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Michigan isn’t the only state actively considering how existing eminent domain laws relate to new transmission lines.  After  hotly-contested legislative debates, Montana HB 198 is now on Governor Brian Schweitzer’s desk.  According to recent news reports, the Governor will sign the bill.

A legislative fix in the form of HB 198 came after a court enjoined transmission line developer Tonbridge Power Inc. of Toronto from constructing the line.  According to the court, non-utility developers like Tonbridge did not have eminent domain authority under then-existing Montana law to take private property for a public purpose.  HB 198, which can be read here, expands condemnation authority to those non-utility parties that have received a certificate under Title 70, Chapter 30 of Montana law. 

HB 198 has been criticised for not including more to protect landowner rights.  Governor Schweitzer, however, has defended the bill; he asserts that passage is necessary in order to protect an estimated 1,575 jobs associated with construction of the transmission line.

Today, the Michigan Public Service Commission denied the request of ABATE and the MMPA/MMEA to “stay” the effectiveness of the Commission’s February 25th Order.  That February 25th Order permits ITC to construct a transmission line along a 140 mile long route that loops through the “Thumb” of Michigan’s lower peninsula.

According to the seven page Order issued today, the parties who sought suspension of the Commission’s February 25th Order “have not made a showing that they will prevail on the merits on appeal, let alone a strong showing.”  The Order which permits construction of the line will, therefore, continue in full force; the appeals by ABATE and the MMPA/MMEA, however, remain pending.

energy-farmer.org recently reported that the Michigan Public Service Commission had issued a certificate to International Transmission Company, or ITC, to construct a 140 mile long transmission line in Michigan.  The line would begin around Frankenmuth, loop around Bad Axe, and then head south through Sanilac and St. Clair Counties.  The certificate issued to ITC by the MPSC permits construction of a transmission line along what ITC had identified as its preferred route.  That route understandably concerned landowners, because it will require the condemnation of ag land despite the fact that existing rights-of-way were nearby.  Other parties, notably “ABATE” (an association of large industrial users of electricity) and the MMPA/MMEA (associations of municipal and cooperative electricity generators) raised different concerns; those concerns centered around whether the proposed line was too large and costly, and whether additional authorization to construct the line was necessary.

Both ABATE and the MMPA/MMEA recently filed appeals of the Commission’s February 25th Order authorizing construction of the line.  As part of their appeals, those parties have also asked the MPSC to ”stay” the effectiveness of the MPSC Order until a panel of judges can hear the appeal.   The MPSC is expected to consider the request for stay in the next few weeks.

Construction of a massive 140 mile long, 345,000 volt double-circuit line was approved by the Michigan Public Service Commission today.  The line will be constructed by International Transmission Company, commonly known as ITCTransmission or just ITC.  Approval came over the objections of landowners along the proposed route, who believed that  existing rights-of-way could be used as an alternative to condemning more ag land.  Landowners also voiced concerns that the transmission line would cannibalize rather than support wind energy generation because the line’s route would run through the middle of some of the best wind resources in the state and thereby compete for land that might otherwise be devoted to wind turbines. 

According to the MPSC’s Order at pages 54 & 55:

Both [the proposed route and the alternate route] cost approximately the same amount to construct, are roughly the same length, and use the same width for the right-of-way.   Further, though both the proposed and alternate routes seem to fulfill [statutory requirements], the Commission finds that the proposed route has greater capability to facilitate the transmission of wind-powered electricity by virtue of its proximity to the source of power (thus making interconnection less expensive); and the proposed route is somewhat more reasonable than the alternative route by virtue of its lesser impact on residential areas and wetlands . . . the Commission [therefore] finds that the proposed route appropriately balances the goal of increasing the use of renewable energy with the goal of protecting agricultural lands.

By its very nature, land used for farming has few homes and wetlands.  Some tension exists when it is found that the use of ag property for transmission lines  is also consistent with “the goal of protecting agricultural lands.”  Nevertheless, wind turbines and transmission go hand-in-hand.  The Commission took the time to consider the positions of the parties, and, as in all difficult deliberations, no perfect solution existed.

The Michigan Public Service Commission’s Order issued an “expedited siting certificate” to ITC.   As a result of the issuance, “International Transmission Company, d/b/a/ ITCTransmission, is authorized to construct the transmission line along the proposed route.”  Some parties may appeal the ruling; absent a “stay” of the Order, however, ITC’s surveying a land acquisition activities are expected to begin in earnest.

The Muskegon County Wastewater Management System is now seeking proposals from utility-scale wind developers to place a wind farm on 11,000 contiguous acres held by the County.  The property is less than 15 miles from the shoreline of Lake Michigan, a little more than midway down the western shore of Michigan’s lower peninsula.

More information about the soliciation can be found in the official press release, which can be read here.  Proposals from interested developers are due no later than May 1.

One of the biggest challenges wind generated energy faces is its distance from the load to be served:  Wind energy is primarily generated in rural areas, while demand for the electricity is typically located many miles away in large urban areas.  New transmission lines are often necessary to connect the source with the demand.

That reality is in the process of playing out in the Thumb of Michigan’s lower peninsula.  While some of the best inland wind resource is along the northern shore of the Thumb, existing transmission can not support the wind energy that can be generated there, which is estimated to be between roughly 3,400 – 4,500 Megawatts.   Consequently, ITCTransmission, a privately operated company which owns the transmission facilities in Michigan, has sought the Michigan Public Service Commission’s approval to construct a 140 mile long, 345 kV double circuit transmission line which would permit the wind energy potential of the Thumb to be unleashed.

Unfortunately, landowners focused on leasing their property to wind developers don’t typically think of the transmission lines that may soon follow and the conflicts that can be created.  For example, while the footprint for turbines is relatively small (2 – 3 acres, including supporting area for things like access roads), transmission lines pose the threat of new poles in fields and overhead conductors which might interfere with farming operations.  Turbines and overhead lines might also compete for the same land — a farmer or rancher that leased property expecting a turbine to be placed might actually find that the same land is necessary for a transmission line, and that the land might even be taken in a condemnation proceeding.  While these issues aren’t considered fatal by those who wish to lease their land for wind development purposes, it’s best to think about the issues that may follow before they are actually encountered. 

These and many other farming-related  issues have been the subject of extensive debate in ITC’s Michigan proceeding.   The question of where a line is best sited is now before the Michigan Public Service Commission.  Howard & Howard represented many landowners in the regulatory proceeding; the goal of the effort was to minimize the impact that a new transmission line would have on farming in the area. 

Testimony submitted by one farmer concerned about transmission line impacts can be viewed here.  The Initial Brief and Reply Brief  of the Affected Landowners are available by following the links, and other documents filed in the proceeding can be read here (some are large files — please be patient with the downloads).

Howard & Howard Attorneys PLLC recently assisted a group of Benzie County, Michigan landowners with their wind lease negotiations involving Duke Energy. 

Duke had previously negotiated for land rights in adjacent Manistee County.  When Duke began to cross the county border into Benzie, the landowners there decided it was in their interest to negotiate as a group and to seek experienced counsel to review the documents that had been proposed by the developer.

Discussions with Duke reached a constructive conclusion just a couple of months later, and almost all of the group’s landowner members soon began to close the deal with Duke.  One of the landowners summed up his experience this way:  “I have no doubt that with your help we have negotiated a better contract and I thank you for all of your help and patience.”

The process benefitted all involved.  Best wishes to the Benzie County landowners and to Duke.

Muskegon County, Michigan hopes that favorable winds will be blowing across the County’s property — all 11,000 contiguous acres of it.

mlive.com reports that Muskegon County will solicit developers by the end of this calendar year to place a project of up to 150 MW in size on property currently managed by the County’s Wastewater Management System.  Fourteen developers have already shown interest in the opportunity.

Muskegon County is pursuing a strategy much like the one that’s regularly advocated by Energy-Farmer.org:  Go out and find a developer — don’t be satisfied with the first developer that finds you.

More on Muskegon County’s proposed project can be found here:  Muskegon County Ready to Move Forward with Wind Farm.

Just a little more than a week ago, Energy-Farmer.org posed the question of whether rougher sledding was ahead for the wind industry:  A comprehensive energy bill was not considered before Congress’ August recess, and the Renewable Electricity Standard (“RES”) was pulled from the bill before the larger measure began to languish.

A glimmer of hope sparkled on the horizon yesterday afternoon, though, as Senators Bingaman (D-NM), Brownback (R-KS), Dorgan (D-ND), Collins (R-ME), Udall (D-NM) and Udall (D-CO) introduced a standalone RES bill.  The RES would require utilities nationwide to produce at least 15% of their electricity from renewable sources by 2021.

An RES creates demand for renewable energy, and that demand drives development of renewable energy projects.  Everyone from turbine manufacturers through farmers owning the land upon which wind farms are placed can benefit when renewable energy projects are developed — therefore, many landowners view an RES as being in their interest.   Thirty states have seen the value in RES bills — those states have already passed renewable energy standards into law.  A federal statute would help fill the gap with respect to those states that have not yet passed an RES, and would also raise the bar on the threshold requirement in some states that have already passed an RES.

Because the “Renewable Energy Promotion Act” enjoys bi-partisan support (Susan Collins of Maine and John Ensign of Nevada are among the co-sponsors), chances are good that the bill would pass if put to a final vote.  However, a procedural vote will need to be called before a final vote occurs in the Senate, and at least 60 Senators will need to vote in favor.   Some Senators, primarily from oil-producing southeastern states, have pledged to oppose the bill.

This window of potential opportunity for renewable energy generators — and the resulting opportunities that can be created for farmers and ranchers — may soon close.   The election season is already upon us, and the momentum that has built should be expected to be lost if action is not taken soon.  If you’d like to see the RES pass, you should call or email your two Senators at your first opportunity and ask them to co-sponsor and support the Renewable Electricity Promotion Act.  A page maintained by the American Wind Energy Association will help you communicate with your Senators quickly, and it also permits you to share news of this development with your friends.  You can access the Take Action site maintained by AWEA here.

Saw an interesting post this morning on Serenity Acres Now about the changed perception of wind energy. 

It wasn’t too long ago that wind turbines were viewed with some suspicion and often subject to “Not in My Backyard” type attacks.  The last five years or so have led to a notable ”revolution” in the prevailing view.  Perhaps there’s a greater sensitivity to reliance on foreign sources of energy, maybe it’s concern over greenhouse gases, or maybe it’s just that people have had more experience with the technology and warmed to the thought that turbines philosophically fit into the agricultural landscape.  Regardless, more are viewing the technology as an important part of our energy mix.

It’s true that some will continue to object to the placement of turbines and will consider them a nuisance.  While most developers are responsible regarding such issues, there’s will be a continuing need for local and state lawmakers to be thoughtful about setbacks, sound levels, flicker and other such issues so that legitimate concerns about disruption can be minimized.  Still, the post and reflective comment on Serenity Acres Now reflect the growing perception — particularly among the next generation — that wind energy is an important part of our future and worthy of being embraced.