SOS Hill Country

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Save Our Scenic Hill Country Environment, Inc.

Annual Report on Operations
November 1, 2008–October 31, 2009

The second year of operation of Save Our Scenic Hill Country Environment (SOSHCE) was very active and productive. In addition to its on-going efforts to ensure that industrial wind energy development occurs in other areas where it makes more sense, the organization was very involved in the related transmission line developments.

SOSHCE continued to actively support its position that industrial wind development makes much more sense in other areas. This belief is based on the negative impacts that industrial wind development would have on this area. Industrial wind development would affect the natural beauty and aesthetics of the Texas Hill Country, economics and land values, and the sensitive environmental integrity of the area. Very importantly, other areas have much greater wind potential, less conflict between landowners, and different best land use and value.

Regarding transmission line developments, the organization does not oppose the transmission system additions that are necessary to get the wind energy from the Public Utility Commission of Texas (PUC) designated high wind potential Competitive Renewable Energy Zones (CREZ) areas in West Texas and Panhandle to the metropolitan areas in the state. We believe those additions should be made with minimal impact on the Hill Country. Proposed steps to mitigate the impacts include use of existing electric right-of-way and/or the Interstate 10 corridor as appropriate, use of monopoles rather than lattice structures throughout, avoiding special areas such as the Enchanted Rock State Natural Area, and fully compensating affected landowners. Transmission lines outside of those designated by the PUC are opposed due to the unnecessary additional scarring of the Hill Country that would result.

While there have been no public announcements regarding industrial wind developments in Gillespie and surrounding counties, we are even more concerned than in the past about that possibility. Additional federal legislation has been enacted in the past year that further increases the subsidies that the industrial wind energy developers are so dependent upon. These additional subsidies make it even more likely that areas like ours will be developed in spite of the relatively low wind potential. In addition, there continues to be virtually no regulation of industrial wind developers in Texas.

Our organization applauded the decisions of two major wind development corporations to terminate their development activities in Gillespie County in 2007. In addition, we were very pleased when a third testified in later 2008 that they agreed this area is unique and would not pursue development here. However, we became aware that a relatively small industrial wind energy developer based in New York was exploring a site west of Fredericksburg in early 2009. It also appears that possible development of an industrial wind project may be occurring in the western Mason County area. The possibility of development in southern Llano County continues to be a concern. Industrial wind developments are reportedly being pursued or under consideration in near-by counties including McCullough and San Saba.

Regarding the absolute lack of regulation of industrial wind developers, SOSHCE was extremely pleased when legislation was introduced that would have provided Gillespie County Commissioners with as little or as much authority as they deemed appropriate to regulate the siting of industrial wind developments. It was also very encouraging when the Llano County Commissioners adopted a resolution that requested that Llano County be included in similar legislation. It was disappointing when the legislation was derailed due to private property rights-based arguments. Our organization fully supports private property rights, including those of neighbors and others that would be impacted for miles around any industrial wind development. In addition, we believe that landowners should carefully consider the property rights that are given up to wind developers.

Based on the increasing level of concern, SOSHCE further stepped up its educational activities. A series of newspaper ads were run that were designed to provide information on the key considerations. Additional contacts with individuals and organizations were made. SOSHCE membership grew from 322 a year ago to more than 500 currently.

The organization sponsored presentations on industrial wind development, transmission, eminent domain and land devaluation by Texas Wildlife Association (TWA) officials on July 15, 2009. TWA favors reasonable wind industry regulation that protects Texas' natural resources and provides permanent bonding authority for remediation, as well as voluntary efforts to develop wind farm standards. The presenters encouraged landowners potentially impacted by transmission lines or those considering wind development leases to utilize legal counsel with expertise in those areas. The meeting was open to the public, and more than 300 people were in attendance. The event received extensive area media coverage.

Transmission line developments were monitored closely. Our organization opposed the private transmission line that was developed outside of the PUC process. Informational presentations were made at several public meetings sponsored by the Harper T-Line Steering Committee. While very little public information exists, it appears that construction of the line that goes through eastern Kimble, western Gillespie, northeastern Kerr and northwestern Kendall County is nearing completion.

LCRA information and filings pertaining to the PUC sanctioned CREZ transmission lines were reviewed. LCRA Open House meetings were attended in Fredericksburg, Harper and Comfort. Selected PUC filings and Commissioners Open Meetings were monitored. Related information was provided to members, other individuals, landowner groups, other organizations, area officials and media. SOSHCE's transmission position was communicated to the PUC and LCRA and others.

For the LCRA Transmission Service Corporation (LCRA TSC) Gillespie (Fredericksburg area) to Newton (Lampasas County) project Certificate of Convenience and Necessity (CCN) that was filed on October 28, 2009, SOSHCE was pleased that the Preferred Route utilizes existing electric right-of-way from near the Gillespie substation to about three miles east of Llano before continuing cross-country into San Saba County and then on to Newton. However, we are highly concerned that lattice structures were predominately specified in spite of LCRA TCS's acknowledgement that public comment overwhelmingly supported the use of monopoles. SOSHCE plans to file a formal Protest with the PUC regarding the use of lattice structures.

Regarding the McCamey D (Eldorado area) to Kendall (Comfort area) to Gillespie project, SOSHCE will continue to monitor and communicate developments through and beyond the filing of the CCN which is scheduled for July 6, 2010. The organization will continue to communicate its position as appropriate.

The 12 SOSHCE Directors and the Officers have continued to be actively involved. There were 14 Directors and Officers meetings in the past year. Sixteen updates to the SOSHCE membership were provided.

The corporation continues to be sound financially. Our formal relationship with CamDen Public Affairs ended in June, 2009 following the end of the Texas legislative session. CamDen's assistance in a number of areas was greatly appreciated. On-going expenses will include sponsoring public meetings and advertising. We are totally dependent on voluntary contributions, and it is essential that they continue.

The coming year promises to be even more active, both on the transmission and on the industrial wind development fronts. On-going support and involvement of the membership is appreciated and extremely important in light of the increased challenges we face.