What impact do transmission lines have on property values?

Why aren’t transmission lines a significant factor?

What is a transmission line right-of-way?

What is an easement?

Does a power line’s presence on a parcel impact the use of the property?

Appraisers sometimes refer to “loss of utility.” What does that mean?

Is a property’s value impacted by the presence of a power line near by?

Do power lines have a significant impact on farm operations?

How is the landowner compensated for the impacts of the easement?

What impact do transmission lines have on property values?

Landowners typically ask this question, and there is not a simple answer. In a nutshell, the effects are highly variable. The reason is that many factors affect market prices of real estate, including market trends, water and sewer service, proximity to schools, parks and other amenities, surroundings and community characteristics, topography of the land, road and air transportation accessibility, and neighborhood perceptions, to name a few. Quality, age, condition, size, and design of homes and buildings are additional factors. Further, factors that may be important and valuable to one purchaser may be considered a drawback by another, such as proximity to an interstate highway, railroad, dairy farm or elementary school. And market forces, such as a buyer’s market, seller’s market and the length of time a property has been listed also impact a property’s selling price.

Why aren’t transmission lines a significant factor?

Transmission lines are part of our landscape. In ATC’s footprint, which includes the eastern two thirds of Wisconsin and the Upper Peninsula of Michigan, there are approximately 9,100 miles of transmission lines in existence today. Many of these lines have been in place for decades and are surrounded by every type of land use and development. Transmission lines today exist in residential areas, commercial and industrial parks, natural areas, recreational amenities, agricultural lands, and urban centers. Substations and lower voltage distribution lines that connect to homes and businesses are even more prevalent. While proposals for new transmission lines where they do not currently exist generate legitimate concerns, power lines are not fundamentally new to our landscape. For this reason, other characteristics of a community, neighborhood, lot and dwelling play a more significant role in determining the market value of a property.

What is a transmission line right-of-way?

An electric transmission line right-of-way is a strip of land that we use to construct, operate, maintain and repair our transmission line facilities. A transmission line usually is centered in the right-of-way. The width of a right-of-way depends on the voltage of the line and the height of the structures, but can be 75 to 150 feet or more depending on the type of facilities planned for or located on the right-of-way. Transmission poles can be spaced anywhere from 400 to 1,000 feet apart. The right-of-way generally must be clear of tall-growing trees and structures that could interfere with a power line.  Learn more about vegetation

management on our rights-of-way.

What is an easement?

An easement is an interest in real property that grants ATC the legal right to use property for the specific purpose of constructing, operating and maintaining a transmission line facility. When building or upgrading a power line, we typically acquire access to and use of land by purchasing easements from property owners, rather than purchasing the property outright. An easement grants us certain rights to build, operate and maintain a power line. Landowners are compensated for easements through a payment based on statutory guidelines. Landowners retain ownership of the real property, but its use is limited to activities that do not compromise the safety and reliability of the lines. Learn about the planting guidelines in an easement.

 Does a power line’s presence on a parcel impact the use of the property?

While many land uses that do not interfere with power lines are allowed, including farming, grazing, gardening, hunting, biking, hiking, and snowmobiling, some uses are restricted. Structures and occupied dwellings are not permitted, nor are tall-growing trees and some other types of vegetation. Easement agreements allow ATC to trim and remove trees and vegetation from the easement area.

Appraisers sometimes refer to “loss of utility.” What does that mean?

“Utility” is the use of the property for its intended purpose. A vacant parcel of land that is not subject to any easements may be used by the owner for many purposes, including structures and trees. An easement on the property restricts what is permitted in the easement area, including dwellings and tall-growing trees. Such restrictions are referred to as a “loss of utility” and pertain to the portion of the property that is subject to the easement. Consequently, small parcels may experience a greater loss of utility than larger parcels. If an easement divides a small parcel in half, loss of utility also may extend to either side of the parcel if it becomes too small to support construction. We seek to minimize the loss of utility by locating power lines along existing roads, railroads, pipelines, power lines, and property lines.

Is a property’s value impacted by the presence of a power line near by?

While new power line proposals may generate aesthetic concerns, studies show that proximity to a transmission line without the restrictions of an easement does not diminish property values.

Do power lines have a significant impact on farm operations?

Farming is a permitted activity under power lines. The State of Wisconsin’s Farmland Preservation Program recognizes transmission lines as consistent with agricultural use of the land. When routing and siting transmission lines, the facilities are typically placed along roads, property lines or section lines to minimize effects on current and potential future use of the property. Easements contain requirements for safe operation of irrigation and other equipment near power lines.

How is the landowner compensated for the impacts of the easement?

Easement negotiations begin after a project has been approved and ordered by the Public Service Commission. An ATC real estate representative will work with property owners during the acquisition and negotiation processs. The easement payment is based on the fair market value of the property, and statutory and legal guidelines are followed. The real estate discussions with the landowners during the easement acquisition process address many items:

• the length and width of the right-of-way,
• the number of structures,
• the height and design of the structures,
• the height, number and voltage of the wires,
• right-of-way clearing and construction practices,
• the project schedule,
• post-construction maintenance and right-of-way access, and
• the use of herbicidal chemicals to control weeds and brush.

In addition to compensation for the easement, we will pay for any crop damage and/or physical damage to property resulting from the construction and/or maintenance of the transmission line.