SPECIAL REPORTS ARCHIVE

A proposal in the state budget that would protect electrical utilities from stray voltage lawsuits has sparked controversy among state legislators and farmers.

The proposal would give a public utility immunity for any damage caused by stray voltage if the electrical readings on the farm do not reach the standard recognized by the Wisconsin Public Service Commission. That level is 1 volt of 60-hertz electricity measured at cow contact, or .5 volts of electrical current coming from the utility system.

Stray voltage leaks into the ground from electrical wires. It can cause problems with cows' health and milk production. Farmers and some medical professionals say it can harm human health as well, but the state has no human health standards.

Several legislators said they were not aware of the proposal until contacted by the La Crosse Tribune. The proposal is contained on pages 1,664 and 1,665 of Gov. Scott McCallum's budget, which is more than 1,800 pages. It was included in the budget at the request of Xcel Energy, formerly Northern States Power Co., company spokesman Brian Elwood said Thursday.

"This reinforces but does not change any standards set by the PSC," Elwood said. "That standard is based on years and years of research based on stray voltage. It does not eliminate any liability if the utility's contribution of stray voltage on a farm is above the level of concern."

Elwood said he couldn't comment on specific lawsuits but said there have been cases where the utility has lost cases in court when the farmer has had stray voltage levels under the PSC standard.

Elwood said the proposal would benefit all utilities and rate payers who have to pay for the costs of stray voltage lawsuits. "We believe this would be some benefit to our rate payers from claims being filed against us."

John Schachtner, a Deer Park, Wis., farmer in partnership with his brother who was involved in a stray voltage case against NSP, called the proposal absurd.

"It's an absolute crime," Schachtner said Thursday.

Schachtner was awarded a $3.9 million judgment against NSP in 1999, but after NSP appealed, the case was settled through mediation in December 2000. Schachtner said he cannot reveal the settlement because of the agreement terms but said it was less than $3.9 million.

David Danzinger of Alma and his brother Melvin won a $1.6 million stray voltage suit against NSP in 1994, which was upheld by a state appeals court in 1995. Danzinger, who said after trial expenses, attorney's fees and taxes that he received only a third of the amount, also criticized the budget proposal.

"I don't think there has to be any more laws in favor of NSP or Xcel," he said. "It's almost impossible for the average dairy farmer, because of the cost, to get to a trial."

Elwood said another Xcel stray voltage proposal in the budget calls for a $4 million grant program where farmers could receive money from the state to pay for on-farm wiring improvements. The money would come from the Public Benefits fund, a program funded by fees all electrical customers pay.

Rep. Barbara Gronemus, D-Whitehall, said she will act to eliminate the liability proposal.

"It's rather ironic they would ask for immunity when they claim there is no problem," Gronemus said of Xcel.

State Rep. DuWayne Johnsrud, R-Eastman, said he also is opposed to the liability proposal. He sent a letter Thursday to Joint Finance Committee Co-Chairman Rep. John Gard to have the proposal removed from the budget. Johnsrud said he also is upset that Xcel representatives were at the Capitol on Wednesday but did not mention the proposal to him.

"It's a little bit sleazy," Johnsrud said. "That really makes me mad. Maybe there's something good in this paying for some wiring, but it's just a pig in the poke to get immunity. I like people who say this is what we're doing and have it all in the open. They never said one word about (it)."

Rep. Al Ott, R-Forest Junction, chairman of the Assembly Agriculture Committee, blasted McCallum and Xcel for the proposal, which he said was made without consulting the farm community.

"The effort on the part of Xcel Energy and the governor to release utility companies from all liability, will likely offset any progress that has been made in trying to contain and resolve the concerns associated with stray voltage," Ott said. "This will be incredibly divisive, pitting farmers and farm organizations against utilities."

Ott said McCallum also replaced Agriculture Secretary Ben Brancel without consultation, and he wants McCallum to talk with the farm community on important issues like stray voltage.

"This liability exemption proposal is just an addition to the governor's list of agricultural faux pas," Ott said. "Believe me, the ag community will come out fighting on this one."

Ott said he tried to meet with McCallum on Thursday but was told the governor and his policy staff were not available. Ott said he also urged Gard to drop the proposal from the budget.

Gard, R-Peshtigo, said Thursday night that he will meet next week with Joint Finance Co-Chairman Sen. Brian Burke, D-Milwaukee, to discuss policy items in the budget. "There's a high likelihood Brian and I will agree to take this one out," Gard said. "It's a perfect one to take out and have people talk about it."

Lisa Hull of McCallum's press office said Thursday she was not familiar with the stray voltage proposal and referred questions to the PSC.

Mark Cook, head of the PSC's stray voltage program, said he is meeting today with Chairperson Ave Bie to discuss the PSC's position on the proposal. He called the stray voltage level of concern set by the PSC "a very conservative, pre-injury level ... well below where a cow's behavior or milk production would be harmed.

"I, as staff, will always support what the governor puts in his final budget," Cook said. "I really don't see the liability issue changing anything we already do."

Scott Lawrence, an attorney from St. Nazianz, Wis., who has been involved in stray voltage lawsuits since 1985, said the proposal is an attempt to stack the deck so no one sues the utilities. "The odds are already severely tilted against the farmer; they should not be tilted further," Lawrence said.

Lawrence said the proposal would give utilities a permanent easement to Wisconsin farms. "Passage of this exemption would not only affect farmers who have the evidence, time and thick skin to bring lawsuits," he said. "It undoubtedly will cause rural utility representatives to provide poorer service to all farm clients on stray voltage issues than they do now, and their record to date has generally been poor."

Bill Skewes, director of the Wisconsin Utilities Association, could not be reached for comment. Dave Jenkins of the Wisconsin Federation of Cooperatives said the proposal only applies to public utilities, not electrical cooperatives.

Xcel serves about 250,000 customers in Wisconsin, Elwood said.

Chris can be reached at chardie@lacrossetribune.com or (608) 791-8218.