(LANSING) - Utilities across Michigan are weighing whether the major cost of burying electric lines is worth the long-term payoff in fewer outages and better storm reliability.
Energy providers say underground lines are far less vulnerable to wind, ice and falling trees, making them an attractive option as severe weather events become more frequent.
But the price tag remains steep.
Consumers Energy estimates it costs about $400,000 per mile to bury existing overhead lines, and only about 15% of its nearly 100,000 miles of lines are currently underground.
The Michigan Public Service Commission recently approved a $276.6 million rate increase to help fund undergrounding work and other grid upgrades focused on reliability.
Officials say burying lines makes the most financial sense in new construction areas, while converting older overhead systems requires significantly more labor, materials and excavation.
Some smaller utilities have already moved aggressively in that direction, using conduit systems to protect lines from weather and accidental damage.
Experts say underground systems dramatically reduce outage risks, but repairs can take longer and require specialized equipment when failures do happen.
With concerns growing about stronger ice storms and more extreme weather, regulators and utilities say the focus is likely to remain on targeted undergrounding projects where the reliability benefit best justifies the cost to customers.