December 19, 2024
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The Michigan Public Service Commission kept its eye on energy reliability and affordability in 2024, including completion of a first-ever comprehensive system audit of the state’s two largest electric utilities, work that will guide the Commission’s efforts to reduce the frequency and duration of customer outages.
The independent, third-party audit of DTE Electric Co. and Consumers Energy Co.’s operations was the deepest examination the MPSC has conducted into the two utilities’ electric distribution systems, which together serve about 4.1 million customers. The MPSC launched the effort in 2022 amid a string of widespread outages and public frustration with unreliable service (Case No. U-21305). The ongoing exploration of the results of the audit will continue to inform the Commission’s work to reduce power outages, shorten the time for restoration of power after storms, and keep residents safe from downed power lines.
The MPSC also continued its work on energy affordability challenges. Working with partners in the Legislature, human service agencies and utilities, the MPSC helped promote legislation — signed this week by Gov. Gretchen Whitmer — expanding access to the Michigan Energy Assistance Program for up to 335,000 additional households. MEAP provides energy bill assistance and self-sufficiency services for income-eligible households, and the legislation raised the income thresholds for eligibility for MEAP benefits. MEAP in 2023 aided 56,948 households to make their energy bills more affordable. Other energy affordability work continued through the MPSC’s workgroups, including the Energy Affordability and Accessibility Collaborative, the Low-Income Energy Policy Board, and the Energy Optimization Low-Income Workgroup.
The audit and work on affordability capped a year in which the MPSC issued 395 orders in cases before the Commission, including six electric rate cases and two natural gas rate cases.
Below is a recap of other significant MPSC accomplishments in 2024.
Public Safety
The Commission continued its work on natural gas pipeline safety, through pipeline inspections and damage prevention oversight. As of this week, MPSC Staff had conducted 976 total inspection days, including interstate inspections, for the pipeline safety program, as well as 45 inspection days for the underground natural gas storage program.
The Commission also worked with the Legislature and industry to ensure that the MPSC maintains Pipeline and Hazardous Materials Safety Administration enforcement authority, with the passage of Public Act 131 of 2024. The act raised Michigan’s maximum civil fine penalty limits so that they were in line with federal requirements. Michigan’s penalty limits had been among the lowest in the nation and hadn’t changed in 30 years.
The Commission also continued its work to ensure the resilience of the state’s supply of propane — used by about 320,000 Michigan households, more than any other state in the country. The MPSC’s regular SHOPP Report tracks price trends for propane and home heating oil, and the Propane Resilience Enhancement Program, administered by the Department of Environment, Great Lakes, and Energy in conjunction with the MPSC, provides grant support to expand storage capacity of wholesale and retail propane suppliers that transport the fuel by rail or truck, and to support expanded propane pipeline and fractionation capacity.
Customer protection and advocacy
The Commission in May approved a settlement agreement resolving the Commission’s investigation into complaints against Consumers Energy about malfunctioning electric meters, violations of rules on estimated billing, and significant delays in providing new electric and gas service (Case No. U-21502). Under the settlement agreement, Consumers agreed to pay a $1 million fine and take steps to improve its performance.
As of this week, MPSC Staff handled 7,124 complaints and inquiries from energy customers and 3,027 from telecommunications customers.
Accessibility and transparency
The Commission’s work to make itself more accessible and transparent to the public included holding two regular Commission meetings outside of Lansing, in Grand Rapids in May and Escanaba in October.
In addition, the Commission hosted public hearings on implementation of the state’s 2023 energy laws in Detroit in March; DTE Electric’s pending rate case (Case No. U-21534) in Detroit in September; the MPSC’s UP Energy Study in Marquette in July; efforts to broaden public engagement (Case No. U-21638) in MPSC decision-making in Flint in August; and a virtual hearing in October on Michigan Electric Transmission Co.’s application for a certificate of public convenience and necessity for construction of two electric transmission lines in Gratiot and Eaton counties and Calhoun and Branch counties.
Legislative directives
The MPSC’s work to implement the state’s 2023 energy laws included preparing for the Nov. 29 effective date of new authority for the MPSC over siting of utility-scale renewable energy and battery storage projects under certain conditions, as laid out in Public Act 233 of 2023. The Commission in October adopted application instructions and procedures for electric providers and independent power producers to use when they seek approval for projects. The Commission also updated requirements for renewable energy plans, energy waste reduction plans and integrated resource plans to comply with the new energy laws.
The Commission also launched a study of long-term and multi-day energy storage systems, working with the U.S. Department of Energy to complete the study by Feb. 24, 2025. Commissioners and MPSC Staff also joined the Long Duration Energy Storage National Consortium to better understand available technology and national best practices.
The Commission released an Upper Peninsula Energy Study under direction of PA 235, examining the unique conditions impacting electric generation, transmission, and electricity demand in the UP with a focus on Upper Michigan Energy Resources Corp’s reciprocating internal combustion engines, or RICE, units and electric demand attributable to mining activities.
In addition, the Commission in March published the results of its Nuclear Feasibility Study. The Legislature directed the MPSC to engage outside consultants to explore issues surrounding potential expansion of nuclear energy in Michigan.
Complying with Public Act 119 of 2023, the Commission in September announced recipients of nearly $21 million in grants for renewable energy and electrification projects, with the recipients including schools, community groups, tribes and other organizations.
For information about the MPSC, visit www.michigan.gov/mpsc, sign up for its monthly newsletter or other listservs. Follow the MPSC on Facebook, X/Twitter or LinkedIn.
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