Demand Response Aggregation

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In the December 21, 2022 Order in Case No. U-21099, The Michigan Public Service Commission partially lifted a more than decade-long prohibition on demand response (DR) aggregation resources participating in regional wholesale power markets, a move that’s part of the Commission’s ongoing efforts to bolster Michigan’s energy capacity. The order lifted the prohibition for retail commercial and industrial customers and aggregators of retail customers on behalf of retail commercial and industrial customers with a minimum enrolled load of 1 megawatt (MW). The ban remains in effect for retail residential customers and smaller commercial and industrial customers.

The Commission also called for additional customer protections, noting that consumer protections will be desirable prior to Michigan’s implementation of the Federal Energy Regulatory Commission’s Order 2222 for the aggregation of distributed energy resources more broadly in addition to DR aggregation for residential and smaller commercial and industrial customers.

In the December 1, 2023 Order in Case No. U-21297 the Commission directed the Staff to convene a workgroup to consider the following issues related to DR aggregation: (1) whether tying of retail and wholesale DR programs by the retail electric provider is appropriate; (2) whether a FIT or other tariff mechanism is needed or advantageous; (3) how Michigan’s approach to DR aggregation comports with the frameworks being developed by PJM Interconnection, L.L.C., and MISO for compliance with Order 2222; and (4) any other related issues that the Staff finds appropriate to consider.

Demand Response Aggregation & Load Modifying Resource Registration Information