Utility Sidetracks Attempt to Open Parallel Proceedings at STB Regarding Preemption of State Law Claims

Consumers Energy Company (“Consumers”), a Michigan utility, successfully headed off an attempt by the Adrian & Blissfield Rail Road Company (“ADBF”) to open parallel proceedings at the Surface Transportation Board (“STB”) regarding preemption of state law claims affecting Consumers’ easements and continuing access for its power lines, when these issues are already before the Michigan State Court.  The STB in its decision issued on January 31, 2018 in FD 36148, denied ADBF’s petition and offered guidance to the state court on preemption.  This represents a win for ratepayers and utilities, as having the STB intervene when there is no indication that the State or Federal Courts will not uphold STB precedent only results in unnecessary delays and drives up costs. 

Questions on this decision or on railroad litigation generally may be directed to Kelvin J. Dowd or any other Slover & Loftus LLP attorney.