August 11, 2009
The Michigan Public Service Commission (MPSC) today approved procedures for the recovery of certain costs for merchant plants that generate electricity from wood or solid wood wastes.
Public Act 286 of 2008 deals with merchant plants that, on or before Jan. 1, 2008, entered into a contract with an initial term of 20 years or more to sell electricity to a regulated electric utility with 1 million or more customers and that generate electricity in whole or in part from wood or solid wood wastes. Subsection (8) permits such merchant plants to recover any costs for actual fuel and variable operation and maintenance costs that exceed the amount they are paid under their contracts, when those costs are incurred reasonably and prudently.
On July 16, Cadillac Renewable Energy, LLC, Genesee Power Station Limited Partnership, Grayling Generating Station Limited Partnership, Hillman Power Company, LLC, TES Filer City Station Limited Partnership, Viking Energy of Lincoln, Inc. and Viking Energy of McBain, Inc. filed an application requesting approval of procedures for recovery of costs pursuant to Public Act 286. These merchant plants sell electricity to Consumers Energy, and each is entitled to recover costs under the law.
The approved procedures cover invoicing, payment of invoices, over- or under-payments, payment reserves, dispute resolution, and a sample invoice.
The MPSC is an agency within the Department of Energy, Labor & Economic Growth.
Case No. U-16048
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