Overhead transmission lines have the potential to reduce the sales price of residential and agricultural property.
Texas PUC approves ETT to build Laredo-to-Rio Grande Valley transmission line
05/16/2013
By Editors of Electric Light & Power/ POWERGRID International
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The Public Utility Commission of Texas (PUCT) unanimously approved May 9 an application by Electric Transmission Texas (ETT) for a certificate of convenience and necessity to build a 345-kV transmission line from the Laredo area into the Rio Grande Valley.
The transmission project includes construction of about 156 miles of 345-kV transmission lines that will connect ETT's Lobo Substation near Laredo with substations north of Edinburg and will add two new substations along the line route. The cost of the transmission project is estimated at about $318 million.
In approving the CCN application, the PUCT also approved a unanimous settlement with nearly 100 landowners along the route, the PUCT staff and the Texas Parks and Wildlife Department. The new transmission line from the Laredo to the Edinburg area will cross portions of Webb, Zapata, Jim Hogg, Brooks, Starr and Hidalgo counties. ETT plans to construct the transmission line on steel single-pole structures, an approach supported by landowners.
The Electric Reliability Council of Texas (ERCOT) determined Oct. 11, 2011, that the project is critical for the reliability of the ERCOT system and, specifically, the Lower Rio Grande Valley. Currently, there are only two 345-kV transmission lines serving the Valley. Both of the existing lines import power from the Corpus Christi area and run parallel to the Gulf Coast, which means both are vulnerable to hurricanes and other severe weather. Work to upgrade those two lines already is underway and should be complete this summer.
ETT is a joint venture between subsidiaries of American Electric Power (AEP) and MidAmerican Energy Holdings Co. The joint venture acquires, constructs, owns and operates transmission facilities within ERCOT, primarily in and around the AEP Texas Central Co. and AEP Texas North Co. service territories.
Source: http://www.elp.com/articles/2013/05/texas-puc-approves-ett-to-build-laredo-to-rio-grande-valley-tran.html
Appraiser Notes:
Safety Concerns
The presence of high-voltage power lines near a property has long been a bane of real estate agents. Not only are most power lines unsightly and sometimes noisy, but also they can raise a number of safety concerns among buyers related to the risk of electrocution and rumors that exposure to electromagnetic fields can cause a variety of diseases, including cancer. These drawbacks have translated into consistently lower property values for homes near power lines.
Considerations
According to the Appraisal Journal, the decline in value diminishes as the distance between the home and the power line increases. Also, if the lines are partially obscured from view, the decline is also found to be less severe. However, if the view is entirely unobstructed, the price of homes as far away as one-quarter of a mile can be affected.
Expert Insight
Fifty-two of 54 real estate agents surveyed by the "Roanoke Times" in 1998 stated that high-voltage power lines lowered residential property values. However, real estate agents noted that more expensive homes were likely to suffer a disproportionately large decline in value compared with cheaper properties, a discrepancy they attributed to the selectivity of a wealthier clientele. "Cheaper property won't be affected as much, but homes in exclusive areas will lose value," said William Ward, the owner of a Roanoke real estate agency. "People who can afford to pay $200,000 for a house are not going to want to pay that much for a house near a power line. Therefore it drives the price down."
Source: http://homeguides.sfgate.com/much-power-lines-lower-real-estate-value-2979.html
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