In re International Transmission Co.

298 Mich. App. 338
CourtMichigan Court of Appeals
DecidedNovember 6, 2012
DocketDocket Nos. 303009 and 303040
StatusPublished
Cited by1 cases

This text of 298 Mich. App. 338 (In re International Transmission Co.) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re International Transmission Co., 298 Mich. App. 338 (Mich. Ct. App. 2012).

Opinion

PER CURIAM.

In these consolidated cases, appellant Association of Businesses Advocating Tariff Equity (ABATE) (Docket No. 303009) and appellants Michigan Public Power Agency (MPPA) and Michigan Municipal Electric Association (MMEA) (Docket No. 303040) appeal the February 25, 2011, order entered by the Michigan Public Service Commission (PSC) granting appellee International Transmission Company (ITC) an expedited siting certificate for a wind energy transmis[343]*343sion line and authorizing construction of that line on ITC’s proposed route.1 We hold that the PSC properly issued the siting certificate but that its conclusion that construction is permitted by the certificate was erroneous. However, because we are mindful of the effects of our holding, we conclude that limiting it to prospective application is appropriate.

I. BACKGROUND

Before 2008, all location and construction of electric transmission lines of a certain size and length was governed by 1995 PA 30, known as the Electric Transmission Line Certification Act, MCL 460.561 et seq. (Act 30).2 In 2008, the Legislature passed 2008 PA 295, known as the Clean, Renewable, and Efficient Energy Act, MCL 460.1001 et seq. (Act 295). Part 4 of Act 295, MCL 460.1141 et seq., titled “WIND ENERGY RESOURCE ZONES” (Act 295(4)), included provisions for the creation of a wind energy resource zone board (WERZ Board) that would issue a report determining the regions in the state with the highest wind energy harvest potential. MCL 460.1143; MCL 460.1145. After receiving that report, the [344]*344electric utilities, affiliated transmission companies, and independent transmission companies with facilities within or adjacent to the regions identified by the state would “identify existing or new transmission infrastructure necessary to deliver maximum and minimum wind energy production potential for each of those regions” and submit that information to the WERZ Board for review. MCL 460.1145(6). On the basis of the WERZ Board’s report, the PSC would then designate an area or region of the state that would likely produce the most wind energy as “the primary wind energy resource zone.” MCL 460.1147(1). Act 295(4) also allowed electric utilities, affiliated transmission companies, and independent transmission companies to apply for and obtain an “expedited siting certificate.” MCL 460.1149, 460.1151, and 460.1153.

The WERZ Board was created on December 4, 2008. In its final report, dated October 15, 2009, the WERZ Board identified four regions in Michigan with the highest wind energy potential. Relevant to this case, Region No. 4, covering Huron, Bay, Saginaw, Sanilac, and Tuscola Counties, had a minimum wind energy generating capacity of 2,367 megawatts (MW) and a maximum of 4,236 MW Pursuant to MCL 460.1145(6), on November 30, 2009, ITC informed the WERZ Board that

[significant backbone transmission system enhancements would be required in [Region 4] due to the fact that the capacity of the transmission facilities in this region is already lower than the Board identified minimum and maximum wind generation capacity levels. Options presented include six 230 kV [kilovolt] high-temperature circuits at an approximate cost of $560 million to support the minimum wind generation capacity level, and eight 230 kV high-temperature circuits or four 345 kV circuits to support the maximum wind generation capacity level at ap[345]*345proximate costs of $740 million and $510 million respectively. [ITC Michigan Wind Zones Transmission Analysis, November 30, 2009, p 30.]

On January 27, 2010, pursuant to MCL 460.1147(1), the PSC formally accepted the WERZ Board’s report and designated Region 4 as the primary wind energy resource zone.

II. UNDERLYING FACTS AND PROCEEDINGS

Pursuant to MCL 460.1149(4), on February 3, 2010, ITC submitted a letter to the PSC notifying it that, within 60 days or as soon as practicable thereafter, ITC intended to seek approval from the Midwest Independent Transmission System Operator, Inc. (MISO) for a transmission line that would enable realization of the wind power in Region 4. The PSC acknowledged receiving the letter and informed ITC that the letter fulfilled the notice requirements of MCL 460.1149(4). MISO ultimately approved ITC’s proposed transmission line in August 2010.

On August 30, 2010, ITC filed an application in the PSC requesting an expedited siting certificate authorizing the construction of a transmission line to enable the wind potential of Region 4 to be realized. The proposed transmission line included “a new 345 kV double circuit tower line and four new substations.” Along with the application, ITC filed direct testimony and exhibits addressing specific factors required by MCL 460.1151. The referee granted the petitions to intervene of Consumers Energy, Detroit Edison, MMEA, and MPPA, and ABATE was allowed “permissive” intervention by the PSC.

During the proceedings, appellants argued that ITC’s proposed transmission line did not meet the requirements of Act 295(4) because (1) it was oversized, was [346]*346too costly, and represented an unreasonable threat to the public convenience; (2) Act 295(4) did not provide authorization for construction of a transmission line because that authorization was reserved to Act 30; (3) ITC was still required to undergo the siting process of Act 30; and (4) Act 295(4) was unconstitutional and void because it displaced the siting process of Act 30. However, on February 25, 2011, the PSC issued an order granting ITC’s application for an expedited siting certificate and authorizing it to construct the transmission line using the proposed route.3

The PSC determined that “ITC’s proofs fulfill[ed] all of the statutory requirements” under MCL 460.1153 and concluded that the transmission line was of “appropriate capability” because it met or exceeded the maximum load, noting that the 10 percent requirement for production of electricity with renewable energy was “a floor, not a ceiling.” It also concluded that the size of the proposed transmission line was reasonable “in light of the risk that underbuilding the line now could result in substantially higher costs and additional environmental impacts in the future if transmission capacity needed to be added.” Finally, regarding authorization for construction, the PSC concluded that resolving the alleged conflict between Act 295(4) and Act 30 “belongs to the [PSC’s] judicial superiors,” but stated that it was “counterintuitive” that the Legislature intended an expedited siting certificate to take 18 months4 (emphasis added).

[347]*347In March 2011, appellants filed their appeals in this Court; the appeals were administratively consolidated. In re Application oflnt’l Transmission Co for Expedited Siting Certificate, unpublished order of the Court of Appeals, entered March 31, 2011 (Docket Nos. 303009 and 303040). The PSC denied appellants’ motion for a stay pending resolution of this appeal.

III. STANDARD OF REVIEW

The standard of review for PSC orders is narrow and well defined. All regulations, practices, and services prescribed by the PSC are presumed, prima facie, to be lawful and reasonable. MCL 462.25; Great Wolf Lodge of Traverse City, LLC v Pub Serv Comm, 489 Mich 27, 37-38; 799 NW2d 155 (2011).

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Related

In re International Transmission Co.
847 N.W.2d 684 (Michigan Court of Appeals, 2014)

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Bluebook (online)
298 Mich. App. 338, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-international-transmission-co-michctapp-2012.