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GOV. MANCHIN'S POWER LINE TAX DIES IN LEGISLATURE |
| (04/03/2009) |
| OPPONENTS CLAIM FEW BENEFITS FOR CONSUMERS By Bill Howley Early in the current legislative session, Governor Manchin introduced one bill in the WV Senate, SB505, and another one in the WV House of Delegates, HB3000, that would have taxed the extra high voltage power lines including the proposed TrAIL and PATH lines. The real purpose of the tax was not to generate new tax revenue, but to provide some incentive for the WV Public Service Commission to approve the lines. By themselves, the PATH and TrAIL lines provide no benefits, only costs, for West Virginians. The power companies needed this tax to convince the Public Service Commission that PATH and TrAIL would provide some benefit, any benefit, to West Virginia. Neither of the Governor's tax bills passed into law during the regular session. The Senate bill never left the Senate Finance Committee. The House bill failed to meet the April 1 deadline for being voted out of the House. Del. Jonathan Miller (R-Berkeley) proposed an amendment to the House bill that provided for direct payments to land owners affected by the lines and for increased taxes on the power lines. The Governor and the power companies could not accept either of these conditions, and effectively stopped all action on the bill. American Electric Power and Allegheny Energy, the two power companies that want to build PATH, have indicated that they will file their application for a certificate of need with the Public Service Commission in April. Both the Governor and the power companies had hoped to present the PSC with the brand new power line tax at the end of the legislative session. Now, the power companies may have to delay their application further, because the Governor may try to reintroduce his power line tax bill in a special legislative session. Anti-PATH groups across West Virginia have pledged to fight the power line tax again in a special session. It makes no sense for the Legislature to be taking action on this tax now. The TrAIL line will not go into service before 2012, and the PATH line wouldn't be activated until 2014. No tax money would begin to flow before 2012. We are facing a period of dramatic change in electrical generation and transmission right now. The Legislature's best option at this point is to refer the power line tax for study over the summer. Interim committees could hold public hearings where experts could discuss a range of options for solving regional power problems. This kind of study would provide the basis for thoughtful policy making about the need for any new transmission lines in the state. See The Power Line
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