MPSC approves Consumers Energy purchase of 166MW wind farm
The Michigan Public Service Commission (MPSC) this week approved an application made by Consumers Energy Co., which will see them purchase a 166-megawatt wind farm from Crescent Wind, LLC.
Under the agreement, the Hillsdale County-based facility would be designed, built, and tested for success by Crescent Wind before being handed over to Consumers Energy. Consumers expects the facility to have a 31-year levelized cost of energy of around $48 per megawatt-hour, thanks to federal production tax credits, and to be operational by Dec. 31, 2020.
Notably, that projected cost is lower than the cost of energy projected in Consumers’ Renewable Energy Plan approved by the Commission earlier this year. The facility’s installed costs — $1,506 per kilowatt — are likewise lower than the assumed costs of Consumers’ Renewable Energy Plan.
The purchase agreement was approved after MPSC staff concluded Consumers’ associated requests for proposals complied with earlier MPSC orders. Further, the MPSC assured Consumers that the full cost of the project would be recoverable through the company power supply cost recovery process.
At the same time, the MPSC has also opened a rehearing on Consumers’ demand response costs, to clarify an applicable period for such costs. They are also seeking comments on a new fee schedule for pipeline regulation, setting a new base application fee of $2,000 for an ex parte case, and $10,000 for a contested case, with direct costs billed separately. This is an attempt to make regulation fees keep pace with actual, modern costs.
