MPSC extends deadline on Consumers Energy's resource plan

FOR IMMEDIATE RELEASE   April 10, 2019

Contact: Nick Assendelft 517-284-8300
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LANSING, Mich. – The Michigan Public Service Commission today extended the deadline for a decision on a proposed settlement in Consumers Energy Co.’s integrated resource plan, which outlines how the utility anticipates meeting future customer demand for electricity.

The MPSC set a deadline of June 10 for a ruling on the proposed agreement, which Consumers filed on March 23 (Case No. U-20165). The Solar Energy Industries Association, Inc. and Cypress Creek Renewables, LLC filed objections to the proposal. Consumers and MPSC staff requested on March 25 an extension to the statutory deadline for a Commission decision.

The Commission also today set a timetable for parties in the case to file arguments either in favor of the agreement or opposing it. Testimony is due April 19 and rebuttals by April 25. An evidentiary hearing is scheduled for May 1, followed by briefs to be filed by May 8 and reply briefs to be filed by May 15.

Key issues in the proposed agreement include:

  • Utility investments in demand response and energy waste reduction.
  • The retirement in 2023 of Karn Units 1 and 2 coal-fired generation units near Bay City.
  • A financial compensation mechanism for new power purchase agreements.
  • Half of new capacity will be through power purchase agreements, and half owned by Consumers.
  • New avoided cost methodology under the Public Utility Regulatory Policies Act of 1978.
  • Competitive bidding for future capacity needs.

Consumers is also to file its next integrated resource plan in two years.

Under the state’s 2016 energy laws, rate-regulated utilities are required to file long-term integrated resource plans every five years and the MPSC has a maximum of 360 days to rule on the plans. Consumers was the first utility to file an IRP, which it did in June 2018. The Commission’s deadline for an initial ruling on Consumers’ original plan application was April 11.

Those who agreed to the settlement are Consumers; MPSC staff; Association of Businesses Advocating Tariff Equity; Attorney General’s office; Energy Michigan; Independent Power Producers Coalition; Michigan Chemistry Council; Michigan Electric Transmission Company, LLC; Michigan Environmental Council; Natural Resources Defense Council; and Sierra Club.

Groups that did not object to the settlement are Ecology Center; Environmental Law & Policy Center; Great Lakes Renewable Energy Association; Invenergy Renewables, LLC; Michigan Energy Innovation Business Council and Institute for Energy Innovation; Midland Cogeneration Ventures, LP; Residential Customer Group; Union of Concerned Scientists; and Vote Solar.


ALPENA TO IMPLEMENT POWER SUPPLY COST RECOVER FACTOR

Alpena Power Co. will be allowed to implement  a power supply cost recovery factor of up to 2 mills per kilowatt-hour for all customers (Case No. U-20217). Under a settlement agreement, the factor will be applied to monthly bills through the end of this year. The factor reflects Alpena’s cost to purchase power from Consumers Energy Co.

CONSUMERS INTERCONNECTION WAIVER DENIED IN PART, MORE INFO REQUESTED

The MPSC denied a request by Consumers Energy Co. for a partial waiver of some requirements of the Electric Interconnection and Net Metering Standards for solar projects of less than 150 kilowatts, and it requested public input on larger projects (Case No. U-20444). Consumers is to provide information within 14 days about how the company is processing all of its interconnection applications. The MPSC also requested interested parties to comment on Consumers’ request for a waiver by 5 p.m. May 24. Written comments should be sent to Executive Secretary, Michigan Public Service Commission, P.O. Box 30221, Lansing, MI 48909 or e-mailed to mpscedockets@michigan.gov. Please reference Case No. U-20444.

UPPER PENINSULA TELEPHONE OK’D FOR TEMPORARY LICENSE

Upper Peninsula Telephone Co. was granted a temporary license under the Michigan Telecommunications Act to expand the area where it can provide basic local exchange service (Case No. U-20490).

To look up cases from today’s meeting, access the eDockets filing system here.

To watch a livestream of the MPSC’s meetings, click here.

For information about the MPSC, visit www.michigan.gov/mpsc, sign up for one of its listservs, or follow the Commission on Twitter.

DISCLAIMER: This document was prepared to aid the public’s understanding of certain matters before the Commission and is not intended to modify, supplement, or be a substitute for the Commission’s orders. The Commission’s orders are the official action of the Commission.

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