Council hears from Alliant on eminent domain
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The Ames City Council heard arguments from an energy provider seeking eminent domain rights from the city at a special Council meeting Monday night.
Eminent domain is the city’s right to claim land from a landowner for a public purpose if a reasonable agreement cannot be reached through negotiations. Alliant Energy, Ames’ provider for the last 25 years, is requesting that it be allowed this right as a tool to help negotiations with customers.
Several representatives from Alliant were present at the special meeting to help answer questions, most of which came from Councilman Jim Popken, who has not been in support of extending the right of eminent domain.
Jeff Rosencrants, deputy legal counsel for Alliant, said that while they would be more than willing to consult with the city about cases in which eminent domain would be a possible solution, at the end of the day, they would prefer to have the right to use it.
“We would prefer not to have to consult with the city on a case-by-case basis about whether or not we could use it,” Rosencrants said. “It is in our best interests to move quickly.”
When questioned further about intended uses, Rosencrants said he has handled only two cases of eminent domain in more than 15 years of service with Alliant, and they don’t see it as an offensive tool.
“We use eminent domain as a shield, not a club,” he said. “We like to have it, because at the end of the day, if we can’t agree with a landowner, we have to be able to use that right or we suffer.”
Steve Schainker, city manager, reminded the Council that the upcoming vote at the July 14 meeting would approve full transfer of eminent domain rights to Alliant without any requirement of consultation.
The Council will discuss the issue again on July 14.
The Council also discussed the issue of energy providers. The interdependent group that Ames is currently a part of, the Mid-Continent Area Power Pool, will soon be ceasing some of its services due to members joining a new non-profit transmission group, Midwest Independent System Operator.
Don Kom, director of electric services, went over the pros and cons of joining the Midwest group and said his staff has not taken this decision lightly.
“Myself and five other people have been spending half of our time looking into MISO involvement since April,” he said.
Joining the group is a problem of short-term loss with long-term gain for the city.
In the short term, the city will not technically be a recognized member until the 161 kV transmission line to Ankeny is completed, since the city’s other line ends in a substation not recognized by the Midwest group.
However, Kom estimated that between 12 and 18 months after September 1, the date that some Mid-Continent Area Power Pool services would cease, the line would be completed. The city would then receive better prices from the Midwest group for generated energy and also gain revenue credits for that line.
“Managing prices down to the kilowatt is very difficult,” Kom said, “but the way MISO’s system operates, prices could be updated and optimized every five minutes. Also, they will have the services that [Mid-Continent Area Power Pool] will cease to offer.”
Kom and his staff recommended that the Council become market participants in Midwest Independent System Operator, and the Council unanimously voted to approve, 5-0, with Councilman Dan Rice and Mayor Ann Campbell absent.
Eminent domain is the city’s right to claim land from a landowner for a public purpose if a reasonable agreement cannot be reached through negotiations. Alliant Energy, Ames’ provider for the last 25 years, is requesting that it be allowed this right as a tool to help negotiations with customers.
Several representatives from Alliant were present at the special meeting to help answer questions, most of which came from Councilman Jim Popken, who has not been in support of extending the right of eminent domain.
Jeff Rosencrants, deputy legal counsel for Alliant, said that while they would be more than willing to consult with the city about cases in which eminent domain would be a possible solution, at the end of the day, they would prefer to have the right to use it.
“We would prefer not to have to consult with the city on a case-by-case basis about whether or not we could use it,” Rosencrants said. “It is in our best interests to move quickly.”
When questioned further about intended uses, Rosencrants said he has handled only two cases of eminent domain in more than 15 years of service with Alliant, and they don’t see it as an offensive tool.
“We use eminent domain as a shield, not a club,” he said. “We like to have it, because at the end of the day, if we can’t agree with a landowner, we have to be able to use that right or we suffer.”
Steve Schainker, city manager, reminded the Council that the upcoming vote at the July 14 meeting would approve full transfer of eminent domain rights to Alliant without any requirement of consultation.
The Council will discuss the issue again on July 14.
The Council also discussed the issue of energy providers. The interdependent group that Ames is currently a part of, the Mid-Continent Area Power Pool, will soon be ceasing some of its services due to members joining a new non-profit transmission group, Midwest Independent System Operator.
Don Kom, director of electric services, went over the pros and cons of joining the Midwest group and said his staff has not taken this decision lightly.
“Myself and five other people have been spending half of our time looking into MISO involvement since April,” he said.
Joining the group is a problem of short-term loss with long-term gain for the city.
In the short term, the city will not technically be a recognized member until the 161 kV transmission line to Ankeny is completed, since the city’s other line ends in a substation not recognized by the Midwest group.
However, Kom estimated that between 12 and 18 months after September 1, the date that some Mid-Continent Area Power Pool services would cease, the line would be completed. The city would then receive better prices from the Midwest group for generated energy and also gain revenue credits for that line.
“Managing prices down to the kilowatt is very difficult,” Kom said, “but the way MISO’s system operates, prices could be updated and optimized every five minutes. Also, they will have the services that [Mid-Continent Area Power Pool] will cease to offer.”
Kom and his staff recommended that the Council become market participants in Midwest Independent System Operator, and the Council unanimously voted to approve, 5-0, with Councilman Dan Rice and Mayor Ann Campbell absent.
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