The Michigan Public Service Commission (MPSC) today approved a modified version of Consumers Energy Company's proposed renewable energy plan (REP) and its energy optimization (EO) plan and surcharges, as required by Public Act 295 of 2008.

Under the approved, modified REP, the utility is authorized to implement its REP surcharge beginning Sept. 1.  Residential customers will see a monthly $2.50 REP surcharge.

The utility is authorized to implement the EO surcharge for bills beginning June 1 and thereafter.  The average residential electric customer using 500 kilowatt-hours will see a monthly EO surcharge of 71 cents.  The average residential natural gas customer using 100 hundred cubic feet (ccf) will see a monthly EO surcharge of $1.72.

Today's order also directs the director of the MPSC's Electric Reliability Division to establish an energy optimization collaborative to provide EO program evaluation support and to make recommendations for improving EO plans for all providers.  All electric and natural gas providers subject to the MPSC's jurisdiction under Public Act 295 are directed to take part in the collaborative.  In addition, energy efficiency experts, equipment installers, and other interested stakeholders are encouraged to participate in the collaborative.

The Commission also directed the MPSC staff to provide oversight and consultation during the request for proposal (RFP) design process to ensure that the RFP is competitive and fair to all.

In addition, the director of the MPSC's Regulatory Affairs Division is directed to draft proposed rules to ensure verification of implementation and energy savings for self-directed customers, and the MPSC staff is directed to assure that the third-party contractor for the renewable energy and EO credit program verifies the implementation and energy savings of self-directed projects before issuing EO credits for these projects.

The MPSC is an agency within the Department of Energy, Labor & Economic Growth.

Case Nos.  U-15805 and U-15889