By Amanda Durish Cook
FERC last week temporarily suspended ruling on Consumers Energy’s complaint over a pending transmission project in southern Michigan until state regulators weigh in on the project’s classification.
The commission’s move on Friday freezes the April complaint against Michigan Electric Transmission Co. (METC) over the Morenci Interconnection Project until the Public Service Commission decides whether the line qualifies as transmission or distribution (EL19-59).
Consumers has claimed that the $21 million, 138-kV line near the Michigan-Ohio border has more in common with a distribution project than a transmission project and should be classified as such. The Morenci project was included in MISO’s 2018 Transmission Expansion Plan over objections by the utility, which argued the line should be recognized as distribution under FERC Order 888’s seven-factor test because it would be radial in nature.
The PSC interceded in the dispute last month to claim jurisdiction over the issue, prompting METC to file a motion for FERC to hold the complaint in abeyance until the state commission renders its own determination. (See Michigan Regulators Intercede in MTEP Complaint.)
“We find that a determination of the classification of the Morenci Interconnection Project is central to addressing Consumers’ concerns raised in the complaint,” FERC said.
FERC said granting the motion won’t “unreasonably delay” its decision in the complaint, as Consumers had argued. The federal commission pointed out that the PSC has promised to act “as expeditiously as possible” on the matter. The state commission already held a prehearing conference on June 4 (U-20497).
“While we agree with Consumers that [FERC] is not required to allow a state regulator to weigh in on every asset classification dispute, this proceeding will benefit from the Michigan commission’s expertise and familiarity with its seven-factor test framework as applied to the Michigan Joint Pricing Zone,” FERC said.
The federal commission also directed METC to file the PSC’s decision in the federal docket within 15 days of its release.