Public utilities: electric utilities; condemnation of property for transmission lines; allow for qualified transmission companies. Amends sec. 5 of 1923 PA 238 (MCL 486.255). TIE BAR WITH: SB 346'25
Summary
Senate Bill 348 would amend Michigan’s existing utility condemnation law to clarify and expand the authority of certain qualified electric transmission entities to condemn property needed for public-use electric transmission. The bill applies to two categories of companies: independent transmission companies and affiliated transmission companies. It preserves their ability to use eminent domain for transmission projects, but it also keeps them subject to the state’s electric transmission line certification law and the uniform condemnation procedures act, except where those laws conflict with the bill’s specific provisions.
The bill includes two key limits on that condemnation authority. First, it bars these companies from using condemnation to evade private rights-of-way agreements that were already in place on July 12, 2004. Second, it prohibits condemnation of property owned by electric, gas, or municipal utilities if the taking would unreasonably disrupt the utility’s ability to serve customers. If there is a dispute over whether a taking would cause such disruption, the Michigan Public Service Commission must decide the issue in a contested case before condemnation can proceed, generally within 180 days, or up to 210 days if the parties agree more time is needed.
Impact
SB 348 would amend 1923 PA 238, the statute governing condemnation powers for electric and gas corporations, by adding specific rules for independent transmission companies and affiliated transmission companies. It would define those entities more precisely, tie their authority to regional transmission organization participation or certification under the electric transmission line certification act, and exempt them from statutory provisions that conflict with those laws. The bill would therefore affect how transmission-line projects are sited and how property is acquired for electric transmission infrastructure in Michigan, while preserving existing procedural safeguards and utility-service protections.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of debate, support, or opposition in the available materials. Based on the bill text, the measure appears to be a technical but significant utility-regulatory update aimed at facilitating transmission development while retaining limits intended to protect existing utility operations and private contractual rights. The tie-bar with SB 346 suggests it is part of a broader legislative package rather than a standalone policy change.
Contention
The main points of contention are likely to be the scope of eminent domain authority for transmission companies and the protection of existing utility rights-of-way and service obligations. Utilities and municipal providers would likely favor the bill’s restriction on condemnations that would unreasonably disrupt service, while transmission developers would likely support the clarified condemnation authority and the ability to proceed under a defined PSC review process. Another possible point of dispute is the bill’s treatment of preexisting private agreements, which limits the ability of transmission companies to bypass earlier contractual arrangements.
Same As
Public utilities: electric utilities; certificate of public convenience and necessity; allow qualified transmission companies to obtain. Amends sec. 2 of 1995 PA 30 (MCL 460.562).