Transmission Lines and Property Rights: A Maryland Landowner’s Guide to Eminent Domain and the Piedmont Reliability Project
- Holiday Hull, Paul Goeringer, and Madeline Jones
- 4 hours ago
- 8 min read
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Introduction
The Piedmont Reliability Project (PRP) has raised numerous concerns among local landowners who may be affected by the project. The PRP is a 70-mile high-voltage transmission line being constructed to address transportation system reliability needs in the state. This proposed high-voltage transmission line is a part of a transmission project that PJM Interconnection, LLC, (PJM) has determined is necessary in the region. PJM is one of the regional transmission organizations that exist within the United States and coordinates, controls, and monitors the electrical grid across the U.S. Currently, PJM covers 13 states and the District of Columbia.
As the proposed route is being finalized, many landowners may have questions about how the eminent domain process would work. Utility companies in Maryland have the authority to use eminent domain to secure easements for transmission lines, but landowners are often left navigating complex legal and financial implications. Before any condemnation occurs, utilities must identify a route, seek easements, and make compensation offers. For landowners, especially those with preserved farmland, understanding the process, the limits of eminent domain, and the rules governing compensation is critical to protecting their property rights and ensuring fair treatment.
What is Eminent Domain?
Eminent domain is the government exercising power or a private entity acting upon power granted to it by the government to take property for a public use (Lashmet, 2020). In taking the property, the party exercising the power of eminent domain must provide just compensation. In this process, landowners may hear terms thrown around:
Condemn/Condemnation – is the exercise of the power of eminent domain.
Condemner – is the entity exercising the power of eminent domain.
Takings – is another way to refer to eminent domain.
Where does the power of eminent domain come from? On a basic level, it is inherent in the powers of the federal government and the state governments. Both federal and state constitutions place limits on the power of eminent domain. Under the Fifth Amendment of the U.S. Constitution, private property cannot be taken unless for a public use and just compensation is provided. Under the Maryland Constitution, Article II, Sections 40-40C, it states that private property cannot be taken unless for a public use and just compensation is provided. When looking at just compensation, it will be the property taken through eminent domain’s fair market value.
Transmission Lines and Eminent Domain
An electrical utility in Maryland is not allowed to exercise the use of eminent domain until a Certificate of Public Convenience and Necessity (CPCN) has been granted by the Maryland Public Service Commission (MPSC) (Md. Code Ann., Pub. Util. § 7-207). This means that until the CPCN has been granted, the utility will have no power to begin utilizing the power of eminent domain. Before the granting, the utility can only negotiate with potential landowners along the proposed paths.
The CPCN process is required for electrical projects over a certain size in the state; for transmission lines, it would be any line that carries more than 69 kV. For generation projects 2 MW or larger, a CPCN would also be required to begin construction. Currently, according to the MPSC’s website, the CPCN process is taking on average 388 days to complete. The CPCN will include an environmental review and a comprehensive review by several state agencies, including Maryland’s Department of the Environment, Department of Agriculture, and others, which is led by the Department of Natural Resources’ (DNR) Power Plant Research Program (PPRP). A part of this process will include a public participation process with public comments and potentially a public hearing. The process also includes a hearing, with witnesses called and evidence presented. After this process, PSC will issue a proposed or final order that can be challenged in circuit court.
PSC’s website includes ways for the public to participate in these public proceedings of the CPCN process, including how to join in the hearing as a party, register as an interested party to receive updates, and participate in the public comment period. If you are looking to participate in the hearing portion as an intervener, discuss with an attorney how to properly file the required documents, who can better prepare you for what that process entails.
To be a public intervener, a formal request will need to be filed with the PSC to actively participate in the CPCN process. Public interveners are individuals, organizations, or entities with a direct stake in a case who believe its outcome may impact their rights, property, or other substantial interests. A direct stake would require more than just a complaint that the project is not wanted, but discussions on how interests will be impacted, such as how running the PRP through farmland could disrupt businesses or create issues that are unique to that property. PSC’s own guidance reminds those looking to intervene to be represented by an attorney.
First Steps
Prior to using eminent domain, a utility company must first determine the route the proposed transmission lines will follow. In doing so, the company will compare alternative routes to identify the path that is both cost-efficient and least disruptive to the environment. Once a final route is selected, the company will approach affected landowners to negotiate an easement agreement. An easement is a legal right that allows the company to use another’s land for a specific purpose, in this case to construct, operate, and maintain transmission lines (8A Md. L. Encyc. § 1). As part of the easement, the company may request the right to clear vegetation in the construction area and to restrict certain land uses that could interfere with the transmission lines. Landowners are not obligated to accept the initial offer for an easement. Declining the first proposal is often strategic, as the initial offer is rarely the most favorable financial arrangement for the landowner. Landowners on the route should consider either pooling together to hire an attorney to work with them to handle the negotiations with the utility company or, at least, individually having an attorney to aid them in this situation. These attorneys will typically need to have experience handling eminent domain situations.
Once a utility company has been granted a CPCN, it gains the authority to utilize eminent domain along the transmission line route approved by the PSC. If a landowner does not agree to grant an easement voluntarily, the company may initiate condemnation proceedings to acquire the necessary property rights. To proceed in court, the utility must first obtain an appraisal of the damage to the property and demonstrate that it made a good-faith written offer to purchase an easement based on that appraisal. These appraisals often calculate compensation only for the portion of the land directly impacted by the powerlines, not the broader effects on the entire property. However, the placement of transmission lines can create additional consequences that reduce the value or utility of the whole parcel, such as restricting agricultural use or other potential operations on the land.
The primary dispute will often center on the amount of compensation offered to the landowner. In Maryland, just compensation is determined by the market value of the property. Disagreements may arise when landowners believe the valuation does not account for special attributes, such as environmental features, or fails to consider the potential for future development of the property. Because of these issues, landowners may wish to consult a real estate attorney to ensure the compensation reflects the actual impact of the taking. Maryland law provides property owners with the right to a jury trial in compensation disputes. Landowners may choose to exercise this right or waive it, allowing a judge to decide. After both parties present evidence and testimony, the court will issue a final determination of just compensation.
What should a landowner prepare for the valuation dispute? The landowner should begin by gathering and preserving evidence that demonstrates the property’s condition and value. Go out and take photos. Pull recent aerial maps from available sources. Avoid making written statements about the land, as those statements could later be used against them in court. An appraiser can be called out to inspect the property early in the process.
What if the Property is Preserved Farmland?
Farmland preserved in the Maryland Agricultural Land Preservation Foundation (MALPF) does not limit the ability to use eminent domain for a transmission powerline easement. State law allows for property preserved through MALPF or a county agricultural land preservation program, but it only prevents eminent domain from being used in limited situations. The use of eminent domain is limited to economic or residential development or parkland. Exempted from the definition of economic or residential development or parkland are power transmission lines.
For those going through the eminent domain process in court the process will be different than the process for those negotiating directly with the utility company. For preservation easements granted on or before June 30, 2018, the utility company would pay the following:
To the landowner, the full amount to which the landowner would be entitled if the land were not under easement, less any amount paid to the Foundation, a county agricultural land preservation program, or other entity, and
To the Maryland Agricultural Land Preservation Fund, a county agricultural land preservation program, or any other entity contributing payment for the original easement purchase, an amount equal to any amount paid by the Foundation, a county agricultural land preservation program, or other entity for the easement. (Md. Code Ann., Agric. § 2-515(b)(1)-(4)).
For preservation agreements granted on or after July 1, 2018, the utility company would pay the following:
To the landowner, the full amount to which the landowner would be entitled if the land was not under easement, less any amount paid to the Foundation, and
To the Maryland Agricultural Land Preservation Fund an amount equal to the fair market value of the easement, which shall be determined by a qualified appraisal that establishes the ratio of the value of the easement interest to the value of the fee simple interest in the land as of the date of condemnation (Md. Code Ann., Agric. § 2-515(c)(1)-(2)).
If the landowner and the utility company reach an agreement outside the eminent domain process, then MALPF would have to provide written permission for the transmission line easement over preserved farmland. Landowners should keep in mind that payments for the easement value in a negotiated agreement outside of eminent domain will follow similar rules as laid out above for an eminent domain proceeding, with a portion of the funds going to MALPF.
For properties preserved through the Maryland Environmental Trust (MET), the property may be subject to eminent domain (Md. Real Prop. Code Ann. § 12-104). With MET preserved land, the fair market value will be awarded through the following methods: to the fee owner and MET, as their interests may appear, and shall be the fair market value of the land or interest in it, computed as though the easement or other right did not exist (Md. Real Prop. Code Ann. § 12-104(g)).
Land under the Rural Legacy Program (RLP) appears not to be open to eminent domain proceedings based on state law. State law clearly states that state and local eminent domain authority cannot be used to acquire property interests if the land is in RLP (Md. Nat. Res. Code Ann. § 5-9A-05(g)).
For privately preserved land with an easement held by a non-governmental land trust, eminent domain would still apply. Landowners with preserved land through a non-governmental land trust should talk to the land trust early on to ensure the easement holder is involved in transmission line easement discussions and to ensure that fair market valuation is properly reflected to the easement holder and the landowner.
Conclusion
In conclusion, landowners facing the possibility of transmission lines on their property should understand both their rights and the obligations of utility companies under Maryland law. Whether the land is preserved or not, compensation and negotiation procedures can vary significantly, making it essential to gather strong evidence, seek knowledgeable legal advice, and involve any easement holders early in the process. Careful preparation can help ensure that landowners are fairly compensated and that the long-term impacts on their property are fully considered.
References
Md. Code Ann., Agric. § 2-515 (West 2025).
Md. Code Ann., Nat. Res. § 5-9A-05 (West 2025).
Md. Code Ann., Real Prop. § 12-104 (West 2025).
Md. Code Ann., Pub. Util. § 7-207 (West 2025).
Md. Const. art. II, §§ 40–40C
8A Md. L. Encyc. § 1
Tiffany Dowell Lashmet, Eminent Domain in Texas: A Landowner’s Guide (Texas A&M AgriLife Extension Serv., Mar. 2020), https://agrilife.org/texasaglaw/files/2020/03/Eminent-Domain-in-Texas-1.pdf.
U.S. Const. amend. V.
Holiday Hull is an Extension Research Assistant, University of Maryland, and 2025 graduate of the University of Arkansas School of Law.
Madeline Jones is a Faculty Research Assistant, University of Maryland, and law student at Mercer University School of Law, Class of 2027.