W.Va.: Deal Reached in Power Line Case

CHARLESTON, W.Va. -

Allegheny Energy and the state Public Service Commission's Consumer Advocate Division reached a settlement Monday over the routing of a new multistate power line in northern West Virginia that would supply free electricity to affected residential landowners.

"We think it's good," Consumer Advocate Byron Harris (nyse: HRS - news - people ) said of the four-part settlement. "We think we have hopefully captured for landowners many of the conditions they requested if the line is to be built."

Affected landowners would receive up to 1,000 kilowatts of free electricity a month for the life of the line. The deal is worth about $70 a month and only applies to residential customers.

The line is expected to affect 500 property owners, but Allegheny Energy (nyse: AYE - news - people ) spokesman Allen Staggers said he didn't know how many customers would be eligible for the free electricity.

The provision is a first for Greensburg, Pa.-based Allegheny Energy. Staggers and Harris likened it to natural gas companies providing free gas to property owners when wells are drilled.

"It's one of the ways we can address some of the concerns about just and fair compensation since this line will be on the property for a long time," Staggers said.

The settlement also says the utility will not clear cut the line's right of way and will not conduct aerial herbicide spraying to control vegetation along the route.

In exchange, the consumer advocate's division will not oppose the need for the transmission line and will tell the PSC that a proposed route through West Virginia is acceptable.

"We don't support the power line," Harris said. "We just don't contest it."

The Public Service Commission starts hearings Wednesday on whether the power line is needed.

Allegheny Energy has to convince the PSC that the Pennsylvania-to-Virginia line is needed before it can move ahead on the project. The line would be built by Allegheny Energy subsidiary Trans-Allegheny Interstate Line Co.

"The two big thresholds we have to cross in our filing with the PSC is there is a need for the line and ... we picked an appropriate route," Staggers said. "This agreement addresses both of those."

Consultants hired by the state have urged the PSC to reject the proposal.

In documents filed with the PSC, they question whether the line would help West Virginia consumers and suggest the interstate line is not the most cost-effective option for easing potential power outages in the Eastern United States.

PJM Interconnection, the organization responsible for the transmission grid for a 13-state area, has said without the 500-kilovolt, 240-mile transmission line between Washington County, Pa., and Loudoun County, Va., the stability of the grid and reliable flow of electricity within the region could not be guaranteed.

The Trans-Allegheny Interstate Line would pass through Monongalia, Preston, Tucker, Grant, Hardy and Hampshire counties and would be built by Allegheny and Dominion Energy of Richmond, Va.