April 24, 2007

The Michigan Public Service Commission (MPSC) today directed the MPSC staff to convene a statewide collaborative on smart grid infrastructure to improve the state's electric grid.

Smart grid developments include emerging technologies designed to improve the efficiency, reliability and security of the electric grid. A smart grid would feature developments such as advanced metering; monitors and sensors throughout to help control power flows; self-monitoring; automated restoration when disruptions occur; and price information provided to customers.

"Michigan's economy demands that its electric grid feature state-of-the-art technologies to power it throughout this century," said MPSC Chairman J. Peter Lark. "From advanced meters that can communicate directly with the utility, to a grid that accommodates a variety of generation technologies - including wind and solar - a smart grid is essential to ensuring a reliable electric system. A smart grid also reduces the need for additional electric generation because it more efficiently manages congestion on the grid, and it reduces electrical losses."

To ensure that Michigan makes use of these emerging technologies, the Commission is directing the MPSC staff to convene a collaborative process to monitor national smart power grid infrastructure developments. When options appear cost-effective and practical to implement, the MPSC staff has been directed to establish evaluation criteria and standards that would trigger pilot programs or broader deployment in Michigan .

Today's order also directs the MPSC staff to issue reports of its progress annually to the Commission.

The Commission is requiring all regulated electric distribution companies to participate in the collaborative and invites participation from other interested parties.

The MPSC notes that public comments may be submitted in this case. Comments 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 on smart power grid infrastructure developments should reference Case No. U-15278. All information submitted to the Commission in this matter will become public information, available on the Commission's Web site, and subject to disclosure.

Regulated electric utilities in Michigan are:

Alpena Power Company, Consumers Energy Company, The Detroit Edison Company, Edison Sault Electric Company, Indiana Michigan Power Company, Xcel Energy, Upper Peninsula Power Company, We Energies, Wisconsin Public Service Corporation, Alger Delta Cooperative Electric Association, Cherryland Electric Cooperative, Cloverland Electric Cooperative, Great Lakes Energy Cooperative, Tri-County Electric Cooperative, Midwest Energy Cooperative, The Ontonagon County Rural Electrification Association, Presque Isle Electric & Gas Co-op, and Thumb Electric Cooperative of Michigan.

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

Case No. U-15278