$3B, 550-mile
power line proposed
Feb 5, 2006 - Record, Northern New Jersey
Author(s): Marc Levy, The Associated Press
HARRISBURG, Pa. In an ambitious $3 billion plan, the nation's largest
power generator has proposed building a 550-mile power line stretched
atop 13-story towers to bring surplus electricity from coal-fired plants
in Appalachia and the Midwest to the power-hungry Eastern Seaboard.
The initial proposed route would take the high-voltage power line
through scenic mountain areas of West Virginia, through Maryland's
midsection and across Pennsylvania's Amish country on its way to New
Jersey.
Even if state regulators balk, that might not be enough to stop the
project.
American Electric Power Co.'s plan could provide one of the first
tests of a new law, enacted last year, that allows federal regulators to
use the power of eminent domain to override states that don't approve a
transmission line that has a demonstrated interstate interest.
Already, environmentalists and clean-energy advocates along the
potential path of the towers are sounding alarms over the proposal,
which will face years of scrutiny before the line's operative target
date of 2014.
Many will watch the plan closely, from regulators measuring the
benefits for their states' ratepayers to homeowners worried about
property values.
Columbus, Ohio-based American Electric, which unveiled the proposal
last week, cautioned that the proposed route could change.
American Electric is proposing to build the highest-voltage line yet
in Pennsylvania, Maryland and New Jersey. Industry officials say new
transmission lines are needed to meet growing power demands and
expanding electricity markets.
Primarily, the line would serve the corridor from northern New Jersey
through Philadelphia and Baltimore to Washington, D.C., where
electricity prices are comparatively high and power plants difficult to
build.
The 765-kilovolt line would carry 50 percent more capacity than any
other power line in the mid-Atlantic and require clearance of 100 feet
on each side.
An important first step in the project will be an analysis of the
line's service and price benefits by PJM Interconnection, the Valley
Forge, Pa., company that operates the mid-Atlantic electricity grid.
Then, state utility regulators would decide whether the cheaper
electricity would offset the loss of land and environmental damage that
could result from building the line, state consumer advocates said.
Last week, American Electric began seeking federal approval to have
ratepayers who benefit from the power line subsidize the cost of the
project. And it asked the federal Department of Energy to give the power
line's proposed corridor a special designation that raises the
possibility that the Federal Energy Regulatory Commission could override
the eminent domain authority of state regulators who oppose the project.
State consumer advocates in Pennsylvania and New Jersey say it is too
early to tell whether the project would benefit ratepayers there.
John Hanger, a clean-energy advocate and former utility regulator in
Pennsylvania, said people would lose their land for the benefit of the
utility.
The cheaper, more sensible solution is to build a power plant in New
Jersey, he said. "I'm sure AEP believes that this line will increase its
revenue and profits," Hanger said. "But the question is, is that enough?
This line must meet the public interest."
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