Portions of a 2006 law that gives public service corporations, including utilities, the ability to take private property through a “quick take” process could be repealed.
The House Energy Finance and Policy Division heard testimony Feb. 8 for
HF1182, sponsored by Rep. David Bly (DFL-Northfield). The bill was laid over so members could digest last-minute amendments. Action is expected at the division’s Feb. 15 meeting. A companion bill,
SF1112, sponsored by Sen. Kevin Dahle (DFL-Northfield), awaits action by the Senate Energy, Utilities, Technology and Communications Committee.
The bill would strike language that exempts public service corporations from several eminent domain policies, such as paying for appraisals and attorney fees.
Property owners began raising concerns when they learned that they could be affected by the proposed installation of either a high-voltage electrical transmission line or an underground crude oil pipeline. Complaints include lower than expected purchase settlements and the lack of reimbursement for ongoing personal and professional losses due to the condemnations.
Phillip Krass represents several property owners who are at risk of the quick take provision. Of the 1,100 property owners involved in the Flint Hills Resources pipeline project, 850 agreed to an early settlement while 250 went through the process of hearings and negotiations. Those who reached a settlement or a court-awarded amount received between 26 percent and 1,133 percent more than the initial quick take offers, Krass said.
Real estate appraiser John Schmick said the $1,500 to $3,000 reimbursement written into law is too low to cover actual appraisal costs. One homeowner complained that he had to wait three years to be reimbursed.
Craig Johnson, intergovernmental relations representative for the League of Minnesota Cities, said a repeal could have unintended consequences and dramatically affect the viability of utility improvement projects by driving up costs, ultimately resulting in higher rates for all.