October 24, 2006

The Michigan Public Service Commission (MPSC) today initiated an investigation into the interconnection of independent power projects with electric utilities. The investigation will include a public meeting at 9 a.m. on Jan. 9, 2007 .

The MPSC notes that it adopted rules governing electric interconnection standards between independent power projects and electric utilities on Sept. 11, 2003 , and it approved interconnection procedures for 17 electric utilities on Aug. 10, 2004 .

Despite these interconnection standards and procedures, problems have arisen in the case of the Elkton-Pigeon-Bay Port Laker School District 's interconnection project. The MPSC on June 30, 2005 awarded the school district a $265,000 grant from the Low-Income and Energy Efficiency Fund for the installation and grid-tying of wind turbines and a solar panel on its property.

The MPSC notes that its staff has been part of meetings designed to reach an interconnection resolution.

With today's order, the MPSC initiates a proceeding designed to investigate the interconnection of independent power producers with a utility's system, identify any problems or deficiencies in the existing interconnection procedures, and develop and implement remedies.

Specifically, the Commission is directing Detroit Edison to file a report on the interconnection process as it applied to the school district project by Nov. 14. The report will include a detailed timing of events at each step of the interconnection process. The utility's report will also detail what changes it intends to implement to assure that future interconnections are completed more smoothly, and the company will detail how it intends to treat any generated power in excess of the school district's needs.

In addition, the Commission is directing 18 electric utilities to file, by Nov. 28, a listing of all interconnections completed pursuant to procedures previously approved in Case Nos. U-14085, U-14088 and U‑14091, as well as any pending interconnection applications.

Any interested person may file information by Dec.19 detailing any interconnection problems experienced and any suggestions for changes to the interconnection procedures. C omments may be e-mailed to mpscefilecases@michigan.gov. Written comments should be mailed to the Executive Secretary, Michigan Public Service Commission, P.O. Box 30221 , Lansing , MI 48909 . All comments s hould reference Case No. U-15113 and must be received no later than 5 p.m. on Dec. 19. Comments received on this matter will become public information.

The MPSC staff will analyze the filing and will on Jan. 9, 2007 convene a public meeting at the MPSC offices in Lansing to discuss the issues raised and determine if any consensus can be reached.

The MPSC staff has been directed to file a report by Jan. 31, 2007 , summarizing the issues identified and making recommendations for future action.

Case Nos. U-14085 et al.