Distributed Generation Program
2016 PA 342 includes a new distributed generation program and directs the Commission to establish the program. The new energy law states “…the Commission shall conduct a study on an appropriate tariff reflecting equitable cost of service for utility revenue requirements for customers who participate in a net metering program or distributed generation program under the clean and renewable energy and energy waste reduction act…” According to the timeline in the law, the cost-of-service based distributed generation tariff study must be completed by April 2018 in order for consideration as part of utility rate cases filed after June 1, 2018. The new distributed generation tariff will go into effect at the conclusion of each utility’s rate case.
The Commission issued an order on May 11, 2017 requesting comments on establishing the program. A summary of the comments received was prepared by Commission staff and presented to the Distributed Generation Workgroup on June 28, 2017. On July 12, 2017, the Commission issued an order establishing the program. The July 12 order found that the existing net metering program shall continue as the distributed generation program until the Commission approves a distributed generation tariff at the conclusion of each utility’s rate case filed after June 1, 2018. The order also clarified that customers who enter the distributed generation program prior to the new distributed generation tariff effective date may continue to net meter for 10 years from the date of their enrollment.
Under the law, the distributed generation program is for customers who install certain on-site grid-connected, renewable generation. Qualifying renewable generation projects must be no larger than 150 kW; however, methane digester generation projects as large as 550 kW may also participate. The project may generate up to 100% of a customer’s annual electricity consumption.
The distributed generation program is available to customers of Alpena Power, Consumers Energy, DTE Electric, Indiana Michigan Power, Northern States Power, Upper Peninsula Power Company, Upper Michigan Energy Resources Company and alternative electric suppliers.
Commission staff are conducting a series of meetings to undertake the study, develop the tariff and implement the program. Contact the staff leads to join the workgroup. The meetings are open to all interested parties. Information about the workgroup meetings will be provided below.
No reports available at this time.
Task - Related Documents
U-18383 July 12, 2017 Order
U-18383 Request for Comments Order
U-18383 DG Docket