Public Service Commission today (July 23) issued a series of orders to clarify processes associated with the interconnection of distributed energy resources such as solar and energy storage onto utility grids and also offered guidance on the implementation of the state's energy laws enacted in 2023.
Case No. U-21569 et al. takes up Public Act 235's increase in the size of Michigan's distributed generation program, from 1% of an electric utility's or alternative electric supplier's average five-year in-state peak load average to 10%, and other changes to the distributed generation (DG) program. Michigan's updated Interconnection and Distributed Generation Standards (MIXDG) went into effect April 25, 2023, requiring electric utilities to revise interconnection procedures and file them with the Commission.
Today's order in the case provides guidance on provisions of Public Act 235, grants a waiver from some provisions of the MIXDG Standards, and directs utilities to file revised DG tariffs in new dockets by Sept. 20, 2024.
The Commission granted Alpena Power Co., Upper Peninsula Power Co., Upper Michigan Energy Resources Corp., Northern States Power Co., Indiana Michigan Power Co., Consumers Energy Co. and DTE Electric Co. a waiver from the provisions of Mich Admin Code, R 460.1014(2) and R 460.1014(2)(c) that require the use of a generation meter, and from Mich Admin Code, R 460.901a(y) regarding the definition of "eligible electric generator."
In addition, the Commission directed the utilities to file applications for approval of a revised DG tariff consistent with the provisions of Public Act 235 of 2023 and today's order in a new docket by 5 p.m. Sept. 20, 2024.
In Case No. U-21543, the Commission approved a Standard Level 1, 2, and 3 Interconnection Agreement for Projects up to 550 kilowatts with certified equipment. The Commission approved revisions concerning insurance and limiting the applicability of the agreement to certified distributed energy resources but declined to adopt proposed changes to the indemnity provision in the agreement.
In Case No. U-21481, Michigan Electric Cooperative Association (MECA) utilities Cherryland Electric Cooperative, Cloverland Electric Cooperative, Great Lakes Energy Cooperative, HomeWorks Tri-County Electric Cooperative, Midwest Energy & Communications, Ontonagon County Rural Electrification Association, Presque Isle Electric & Gas Co-op, and Thumb Electric Cooperative sought waivers related to:
- Rule 26(3)(c) and (d), which address maximum fees for system impact and facilities study. Today's order in the case grants a two-year waiver for the increased fees.
- Rule 32(2), which allows electric utilities to limit the number of pre-application report requests filed during a one-week period to 10 per applicant and its affiliates. Today's order approves a two-year waiver to the rule, reducing the number to two pre-applications per week per applicant.
- Rule 8, which provides an additional 10 business days to comply with the timelines in the MIXDG rules for electric utilities with fewer than 1,000,000 in-state customers. Today's order approves a two-year waiver allowing the MECA Coops an additional 25 business days.
- Rule 56, which allows electric utilities to use a process for studying interconnection applications that is different from the process described by R 460.954 and R 460.958 to R 460.962. This alternative process is not currently included in the MECA co-ops' proposed interconnection procedures as required by Rule 56, and the Commission declined to approve the waiver request.
The Commission found that the co-ops must use the Standard Level 1, 2, and 3 Interconnection Agreement approved today in Case No. U-21543 and the Standard Level 4 and 5 Interconnection Agreement attached to the MPSC Staff's May 22, 2024, comments and agreed to by the MECA co-ops. The order finds that the MECA coops should file interconnection procedures and forms consistent with today's findings within 30 days.
LOW-INCOME ENERGY ASSISTANCE FUNDING FACTOR SET AT 87 CENTS
The funding factor for the state's Low-Income Energy Assistance Fund (LIEAF), which provides energy bill assistance and self-sufficiency services for income-eligible households, will be set at 87 cents for the 2024-25 year, a penny lower than the previous year (Case No. U-17377). The LIEAF funding factor, approved by the Commission today, is assessed monthly from each retail electric billing meter from participating investor-owned utilities, municipally owned electric utilities or rural cooperatives no more than one meter per household. LIEAF raises a maximum of $50 million annually to be distributed through the Michigan Energy Assistance Program, or MEAP. Administered by the MPSC in partnership with the Michigan Department of Health and Human Services, MEAP assisted 56,948 households in 2023.
MPSC OKS WITHDRAWAL OF REHEARING REQUEST ON REJECTION OF EARLY END TO CONSUMERS ENERGY CONTRACTS WITH BIOMASS PLANTS
The Commission today approved a request to withdraw a petition for a rehearing on an earlier Commission order rejecting early termination of a Consumers Energy Co. contract for the output of a biomass plant in the northern Lower Peninsula (Case No. U-20496). The MPSC in March rejected the early end of power purchase agreements (PPAs) with two biomass plants. One, National Energy of Lincoln in northeast Michigan, filed a request for a rehearing the following month, but requested to withdraw the petition July 11. The Commission's earlier order denying the bid to end the PPAs years ahead of contracted dates cited concerns that closing the biomass plants years ahead of contracted dates would put the state's energy capacity needs at risk and that potential savings may have been overestimated.
COMMISSION GIVES THUMBS UP TO CONSUMERS ENERGY APPLICATION FOR NEW PIPELINE AT STORAGE FIELD IN ALLEGAN COUNTY
The MPSC approved an application by Consumers Energy Co. to build and operate a new natural gas well line at its Overisel Storage Field in Allegan County (Case No. 21629). Consumers said in its application that its new O-305 Well would be drilled in the Overisel Storage Field to offset the natural deliverability decline of the field, to continue to meet design day rates for the field and overall gas system, and to allow poorer performing existing wells to be plugged and abandoned. The 430-foot, 6-inch steel O-305 Well Line would transport gas between the O-305 Well and Lateral O-3. Consumers further states that it will comply with all applicable regulatory requirements in its construction of the proposed pipeline, including all applicable safety and environmental requirements. Consumers did not seek cost recovery in the application. Instead, issues relating to recovery of costs for the project will be addressed in a future rate case. The new pipeline also will be built on property where Consumers has right-of-way, and no additional property right-of-way will be needed for it.
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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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