LANSING, MI (WOWO) Utilities in northern Michigan are evaluating whether burying power lines provides enough benefit to justify the high costs.
Underground lines are proven to reduce outages and storm damage, according to Bridge Michigan. However, the expense is significant. Consumers Energy estimates roughly $400,000 per mile to bury existing overhead lines, and only about 15% of the company’s nearly 100,000 miles of lines are currently underground.
The Michigan Public Service Commission recently approved a $276.6 million rate increase to fund undergrounding and other grid improvements. Officials say the goal is to increase reliability, particularly during ice storms and other extreme weather events. While undergrounding is more cost-effective for new construction, relocating existing overhead lines requires substantial investment in construction, labor, and materials.
Smaller municipal utilities, such as Traverse City Light & Power, have already buried roughly half of their lines, often using conduit to protect wires from ice, wind, or accidental damage. Underground lines reduce the likelihood of outages, but repairs can be more complex and time-consuming compared to overhead lines, requiring specialized equipment to locate and fix problems.
Experts note that climate change could increase the frequency of ice storms in northern Michigan, making the trade-offs between cost and reliability more pressing. Policy analysts say undergrounding all lines is financially impractical, and utilities must prioritize circuits where the long-term benefits outweigh the costs.
“Undergrounding improves reliability, but it’s not feasible to do everywhere,” said Eric Paul Dennis, research associate at the Citizens Research Council, according to Grist. “Utilities have to balance the cost to customers with the benefits of preventing outages, and targeted investments may offer the best outcome.”
The discussion continues as utilities, regulators, and residents weigh long-term resilience against the financial impact on ratepayers, with a focus on strategic undergrounding projects to strengthen the electric grid.
