Mi Electric Transmission Co LLC v. Mi Public Power Agency

CourtMichigan Court of Appeals
DecidedJune 23, 2025
Docket368921
StatusPublished

This text of Mi Electric Transmission Co LLC v. Mi Public Power Agency (Mi Electric Transmission Co LLC v. Mi Public Power Agency) 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
Mi Electric Transmission Co LLC v. Mi Public Power Agency, (Mich. Ct. App. 2025).

Opinion

If this opinion indicates that it is “FOR PUBLICATION,” it is subject to revision until final publication in the Michigan Appeals Reports.

STATE OF MICHIGAN

COURT OF APPEALS

MICHIGAN ELECTRIC TRANSMISSION FOR PUBLICATION COMPANY, LLC, June 23, 2025 12:20 PM Plaintiff/Counterdefendant-Appellee,

v No. 368921 Ingham Circuit Court MICHIGAN PUBLIC POWER AGENCY, LC No. 23-000539-CB

Defendant/Counterplaintiff-Appellant.

Before: GARRETT, P.J., and RICK and FEENEY, JJ.

RICK, J.

Defendant/counterplaintiff, Michigan Public Power Agency (defendant), appeals as of right an order granting summary disposition in favor of plaintiff/counterdefendant, Michigan Electric Transmission Company, LLC (plaintiff) under MCR 2.116(C)(10) (no genuine issue of material fact). We affirm.

I. BACKGROUND

A. LEGAL AND FACTUAL CONTEXT

This case presents a matter of first impression involving the transmission infrastructure planning act, MCL 460.591 et seq., recently enacted by 2021 PA 125 and made effective on December 17, 2021.1 Plaintiff and defendant are transmission companies operating in Michigan. At issue in this case are two new transmission-line projects that are set to be constructed in lower Michigan as part of a regional grid improvement.

Act 125 gives incumbent electric transmission line owners, like these parties, rights of first refusal over future regionally cost-shared transmission projects. However, Act 125 requires that

1 The parties and trial court consistently refer to the statute as a whole as Act 125. For consistency, we will do the same.

-1- such projects interconnect to the owner’s existing facilities and be included as part of a plan approved by a recognized planning authority. See MCL 460.593. This case primarily presents a narrow but important question: whether defendant’s electric transmission line interconnects with a regionally cost-shared transmission line, which would grant defendant the right to engage with plaintiff as a co-owner of that regionally cost-shared transmission line.

MCL 460.593(1) provides:

(1) An incumbent electric transmission company has the right to construct, own, operate, maintain, and control a regionally cost-shared transmission line if both of the following apply:

(a) The regionally cost-shared transmission line or its construction was included in a plan adopted or otherwise approved by a recognized electric planning authority for the incumbent electric transmission company.

(b) The regionally cost-shared transmission line will interconnect to facilities owned, or that will be owned, by that incumbent electric transmission company.

There is no dispute that plaintiff is an “incumbent electric transmission company” within the meaning of the statute. With regard to MCL 460.593(1)(a), litigated in the trial court, the parties disputed whether defendant had authority to create or approve a plan for a cost-shared transmission line. The trial court ruled that this condition was met because plaintiff and defendant were both members of the Midcontinent Independent System Operator (MISO), which is the recognized electric planning authority for the transmission lines at issue here. The parties do not dispute that ruling on appeal. Thus, the only requirement at issue in this appeal concerns MCL 460.593(1)(b), which directs that regionally cost-shared transmission lines at issue in the present case must interconnect to defendant’s facilities. The heart of this dispute concerns the meaning of the word “interconnect.”

In general, the historical and legal background for this case is not in question. MISO oversees and operates transmission systems across 14 states, including large portions of Michigan and Canada. As earlier noted, incumbent transmission owners have a right of first refusal for new transmission infrastructure, meaning they have the first choice of whether to build such infrastructure. This right of first refusal was previously granted by the Federal Energy Regulatory Commission (FERC), which regulates interstate electricity transmission. In 2011, the FERC ended the federal right of first refusal and left it up to individual states to determine whether they wanted to continue using the right of first refusal or, in the alternative, transfer to a competitive bidding system. After transmission-line development stalled, Michigan adopted a state right of first refusal by passing Act 125. This right of first refusal can be jointly exercised by multiple incumbents if they own the same facilities. See MCL 460.593(2).

Plaintiff is an independent transmission company. It owns and operates a high-voltage transmission system consisting of approximately 5,600 circuit miles of transmission lines in the northern and western Lower Peninsula. MISO provides transmission services via plaintiff’s facilities pursuant to an open-access transmission, energy, and operating reserves tariff.

-2- Defendant, on the other hand, is a not-for-profit agency created under the Michigan energy employment act of 1976, MCL 460.801 et seq. It acts on its own behalf and on behalf of municipal electric systems who are members of the agency.

This case involves two new transmission projects approved by MISO: the Hiple-Duck Lake and Oneida Nelson Road Projects (collectively, “the Projects”).2 The Projects were initiated by MISO in 2020 as part of the Long-Range Transmission Plan (LRTP) initiative. MISO approved 18 new projects as part of the initiative, including the Projects at issue in this case.

The Hiple-Duck Lake Project includes a transmission line beginning at Hiple Substation, which is located in Indiana. The transmission line will run north and connect to a new substation located at Duck Lake in lower Michigan.3 According to information available in the record, the Hiple Substation is owned by a nonparty company in Indiana, but the new Duck Lake Substation will be owned by plaintiff. In addition to the new substation, plaintiff will also upgrade three transmission line segments, which will interconnect to the substation. The Oneida-Nelson Road Project includes a transmission line beginning in Eaton County, Michigan, at the existing Oneida Substation. The transmission line will run north to Gratiot County, Michigan, where it will connect to the existing Nelson Road Substation. The Oneida Substation and Nelson Road Substations are owned by plaintiff.

Defendant has a 90% ownership interest in transmission lines located between the Projects, which are known as the Oneida Lines. Plaintiff owns the other 10% of these lines. There is no dispute that the Projects constitute a “regionally cost-shared transmission line,” as defined under MCL 460.592(k), for purposes of MCL 460.593(1)(b). In the trial court and on appeal, defendant provided satellite maps of the Projects, plaintiff’s lines and substations, and defendant’s Oneida Lines. Map 1 presents a “zoomed out” overview of both of the Projects:

2 In the trial court, defendant referred to the first project as the “Hiple-Duck Lake Project,” but plaintiff referred to it as the “Helix-Hiple Project.” Defendant referred to the second project as the “Oneida-Nelson Road Project,” but plaintiff referred to it as the “Nelson Road-Oneida Project.” The trial court appeared to accept defendant’s naming convention; thus, for consistency, we will do the same. 3 Plaintiff refers to this new substation as the “Helix substation,” but defendant and the trial court referred to it as the Duck Lake substation. Once again, we will follow the lead of defendant and the trial court.

-3- The red lines represent the new transmissions lines that will be constructed as part of the Projects. The blue line represents defendant’s Oneida Lines, and the orange lines represents other transmission lines owned by plaintiff.

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Cite This Page — Counsel Stack

Bluebook (online)
Mi Electric Transmission Co LLC v. Mi Public Power Agency, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mi-electric-transmission-co-llc-v-mi-public-power-agency-michctapp-2025.