigan’s electrical utilities are expected to satisfy the 10% Renewable Portfolio Standard (RPS) requirements of PA 295 of 2008. Partial reregulation of electricity in Michigan under the same PA 295 of 2008 denied choice of supplier on 90% of electricity consumption, while exempting large, politically potent, electricity consumers. At the same time, the U.S. EPA is progressively tightening their noose around the neck of the coal industry with an array of ever more restrictive regulations upon coal-fired power plants. A political clash of titans is looming in Michigan.

Taken together, these circumstances will trigger a wild four-way donnybrook pitting electrical utilities, electricity consumers, and environmental wackos against one another later this year. But this is only three parties, so why do you say four-way? Large industrial consumers have substantially escaped the consequences of PA 295, while smaller Michigan consumers – including residential consumers – have experienced the fifth highest rate of electricity cost increases in the nation. These two electricity consuming groups’ interests do not coincide.

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All the Other Stuff, Cronyism, Democrats, Elections, Michigan, Michigan Politics, Proposal 15-1, Republicans

Say No To Proposal 15-1 Rally April 15

by Jason • April 8, 2015 • 1 Comment

Opposing proposal 15-1 are the overtaxed citizens from BOTH sides of the spectrum.

Photo from actual Traverse City Protest.

It could possibly be an unusual gathering April 15.

Given the fact that most conservative Republicans and the left-of-center Democrats agree that the May 5th proposal is an unmitigated disaster, its possible they might actually walk side by side at 11AM in Front of the Traverse City Post Office on Tax Day. If one watches the polling results, follows through by reading the comments on the major media pro 15-1 shill attempts, one might walk away thinking the only the political class centrists are the ones who really really want this garbage.

Holding breath on working together? Not entirely.

However, what a treat it would be to shove this bad medicine down the throat of the cronyist Snyder and his milquetoast minions. The mantra of there being “no plan B” is worn out already. Putting taxpayers into a corner might elicit thoughts of the wolverine that is threatened once this play is done. Higher taxes hurt the left as much as the right, and passage of this boondoggle is a constitutionally guaranteed increase of taxes every single year.

Where: In front of Traverse City Post Office on Union and State St.
When: 11 am till 1 pm or as long as you can. April 15th tax day (Depending on size we may walk to the Parkway and Union St.) Appropriate signs please.

If you are in the area on April 15 at 11AM, join 15-1 opponents to say NO to higher taxes.

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Conservative News, Cronyism, Democrats, Michigan, Michigan Politics, Rent Seeking

February Michigan Unemployment 5.9% – Really?

by 10x25MM • April 6, 2015 • 1 Comment

Philadelphia Federal Reserve Bank Questions BLS State Level Employment Data Revisions

Kurt Weiss at the Michigan Department of Technology, Management, and Budget (DTMB) reported on March 25th that Michigan’s February 2015 seasonally adjusted unemployment rate dropped to 5.9% from January’s 6.3% figure. This was followed on April 2nd by the DTMB release of non seasonal adjusted employment data for February 2015. This quite large one month drop is great news for Michigan workers, if it indeed reflects our labor market. But does it?

Twelve Month Discrepancies Between Seasonally Adjusted and Unadjusted Data Differentials

The DTMB Michigan non seasonally adjusted (NSA) employment report for February 2015, at the bottom of page 6, showed that Michigan’s civilian labor force declined by 33,000 workers over the twelve preceding months. But the seasonally adjusted (SA) employment report for February 2015 at the top of page 2 showed that Michigan’s civilian labor force increased by 7,000 workers over the same twelve months. The growth of Michiganders employed over the same twelve month period also shows a 5,000 worker NSA/SA discrepancy: 101,000 not seasonally adjusted versus 96,000 seasonally adjusted. And the shrinkage of Michigan’s unemployed worker population over the same twelve month period shows a 46,000 worker NSA/SA discrepancy: 134,000 not seasonally adjusted versus 88,000 seasonally adjusted.

Valid seasonal corrections should produce twelve month differentials which agree with comparable item non seasonally adjusted differentials over the same twelve month period. Here we have a 0.85% discrepancy in Michigan’s total civilian labor force, a 0.1% discrepancy in civilian employment over the same twelve month period, and a 12.5% discrepancy in the shrinkage of Michigan’s unemployed worker population over the same twelve month period.

How did this happen?

The DTMB turns its employment data over to the U.S. Department of Labor’s Bureau of Labor Statistics for X-13ARIMA-SEAT seasonal adjustment. BLS also adjusts underlying data periodically for changes in the Michigan population estimates of the U.S. Census. The two (SA and NSA) February 2015 DTMB employment reports both reflect substantial BLS revisions undertaken in early 2015. A note at the top of page 2 in the DTMB February 2015 SA employment report:

Note: The data in this release reflects recently revised historical estimates. Seasonally adjusted labor force estimates for 1976-2014 for Michigan and 1990-2014 for the Detroit-Warren-Dearborn MSA were revised. Previous published data should be replaced with this new series. In addition, seasonally adjusted payroll job data was revised for 2010-2014. For newly revised data, please contact DTMB at 313-456-3090.

The DTMB February 2015 NSA employment report bears a similar note on its first page noting that it was also subjected to substantial revisions.

So Michigan’s employment data has been subjected to substantial revisions at BLS which produce seasonal adjustments that do not cross check against comparable item non seasonally adjusted data over the most recent 12 month period.

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All the Other Stuff, Conservative News, Cronyism, Democrats, Detroit, Elections, Michigan, Michigan Politics, Opinion, Proposal 15-1, Rent Seeking, Republicans, Taxes

“All those in favor say ‘Aye’. Any opposed? Seeing none, the motion is approved.”

by KG One • March 31, 2015 • 3 Comments

This is not the time for chutzpa!

If our elected representatives in Lansing are in need of any suggestions to “find” money to reallocate towards more important matters affecting Michigan, a local vote that was taken yesterday afternoon by an advisory committee would be my recommendation for a great place to start.

{Story continues below}

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Democrats, Michigan, Opinion, Philosophy, Rent Seeking, Taxes

Rep. Faris and Sen. Hopgood enjoy a Creative Suggestion

by Corinthian Scales • March 22, 2015 • 3 Comments

Only in America would folks be so foolish as to pay additional monies for cutesy, and mostly ignoble causes on what is a tax tab, however, there are those who believe our unalienable Right to Life, Liberty and the pursuit of Happiness also includes our Secretary of State acting as a collection arm for the murdering of babies.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

SEC. 811II. (1) THE SECRETARY OF STATE SHALL DEVELOP UNDER SECTION 811E AND ISSUE UNDER SECTION 811F A FUND-RAISING PLATE RECOGNIZING WOMEN’S HEALTH. THE SECRETARY OF STATE, IN CONJUNCTION WITH PLANNED PARENTHOOD AFFILIATES OF MICHIGAN, SHALL DESIGN THE FUND-RAISING PLATES AUTHORIZED IN THIS SECTION.

Read both bills here, and here.

Because those on The Left love to provide “free stuff” to “the poor” they create in return for a Democratic Party vote so much, here’s an artistic freebie to all the Femocrats who believe their Bee-esS about “Women’s Health™” isn’t seen for what it is.

Now, really need further convincing that Progressives aren’t just a plantation of simpletons used to elect their dystopian masters?

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Conservative News, Cronyism, Democrats, Detroit, Elections, Michigan, Michigan Politics, Opinion, Philosophy, Rent Seeking, Republicans, Taxes

Ugh, work is stupid!

by KG One • March 18, 2015 • 1 Comment

Let’s all take a break.

Just when you thought that the Three-ring Circus that tries to pass itself off as “leadership” couldn’t make an even bigger ass of themselves than they already have done to date, they just turn around and surprise you.

Same cast of characters. Same city.

And another example of ungrateful children pretending to be mature adults wasting your hard earned money.

{Click below to find out who they are and what they have done this time}

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Conservative News, Democrats, Detroit, Elections, Michigan, Michigan Politics, Proposal 15-1, Taxes

$ 70 Million More Down the Drain Every Year

by 10x25MM • March 18, 2015 • 3 Comments

Michigan Triples Down On The Most Abused Federal Program

The U.S. Government Accountability Office released its FY 2014 estimates of improper payments made by the Federal Government in testimony before the U.S. Senate’s Committee on Homeland Security and Government Affairs on Monday. The Improper Payments Information Act of 2002 and the Improper Payments Elimination and Recovery Act of 2010 require Federal Executive Branch agencies to estimate the levels of improper payments in all Federal programs. The GAO assembles this data and reports the levels of improper payments, along with recommendations to minimize such improper payments.

At the Federal level, all improper payments amounted to about $ 125 billion dollars in FY 2014. Even by casual Federal accounting standards this is breathtaking. Three cents of every Federal Government dollar spent. Going through the GAO’s estimates by program, the Earned Income Tax Credit is at the top of the list by percentage of improper payments: 27.2 % of all EITC payments are improper. The GAO estimated FY 2014 improper EITC payments by the Federal Government alone amounted to $ 17.7 billion dollars. Other Federal programs burned more dollars, but none had the percentage rate of improper payments that the EITC has. Not even close.

The most obscure element of the tax increase package which Michigan voters will be asked to approve on May 5th is Senate Bill 847 of 2014. This bill is a $ 260 million annual increase in the State of Michigan’s version of the EITC. The EITC will increase from its current 6 %, to 20 %, of the Federal EITC credit allowed under Section 32 of the Internal Revenue Code. Currently, the Michigan EITC pays out about $ 80 million from the Michigan Treasury every year at the 6 % rate.

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Cronyism, Democrats, Detroit, Elections, Michigan, Michigan Politics, Proposal 15-1, Taxes

Where’s The Bridge?

by 10x25MM • March 16, 2015 • 6 Comments

Questionable MDoT Database Compromises Auditor General's Bridge Inspection Performance Audit

The Michigan Office of the Auditor General released its overdue performance audit of MDoT’s Bridge Inspection Program Friday afternoon, just in time to miss last week’s news cycle. Weekend news reports focused on bridge inspection frequency, but there is a more fundamental question which should be answered first: Are the MDoT bridge records which were audited complete and correct? Even remotely so?

The Federal Highway Administration collects bridge data from the State DoT’s and other sources to create and maintain the National Bridge Inventory. It is supposed to list all American bridges which have roads running across them or below them, along with ownership, identifiers, and condition data. Condition data is given as a number from 0 (failed) through 9 (good beyond current standards). These numbers then get converted into the descriptors you read in the press, such as ‘structurally deficient’, poor, good, etc.

The MOAG performance audit is replete with statistics derived from MDoT’s bridge inventory database which show – no surprise – that some of Michigan’s bridges are in poor shape. You can see MOAG’s statistics as of April 30th, 2014 in the audit or go to a searchable database of individual bridge data across the entire country, as of 2012, brought to us by Alexander Svirsky of MassRoads.com.

A first pass at the MOAG bridge inspection audit involved looking at the worst condition category of bridges, those rated 0 or 1 for failed or imminent failure. Going through the Wayne County owned bridge summary on Page 51 of the new MOAG audit, I was heartened to see that Wayne County has no condition category 0 or 1 bridges. But there are at least two zero condition category major bridges in Wayne County across the Rouge River, so let’s say I am experiencing a little cognitive dissonance just now.

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