Distributed Generation and Interconnection

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Public Act 235 increases the Distributed Generation program cap from 1% to 10% and makes other changes to utility distributed generation programs including program categories, system size, and meter requirements. These changes necessitate review of interconnection standards and utility programs.  The Commission issued an order on February 8, 2024 in Case No. U-21569 as part of the implementation of the new distributed generation (DG) provisions in the Act.  The new law takes effect on February 27, 2024.

The new provisions include the following:

• Increases the size of Michigan’s DG program, from 1% of an electric utility’s or alternative electric supplier’s average five-year in-state peak load average to 10%.
• At least 50% of the cap must be reserved for systems under 20 kW.
• Up to 50% of the cap may be reserved for systems between 20 kW and 550 kW.
• Eligible electric generators are Renewable Energy Systems or Methane Digesters with a capacity of 110% of the customer’s electric consumption over the prior 12 months.
• Removes the requirement for systems larger than 20 kW to install and utilize a generation meter.

Commission Actions to Date

The MPSC seeks comment on a number of issues related to implementing the higher DG cap and any other relevant matters related to the DG program, with comments due by March 26, 2024, and reply comments by April 16, 2024. Please see the order for more details and how to provide comments. 

Related MPSC Cases

Statewide Standard Agreement for Level 1, 2, and 3 Interconnection Projects

The Commission issued an order in Case No. U-21543 requesting comments on a proposed standard level 1, 2, and 3 interconnection agreement which was attached to the order as Exhibit A.  The comments must be received no later than 5:00 p.m. on March 27, 2024. Reply comments are due no later than 5:00 p.m. on April 26, 2024.

Michigan Interconnection and Distributed Generation Standards Interconnection Procedures Cases

On August 23, 2023, rate-regulated utilities and member-regulated co-ops (jointly filing in Case No. U-21481) filed interconnection procedures, forms and requests for waivers in the individual dockets pursuant to R460.920(1).  Each utility’s and member-regulated coop’s interconnection procedures provide details for interconnection customers about the implementation of the MPSC’s Michigan Interconnection and Distributed Generation Standards (MIXDG rules) which became effective on April 25, 2023. In light of the DG provisions in the new energy laws (which supersede the MIXDG rules), the Commission issued an order in in Case Nos. U-21455 et al. and directed the utilities to file new applications with updates to reflect the new DG provisions by March 22, 2024. Comments on the new applications may be filed in case dockets by May 22, 2024, with reply comments due June 5.  For more information on generator interconnection, please see the MPSC’s Generator Interconnection webpage.

     U-21455 Northern States Power Company

     U-21467 Indiana Michigan Power Company

     U-21477 Upper Peninsula Power Company

     U-21479 Upper Michigan Energy Resources Corporation

     U-21480 Consumers Energy Company

     U-21481 Cooperatives (Alger Delta Cooperative Electric Association, Cherryland Electric Cooperative, Cloverland Electric Cooperative, Great Lakes Energy Cooperative, HomeWorks Tri-County Electric Cooperative, Midwest Energy & Communications, Ontonagon County REA, Presque Isle Electric & Gas Co-Op, and Thumb Electric Cooperative) 

     U-21482 DTE Electric Company

     U-21483 Alpena Power Company

Implementation Status:  In Process

Lead Staff:  Julie Baldwin

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