Volume 71, Number 5

November 1996

Property Devaluation Caused by Fear of Electromagnetic Fields: Using Damages to Encourage Utilities to Act Efficiently

Robyn L. Thiemann

LoCal, a local electric utility company, plans to expand its service into the newly developed outskirts of Anytown. To effectuate this plan, it must build new electric transmission and distribution lines through several existing neighborhoods. Despite vigorous opposition from homeowners groups, the public utility commission approves the placement and construction of the new power lines. Within a few months, LoCal acquires the necessary property through eminent domain, and condemnation proceedings begin.