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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