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County describes negotiation over Chippy transmission line tax pilot; staff report one-time payments and pending state grievance
Summary
County staff described negotiations with the company behind the high-voltage 'Chippy' transmission line. Officials said the company offered a one-time payment proposal and a grievance over the marine (submarine) valuation is pending with the state board; staff estimated a one-time county/town tax benefit of roughly $600,000 to jurisdictions if the offer stands.
During the government operations meeting, Director Ward and other staff provided an extended update on negotiations with the company building the high-voltage DC transmission line referenced in the transcript as "Chippy." Ward said he had engaged the county attorney and the IDA attorney and had discussions with the company’s counsel about how to treat the line for assessment and pilot purposes.
According to the staff update, the company returned an offer described in the meeting as about "1.5 million per mile" for certain valuation components, and staff said the total line would be worth roughly $106 million when built and operational. Ward said the company had filed a grievance with the state review board seeking a lower valuation for the submarine (river) portion and that if the company’s grievance resulted in a reduced state valuation, the county would receive a one-time payment in that year totaling roughly $600,000 distributed across counties, towns and special districts. Ward described the arrangement as a handshake agreement at present and said the county had not yet received binding written commitments but expected updates after the state grievance day.
The discussion noted that the company’s pilot payment structure, when the line becomes operational, would provide significant recurring pilot payments and host benefits, but the immediate matter under negotiation is a one-time assessment resolution tied to the grievance and valuation of the marine portion. Ward and county counsel said they are prepared to pursue depositions and legal action if the company violates the informal agreement.
Committee members asked about comparables and how utilities are typically assessed; staff explained the difference between taxable utilities on private land, which are assessed locally, and special franchise values that the state levies for certain public-right-of-way utilities. The staff update included a timeline: a state board grievance decision expected in mid-June and the county awaiting more formal documentation.
Next steps: staff will monitor the state board grievance decision (noted in the transcript as a mid-June hearing), seek written confirmation of any county agreement, and coordinate with assessors and county attorney if further legal steps are needed.
