Indiana Michigan Power Co. to withdraw its integrated resource plan, refile new version in 2021

FOR IMMEDIATE RELEASE   September 10, 2020

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The Michigan Public Service Commission today approved a settlement agreement in which Indiana Michigan Power Co. (I&M) will withdraw its integrated resource plan (IRP) filed a year ago and refile a new plan in late 2021 (Case No. U-20591).

I&M filed its IRP in August 2019 to meet the requirements of the state’s 2016 energy law update requiring all rate-regulated utilities to submit for MPSC review and approval their plans for providing reliable, cost-effective electric service to customers while addressing risks and uncertainties inherent in the electric utility industry. The Commission must find that the plan represents the most reasonable and prudent means of meeting the electric utility's energy and capacity needs in order to approve it. The MPSC held a public hearing on the issue in October 2019 in Benton Harbor.

Five intervening parties — Michigan Department of Attorney General; the Environmental Law & Policy Center, the Ecology Center, Solar Energy Industries Association, and Vote Solar (collectively, “ELPC”); Citizens Against Rate Excess; the Sierra Club, and Great Lakes Renewable Energy Association — plus MPSC Staff participated in the proceeding. The settlement agreement gives the utility more time to determine its preferred course of action and address matters including the lease of its Rockford Unit 2 coal power plant located in Indiana.

Under the settlement agreement, I&M will:

  • File its next IRP with the Commission on or before Dec. 15, 2021.
  • Hold a stakeholder process for interested persons to participate, with at least one stakeholder meeting in its Michigan service territory. One stakeholder workshop will be dedicated to energy efficiency and demand response. I&M will work with stakeholders to define modeling inputs for the IRP. I&M’s energy waste reduction targets will be determined through its plan cases until the approval of the next IRP.
  • Conduct a Market Potential Study specific to its Michigan service territory to help evaluate energy waste reduction potential. I&M will also collaborate in the Lower Peninsula Market Potential Study and provide data to be used in the study.
  • Participate in the MPSC’s MI Power Grid competitive procurement workgroup.
  • Commit to not extend the lease of its Rockport Unit 2 coal plant prior to receiving pre-approval from the Commission.
  • Include the results of a competitive bid process for all new energy resources, including qualifying facilities and utility scale options, as part of its next IRP and will provide draft requests for proposals to parties in this case for review and comment.

 

MPSC APPROVES CHANGES TO INDIANA MICHIGAN POWER’S VOLUNTARY GREEN PRICING PROGRAMS

The MPSC today approved two modifications to Indiana Michigan Power Co.’s (I&M) voluntary green pricing (VGP) programs that allow customers to voluntarily specify a certain amount of electricity purchases to be from renewable energy resources, with costs of the program billed to participating customers (Case No. U-18353). The modifications include lower costs for participants in the Standard Program offered through the utility’s ‘IM Green’ Program, and a new Bring Your Own Contract option for eligible commercial customers. The new program options will not increase the cost of service to any customer.

 

MPSC CONCLUDES INQUIRY INTO ISSUES INVOLVING SHARED SAVINGS MECHANISM

The MPSC today addressed issues related to the implementation of a shared savings mechanism (SSM) for electric utilities under the state’s 2016 energy laws after considering comments from a broad range of stakeholders (Case No. U-20747). Specifically, the Commission addressed the interplay and overlap between sections of Public Acts 341 and 342 of 2016 and found that it has already fulfilled the requirements of Section 6x of Public Act 341. The Commission stressed the importance of flexibility and enabling utilities to propose new paths and innovation for cutting energy waste in the implementation of Section 6x. Parties filing comments in the case included the American Council for an Energy-Efficient Economy; Consumers Energy Co; DTE Energy Co.; MPSC Staff; Advanced Energy Economy Institute and the Michigan Energy Innovation Business Council (collectively, EIBC); Michigan Environmental Council, Natural Resources Defense Council, Sierra Club, and Great Lakes Renewable Energy Association (collectively, the MEC Coalition); Citizens Utility Board of Michigan; Michigan Electric and Gas Association; Upper Michigan Energy Resources Corp.; Association of Businesses Advocating Tariff Equity, and Tilden Mining Co.

 

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

To watch recordings 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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