Michigan PSC approves resource plans for Upper Peninsula Power, Northern States Power

Published on February 10, 2020 by Kevin Randolph


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The Michigan Public Service Commission (MPSC) approved Feb. 6 settlement agreements involving the integrated resource plans (IRP) for two electric utilities in Michigan’s Upper Peninsula, Upper Peninsula Power Co. (UPPCO) and Northern States Power Co. of Wisconsin (NSP).

The MPSC approved a settlement agreement between UPPCO and parties including MPSC Staff, the Michigan Department of Attorney General, Citizens Against Rate Excess and Circle Power LLC. Verso Corp. and the Association of Businesses Advocating Tariff Equity filed statements of non-objection.

Under the agreement, UPPCO will remove plans for a natural gas reciprocating internal combustion engine from its IRP, pending further study and analysis. It will also increase its energy waste reduction target to 1.65 percent in 2020 and 1.75 percent in 2021, up from 1.5 percent.

UPPCO will move ahead with a long-term, 125-megawatt power purchase agreement for a proposed solar facility as well as a proposal to enable its Hoist and McClure hydroelectric generating facilities to operate directly in the wholesale power market, which will increase the company’s capacity credits with the Midcontinent Independent System Operator.

The company will file its next IRP by Dec. 6, 2024.

The MPSC also approved a settlement agreement between NSP and MPSC Staff. NSP’s IRP service area includes Wisconsin, the Dakotas and Minnesota. The company also filed its IRP in Minnesota.

Under the agreement, NSP will increase its energy waste reduction goals to 1.5 percent by 2021, continue to assess demand response for Michigan customers, and participate in the MPSC’s MI Power Grid initiative to evaluate how the company can improve the alignment of its IRP and distribution planning process.

The company also agreed to, in its next IRP proceeding, provide a summary of specific impacts to its Michigan service territory, conduct stakeholder engagement sessions within reasonable driving distance for Michigan customers, evaluate new modeling software and file its next IRP within five years in coordination with Minnesota.