*This page presents a record of the work the Commission engaged in to implement the 2016 energy laws.
Public Acts 341 and 342 were passed on December 15, 2016, and signed by Governor Rick Snyder on December 21, 2016. PA 341 updates Michigan’s energy laws related to utility rate cases, electric choice, certificate of necessity, and electric resource adequacy, and establishes an integrated resource planning process. PA 342 updates Michigan’s energy laws related to renewable energy, energy waste reduction, and distributed generation, and allows utilities to implement on-bill financing programs. The laws took effect on April 20, 2017.
The 2016 energy law shortened the deadline for rate cases to be completed from 12 months to 10 months. It also removed the ability of utilities to “self-implement” new rates after 6 months if a final order has not been issued by the MPSC. Existing filing requirements have been updated to account for these, and related, changes in Case No. U-18238.
Statutory Section: MCL 460.6a
Status: Implementation Complete
Electric utilities are able to apply to the MPSC for a Certificate of Necessity to obtain new electric generation resources. The new energy law made changes to these provisions, and existing CON filing requirements have been updated to account for these changes in Case No. U-15896.
Statutory Section: MCL 460.6s
Status: Implementation Complete
The 2016 energy law requires rate-regulated electric utilities to submit integrated resource plans to the MPSC for review and approval. The law also requires that the MPSC hold a collaborative proceeding to take input from the Michigan Agency for Energy (MAE), Department of Environmental Quality (DEQ), and the public, to set modeling parameters and assumptions for utilities to use in filing integrated resource plans. Implementation details are in Case No. U-18418.
Statutory Section: MCL 460.6t
Status: Implementation Complete
The 2016 energy law requires rate-regulated electric utilities to submit integrated resource plans to the MPSC for review and approval. The MPSC to set a schedule for integrated resource plans and established filing requirements for utility integrated resource plan filings in Case No. U-18461.
Statutory Section: MCL 460.6t
Status: Implementation Complete
As part of the collaborative proceeding to set modeling parameters and assumptions for utilities to use in filing integrated resource plans, the MPSC conducted a study to determine the potential to use demand response resources to meet electric needs and issued the 2017 Demand Response Potential Study.
Statutory Section: MCL 460.6t
Status: Implementation Complete
As part of the collaborative proceeding to set modeling parameters and assumptions for utilities to use in filing integrated resource plans, the MPSC conducted a study to determine the potential to use energy waste reduction resources to meet electric needs and issued the 2017 Energy Waste Reduction Potential Study.
Statutory Section: MCL 460.6t
Status: Implementation Complete
Provisions in the 2016 energy law require all electric providers to demonstrate to the MPSC that they have enough resources to serve the anticipated needs of their customers. The MPSC implemented these provisions in Case No. U-18197 and Case No. U-18444.
Statutory Section: MCL 460.6w
Status: Implementation Complete
Under the 2016 energy law, the MPSC is required to determine a generation capacity charge in certain areas of the state where some customers are served by non-utility electric providers under the electric choice program. The MPSC implemented a state reliability mechanism in Case No. U-18239 for Consumers Energy, Case No. U-18248 for DTE Electric, Case No. U-18253 for UMERC, Case No. U-18254 for UPPCO, and Case No. U-18258 for Cloverland Electric Cooperative.
Statutory Section: MCL 460.6w
Status: Implementation Complete
The 2016 energy law updated provisions related to the electric choice program, which allows up to 10% of the electric load in a utility’s service territory to choose a non-utility provider of electric generation service. The MPSC modified existing electric choice provisions to reflect these changes in Case No. U-15801.
Statutory Section: MCL 460.10a
Status: Implementation Complete
The 2016 energy law increased the amount of renewable energy required to 15% of each electric provider’s retail sales by 2021. The MPSC implemented these provisions in renewable energy plan cases for each electric provider.
Statutory Section: MCL 460.1022 et seq.
Status: Implementation Complete
Under the 2016 energy law, electric utilities are required to offer “green-pricing programs” which allow their customers to purchase electricity generated by renewable energy sources. The MPSC implemented these provisions in Case No. U-18349.
Statutory Section: MCL 460.1061
Status: Implementation Complete
The 2016 energy law required the MPSC to create a new distributed generation program within 90 days of the law’s effective date. The MPSC conducted a study on an appropriate cost-of-service tariff for customers who participate in net metering or distributed generation programs and issued a final report on February 21, 2018.
Statutory Section: MCL 460.1171 et seq.; MCL 460.6a
Status: Implementation Complete
Energy waste reduction programs help participants use less energy, and lower overall costs for utility companies, helping all utility customers save money. The 2016 energy law made a number of changes to these provisions, and the MPSC implemented these provisions in energy waste reduction plan cases and submitted a 2017 Utility Energy Waste Reduction Programs report to the Legislature.
Statutory Section: MCL 460.1071 et seq
Status: Implementation Complete
Under the 2016 energy law, rate-regulated utilities may offer residential customers the option to finance home energy improvement projects, and the ability to pay off the costs of those projects on their utility bill. The MPSC and MAE created a framework for “on-bill financing” programs and issued a final report.
Statutory Section: MCL 460.1201 et seq
Status: Implementation Complete
The 2016 energy law requires the MPSC to promote voluntary load management programs such as demand response programs, time-of-use and peak pricing, and remote shut off of air conditioning, and requires certain utility companies to offer MPSC-approved demand response programs. The MPSC implemented these provisions in Case No. U-18369.
Statutory Section: MCL 460.1095
Status: Implementation Complete
PURPA is a federal law which requires electric utilities to purchase electricity from certain generators that use renewable energy and cogeneration resources. The MPSC is required to determine the rate that a utility must pay these generators. The 2016 energy law creates a process for MPSC review of these “avoided cost” rates. The MPSC implemented these provisions in separate cases for each utility and maintains the Commission-approved avoided cost rates on the MPSC’s Avoided Cost Fact Sheet.
Statutory Section: MCL 460.6v
Status: Implementation Complete
The 2016 energy law requires the MPSC to complete a study on “performance-based regulation” of utility companies.. The MPSC issued a final report on April 20, 2018.
Statutory Section: MCL 460.6u
Status: Implementation Complete
Under the new energy law, the MPSC is required to establish a code of conduct that applies to electric, natural gas, and steam utilities, and which is intended to prevent cross-subsidization, preferential treatment, and information sharing, between a utility‘s regulated services and unregulated programs and services. The law also allows utility companies to offer their customers “value-added programs and services.” The MPSC completed a rulemaking process to implement these provisions in Case No. U-18361.
Statutory Section: MCL 460.10ee
Status: Implementation Complete
