LANSING — Michigan regulators are moving to overhaul how new high-voltage electric transmission lines are planned and approved, responding to mounting public pushback as the state’s power grid expands to meet rising demand — including from large-scale data centers.

The Michigan Public Service Commission (MPSC) approved new voluntary filing guidelines designed to strengthen public engagement, increase transparency, and require greater flexibility in routing new transmission lines. The changes apply to utilities seeking Certificates of Public Convenience and Necessity for major projects, particularly lines rated at 345 kilovolts or higher.

While the guidelines are technically voluntary, commissioners made clear they reflect what the agency now expects from developers bringing large transmission projects forward.

A response to rising tensions

The new rules follow the MPSC’s approval last year of Michigan’s first interstate high-voltage transmission projects in more than 50 years — a milestone that also exposed deep frustration among landowners and local governments who said they were left out of key routing decisions.

In approving two major 345-kV projects proposed by Michigan Electric Transmission Co. (METC), commissioners sharply criticized what they described as inadequate and late-stage engagement with affected property owners. That criticism prompted the MPSC to direct staff to work with stakeholders to develop clearer expectations for future applications.

Those expectations are now formalized.

“As we continue to build the grid of the future, these additional safeguards help ensure that affected landowners have a seat at the table,” said MPSC Commissioner Katherine Peretick. “People whose properties may be impacted by new high-voltage lines should be heard, and their concerns adequately addressed.”

Why the grid is expanding now

The timing is not accidental. Michigan is entering a period of unprecedented transmission investment as the regional grid operator advances what regulators describe as the two largest backbone transmission portfolios in U.S. history. Several of those projects run through or directly affect Michigan.

Driving the expansion are multiple forces converging at once:

  • Renewable energy growth, which requires long-distance transmission to move wind and solar power

  • Reliability concerns, as aging infrastructure faces heavier loads

  • Surging electricity demand from data centers, particularly those tied to AI, cloud computing, and digital services

While the MPSC order does not explicitly cite data centers, regulators nationwide have acknowledged that hyperscale facilities are dramatically reshaping load forecasts. A single AI-focused data center campus can consume as much electricity as a mid-sized city — often triggering the need for new transmission lines rather than incremental grid upgrades.

What utilities must now show

Under the new guidelines, transmission developers are strongly encouraged to:

  • Invite all affected landowners and municipalities to public meetings, including those within one mile of a proposed right-of-way

  • Identify and evaluate multiple alternate routes, not just a preferred alignment

  • Consider route changes submitted by landowners

  • Provide a dedicated public comment period after final meetings

  • Address topics such as electric and magnetic fields (EMF) and clearly explain the siting process

Applications are also expected to include clearer justification for study areas and rights-of-way, greater use of route-optimization and evaluation tools, and detailed assessments of alternative routes suggested by the public.

Lessons from recent approvals

The guidelines stem directly from last year’s approval of METC’s two southern Michigan projects: a 39-mile transmission line between Gratiot and Eaton counties and a 55-mile line connecting substations in Calhoun and Branch counties. Together, they were the largest transmission approvals since the MPSC authorized the Thumb Loop project in 2011.

In those cases, commissioners cited confusion over what constituted a legitimate alternate route, how private benefits should be evaluated, and whether existing law provided sufficient clarity on landowner engagement. Rather than waiting for legislative changes, the MPSC opted to raise standards through guidance.

What this means going forward

Under Public Act 30 of 1995, the MPSC has authority over transmission lines longer than five miles and rated at 345 kV or more, with a one-year deadline to rule on contested cases.

As Michigan braces for a new wave of grid investment — much of it tied to energy-intensive industries like data centers — the Commission’s message is clear: transmission buildout will continue, but utilities will face higher expectations on how, when, and with whom those decisions are made.

For communities already wary of new lines crossing farmland, neighborhoods, and sensitive land, the coming test will be whether voluntary guidelines translate into meaningful change on the ground.