PSE not required to pay most costs to bury electric lines for new street projects

State regulators has ruled Puget Sound Energy (PSE) is not obligated to pay most of the costs of burying relocated power lines as demanded by several cities when street-improvement projects require utility equipment be moved.

The Washington Utilities and Transportation Commission (WUTC) resolved a dispute between PSE and several cities over who pays what when power lines are placed underground. When overhead lines are moved to new overhead locations, there is a relatively clear formula for allocating these costs. But when the overhead lines are moved to an underground location – which is much more expensive – the responsibility for cost sharing is not so clear. The WUTC found that Puget was entitled to insist on contracts with the cities that insulated the company from future relocation costs.

The WUTC said PSE may require that private easements be provided for the placement of some underground utility equipment, but PSE is not required to pay for such easements. If the cities do not obtain the necessary easements, or reimburse PSE for the cost, PSE is not required to bury the power lines.
The commission also said that when PSE’s existing overhead power lines are located on private property, the utility company is entitled to be fully reimbursed for the costs of placing the lines underground.

Redmond joined Clyde Hill, Auburn, Renton, Kent, Tukwila, Des Moines, Federal Way, SeaTac, Bremerton and Lakewood in filing a petition with the commission last summer requesting clarification for determining whether the city or Puget Sound Energy is responsible for paying the costs when utility equipment is relocated underground during street projects.

The cities have 10 calendar days to file for reconsideration of the case with the commission or 30 calendar days to appeal the decision to Thurston County Superior Court. Appeals also could be filed in the superior court of the county where the petitioner has its primary business office or owns property that is affected by the decision.

Here’s a list of the street-improvement projects the cities had requested PSE convert overhead electrical equipment be placed underground:
¨ The city of SeaTac along South 170^th St. between 37^th Ave. S. and Military Road S.
¨ The city of Clyde Hill along 92^nd Ave. N.E. between N.E.13^th St. and N.E. 20^th St.; N.E. 13^th St. from 92^nd Ave. N.E. eastward to the end of N.E. 13^th St.; N.E. 20^th St. from just west of 92^nd Ave. N.E. to 96^th Ave. N.E.; and along 94^th Ave. N.E. from N.E. 19^th St. to approximately N.E. 21^st. St.
¨ The cities of Kent and Auburn for 10 miles along Pacific Highway S.
¨ The city of Federal Way at the intersection of 23^rd Ave. S. and S. 320^th St.

The commission was asked to resolve a cost-sharing dispute over burying power lines between PSE and the City of SeaTac’s South 170^th St. improvement project. The WUTC determined SeaTac should pay 30 percent of one-quarter of the total cost of converting overhead lines to be placed underground because one-quarter of the existing overhead poles are required to be relocated. In addition, SeaTac should pay 70 percent of the remaining three-quarters of the total cost because six of the eight poles are not required to be relocated to accommodate the road-widening project.

The Bellevue-based utility serves 930,000 electric customers in nine Western Washington counties and Kittitas County in Eastern Washington.
The URL for this page is www.wutc.wa.gov/010778.



Posted/updated: 06/18/2001
This document has other related documents.