UPPCO, L’Anse star in Goliath v. David

The Upper Peninsula Power Company has filed with the Michigan Supreme Court over the appeal on a case first heard by Judge Charles Goodman in Baraga County Circuit Court. UPPCO lost their case against the Village of L’Anse, wherein they asserted the village was stealing their customers through unlawful means, and denying a franchise unreasonably.

If this case mystifies you a little, you are not alone. Judge Amy Ronayne Krause from the Court of Appeals said the case was interesting but “a little bit complicated” during the oral arguments.

UPPCO sued L’Anse in August of 2018, after being informed their non-exclusive franchise to serve customers in the Dynamite Hill industrial area of L’Anse was not to be renewed. The franchise had a 30-year term. The village was willing and able to serve those customers on the municipal grid at a lower rate, which it was not able to do previously when it annexed the area.

UPPCO lawyers argued that ending the franchise was arbitrary, and that the municipality couldn’t do it without citing a reason, like a health or safety concern. They alleged that L’Anse village officials were behaving dishonestly in order to strip UPPCO of customers, with help from WPPI Energy, who L’Anse contracts with for services.

The Daily Mining Gazette reported in October 2018 that three customers, L’Anse Manufacturing, Collins Brothers Sawmill, and the village water tower, had been switched to the village power supply already. President of L’Anse Manufacturing, Mark Massicotte, said the village power costs were lower and lend a competitive edge to his business. He had worked with UPPCO for twelve years, but requested a transfer to village power in 2016.

The DMG also reported that the village agreed not to switch any more customers over until the trial concluded. That was 28 months ago.

After UPPCO filed two amended complaints days before scheduled court appearances, they eventually lost the case in June of 2019. They filed an appeal the following July, which was decided, again against UPPCO, in November 2020.

If you’ve never been in a courtroom, or if you’re into courtroom drama, the oral arguments are worth listening to. They’re available on the Michigan courts website. The clerk opens with some announcements, and then you have Jason T. Hanselman representing UPPCO, Peter H. Ellsworth representing the Village of L’Anse, and Judges Jansen, Hood and Krause asking questions.

If you aren’t into hearing the entire thing, listen to Ellsworth’s final statement. Other than blatant use of metaphor like “declared war”, I can’t disagree with his statements, based on available evidence. I have read the Bundo and Delmarva cases, too. Of course, I am not a judge or lawyer, either.

And he points out the importance of this case. If municipalities can’t end a franchise with UPPCO, then what choice do consumers have?

I’ll share the entire opinion from the appellate judges, but I think the crux of the issue is really on the last page.

Hope isn’t admissible in court. Here’s the rest of the judge’s opinion.