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Elecricity > Eminent Domain
Eminent Domain
- What is Eminent Domain?
- There are several ways by which electric utilities can acquire land they need for building new transmission lines. Typically they approach the property owner and offer to buy the land they need. If the owner agrees, the sale takes place. If the owner does not agree, utilities may be able to take or condemn the property under the power of eminent domain. Typically, utilities only need an easement, but sometimes they seek full title.
- What is Eminent Domain?
- Eminent domain refers to the power possessed or delegated by the State to acquire private property for public use. Maine law authorizes utilities to acquire land using the power of eminent domain. The law provides for certain limitations to this right, for example a utility may not acquire land that is within 300 feet of an inhabited dwelling.
- How must a property owner be compensated for his or her land?
- Under both the Maine and the United States’ constitutions, the owner of land that is to be acquired must receive “just compensation” for his or her land. Just compensation means the sum of money that a willing buyer would pay a willing seller in a bargained for sale upon the open market. In some cases, the owner is entitled to additional compensation, for example, when only part of a parcel of land is taken, but the taking of that part makes the remaining part less valuable. For example, if a utility installs a large high voltage transmission line on a portion of the property, the landowner would be entitled to compensation for the loss of value of his or her remaining property as a result of the transmission line’s presence.
- What happens if the landowner and the company cannot agree on the amount of compensation?
- If the landowner and the company cannot agree on the amount of compensation, either party may, within 3 years after the taking, petition the County Commissioners to determine the amount of compensation. Either party may appeal the decision of the Commissioners within 30 days to the Superior Court in the county where the property is located. An appeal from the Superior Court may be made to the Maine Supreme Court.
- Must the Public Utilities Commission approve the transmission line before a utility may seek eminent domain approval?
- Yes, the Public Utilities Commission must approve the transmission line before a utility may obtain land by eminent domain. Typically, the Commission must find that a “public need for the line exists.” This determination often includes a finding by the Commission that there is no reasonable alternative that would better serve the public interest in having access to safe, reliable and economic electric energy. A utility must obtain this approval before it seeks eminent domain approval to take land necessary for the location of that line.
- Must the Commission approve the location to be taken by eminent domain?
- Yes. Once the Commission finds the line is necessary, it must, in a separate proceeding, approve the exact location of the land to be taken. The landowner has the right to participate in such a proceeding and may appeal the decision to the Maine Supreme Court.
- How is property transferred by eminent domain?
- Once the utility obtains the approval of the Commission to acquire the land by eminent domain, it must file a detailed description of the property and the names of the owners of the property with the county commissioners of the county where the property is located. The commissioners must note the time of the filing and then will order the utility to record the location of the property in the registry of deeds. Once this occurs, the utility takes the rights and may begin construction on the land. The only issue left for the landowner is compensation.
- Is a landowner entitled to refuse the utility employees the right to come on his or her land prior to the land being acquired?
- Yes. However it might be in the landowner’s interest to allow access in order to help the company determine if that particular location is suitable for siting a transmission line.
- Can land in a transmission line’s right of way be used for other purposes?
- When a utility acquires an easement right for a transmission line the owner can continue to use the land as long as the use does not interfere with the safe operation of the line. Golf courses, hiking trails, crop plantings and cattle pastures are examples of such uses. The landowner does not need permission to use the land as long as the use of the land does not interfere with the line.
This fact sheet is for general information purposes and does not constitute legal advice.
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