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How Electric Utilities Obtain New Transmission Line and Pipeline Rights-of-Way

Highlights

During the certification process under either the Power Plant Siting Act or Transmission Line Siting Act, transmission line and pipeline “Corridors” are established by the applicant (who becomes the licensee after certification).  Corridors are proposed areas within which linear facility (e.g., transmission line and pipeline) rights-of-way are to be ultimately located.  "Right-of-way" means land necessary for the construction and maintenance of a linear facility. The right-of-way is located within the certified corridor and is identified by the applicant after certification, in documents filed with the Department prior to construction.  After all property interests required for the right-of-way have been acquired by the licensee, the boundaries of the area certified narrow to only that land within the boundaries of the right-of-way.  The remainder of the corridor has no further legal significance in relation to the certified project.

There are several ways in which electric utilities get the land rights they need for putting in new transmission line and pipeline rights-of-way.  Typically, they approach the property owner and offer to buy the necessary land rights at fair market value and an agreeable sale is negotiated.  Sometimes developers plan ahead and dedicate or donate rights-of-way for this type of necessary utility infrastructure. 

Occasionally, if a voluntary purchase is not successful, utilities may have to use what is called the “power of eminent domain.”   A simple definition of eminent domain is the power to acquire private property for public use.  This power, which has been given to electric utilities by the State in Section 361.01, Florida Statutes, authorizes a utility to legally acquire the right-of-way even though the owner does not want to sell. 

While exercise of the power of eminent domain is usually not required to obtain the necessary land rights for a new transmission line or pipeline right-of-way, utilities have this option available to them under Florida law because power lines and pipelines benefit the community at large.  Since these types of utility facilities are linear in nature, a continuous right-of-way is necessary, preventing the utility from simply purchasing the necessary land rights from another, more willing property owner. 

When electric utilities are successful in negotiating for a new right-of-way, they typically work cooperatively with the landowner to try to make sure the new utility facility is as compatible as possible with existing or planned uses of the property.  Many land uses can continue within a transmission line right-of-way as long as it does not interfere with the safe operation of the line.  Golf courses, parking lots, hiking and equestrian trails, row crops, citrus orchards, and cattle pastures are examples of ongoing land uses often found within power line rights-of-way.

When electric utilities are unsuccessful in negotiating with a landowner to acquire the property interests to construct the facilities needed to serve their customers, the power of eminent domain can be used to condemn those property interests. The eminent domain process is governed by the procedures set forth in Chapters 73 and 74, Florida Statutes, and includes the right of the landowner to be represented by counsel in an appropriate Florida Circuit Court proceeding.  To be successful in an eminent domain process, the electric utility must first establish there is a reasonable need for the new facility.  Then the utility must show that in its route selection process it has properly considered and evaluated costs, safety, long-range area planning, environmental factors and alternative routes.  Once it is established that the utility facility is needed and the route selection process was properly conducted, the utility is granted the necessary land rights through the exercise of eminent domain, and the utility must pay full compensation for the fair market value of the land rights acquired.  An appeal process is available, via the appropriate Florida District Court of Appeal.

Oversight of electric utilities’ planning of their transmission systems to ensure they are providing a reliable, safe and cost-effective coordinated grid is handled by the Florida Public Service Commission under its jurisdiction granted in Chapter 366, Florida Statutes.

 

 

Last updated: December 19, 2008

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