The Path of Least Resistance Doesn't Exist

Here's another transmission battle that's heating up, this time in Florida.

NextEra wants to build a 176-mile transmission project across seven counties in north-central Florida.  Finding out WHY they think they need to build this project is elusive.  The only thing certain is that NextEra went sneaking around trying to buy rights of way and build its project before opposition developed.  The Tallahassee Democrat nipped that plan in the bud, and opposition blossomed.  Lots of opposition.

Local governments have been hard on NextEra, and rightly so.

Jefferson County Commission Chair Betsy Barfield was sharper in her opposition to the project.

“This is not an ask. This is ‘we’re tired of messing with you and this is what you need to do,’” she said in an interview. “The utilities, they really are the big gorilla and they’re the ones that think they can run roughshod over everybody. NextEra has not been a good community partner at all.”

Jefferson Commissioner Walker was there but said by that time the company was already far along in developing its plan without input from local officials. He’s driven his proposed route with NextEra's Bryant.

“I showed him the exact route but getting information from them is hard to do. I think they want to take the path of least resistance,” Walker said. “They should have communicated with every county along the way and got our input on it.”

But they didn't.  NextEra tried to fly under the radar while selling "benefits" to impacted counties.

Property taxes associated with it could top $17 million in both counties over 30 years, with as much as $960,000 accrued in the first year. During the line's construction, 200 local jobs will be created and business to hotels, restaurants and stores could see an uptick.

Gosh, where have we heard these tired claims before?  I know!  It's part of every lame transmission project everywhere.  And what have we discovered?  The tax benefit claims are overblown.  Utilities are taxed at different rates on a state level and the distribution of benefits often siphons them away from affected localities.  Actual benefits are always less than proffered.  But let's look at that claim... $17 million divided by two counties = $8.5M each further divided by 30 years = $283,000 per year per county, further diminished by state utility tax policies.  Doesn't sound like much, does it, especially when offset by lowered property tax values for properties affected by the project, who can petition to have their assessed value lowered because of the depreciated value of their properties when crossed by a high voltage power line.  These counties would be lucky to break even, tax wise.  Oh, but wait!  Local jobs will be created by the transient workers on location to build the power line who will stay at local hotels, eat at local restaurants, and shop at local stores.  But 200 jobs?  It's going to take 200 temporary employees to serve a couple hundred line workers for a few weeks or months, before they move on?  This is utterly ridiculous, as transmission company claims usually are.

The county governments proposed a re-route, but NextEra lied about its viability.

NextEra has said the Highway 27 route was not viable because it would require co-locating with Duke Energy, a major utility competitor, and working within Florida Department of Transportation easement restrictions. A path completely down I-10 wasn’t workable because of existing development on private property near Tallahassee.
Barfield said after being told by Tim Bryant, NextEra’s senior manager of external affairs and new development, FDOT had denied their request to use Highway 27, she spoke with agency officials.
“They never told NextEra no, that they couldn’t do that,” she said. “Frankly, I don’t like people lying to us. To straight up lie? That’s just unprofessional and unethical." 

FDOT spokesman Ian Satter confirmed NextEra has not approached the agency with plans to consider Highway 27.
“Gulf Power has contacted our department to make us aware they will submit permits to cross state roads,” Satter said.

Oh, no, NextEra, you didn't!  You lied to local governments?  Lying about the viability of alternative routes doesn't work.  Just ask Transource, whose posturing against using existing transmission rights-of-way has pushed the company into the desperate position of trying to settle with opposition to build on those previously "unworkable" routes in order to avoid having its project denied outright.  My Magic Eight Ball tells me NextEra may soon find itself in the same position.  Seems like NextEra is simply opposed to sharing its golden egg with Duke Energy.  Building new transmission is a profit center for utilities, a golden egg of long term riches, where the utility collects a generous return on its investment over the decades of a project's useful life.  It's nothing more than a grandiose mortgage, and electric ratepayers are making the payments.

So, what's a company to do when the opposition tiger has escaped its cage and none of the proposed routes are viable?  Go underground.  If Tallahassee is looking for transmission that can withstand 130-mph winds, how about transmission that can withstand winds of any velocity?  NextEra will say it's too expensive to bury the project and ameliorate the opposition.  But how much money will it spend, and how much time will it waste, trying to overcome opposition?   Where's the tradeoff, where's the sweet spot when the cost of opposition equals the cost of undergrounding?  It's about double the cost of the project.  If the project is too expensive to be prudent if buried, then maybe it's just not prudent at all.

Keep fighting, Florida!