Greene County to appeal judge’s assessment of power plant
WAYNESBURG – Greene County will appeal the Oct. 18 decision of county Judge William Nalitz, who set the value of Allegheny Energy’s Hatfield’s Ferry Power Station for 2000 at $7,713,924, and for 2001 at $8,252,716. Southeastern Greene School District, where the plant is located, also filed an appeal on the ruling.
The assessment of the power plant became necessary after a new law removed power plants from the Public Utilities Real Estate Tax Act (PURTA) list, according to H. John Frazier, the county’s chief assessor. Utilities on that list are assessed by the U.S. Department of Revenue because they often cross county and state lines. PURTA properties pay their taxes into a fund that disburses the money to counties and school districts.
However, since 2000, power plants are no longer considered to be PURTA properties, meaning counties and school districts now must collect the taxes themselves and also determine the plants’ value.
David Hook, county solicitor, said the new law has led to a legal quagmire that hasn’t been worked out.
“There is very little appellate guidance on power plants,” he said.
He cited a large disparity between assessments of power plants in the state with similar wattage and production, including one in Delaware County valued at $300 million and one in Indiana County valued at $35 million.
“Until we have a body of law [regarding power plant assessments], you’re going to see those kinds of ranges,” Hook said.
Frazier said the county just spent $1 million on a countywide property reassessment, including the power station, which has been valued at $81 million.
The county hired energy consultants to help determine the value of industrial properties.
“We had it assessed, and the board of appeals affirmed our decision,” he said.
To date, the appeal has cost the county $110,286, including $92,286 for consulting services and $18,000 for legal services, according to the county controller’s office.
Frazier said the cost is justified when considering that at the power station’s 1992 assessed value of $76 million, the county would have received $1.8 million in taxes. At an assessed value of $8 million, the county taxes would drop to $192,000.