MARQUETTE — Preliminary results of the Michigan Transmission Expansion Study show that none of the electrical transmission line tie-ins between Michigan and Canada that were studied had financial benefits that exceeded the cost of construction, according to a press release by the Michigan Agency for Energy.

The study, requested by Gov. Rick Snyder and the MAE, looked at connecting the Upper Peninsula to Ontario at Sault Ste. Marie and strengthening the electrical ties between the U.P. and the Lower Peninsula at the Straits of Mackinac.

The study was led by the Midcontinent Independent System Operator — which oversees the electrical grid in the central United States and part of Canada — in cooperation with the Independent Electric System Operator, the grid administrator for Ontario, Canada.

The study evaluated the potential cost savings, reliability and resource adequacy benefits of certain potential transmission grid improvements and proposed natural gas power plants. Because of the type of modeling used, the study allowed Michigan to identify areas where additional generation might best be located with minimal transmission infrastructure upgrades.

“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,” Valerie Brader, executive director of the MAE, said in the press release. “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.”

Of all the options studied, a 100-megawatt generator sited near Pine River in the eastern U.P. would be a reliable option for producing power and could receive natural gas and provide electrical service with minimal infrastructure investment, the study showed. Building that level of generation would likely cost the same or less than other options studied.

Currently, there is not an electricity transmission connection between the U.P. and Ontario and significant upgrades would have to be made to transmission systems in Michigan and Canada to establish that connection. None of the transmission options studied by MISO provided enough benefit to cover the high construction costs of linking Michigan’s transmission system to IESO, according to the release. Similarly, the cost of expanding transmission capability between the U.P. and the Lower Peninsula projected more costs than benefits.

Gov. Snyder requested MISO to study connecting the eastern U.P. to Sault Ste. Marie, Ontario, and the northern Lower Peninsula at the Straits of Mackinac down to an existing 345-kilovolt transmission line near Gaylord. He also asked for the study to assume a large natural gas power plant is constructed in Otsego or Kalkaska County.

The study results come as the Michigan Public Service Commission recently announced its approval of a certificate of necessity by the Upper Michigan Energy Resources Corp. to build two natural gas-fueled electric generation facilities in Baraga and Negaunee townships in the central U.P.

Additionally, the Federal Energy Regulatory Commission recently ruled that ratepayers will pay $23 million less in system support resource payments to cover past costs associated with keeping the Presque Isle Power Plant in Marquette running.

U.P. utility customers pay some of the highest electric rates in the nation and the MISO grid study was commissioned to try to find options for lowering energy costs and improving reliability.

“We appreciate the opportunity to collaborate with the state of Michigan on the transmission study,” said Jennifer Curran, MISO vice president of System Planning and Seams Coordination. “Providing context for policy decisions through our modeling and analysis is an important part of what we do as a regional transmission organization.”

A final version of MISO’s report is due in December.

For more information about MAE, visit www.michigan.gov/energy or sign up for its listservs to keep up on MAE matters.