You are correct, few West Virginia customers would get electricity from the line, (although there may be a few ratepayers in the far corners of the eastern panhandle who would). It is not at all clear how the Governor could do this legislatively, absent an agreement from Allegheny. This is particularly true since the line originates in PA, ends in VA, and only has the one substation at Mount Storm in WV.
The offer of free electricity was already included in the Consumer Advocate's Settlement Agreement in January. However, the "free" electricity was to be considered as partial payment of the property rights for the right-of-way, so in essence, the electricity was not free since the landowner was giving up land without full compensation. In that case, landowners that voluntarily settle with TrAILCo could get vouchers for the electricity from TrAILCo that could be submitted to Allegheny in lieu of payment of their regular electric bill. Getting one subsidiary of a company to work out that deal with another subsidiary of the same company is a whole lot easier than getting it done legislatively, especially if the landowners do not voluntarily sign on to the deal.
I am particularly interested in the first line of the Governor's press release. Perhaps we should see what else the Sierra Club can get by sending FOIA letters to the Governor? :-)
There are hints in the FOIA documents released so far that this tax idea has been discussed with Allegheny officials for a long time, but I have not yet had time to review all of the Gov's documents, so I do not know where else the idea has been discussed or if it was a factor in the Settlement talks.
JBK
Jim Sconyers jim_scon@yahoo.com 5/29/2008 11:36 AM >>>
Looks like grandstanding, doesn't it? Can it be taken seriously?
- Rate reductions for West Virginia’s citizens so that they will pay less, not more, for the power they will receive from the line.
Are we receiving juice from this line? I thought it was just to pass power through to the East.
- Free electricity for all landowners who are affected by the placement of the line.
How do you force the company to give free juice? Or are the landowners going to forward their electric bills to Charleston?
Jim Sconyers jim_scon@yahoo.com 603.969.6712
----- Original Message ---- From: James Kotcon jkotcon@wvu.edu To: william.depaulo@gmail.com; ec@osenergy.org Sent: Thursday, May 29, 2008 10:56:05 AM Subject: [EC] Transmission tax
Below is the Governor's press release regarding his proposal to impose a transmission tax if TrAIL is approved. The first line specifically states that the Governor's Office released this proposal in a response to the Sierra Club FOIA. My question is : "Does the Governor have any other details of this proposed tax? Would it apply only to TrAIL, or to all transmission from the state? If it is specific to TrAIL, would it not violate the Interstate Commerce Clause of the US Constitution? The line would originate in PA and end in VA, so how could one state impose a tax on the privilege of electrons crossing the state, especially if the power is generated in Ohio or PA, not WV? If it applies to all transmission lines, why should other existing transmission companies pay a tax just because TrAIL is being installed?
This proposal raises so many questions that I do not know where to begin or how to respond, but you can be sure that these questions will be asked tomorrow, if not at the hearing, then by reporters afterward.
Would it be appropriate to request more info on this from the Governor's Office?
JBK
May 23, 2008
GOVERNOR PLANS TO PROPOSE TRANSMISSION TAX IF TRAIL LINE IS APPROVED Manchin says he wants to protect interests of all West Virginians
Contact: Lara Ramsburg, 304-558-2000
CHARLESTON, W.Va. – In response to a Freedom of Information Act Request from the Sierra Club of West Virginia, the Governor’s Office has released information on a proposed transmission tax that Gov. Joe Manchin intends to pursue should either the federal government or the state Public Service Commission approve the TrAIL Line project.
“This is something I have been thinking about and discussing for some time, primarily because of the possibility of the federal government superseding any decision that may be made on the state level,” Manchin said.
In May 2007, the Federal Energy Regulatory Commission (FERC) issued an order interpreting the Energy Policy Act of 2005 to say that the FERC had the power to issue a permit for construction of a new power line even if a state lawfully denied a site transmission application.
“If the line goes through, I want to do all that I can to make sure that we have a plan in place that will provide a benefit to the communities affected, and the state as a whole, for providing a key piece of America’s energy infrastructure.”
The governor’s proposed plan comprises four components: - Rate reductions for West Virginia’s citizens so that they will pay less, not more, for the power they will receive from the line. - Extra revenue for the counties that house the line. - Extra revenue for the state that will allow it to provide additional services to all its citizens. - Free electricity for all landowners who are affected by the placement of the line.
“If the TrAIL line is approved, either by the PSC or the federal government, we will stand ready to make sure that our citizens aren’t taken advantage of and instead receive a benefit from its placement in West Virginia,” Manchin said.
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