Bill Text: MI SB1105 | 2015-2016 | 98th Legislature | Introduced

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Bill Title: Public utilities; electric utilities; certificate of public convenience and necessity; allow qualified transmission companies to obtain. Amends secs. 2, 4, 5, 6, 7, 8, 9, 10, 11, 12 & 13 of 1995 PA 30 (MCL 460.562 et seq.).

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2016-10-18 - Referred To Committee On Energy And Technology [SB1105 Detail]

Download: Michigan-2015-SB1105-Introduced.html

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SENATE BILL No. 1105

 

 

October 18, 2016, Introduced by Senator SHIRKEY and referred to the Committee on Energy and Technology.

 

 

     A bill to amend 1995 PA 30, entitled

 

"Electric transmission line certification act,"

 

by amending sections 2, 4, 5, 6, 7, 8, 9, 10, 11, 12, and 13 (MCL

 

460.562, 460.564, 460.565, 460.566, 460.567, 460.568, 460.569,

 

460.570, 460.571, 460.572, and 460.573), sections 2, 4, 5, 6, 7, 8,

 

9, 10, 11, and 13 as amended by 2004 PA 198.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 2. As used in this act:

 

     (a) "Affiliated transmission company" means a person,

 

partnership, corporation, association, or other legal entity, or

 

its successors or assigns, which that has fully satisfied the

 

requirements to join a regional transmission organization as

 

determined by the federal energy regulatory commission, Federal

 

Energy Regulatory Commission, is engaged in this state in the

transmission of electricity using facilities it owns that were

 

transferred to the entity by an electric utility that was engaged

 

in the generation, transmission, and distribution of electricity in

 

this state on December 31, 2000, and is not independent of an

 

electric utility or an affiliate of the utility, generating or

 

distributing electricity to retail customers in this state.

 

     (b) "Certificate" means a certificate of public convenience

 

and necessity issued for a major transmission line under this act

 

or issued for a transmission line under section 9.

 

     (c) "Commission" means the Michigan public service commission.

 

     (d) "Construction" means any substantial action taken on a

 

route constituting placement or erection of the foundations or

 

structures supporting a transmission line. Construction does not

 

include preconstruction activity or the addition of circuits to an

 

existing transmission line.

 

     (e) "Electric utility" means a person, partnership,

 

corporation, association, or other legal entity whose transmission

 

or distribution of electricity the commission regulates under 1909

 

PA 106, MCL 460.551 to 460.559, or 1939 PA 3, MCL 460.1 to

 

460.10cc. 460.11. Electric utility does not include a municipal

 

utility, affiliated transmission company, qualified transmission

 

company, or independent transmission company.

 

     (f) "FERC competitive project" means a transmission project

 

awarded by the Federal Energy Regulatory Commission or the

 

appropriate regional transmission organization as part of either

 

Federal Energy Regulatory Commission Order 1000 or another

 

competitive bidding process.

     (g) (f) "Independent transmission company" means a person,

 

partnership, corporation, association, or other legal entity, or

 

its successors or assigns, engaged in this state in the

 

transmission of electricity using facilities it owns that have been

 

divested to the entity by an electric utility that was engaged in

 

the generation, transmission, and distribution of electricity in

 

this state on December 31, 2000, and is independent of an electric

 

utility or an affiliate of the utility, generating or distributing

 

electricity to retail customers in this state.

 

     (h) (g) "Major transmission line" means a transmission line of

 

5 miles or more in length wholly or partially owned by an electric

 

utility, affiliated transmission company, qualified transmission

 

company, or independent transmission company through which

 

electricity is transferred at system bulk supply voltage of 345

 

kilovolts or more.

 

     (i) (h) "Municipality" means a city, township, or village.

 

     (j) (i) "Preconstruction activity" means any activity on a

 

proposed route conducted before construction of a transmission line

 

begins. Preconstruction activity includes surveys, measurements,

 

examinations, soundings, borings, sample-taking, or other testing

 

procedures, photography, appraisal, or tests of soil, groundwater,

 

structures, or other materials in or on the real property for

 

contamination. Preconstruction activity does not include an action

 

that permanently or irreparably alters the real property on or

 

across the proposed route.

 

     (k) "Qualified transmission company" means a person,

 

partnership, corporation, or other legal entity, or its successors

or assigns, other than an affiliated transmission company or an

 

independent transmission company, that is designated by the Federal

 

Energy Regulatory Commission or the appropriate regional

 

transmission organization as a qualified transmission developer and

 

that meets either of the following:

 

     (i) Has been granted or is applying for a certificate issued

 

by the commission under section 8 or 9 for the construction of a

 

transmission project that either has been or is anticipated to be

 

included in a regional transmission plan approved by either the

 

Federal Energy Regulatory Commission or the appropriate regional

 

transmission organization.

 

     (ii) Is conducting activities listed under section 5(2)(b).

 

     (l) (j) "Route" means real property on or across which a

 

transmission line is constructed or proposed to be constructed.

 

     (m) (k) "Transmission line" means all structures, equipment,

 

and real property necessary to transfer electricity at system bulk

 

supply voltage of 100 kilovolts or more.

 

     Sec. 4. (1) If an electric utility that has 50,000 or more

 

residential customers in this state, affiliated transmission

 

company, qualified transmission company, or an independent

 

transmission company plans to construct a major transmission line

 

in this state in the 5 years after planning commences, the electric

 

utility, affiliated transmission company, qualified transmission

 

company, or independent transmission company shall submit a

 

construction plan to the commission. An electric utility with fewer

 

than 50,000 residential customers in this state may submit a plan

 

under this section. A plan shall include all of the following:

     (a) The general location and size of all major transmission

 

lines to be constructed in the 5 years after planning commences.

 

     (b) Copies of relevant bulk power transmission information

 

filed by the electric utility, affiliated transmission company,

 

qualified transmission company, or independent transmission company

 

with any state or federal agency, national electric reliability

 

coalition, or regional electric reliability coalition.

 

     (c) Additional information required by commission rule or

 

order that directly relates to the construction plan.

 

     (2) At the same time the electric utility, affiliated

 

transmission company, qualified transmission company, or

 

independent transmission company submits a construction plan to the

 

commission under subsection (1), the electric utility, affiliated

 

transmission company, qualified transmission company, or

 

independent transmission company shall provide a copy of the

 

construction plan to each municipality in which construction of the

 

planned major transmission line is intended.

 

     Sec. 5. (1) An electric utility, affiliated transmission

 

company, qualified transmission company, or independent

 

transmission company shall not begin construction of a major

 

transmission line for which a plan has been submitted under section

 

4 until the commission issues a certificate for that transmission

 

line.

 

     (2) Except as otherwise provided in section 9, a certificate

 

of public convenience and necessity under this act is not required

 

for either of the following:

 

     (a) An electric utility, affiliated transmission company, or

independent transmission company that is constructing a new

 

transmission line other than a major transmission line. or

 

     (b) An electric utility, affiliated transmission company,

 

qualified transmission company, or independent transmission company

 

for reconstructing, repairing, replacing, or improving an existing

 

transmission line, including the addition of circuits to an

 

existing transmission line.

 

     Sec. 6. (1) Before applying for a certificate under section 5,

 

an electric utility, affiliated transmission company, qualified

 

transmission company, or independent transmission company shall

 

schedule and hold a public meeting in each municipality through

 

which a proposed major transmission line for which a plan has been

 

submitted under section 4 would pass. A public meeting held in a

 

township satisfies the requirement that a public meeting be held in

 

each affected village located within the township.

 

     (2) In the 60 days before a public meeting held under

 

subsection (1), the electric utility, affiliated transmission

 

company, qualified transmission company, or independent

 

transmission company shall offer in writing to meet with the chief

 

elected official of each affected municipality or his or her

 

designee to discuss the utility's, affiliated transmission

 

company's, qualified transmission company's, or independent

 

transmission company's desire to build the major transmission line

 

and to explore the routes to be considered.

 

     Sec. 7. (1) An electric utility that has 50,000 or more

 

residential customers in this state, an affiliated transmission

 

company, qualified transmission company, or an independent

transmission company shall apply to the commission for a

 

certificate for a proposed major transmission line. An applicant

 

may withdraw an application at any time.

 

     (2) An application for a certificate shall must contain all of

 

the following:

 

     (a) The planned date for beginning construction.

 

     (b) A detailed description of the proposed major transmission

 

line, its route, and its expected configuration and use.

 

     (c) A description and evaluation of 1 or more alternate major

 

transmission line routes and a statement of why the proposed route

 

was selected.

 

     (d) If a zoning ordinance prohibits or regulates the location

 

or development of any portion of a proposed route, a description of

 

the location and manner in which that zoning ordinance prohibits or

 

regulates the location or construction of the proposed route.

 

     (e) The estimated overall cost of the proposed major

 

transmission line, as well as, in the case of a FERC competitive

 

project, full and complete details of any cost containment

 

mechanisms associated with the project.

 

     (f) Information supporting the need for the proposed major

 

transmission line, including identification of known future

 

wholesale users of the proposed major transmission line.

 

     (g) Estimated quantifiable and nonquantifiable public benefits

 

of the proposed major transmission line.

 

     (h) Estimated private benefits of the proposed major

 

transmission line to the applicant or any legal entity that is

 

affiliated with the applicant.

     (i) Information addressing potential effects of the proposed

 

major transmission line on public health and safety.

 

     (j) A summary of all comments received at each public meeting

 

and the applicant's response to those comments.

 

     (k) Information indicating that the proposed major

 

transmission line will comply with all applicable state and federal

 

environmental standards, laws, and rules.

 

     (l) Other information reasonably required by the commission

 

pursuant to rule.

 

     Sec. 8. (1) Upon applying for a certificate, the electric

 

utility, affiliated transmission company, qualified transmission

 

company, or independent transmission company shall give public

 

notice in the manner and form the commission prescribes of an

 

opportunity to comment on the application. Notice shall be

 

published in a newspaper of general circulation in the area to be

 

affected within a reasonable time period after an application is

 

provided to the commission and shall be sent to each affected

 

municipality and each affected landowner on whose property a

 

portion of the proposed major transmission line will be

 

constructed. The notice shall be written in plain, nontechnical,

 

and easily understood terms and shall contain a title that includes

 

the name of the electric utility, affiliated transmission company,

 

qualified transmission company, or independent transmission company

 

and the words "NOTICE OF INTENT TO CONSTRUCT A MAJOR TRANSMISSION

 

LINE".

 

     (2) The commission shall conduct a proceeding on the

 

application as a contested case under the administrative procedures

act of 1969, 1969 PA 306, MCL 24.201 to 24.328. Upon receiving an

 

application for a certificate, each affected municipality and each

 

affected landowner shall be granted full intervenor status as of

 

right in commission proceedings concerning the proposed major

 

transmission lines.

 

     (3) The commission may assess certificate application fees

 

from the electric utility, affiliated transmission company,

 

qualified transmission company, or independent transmission company

 

to cover the commission's administrative costs in processing the

 

application and may require the electric utility, affiliated

 

transmission company, qualified transmission company, or

 

independent transmission company to hire consultants chosen by the

 

commission to assist the commission in evaluating those issues the

 

application raises.

 

     (4) The commission shall grant or deny the application for a

 

certificate not later than 1 year after the application's filing

 

date. If a party submits an alternative route for the proposed

 

major transmission line, the commission shall grant the application

 

for either the electric utility's, affiliated transmission

 

company's, qualified transmission company's, or independent

 

transmission company's proposed route or 1 alternative route or

 

shall deny the application. The commission may condition its

 

approval upon the applicant taking additional action to assure the

 

public convenience, health, and safety and reliability of the

 

proposed major transmission line.

 

     (5) The commission shall grant the application and issue a

 

certificate if it determines all of the following:

     (a) The quantifiable and nonquantifiable public benefits of

 

the proposed major transmission line justify its construction.

 

     (b) The proposed or alternative route is feasible and

 

reasonable.

 

     (c) The proposed major transmission line does not present an

 

unreasonable threat to public health or safety.

 

     (d) The applicant has accepted the conditions contained in a

 

conditional grant.

 

     (e) In the case of a FERC competitive project, that the

 

applicant has submitted details of binding cost containment

 

mechanisms that are being used for the project.

 

     (6) A certificate issued under this section shall identify the

 

major transmission line's route and shall contain an approved

 

estimated cost for the transmission line.

 

     (7) If construction of a proposed major transmission line is

 

not begun within 5 years of the date that a certificate is granted,

 

the certificate is invalid and a new certificate shall be required

 

for the proposed major transmission line.

 

     Sec. 9. (1) An electric utility, affiliated transmission

 

company, qualified transmission company, or independent

 

transmission company may file an application with the commission

 

for a certificate for a proposed transmission line other than a

 

major transmission line. If an electric utility, affiliated

 

transmission company, qualified transmission company, or

 

independent transmission company applies for a certificate under

 

this section, the electric utility, affiliated transmission

 

company, qualified transmission company, or independent

transmission company shall not begin construction of the proposed

 

transmission line until the commission issues a certificate for

 

that transmission line.

 

     (2) The commission shall proceed on an application in the same

 

manner as provided in section 8. Except as otherwise provided in

 

subsection (3), the provisions of this act that apply to

 

applications and certificates for major transmission lines apply in

 

the same manner to applications and certificates issued under this

 

section.

 

     (3) Section 4 does not apply to a transmission line for which

 

a certificate is sought under this section.

 

     Sec. 10. (1) If the commission grants a certificate under this

 

act, that certificate shall take precedence over a conflicting

 

local ordinance, law, rule, regulation, policy, or practice that

 

prohibits or regulates the location or construction of a

 

transmission line for which the commission has issued a

 

certificate.

 

     (2) A zoning ordinance or limitation imposed after an electric

 

utility, affiliated transmission company, qualified transmission

 

company, or independent transmission company files for a

 

certificate shall not limit or impair the transmission line's

 

construction, operation, or maintenance.

 

     (3) In an eminent domain or other related proceeding arising

 

out of or related to a transmission line for which a certificate is

 

issued, a certificate issued under this act is conclusive and

 

binding as to the public convenience and necessity for that

 

transmission line and its compatibility with the public health and

safety or any zoning or land use requirements in effect when the

 

application was filed.

 

     Sec. 11. In a civil action in the circuit court under section

 

4 of the uniform condemnation procedures act, 1980 PA 87, MCL

 

213.54, the court may grant a limited license to an electric

 

utility, affiliated transmission company, qualified transmission

 

company, or independent transmission company for entry on land to

 

conduct preconstruction activity related to a proposed major

 

transmission line or a transmission line if the electric utility,

 

affiliated transmission company, qualified transmission company, or

 

independent transmission company has scheduled or held a public

 

meeting in connection with a certificate sought under section 7 or

 

9 and if written notice of the intent to enter the land has been

 

given to each affected landowner on whose property the electric

 

utility, affiliated transmission company, qualified transmission

 

company, or independent transmission company wishes to enter. The

 

limited license may be granted upon such terms as justice and

 

equity require. An electric utility, affiliated transmission

 

company, qualified transmission company, or independent

 

transmission company that obtains a limited license shall provide

 

each affected land owner with a copy of the limited license. A

 

limited license shall include a description of the purpose of

 

entry, the scope of activities permitted, and the terms and

 

conditions of entry with respect to the time, place, and manner of

 

entry. The court shall not deny a limited license for entry to

 

conduct preconstruction activity for any of the following reasons:

 

     (a) A disagreement exists over the proposed route.

     (b) The electric utility, affiliated transmission company, or

 

independent transmission company has not yet applied for a

 

certificate.

 

     (c) The commission has not yet granted or denied the

 

application.

 

     (d) An alleged lack of public convenience or necessity.

 

     Sec. 12. Reasonable and prudent costs for a transmission line

 

for which a certificate is issued shall be included in an electric

 

utility's rates. The commission shall not disallow costs the

 

electric utility incurs in constructing a transmission line for

 

which a certificate is issued, which costs do not exceed the

 

approved estimated cost amount set forth in the certificate unless

 

the commission determines that the actual costs were imprudently

 

and unreasonably incurred, based upon substantial evidence

 

presented in opposition to the electric utility's rate request.

 

Costs incurred by the electric utility that exceed the approved

 

estimated cost amount set forth in the certificate shall be

 

included in the electric utility's rates, if reasonably and

 

prudently incurred based upon substantial evidence presented in

 

support of the electric utility's rate request.

 

     Sec. 13. (1) Except as otherwise provided in this section,

 

information obtained by the commission under this act is a public

 

record as provided in the freedom of information act, 1976 PA 442,

 

MCL 15.231 to 15.246.

 

     (2) An electric utility, affiliated transmission company,

 

qualified transmission company, or independent transmission company

 

may designate information received from a third party that the

electric utility, affiliated transmission company, or independent

 

transmission company submits to the commission in an application

 

for a certificate or in other documents required by the commission

 

for purposes of certification submitted to the commission as being

 

only for the confidential use of the commission. The commission

 

shall notify the electric utility, affiliated transmission company,

 

qualified transmission company, or independent transmission company

 

of a request for public records under section 5 of the freedom of

 

information act, 1976 PA 442, MCL 15.235, if the scope of the

 

request includes information designated as confidential. The

 

electric utility, affiliated transmission company, qualified

 

transmission company, or independent transmission company has 10

 

days after the receipt of the notice to demonstrate to the

 

commission that the information designated as confidential should

 

not be disclosed because the information is a trade secret or

 

secret process or is production, commercial, or financial

 

information the disclosure of which would jeopardize the

 

competitive position of the electric utility, affiliated

 

transmission company, qualified transmission company, or

 

independent transmission company or the person from whom the

 

information was obtained. The commission shall not grant the

 

request for the information if the electric utility, affiliated

 

transmission company, qualified transmission company, or

 

independent transmission company demonstrates to the satisfaction

 

of the commission that the information should not be disclosed for

 

a reason authorized in this section. If the commission makes a

 

decision to grant a request, the information requested shall not be

released until 3 days have elapsed after notice of the decision is

 

provided to the electric utility, affiliated transmission company,

 

or independent transmission company.

 

     (3) If any person uses information described in subsection (1)

 

to forecast electrical demand, the person shall structure the

 

forecast so the third party is not identified unless the third

 

party waives confidentiality.