Spesia & Taylor

Attorneys at Law

(815) 726-4311
  • History
  • Attorneys
    • John M. Spesia
    • Christian G. Spesia
    • Jeffrey S. Taylor
    • Michael R. Stiff
    • Jacob E. Gancarczyk
    • Michael A. Santschi
    • Haley G. Peters
    • Alexander J. Boyd
    • Michelle M. Kavanaugh
    • John R. Rodack III
    • James C. Byrne
    • E. Kent Ayers
    • Thomas M. Ewert
    • Kent F. Slater
    • Dinah Lennon Archambeault
  • Practice Areas
    • Personal Injury
    • Medical Malpractice
    • Eminent Domain
    • Employment & Civil Rights
    • Commercial Litigation
    • Real Estate & Zoning
    • Energy & Utilities
    • School Law
    • Municipal Law
    • Appellate Practice
  • News & Cases
  • Testimonials
  • Philanthropy
  • Contact
  • Home
You are here: Home / Energy & Utilities / Spesia & Taylor Helps Client Avoid Massive Rate Hike For Lease Of Public Utility Easement

Spesia & Taylor Helps Client Avoid Massive Rate Hike For Lease Of Public Utility Easement

October 23, 2017

By: Michael A. Santschi

Many companies transporting oil and gas by pipeline find it to be more expedient to rent rights-of-way from public utilities, rather than go through the effort and expense of acquiring their own permanent rights.  The contracts governing these leases are generally designed to last for many years, and as a result they often contain mechanisms that allow the lessor to adjust the rate of the lease over time to account for both inflation and the natural appreciation of surrounding property values.

Recently, one of Spesia & Taylor’s clients found itself in precisely this situation.  The Client had been renting a right-of-way from another utility (“owner utility”) for many years, and the owner utility had determined that changes in property values warranted the exercise of its rate adjustment clause.  Such an adjustment was expected, but problems arose when the utility misinterpreted the terms of the lease agreement and tried to raise the annual amount of the lease by more than $500,000.00 (an increase of nearly 200% over the old lease rate).  After reviewing the relevant lease agreements, previous orders by the Illinois Commerce Commission, and communications between the Client and the utility, Spesia & Taylor Partner Christian G. Spesia and Associate Michael A. Santschi were able to formulate a strategy that informed the utility of its error in a manner that allowed both parties to save face and come to an agreement regarding the rate increase for the Client’s lease.  In doing so, Spesia & Taylor helped the Client save more than $500,000.00 a year in expenses, all without the delay and expense of litigation.

Filed Under: Energy & Utilities

Schedule a Consultation:

Contact us today to set up a time to speak with a Spesia & Taylor professional about your legal needs. CLICK HERE!

Featured News:

Providing Bicycles To Improve Opportunities For High School Students In Rural Malawi

In rural Malawi it is common for students to walk as far as 10 kilometers, each way every day, to attend the nearest high school. According to ... Read More

Warm Heart Ministries Assists With The Opening Of The Harris High School In Likwakwanda, Malawi

When Fr. Philip Mbeta was enrolled at Illinois Benedictine University, studying for his PhD, he served as an associate pastor at St. Mary Immaculate ... Read More

Spesia & Taylor Successfully Defends the City of Crest Hill in High-Profile Civil Rights Case

By: Michael R. Stiff Spesia & Taylor attorneys Jeff Taylor, and Mike Stiff on July 28, 2021, won a Motion to Reconsider the 2019 denial of a ... Read More

Amendments to the Illinois residential real property transfer on death instrument act provides more estate plan tools to individuals in order to avoid probate

The Illinois Residential Real Property Transfer Act (755 ILCS 27/1, et seq.) (the “Act”) provides for an owner, or co-owners, to transfer Illinois ... Read More

Spesia & Taylor Partners John Spesia and Jeff Taylor recognized as “Top Personal Injury Lawyers” in 2021

This September, Spesia & Taylor Partners John Spesia and Jeff Taylor were each recognized as “Top Personal Injury Lawyers” by LeadingLawyers.com. ... Read More

1415 Black Road
Joliet, IL 60435
Phone: (815) 726-4311
Fax: (815) 726-6828

Contact Us
Privacy Policy
Sitemap

footer-logo-1footer-logo-3footer-logo-4


© Copyright 2018 Spesia & Taylor Attorneys at Law. All rights reserved. Design by MoatzArt