Co-ops Stymied by Federal Land Plans (a $400,000 electric bill?)

How would you like to be staring at a $400,000 electric bill? Implausible as it seems, that’s the price tag that the average member of one Oregon electric cooperative could face, if proposed federal land policies become law. Representatives of electric cooperatives described that and other disheartening possibilities to the House Natural Resources Committee May 7, as they sought more oversight and protection from land management decisions that could leave them in the lurch. “It is beyond the time that our federal land managers work collaboratively with electric co-ops to develop common sense reform to their current practices,” said David Markham, president and CEO of Central Electric Co-op, Redmond, Ore. The hearing, entitled “Keeping the Lights On and Reducing Catastrophic Forest Fire Risk,” was more than a litany of isolated horror stories. The same panel held a hearing on similar issues about eight years ago. “Yet, proving that this issue is not a partisan one, we are here once again to resolve these issues that have reappeared over the last few years,” said Committee Chairman Doc Hastings, R-Wash. The $400,000 price tag looms for members of Harney Electric Co-op in Hines, Ore., whose 20,000-square mile territory includes a portion of sage grouse habitat. A draft assessment released in January by the Bureau of Land Management recommends burying power lines to protect the endangered species. Markham, who also is president of the Oregon Rural Electric Cooperative Association, said Harney Electric officials estimate that would cost $400,000 per member. That’s based on the BLM draft and a cost of $2 million to $3 million per mile to bury a transmission line. “Faced with this financial burden they could no longer operate their business and electric service to members would terminate,” Markham told the committee. Several committee members expressed alarm that co-ops can be held liable if a tree on federally managed property falls on their lines and ignites a fire, especially when co-ops have reported delays in securing clearance permits. For example, since 2010, Central Electric has submitted 32 right of way permits for renewal with the Bureau of Land Management at a cost of $45,000, Markham said. “Even after four years, we are still waiting for renewed permits,” he said. Mike Easley, CEO of Powder River Energy Corp., Sundance, Wyo., said co-ops in his state have had similar problems. Wyrulec Co., based in Lingle, needed to cross three-quarters of a mile of BLM property to power an oil pipeline pumping station. Once the cooperative submitted the application, including some environmental work, the bureau said it needed 12 months and $96,000 to study the application. “The cooperative, in an effort to meet the needs of their member-owners, re-routed the line, so that it only crossed 50 feet of BLM land. They were told it would still take $96,000 and one year to complete the study work,” Easley said...more