Coalition for an
Underground Alternative

 

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© Copyright 2008

 

 

 

 

 

Cost Differential


 

There is a cost differential between overhead transmission lines and underground transmission lines. Underground lines are more expensive to construct. We don’t know what the exact cost of either option will be. The numbers that ATC provides fluctuate greatly. Based on the information that the ATC provided to the DOT in their 2007 report, we can estimate that the cost differential, amortized over 20 years, will be less than a can of soda a month per ratepayer.

 


     

Initial construction costs are only a portion of the total cost one needs to consider when weighing the options. The societal costs that accompany overhead lines can include:

 

 

 

Prevention of new development & redevelopment: Overhead lines decrease development opportunities by creating blight and by restricting the property owner’s options to expand, rebuild, or landscape in the manner he/she chooses.

 

Decreased Property Values: Some real estate experts claim that those located on a transmission route will see a decrease in property value of up to 14%. Properties adjacent to the route can also suffer financial consequences from the harmful aesthetics of the line. A loss of property value will translate into reduced funds for social services, such as schools, police and fire protection.

 

Increased Property Taxes: In order for municipalities to recoup their losses from the decrease in property values, your property taxes will likely go up. This increase will be spread across the entire city/county.


In addition to Initial Construction Costs and Societal Costs,

consider the following:

 

Repair (Transmission Line): Overhead lines are much more susceptible to damage than underground lines. Wisconsin blizzards, tornados, thunderstorms and high winds all can damage overhead lines. This damage is likely to be coupled with loss of power for some period of time. Similarly, birds or other wildlife can cause the same types of damage. The cost to repair these damages are passed along to the ratepayer.

 

Repair (Crash Barrier): These devices introduce new costs for installation as well as routine repair and maintenance each time they are hit. "Any barriers used to mitigate the loss of clear zone would require a large amount of additional maintenance with ATC being obligated to pay for those costs. There are also motorist costs (e.g., property damage and injury) for vehicles that would hit a barrier in addition to motorist delay associated with the required repair and maintenance efforts for the barriers." (WisDOT p.8)

 

Relocation: Of the 146 poles that would be placed on the Beltline Corridor, 85 poles have a varying level of risk of being relocated. That is 58% of the line. That means that construction causing motorist delay, and additional cost, does not end when the line is ‘completed.’ Construction will be a recurring expense.

 

Right of Way Acquisition: There is a very limited amount of right of way that exists on the proposed Beltline Route. Plans for future road expansion is certain to cause many of the poles to be relocated. This would involve acquiring additional right of way from the many businesses that line the Beltline. This costly acquisition would be at ratepayer expense.