MPSC approves sale of Detroit Thermal to Project Mist Holdco
Contact: Nick Assendelft
November 30, 2017
LANSING, Mich. – The Michigan Public Service Commission (MPSC) today approved the transfer of ownership of Detroit Thermal, LLC to Project Mist Holdco, LLC.
Project Mist Holdco is in the process of buying Detroit Renewable Energy, LLC, the parent company of Detroit Thermal, Detroit Renewable Power, Detroit Renewable Cooling, and Hamtramck Energy Services. The MPSC regulates Detroit Thermal and the Commission’s approval was needed for Project Mist Holdco’s purchase to move forward.
Detroit Thermal serves about 85 commercial and industrial customers in downtown Detroit. The utility generates steam that is mainly used for heating and cooling commercial offices, medical facilities, schools, manufacturing sites, governmental buildings, Cobo Center, and hotels.
Under the settlement agreement in Case No. U-18443, Detroit Thermal’s headquarters are expected to stay in Detroit and none of the 260 employees of Detroit Thermal or Detroit Renewable Energy is expected to lose their jobs.
The transaction is not expected to change rates paid by customers or affect current contracts.
Project Mist Holdco is headquartered in New York City. Its owners include Basalt Infrastructure Partners, which also owns Upper Peninsula Power Co.
U.P. utility customer capacity demonstration charges set
The MPSC today set the state reliability mechanism (SRM) capacity charge for three Upper Peninsula utilities. The charge is the amount that would be collected from customers of alternative electric suppliers (AES) if those suppliers don’t have enough power to serve anticipated needs.
The charges set today for full-service customers:
Upper Michigan Energy Resources Corp. (UMERC): 229,523/megawatt-year, or $629/megawatt-day (Case No. U-18253).
Upper Peninsula Power Co. (UPPCO): 90,810/megawatt-year, or $249/megawatt-day (Case No. U-18254).
Cloverland Electric Co-op: $ 228,891/megawatt-year, or $627/megawatt-day (Case No. U-18258).
The charge is required under the state’s new energy laws and applies to AESs serving customers in the electric choice program. The charge determination and an earlier capacity demonstration ruling by the MPSC are intended to improve resource adequacy in the state.
If an AES cannot demonstrate it has enough future generating capacity or chooses not to arrange for capacity to meet the new requirements, the law requires that a capacity charge be assessed by the local utility that also serves the area’s customers.
Public notices regarding the capacity charge for each utility service territory can be found here.
DISCLAIMER: This document was prepared to aid the public’s understanding of certain matters before the Commission and is not intended to modify, supplement, or be a substitute for the Commission’s orders. The Commission’s orders are the official action of the Commission.
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