MPSC directs Consumers Energy Company to include additional information in its expected filing related to the early termination of the power purchase agreement with Entergy Nuclear Palisades, LLC

January 20, 2017

Contact: Judy Palnau, 517-284-8300
Agency: Michigan Public Service Commission

LANSING, Mich. – The Michigan Public Service Commission (MPSC) today directed Consumers Energy Company to include additional detailed information in upcoming filings related to its plan for early termination of the power purchase agreement (PPA) between it and Entergy Nuclear Palisades, LLC (ENP) and the potential for financial securitization.

On Dec. 20, 2016, the MPSC initiated a proceeding to receive information that it will need to begin evaluating Consumers Energy’s plan. That order listed a series of questions to which the MPSC sought answers. The utility filed its response on Jan. 6.

In its order today, the MPSC said that because it is seeking additional information from the utility addressing issues related to cost savings, electric reliability and resource adequacy and risk management.

Under the PPA approved by the MPSC in 2007, the utility purchases nearly all of Palisades’ electricity generation. The PPA term runs through April 11, 2022. Consumers Energy seeks to terminate the PPA as of May 31, 2018, when ENP will enter into a new PPA under which the plant will continue to operate until Oct. 1, 2018, when ENP said it intends to close the plant permanently.

Case No. U-18218

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