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MPSC approves DTE Electric Co. power supply cost recovery reconciliation; disallows more than $2.7M in costs

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The MPSC approved DTE Electric Co.’s application for approval of the reconciliation of its power supply costs recovery (PSCR) expenses and revenues for 2021 (Case No. U-20827), rejecting $2.7 million in costs the company sought to recover from outages at generating facilities.

The Commission set DTE Electric’s PSCR reconciliation beginning balance at a net underrecovery of $139,496,628, including interest.

The Commission found DTE Electric’s costs associated with the NEXUS Gas Transmission LLC pipeline to transport natural gas to the utility’s power plants remain reasonable and prudent. Formerly a partnership between the utility’s parent company, DTE Energy, and Enbridge Inc., NEXUS is a 256-mile, 36-inch interstate pipeline transporting natural gas from receipt points in eastern Ohio to interconnections in southeast Michigan.

The Commission, however, disallowed $1.72 million DTE Electric had sought to recover in replacement power costs from an extended outage related to a 2019 overhaul at the Ludington Pumped Storage Plant on Lake Michigan, jointly owned by DTE Energy and Consumers Energy.

Similarly, the Commission disallowed recovery of just over $1 million in replacement power costs associated with outages in June and July 2021 at the utility’s Trenton Channel Unit 9.

The Commission, meanwhile, approved $3.81 million incurred by the company in 2021 for trona, a sorbent used in coal-fired power generation to control air emissions and maintain environmental compliance. The Commission noted the amount was significantly lower than projected in the plan case and includes some payments for 2020 trona usage.

The Michigan Department of Attorney General, the Association of Businesses Advocating Tariff Equity and the Michigan Environmental Council intervened in the case. MPSC Staff also participated.



The MPSC concluded its re-promulgation of rules governing the obligations of telecommunications providers of basic local exchange service (BLES) that cease to provide the service (Case No. U-21368). Rules in Michigan’s administrative code regarding this service were set to cease to have effect March 21, 2024. After working through the administrative review process, the proposed Responsibilities of Providers of Basic Local Exchange Service that Cease to Provide the Service are today adopted and transmitted to the Michigan Office of Administrative Hearings and Rules for filing with the Secretary of State.



The Commission ordered the closure of dockets in Case No. U-16065 and U-16066 involving DTE Electric Co. and Consumers Energy Co., respectively, finding that the dockets through which the utilities previously reported reliability indices are no longer necessary after the Commission in 2023 approved a new final report form for the utilities to use to file distribution system reliability reports, in Case No. U-12270.


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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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