Bids hit street for No Name power system

Keys Energy Services last week requested bids for installing electrical conduit on No Name Key bridge that could eventually house commercial power lines for the first time in the island’s storied century-plus history.

The utility is also asking bidders to submit proposals to install an overhead power transmission line system on the island that could eventually supply commercial power to up to 43 homes.

KEYS estimates for the work have ranged from a high of just over $900,000 about a year ago, to a new low of just under $600,000 with the bids released last week.

KEYS officials are expected to open bids March 5, but what comes after that is still completely undetermined, says Julio Barroso, public information director for KEYS.

“When the bids come back, assuming we have heard from the other agencies in the affirmative, we will move forward on installing power lines. We would also require payment from the homeowner’s association.” he said. “If we haven’t heard from the other agencies, or if we haven’t heard in the affirmative, we will hold off awarding the bids.”

KEYS issued the bids so that the prices quoted would be good for up to three months with only a slight increase, he said. “We anticipate that we won’t have all the responses by July.”

He said that the members of the No Name Key Property Owner’s Association would have to decide when the bids come back whether they are willing to bear the full cost of that installation.

There are other costs potentially staring at the residents as well. Any legal challenge that KEYS must answer will have to be paid for by the residents, as well as any mitigation costs the several federal agencies who have been asked to chime in on the issue may levy as a prelude to allowing the power to be extended to the island.

The primary federal agency with a dog in the fight is the US Fish and Wildlife Service which has land use oversight over all of Big Pine and No Name Keys through the Habitat Conservation Plan.

KEYS asked for an opinion from USFWS early on in this process and two weeks ago got the first of what promises to be several letters detailing the service’s concerns with the project.

Those concerns included the possibility of federal, or federally backed money being used to pay for the project. KEYS was asked to confirm that it would use no federal funds in building the system. The service delves as deep as the use of federal money to pay for the transmission lines that get power to the Keys from other areas.

The service is also asking local officials if any part of the project is to be paid for using money borrowed from a federally insured bank. The Coastal Barrier Resources Act prohibits the use of federal money to pay for infrastructure in those areas. Much of No Name Key is a CBRA area.

USFWS also recommended that KEYS consult with Monroe County on the amount of H value the project would use. Under the terms of the HCP, all development on No Name or Big Pine Key is subject to a mitigation ratio of three-to-one, and while island residents claim that infrastructure isn’t development, the CBRA rules define infrastructure as a development federal funds can’t pay for.

According to internal discussions at KEYS, they utility has asked the county for an estimate of H value to be used and has yet to receive an answer.

USFWS also recommended that KEYS consult with the US Army Corps of Engineers about potential wetlands issues. The service also recommended that KEYS conduct a survey of three endangered species, all of which are found in the rights-of-way along No Name Key, so it could adequately address the impact of the construction on those species.

Also recommended was a consultation with the Florida Historic Preservation Office to ensure compliance with cultural resource requirements.

USFWS also asked KEYS for more details on the actual construction of the transmission system and the easements and rights-of-way to be used.

“Any recommendations concerning the actual construction of the project will be responded to by KEYS,” said Barroso. “We have turned the responsibility for the endangered species and CBRA issues over to the homeowner’s association. There are some extensive studies that have been recommended and the residents agreed to bear the full cost.”

He added that the homeowner’s association would also have a hand in the decision to move forward since they were agreeing to pay full cost for the project.

KEYS also still needs some answers from Monroe County. In its initial letter to the applicants for power, KEYS said it would have to have permission from the county to attach to the bridge and use the rights-of-way. That battle is still underway with members of the NNKPOA claiming that the county can’t stop use of those assets, and being backed up by the county attorney, and opponents of power to the island just as adamant that the county has agreements with numerous state and federal agencies not to allow the extension of infrastructure to No Name Key.

USFWS has queried the county about the possibility of more development on No Name Key as a result of access to commercial power.

The county attorney’s office said there is no reason to believe development will follow power to the island because of all the restrictions against growth in other county regulations.

The county’s former Growth Management Director, however, told county officials more than a year ago that any of the remaining Tier One residential building permits under the HCP could go to No Name Key if someone with deep pockets wanted to build there and met the criteria.

Residential building on No Name Key uses substantially more H value than most other places in the HCP area.

During discussion about the No Name issue recently board members and legal staff appeared to be of one mind that construction of power lines to No Name Key couldn’t commence until all the affected agencies had given affirmative responses.

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One Response to “Bids hit street for No Name power system”

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1. John Lentini Feb 07 2010 / 10am

   “The service is also asking local officials if any part of the project is to be paid for using money borrowed from a federally insured bank.”

   I earned my living using an education I obtained with federally insured student loans. So, I guess all my money contains some measure of federal funding.

   Seriously, that anyone, especially a government agency, would equate borrowing from a bank (all banks are FDIC insured) with using federal funds demonstrates that the rational consideration of the merits of electrification is not going to happen.