The Michigan Public Service Commission (MPSC) today designated two Michigan regions as wind energy resource zones.  

Public Act 295 requires the MPSC to designate a primary wind energy resource zone; it may also designate additional zones.  The MPSC is required to base its decision based on the findings of the Wind Energy Resource Zone Board, which submitted its final report on Oct. 15, 2009.  In addition, the Commission was directed to consider and evaluate projected costs and benefits and other factors.

"Michigan today has taken a giant step forward in harnessing its abundant wind energy, which has gone virtually untapped," said MPSC Chairman Orjiakor Isiogu.  "Transmission companies will now be able to expedite siting of the transmission projects needed to move the wind energy onto the electric grid.  The result will be a more reliable and robust electric grid, cleaner air, a more diverse fuel supply, and the creation of many renewable energy jobs."

In today's order, the MPSC designated Region 4 as the primary wind energy resource zone, which includes parts of Bay, Huron, Saginaw, Sanilac and Tuscola counties.  It also designated Region 1 as an additional wind energy resource zone.  Region 1 includes parts of Allegan County.

Today's order also gives affected parties 21 days to reach agreement on a voluntary cost allocation methodology for the transmission upgrade projects needed to develop wind generation in Region 4, as designated.  The current method used does not adequately address the unique circumstances of transmission needed for renewable energy development and equitable sharing of associated costs within Michigan.  If an agreement is reached, then the necessary actions will be taken by the parties at the Midwest Independent Transmission System Operator, Inc. (MISO).  If the parties are unable to reach a cost allocation treatment amongst themselves, the MPSC will pursue another process to resolve the matter.

Concurrent with today's order, the MPSC also submitted to the Michigan legislature its report on the impact of setback requirements and noise limitations in wind zones in Michigan, which recommended that decisions about setback distances and noise levels be made by local planning and zoning authorities.  The MPSC will also expand the role of the Wind Working Group, which will review current scientific information on the process for determining setbacks.

Today's order notes that a zone designation at this time does not exclude other zones from being considered in the future, nor does it make a fact finding regarding any non-designated area's potential for wind development in the future.

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

Case No. U-15899