Michigan study reveals cost outweighs transmission line benefits in efforts to connect UP grid to others

Efforts to strengthen the electrical ties between Michigan’s Upper Peninsula (UP) and the Lower Peninsula (LP), as well as to Ontario, have suffered a setback after a state study revealed construction costs outweigh any benefit.

Such is the preliminary findings of the Michigan Transmission Expansion Study–a report commissioned by Gov. Rick Snyder and the Michigan Agency for Energy (MAE). There had been consideration of tying the UP more significantly into other systems by producing infrastructure across Sault Ste. Marie and the Straits of Mackinac. Currently, no such connection exists across to Ontario, though some capability does exist already between the UP and the LP.

The hope, though, was that doing so might help lower energy costs and improve grid reliability in the region. The UP’s utility customers currently pay among the highest electric rates in the nation, according to the MAE.

“This is an important piece of information for Michigan to have, and we appreciate very much the cooperation shown by our Canadian neighbors as well as the MISO staff,” MAE Executive Director Valerie Brader said. “As we look for ways to reduce costs and increase reliability, it is important that we have the best information possible and we are glad MISO will share this information freely with stakeholders throughout the region.”

The Midcontinent Independent System Operator (MISO) ran the study alongside the Independent Electric System Operator (IESO), which administers the grid for Ontario. Of those factors considered were potential cost savings, reliability and resource adequacy benefits of potential transmission grid improvements, and proposed natural gas power plants. In the process, they did determine that a 100-megawatt generator placed in the eastern UP could provide a reliable power production option with minimal infrastructure investment.

The final findings of the study will be released in December.