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MPSC approves $50M in low-carbon energy infrastructure grants
June 09, 2023
Media contact: Matt Helms 517-284-8300
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The Michigan Public Service Commission today approved nearly $50 million in state funds for low-carbon energy infrastructure enhancement and development (EIED) projects across the state, supporting projects including grid-scale energy storage, community solar, electric vehicle infrastructure, renewable natural gas and expansion of natural gas to areas now reliant on propane (Case No. U-21293).
Gov. Gretchen Whitmer and the Legislature, in Public Act 53 of 2022 and Public Act 166 of 2022, appropriated $50 million for grants for businesses, nonprofit organizations and local governments to develop, acquire or build low-carbon energy facilities that may include natural gas, combined heat and power or renewable natural gas facilities as well as electrification programs.
Grant winners announced today are:
- City of Lansing solar project, $1 million.
- City of Traverse City solar and battery energy storage project, $1,685,479.
- Consumers Energy Co. Swisslane Farm renewable natural gas project, $5,633,745.
- Consumers Energy TDI Farm renewable natural gas project, $5,392,437.
- DTE Gas Co. Benzie, Manistee and Wexford counties natural gas expansion project (Mesick-Buckley only), $7,285,129.
- Genesee County Drain Commission construction of new digesters at Ragnone Wastewater Treatment Plant, $5 million.
- Hope Network solar and battery storage project, $3,655,547.
- Kent County Bioenergy Facility at the Kent County Sustainable Business Park project, $5 million.
- Lansing Board of Water and Light grid-scale battery energy storage system and ground-mounted solar system project, $12 million.
- 5 Lakes Energy infrastructure planning toolkit project, $1,247,796.
- Kalamazoo Nature Center EV infrastructure planning project, $265,000.
- Midland Cogeneration Venture carbon capture and sequestration feed feasibility study, $771,360.
- Public Sector Consultants planning for regional community solar for Lansing-area communities project, $151,340.
- Shelby Charter Township EV infrastructure planning project, $158,800.
- Slipstream low carbon energy planning for Native Nations project, $749,990.
Additional details are available at the MPSC’s webpage on the grant program. More detailed information is available about grant proposals totaling $183 million that were initially posted in January in response to a request for proposals the Commission issued Sept. 30, 2022, after a public input process.
Among other conditions, the legislation required winning grants to support reduction of greenhouse gas emissions, be supported by a cost-benefit analysis, facilitate the largest number of customers achieving access to low carbon energy facilities at the lowest total cost, and reduce customer energy cost burdens.
The total amount of low carbon EIED grants awarded is $49,996,623. The anticipated grant start date is July 3, 2023. All grants are contingent on review and approval of the State Administrative Board.
MPSC DIRECTS INDIANA MICHIGAN POWER TO FILE REVISED DISTRIBUTED GENERATION TARIFF AS UTILITY ANNOUNCES ITS CAP IS REACHED
The Commission today directed Indiana Michigan Power Co. to file a revised legacy net metering program or distributed generation (DG) program tariff after the utility announced in May that it had reached its DG program’s size limit and would no longer accept new customers as of May 15 (Case No. U-20890). The Commission, seeking to understand the impacts of I&M reaching the statutory cap of its DG program, directed I&M to file the revised tariff and explain options available to potential customers looking to interconnect Level 1 DG systems and the anticipated outflow credit compensation levels customers and installers can expect. I&M must file the information by 5 p.m. June 30 in Case No. U-20890, after which comments from interested parties may be filed by 5 p.m. July 21. Written comments may be mailed to Executive Secretary, Michigan Public Service Commission, P.O. Box 30221, Lansing, Michigan 48909; submitted via the Commission’s E-Dockets website, or emailed to firstname.lastname@example.org. All comments should reference Case No. U-20890. After the public comment period, the Commission will consider the matter and what additional steps may be necessary. The Commission noted that while other electric utilities subject to the discretionary customer cap have met or exceeded the statutory participation levels, they have either continued to interconnect customers under the DG program tariff provisions in excess of the cap or have voluntarily agreed to increase their caps. “To the extent that I&M desires to pursue this option, the Commission encourages I&M to indicate its willingness to do so when responding to the directives in this order,” the Commission stated. Relatedly, the Commission directed all electric providers and alternative electric suppliers going forward to file their annual interconnection and net metering or DG reports in Case No. U-20890, reflecting the MPSC’s adoption on April 24, 2023, of new Interconnection and Distributed Generation Standards.
COMMISSION APPROVES INDIANA MICHIGAN POWER CO. AMENDED RENEWABLE ENERGY CONTRACT
The MPSC approved a second contract amendment to a renewable energy purchase agreement (REPA) between Indiana Michigan Power Co. and Fowler Ridge Wind Farm LLC (Case No. U-15361). The amendment reduces rates I&M pays for renewable energy outlined in the original REPA as a result of technology upgrades at the 600-megawatt wind farm in Benton County, Ind. The amended contract will not impact rates or increase the cost of services to customers.
MPSC SEEKS COMMENTS ON PROPOSED CAPACITY DEMONSTRATION PROCESS AND REQUIREMENTS DOCUMENT FOR ELECTRICITY PROVIDERS
The MPSC is seeking comments on a proposed capacity demonstration process and requirements document developed by MPSC Staff as the Commission works to address the impact of changing obligations from the state’s regional transmission organization on Michigan’s resource adequacy requirements through which all electricity providers in the state — investor-owned and municipal utilities as well as electric cooperatives and alternative electric suppliers — must show they have sufficient capacity to meet customer demand (Case No. U-21099). The MPSC in June 2022 directed MPSC Staff to host a technical conference addressing a move by the Midcontinent Independent System Operator, the regional transmission organization that covers much of Michigan, to revise its Open Access Transmission, Energy and Operating Reserve Markets Tariff to shift from an annual resource adequacy requirement and to a seasonal resource adequacy requirement for each summer, fall, winter and spring. Today’s order summarizes a report by MPSC Staff on the technical conference and seeks comments and replies on Staff’s proposed capacity demonstration process and requirements document. Written and electronic comments must be received no later 5 p.m. June 23, 2023, and reply comments by 5 p.m. July 7, 2023. Comments may be mailed to Executive Secretary, Michigan Public Service Commission, P.O. Box 30221, Lansing, Michigan 48909; filed through the MPSC’s E-Dockets website, or emailed to email@example.com. All comments should reference Case No. U-21099.
COMMISSION SETS PUBLIC HEARING ON GAS SAFETY RULES UPDATE
The MPSC today announced it will hold a public hearing in July on updated gas safety rules (Case No. U-21369). The hearing will take place at 9 a.m. July 11, 2023, in the Lake Michigan conference room at the MPSC’s offices, 7109 W. Saginaw Highway, Lansing. The gas safety rules were updated primarily to adopt by reference current federal gas safety regulations. Those interested in attending the public hearing may present data, views, questions and arguments. Written comments, suggestions, data, views, questions, argument, and modifications also may be submitted to the MPSC by 5 p.m. July 28, 2023, and should reference Case No. U 21369. Comments may be mailed to Executive Secretary, Michigan Public Service Commission, P.O. Box 30221, Lansing, MI 48909; filed through the MPSC’s E-Dockets website or e-mailed to firstname.lastname@example.org.
MPSC OKs ALTERNATIVE GAS SUPPLIER LICENSE FOR TOMORROW ENERGY
The MPSC today granted Tomorrow Energy Corp. a license to operate as an alternative gas supplier in Michigan (Case No. U-21396). The Commission’s order finds the company, which provides natural gas to 47,000 customers in six other states, has the required financial, managerial and technical capabilities to serve customers in Michigan. Tomorrow Energy’s Michigan office is in Dearborn.
To look up cases from today’s meeting, access the MPSC’s E-Dockets filing system.
Watch recordings of the MPSC’s meetings on the MPSC’s YouTube channel.
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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