As Public Service Commission hearings begin on a multi-state power line that would cross 14 West Virginia counties, state lawmakers are again studying Gov. Joe Manchin's plan to tax such projects.
CHARLESTON, W.Va. -- As Public Service Commission hearings begin on a multi-state power line that would cross 14 West Virginia counties, state lawmakers are again studying Gov. Joe Manchin's plan to tax such projects.
Manchin general counsel Jonathan Deem took lawmakers' questions Monday on the governor's proposal, which would tax new transmission lines of at least 500 kilovolts.
Such power lines face strong opposition. PSC officials on Monday held a status hearing to discuss how they'll handle the Potomac-Appalachian Transmission Highline (PATH) case. More than 250 parties -- including families, county commissions, companies and environmental groups -- have gotten approval to intervene in the PATH case.
Earlier this year, legislation to tax high-voltage, long-distance power lines was introduced at Manchin's request. It never made it to either the House or Senate floor for a vote.
The governor wants to make sure "West Virginia is sufficiently compensated for bearing the brunt" of multi-state power lines, Deem said.
But lawmakers on Monday cited several worries about the plan. They asked whether it would drive up consumers' electric bills, and if it would violate the U.S. Constitution's interstate commerce clause, which says Congress must regulate commerce among the states.
"I just want to make sure that if we end up doing this, that the people in West Virginia and especially the people [in the affected areas] understand what the benefits are and what the negatives are," said Delegate John Doyle, D-Jefferson.
Delegate Nancy Guthrie, D-Kanawha, asked whether other states have imposed similar taxes. She also questioned why the tax legislation is needed now, before PATH and another high-voltage line, the Trans-Allegheny Interstate Line (TrAIL), are built.
"Aren't we putting the cart before the horse?" she asked.
CHARLESTON, W.Va. -- As
Public Service Commission hearings begin on a multi-state power line that would cross 14 West Virginia counties, state lawmakers are again studying Gov. Joe Manchin's plan to tax such projects.
Manchin general counsel Jonathan Deem took lawmakers' questions Monday on the governor's proposal, which would tax new transmission lines of at least 500 kilovolts.
Such power lines face strong opposition. PSC officials on Monday held a status hearing to discuss how they'll handle the Potomac-Appalachian Transmission Highline (PATH) case. More than 250 parties -- including families, county commissions, companies and environmental groups -- have gotten approval to intervene in the PATH case.
Earlier this year, legislation to tax high-voltage, long-distance power lines was introduced at Manchin's request. It never made it to either the House or Senate floor for a vote.
The governor wants to make sure "West Virginia is sufficiently compensated for bearing the brunt" of multi-state power lines, Deem said.
But lawmakers on Monday cited several worries about the plan. They asked whether it would drive up consumers' electric bills, and if it would violate the U.S. Constitution's interstate commerce clause, which says Congress must regulate commerce among the states.
"I just want to make sure that if we end up doing this, that the people in West Virginia and especially the people [in the affected areas] understand what the benefits are and what the negatives are," said Delegate John Doyle, D-Jefferson.
Delegate Nancy Guthrie, D-Kanawha, asked whether other states have imposed similar taxes. She also questioned why the tax legislation is needed now, before PATH and another high-voltage line, the Trans-Allegheny Interstate Line (TrAIL), are built.
"Aren't we putting the cart before the horse?" she asked.
Deem noted that TrAIL has already been approved. West Virginia has "more sense of urgency" than its neighbors, he added.
"So far, no other state's been asked to shoulder a burden like West Virginia has," he said.
But opponents believe the tax plan is "a smokescreen to convince the Public Service Commission to approve the transmission lines," said Jim Kotcon of the West Virginia Sierra Club.
"The tax is intended to make the transmission lines acceptable to West Virginians," he said. "In actual fact, West Virginians don't benefit from the tax. The simplest way to benefit West Virginians is don't build the lines."
Kotcon believes the proposed tax could violate the Constitution's interstate commerce clause because out-of-state customers would have to pay West Virginia taxes.
"[The tax] is clearly designed to have minimal impact on West Virginians and disproportionately collects revenues from out-of-state customers," he said.
He and other critics also point to a ruling from the 4th U.S. Circuit Court of Appeals issued earlier this year that says states can reject applications for new power lines that are unneeded.
Reach Alison Knezevich at alis...@wvgazette.com or 304-348-1240.
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