| 3:01 a.m., Feb. 18, 2008 |
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ITC gets state panel's OK for power line; township vows fight
By Amy Lane
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LANSING — ITC Holdings Corp. has cleared a potential state hurdle in its construction of a 21-mile overhead transmission line through parts of Livingston and Oakland counties.
But a new twist could come this week. Hartland Township, which wanted ITC to bury the portion of line running through the township, is expected at a Tuesday board meeting to discuss its next steps after the Michigan Public Service Commission denied its request to reconsider ITC's clearance to construct the $17.2 million line.
Overall, the line proposed by ITC subsidiary ITCTransmission will run from a substation by Beck Road in Genoa Township, through portions of Brighton, Osceola and Hartland townships, ending at the General Motors Corp. proving grounds in Milford.
Cheryl Eberwein, ITC senior communications specialist, said area population growth and development has strained existing infrastructure to the point that the one existing high-voltage transmission line, "installed decades ago when electricity demands were significantly lower," is inadequate to meet communities' needs.
But in Hartland Township, which enacted in 2006 an ordinance requiring new utility lines and wires to be constructed underground, the line has drawn fire from some residents who have cited concerns about health risks, property depreciation and other factors. Hartland Township fought to require ITC to bury the lines in keeping with the ordinance, or, as an alternative, take a different overhead route.
Eric Schneidewind, who represents the township and is a partner with Varnum, Riddering, Schmidt & Howlett L.L.P. in Lansing, said the township is disappointed that the PSC did not support the alternate overhead route that he said would have avoided highly populated areas, been equal in cost to the route proposed by ITC, and "would have had a lot less local impact." He said that in some instances residents and businesses face having an ITC line in front of their property and a Detroit Edison Co. line in the rear.
ITC says it presented five route alternatives to the PSC and that the commission approved a route that was modified to reflect some township concerns, including poles that will hold both ITC's and Edison's wires. ITC also asserts that transmission lines alone do not significantly influence property value.
Eberwein said ITC places transmission lines above ground whenever possible because underground lines are less efficient, more costly, pose unique maintenance issues and can be disruptive to install. The company said burying the line through Hartland Township would have more than doubled the cost of the project, to about $40 million.
The PSC approved a certificate for construction last May, after which the township and area home owners requested a rehearing. In part, the township contends that the PSC has not provided adequate grounds for pre-empting the local ordinance.
But in its Jan. 29 order denying a rehearing, the commission said that under state law it holds "pre-eminent authority over the siting of new transmission lines and related cost recovery issues."
The PSC noted that the majority of the additional costs of burying the Hartland Township portion of the line would be assessed on utility customers outside the township. Costs of such projects are built into the transmission rates that ITC charges the local utility, which then passes the costs on to all its customers.
A state administrative law judge has recommended that the PSC deny approval to construct that line, citing insufficient public benefits to justify the construction and inadequate demonstration that the proposed route is reasonable. A final decision on that case is pending at the commission.
Amy Lane: (517) 371-5355, alane@crain.com
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