The Michigan Public Service Commission (MPSC) today approved the renewable energy plan (REP) for UP Power Marketing LLC, a licensed alternative electric supplier (AES).

Public Act 295 of 2008 required all AESs to file their plans with the MPSC to establish a renewable energy program (REP).  Section 23(2) of PA 295 provides that an AES's proposed REP must fulfill both of the following requirements:  the plan must describe how the AES will meet the renewable energy standards, and the plan must specify whether the number of megawatt-hours (MWh) used in the calculation of the renewable energy portfolio will be weather-normalized or based on the average number of MWh sold to Michigan retail customers annually during the previous three years.

On April 23, the company filed its proposed REP, proposing to meet the requirements by using weather-normalization to calculate electricity sales from the previous year and to begin purchasing renewable energy credits (RECs) by 2012 to meet the 10 percent goal by 2015.  It plans to purchase RECs from L'Anse Warden Electric Company LLC that include biomass approved by the State of Michigan.  The company will limit cost recovery to the rate contained in a current long-term contract it has with CertainTeed Ceilings Corporation; it will cover any cost incurred above that rate.

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

Case No. U-15846