Transpower's plans for a $148 million four-year upgrade of the key transmission lines between Roxburgh and the Waitaki Valley were the focus of a conference held by the Electricity Commission in Alexandra yesterday.
The proposal involves increasing the capacity of 350km of lines, including adding a second line to the existing lines between Clyde and Roxburgh, Roxburgh and Livingstone, Aviemore and Livingstone and Benmore and Aviemore.
On the Cromwell to Twizel line, it was proposed to boost capacity by thermal uprating - increasing the maximum allowable operating temperature of the transmission line wires.
Central Otago and North Otago farmers who have pylons or lines across their properties are among those who have raised concerns.
In response to a question from commissioners, Transpower grid development general manager John Clarke said $4.9 million had been allocated in the proposal to compensate property owners.
"I would say, compared to other projects, it's generous," was how he described the sum.
Dansey Pass farmer Peter Hore, from the Roxburgh to Duntroon Landowners Group, said the figure was "nowhere near enough if you spread it over 130 [affected] landowners".
Mr Hore and Oturehua farmer Ken Gillespie made a submission they said was on behalf of about 75%-80% of affected landowners.
The framework for offering any form of compensation agreement for transmission lines on private land belonged to another era, they said.
"Today, the network is owned by a company that is charged with making money from the transmission of electricity over land owned by private individuals.
Whereas previously landowners gave up their land for the good of the nation, now they are being asked to give up their land for the increased profits of Transpower," Mr Gillespie said.
While the group was not opposed to the upgrade, it believed property owners should be fairly compensated for the long-term effects of "hosting the lines" across their land.
Transpower's plans were supported by Contact Energy and Meridian Energy, which said an upgrade was vital to cater for the growth of the area and for new wind and hydro generation developments.
Mr Clarke said Transpower's proposal would return $335 million worth of economic benefit for a $148 million investment.
Electricity Commission chairman David Caygill said a decision on the lower South Island upgrade would probably be made at the organisation's August meeting.
