The NIETC lays the groundwork for transmission siting approval in the construct of High-Voltage Direct-Current (HVDC) Transmission lines above ground and throughout all NIETC designated states, and whether or not that particular state in fact has an electricity congestion problem.
Initially problematic is that nearly the entirety of the U.S. power grid, as it presently exists, uses High-Voltage Alternating-Current (HVAC) Transmission lines and allows current to automatically reverse direction at regular intervals if necessary. HVDC requires an operator to reverse direction and its current flows in one direction only.
Only 2% of all electrical transmission line miles in the U.S. are presently HVDC. While the DOE insists that HVDC technology includes lower costs over long distances, in reality constructing HVDC lines costs more than construction of HVAC lines for short distances over a wide expanse of area.
And according to the Government Accountability Office Report of February 1, 2008, (GAO-08-347R) with respect to HVDC, there will be “higher costs for short-distance lines due to the cost of equipment needed to convert DC into AC electricity used by residents and a lack of electricity benefits to consumers living along these lines –unless converter stations are installed at intermediate locations – because such lines are generally not connected to local electricity lines.”
The rationalization for designation corridors is not to facilitate or dictate how the states’ regions, transmission providers or electric utilities should meet their own energy challenges, according to the DOE. But truth be told, it is quite the opposite.
“The process is geared more toward expediting the approval and siting of transmission corridors than it is geared toward respecting states’ rights about their residents’ energy future and needs…and by a heavy-handed centralized one-size fits all approach..,” according to Congressman Maurice Hinchey (D-NY).
And it is precisely such sentiments that have been raised to the Secretary of Energy, Samuel Bodman, by both federal and state lawmakers on both sides of the aisle in all 10 states and Washington, D.C. that will be directly impacted by NIETC.
And most crucial to note, EPAct 2005 enables eminent domain law over states by the federal government on a scale unlike the U.S. has ever seen.
In its effort to modernize the transmission lines infrastructure, EPAct 2005 provides for the DOE to assign the Federal Energy Regulatory Commission (FERC) siting authority. To review from Part I of this series, FERC is central to the regulation of energy policy both fiscally as well has been given oversight authority on the applications of new construction of transmission line sites.
Under Section 216(b) of EPAct 2005 –Back-Stop Siting Authority –FERC is given authority “to issue permits for the construction or modification of transmission facilities in a National Interest Electric Transmission Corridor if FERC finds that: (1)(A) a state in which the facilities are to be constructed is without authority to approve the siting of the facilities or to consider the interstate benefits expected to be achieved by the project; (B) the applicant for a permit is a transmitting utility that does qualify for a permit federally but does not qualify for a permit under state law because it does not serve end-use customers; or (C) the state has siting authority but (i) it has withheld approval for the later of one year after the filing of an application; or (ii) conditioned approval in such a way that the proposed construction will not significantly reduce transmission congestion or is not economically feasible.”
And to add insult to injury, Section 216(e) of EPAct 2005 on Rights-of-Way, “If a permit holder cannot obtain the necessary rights-of-way for the project, the permit holder can acquire the rights-of-way through an eminent domain proceeding in the federal district court where the property is located.” And furthermore, in Section 216(f), “A right-of-way acquired in an eminent domain proceeding is a taking of private property for which the landowner must receive just compensation, which is the fair market value on the date of exercise of eminent domain.”
Therefore, any fluctuation or rise in real estate property values during the course of the proceeding and including any period of time due to litigation arising from such a proceeding to the time of completion of the project, if finally approved, would not be taken into consideration.
And the compensation or fair market value of the property to its owner would be locked in by the date of the initial date of the proceeding, which could potentially be years, as in the case of Kelo v. City of New London, CT 545 U.S. 469 (2005).
Crucial in understanding the bone of contention raised primarily by the 10 states within the Mid-Atlantic Area and Southwest Area National Corridors, is that historically, federal jurisdiction of the siting of transmission lines in states has been reserved for federal lands within respective states. It has been the state utility commissions of each given state which have otherwise been the regulators of siting permits and applications.
And it is only reasonable to understand the indignation and concerns by state governors and state representatives to learn that FERC has been granted a new breadth of authority that many believe is counter-productive to the best interests of their respective states and citizens which they believe they know best.
As discussed in Part I of this series, with the repeal of the Public Utilities Holding Company Act of 1935, (PUHCA) holding companies both foreign and domestic will now be the applicants for siting permits in both the Mid-Atlantic Area and the Southwest Area National Corridors for aboveground HVDC transmission lines which will range from 150-160 feet high. That is roughly three times the height of our present HVAC lines throughout the U.S. And they will cover thousands of total miles throughout NIETC, or these 10 states and Washington, D.C.
(Note: You can view every article as one long page if you sign up as an Advocate Member, or higher).
