Frequently asked questions about the power lines

Learn the facts about the transmission project.

Topic sections

Regulatory process

General

Electromagnetic fields (EMF)

Rights of way and easements

Why did Big Stone II reach a settlement agreement with the Minnesota Department of Commerce (DOC)?   Big Stone II and the Minnesota Department of Commerce reached a settlement agreement on August 31, 2007. The agreement included provisions relating to mercury emissions control, carbon dioxide offsets, the purchase of Community-Based Energy Development (C-BED), water issues, and energy-efficiency efforts. The settlement changes the DOC's opposition to the Big Stone II Project to a position of support. The five Big Stone II participants are committed to achieving the settlement's provisions.
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What are the DOC settlement provisions that relate to carbon dioxide offsets?  The Big Stone II participants agreed to offset the carbon dioxide emitted from the plant that is attributable to serving Minnesota customers. The offsets may be achieved in a number of ways or combination of ways including:

The agreement will remain in force for four years following start-up unless a Minnesota or federal greenhouse gas mitigation program is instituted in that timeframe.
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What is the Minnesota Administrative Law Judge's (ALJ) recommendation?  On August 15, 2007, the Minnesota Office of Administrative Hearings issued a recommendation that the Minnesota Public Utilities Commission approve the participants' application for a transmission certificate of need (CON). The recommendation is based on testimony the ALJs received from all parties during December 2006.
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Why is the ALJ's recommendation important?  The ALJ recommendation is based on the most in-depth examination of Big Stone II and Big Stone Transmission. The recommendation confirms that the projects represent the participants' least-cost option of meeting load requirements.
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Why has the Minnesota PUC issued a new CON argument and deliberation schedule?  Due to the exit of GRE and SMMPA from the project, the Minnesota PUC has required the participants to rerun their resource models. The participants are using a smaller plant size, a potential carbon tax and the conservation goals and renewable resource standards of the Minnesota Next Generation Energy Act of 2007.
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General

How are the transmission studies being conducted? Transmission studies are being conducted through the Midwest Independent System Operator. Otter Tail Power Company is doing the work as a contractor to MISO. We also will hold meetings with utilities and other interested stakeholders as the study results become available.
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When will the studies be completed? The major transmission facilities and studies were completed mid-2006. We are currently in the process of detailed studies.
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What transmission alternatives are you studying? Currently we are examining two alternatives for the Big Stone Project.

  1. The first alternative would build a new line from Big Stone, S.D. to Ortonville, Minn., then rebuild and increase the voltage on the line from Ortonville to Johnson Jct. to Morris, Minn. This line would operate at 230kV.
  2. The second alternative would build a new line from Big Stone, S.D. to Willmar, Minn. This line would be at a voltage of 230kV.

Common to both alternatives: A new line from Big Stone, S.D. to Canby, Minn. and a rebuild and voltage upgrade on the line between Canby, Minn. and Granite Falls, Minn. This line would be constructed for a voltage of 345kV, but initially operated at 230 kV until other regional facilities are constructed .

Note: If you notice on the transmission corridor map (pdf) there are two corridor options within some of these options. These are options that are being reviewed. Our preference would be to build on the South Dakota side to Canby, Minn. and also to build the Morris line rather than the new line to Willmar. The decision on final corridor and route is made by the South Dakota and Minnesota Public Utility Commissions.
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How much transmission might be in Minnesota? While we don't know the final corridor and route, we expect the transmission project to be between 140-160 miles. Of that, between 100-120 miles is expected to be in Minnesota.
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What might be the cost of transmission? Estimates today expect it to be at $225 million to $275 million .
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How would the transmission costs be paid/allocated? Because of the uncertainty of federal policy regarding transmission cost recovery and cost allocation, it's difficult to determine the exact way this would occur. However, we would expect that the project participants' customers would bear the majority of the costs over time.
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Will upgraded or new transmission for Big Stone II also be able to carry renewable energy? The transmission studies will determine first what is needed for the plant and then what would be available for renewable or other generation.
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Electromagnetic fields (EMF)

What would the EMF exposure be with these transmission facilities? Although links between power lines and health problems haven't been proven, we'll take precautions in the line design and placement of the conductors to minimize EMF exposure.
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Rights of way and easements

What is an easement?
An easement is a permanent land right acquired by a person or party to use the land or property of another for a special purpose. Landowners are paid a fair price for the easement and can continue to use the land for most purposes, such as agriculture and lawns.
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What is the difference between a right of way and an easement?
These terms are used interchangeably. But an easement is the document that transfers the permanent land right, and the right of way is the land area described in the easement on which the facilities are located.
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What easement rights will be needed for the power line construction?
A transmission line project requires an easement that allows for surveying, constructing, operating, and maintaining a transmission line across a defined strip of the landowner's property.
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What landowner activities are allowed within the easement area?
Land within the right of way may be used for any purpose that does not interfere with constructing or operating the transmission line. In agricultural areas, the land may be used for crop production and pasture. In areas where the land will be developed, streets, lawn extensions, underground utilities, curb and gutters, etc., may cross the right of way with the utility's permission.
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What are the main building and planting restrictions in the easement?
The primary building and planting restrictions prohibit:
1) Constructing buildings or structures within the right-of-way strip.
2) Planting tall-growing species of trees in the right-of-way strip.
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Why can't buildings be placed in the right of way?
If a building or structure located within the right of way were to catch fire, it could burn into the power line and take the line out of service for an extended period. When a power line is out of service it affects thousands of people, who can't heat and light their homes or businesses. At certain times of the year, especially during winter months, outages not only are an inconvenience, but they may become life-threatening. Utilities have determined that the best way to prevent the possibility of these types of outages is to restrict placing structures within the right of way. In addition, if an outage occurs, lineworkers must be able to get to the line. Buildings or other structures within the right of way could hamper line maintenance crews.
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Why doesn't the utility buy a strip of land for the line instead of taking an easement interest?
Utilities occasionally purchase rights of way for transmission lines in fee title. However, we have found that in most cases, landowners prefer to retain ownership of the property so they can maintain better control over its use, subject to the limitations of the transmission line easement. In many cases, this provides the landowner with continued use of the property for such things as agricultural operations, yard extensions, or open areas adjacent to residences. In each of these cases, the property continues to contribute positively and productively to the owner as well as to the public. Utilities simply must protect their rights to operate transmission lines. In most cases, adjacent uses pose no threat to the lines nor do they create hazards to the public.
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How will the presence of a transmission line on my property affect the value of my property?
In recent years, the utility industry and others have conducted numerous studies evaluating this issue. Specifically, does the proximity to power lines cause a loss of property value? All of the studies that we have reviewed to date—including regional and national studies that have been completed by competent certified appraisers using valid appraisal analysis methods—have shown no significant loss in value as a result of the transmission line being in near proximity to the property. These studies generally use paired sale analysis, which compares properties that have power lines located on them or that abut power lines with those properties where no power lines are present. These properties also are compared on the basis of similar size, similar features, and amenities.
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Why don't I get paid as much for a transmission line easement as landowners are paid for allowing wind turbines on their property?
Wind developers represent entrepreneurial enterprises. They are buying property rights that contain a proven fuel source, which is wind. And, unlike a utility, they are not regulated by state or federal agencies in the expenditures they make or the rates they charge. As entrepreneurs, they assume more investment risk but also have the potential to achieve higher rates of return on their investments. Wind farm developers do not fall in the category of essential services and, therefore, do not have the right of eminent domain so, they can pay landowners more than fair market value for rights to their property. On the other hand, regulatory commissions set a utility's rates and return on equity. Each major transmission line project must undergo a thorough review in which state regulators analyze the need for the project and its cost and environmental impacts. The project cannot proceed without necessary state approvals. Eminent domain laws in Minnesota and South Dakota base compensation for easements on the change in fair market value before and after the easement is taken. Because a utility's costs are passed on to customers, or ratepayers, it is only fair that landowners are compensated based on the property's fair market value, whether the easement is acquired through negotiation or eminent domain proceedings.
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