Indiana Michigan Power to file a new integrated resource plan after withdrawing its 2019 version
Indiana Michigan Power Co. (I&M) announced a settlement agreement this week that will see it withdraw its current integrated resource plan (IRP) in favor of a new version in late 2021, giving the utility more time to determine a course of action.
Originally, I&M filed an IRP in August 2019 to meet the requirements of Michigan’s updated 2016 energy law, which required all rate-regulated utilities to submit to the Michigan Public Service Commission (MPSC) plans for providing reliable, cost-effective electric service to customers while responding to risks. However, between MPSC staff and intervening parties, it was determined that the utility should be given more time to determine its preferred course and to address outstanding issues, such as the leasing of the Indiana-based Rockford Unit 2 coal power plant.
I&M’s next IRP must be filed on or before Dec. 15, 2021. Under the terms of the settlement, the company must hold at least one stakeholder meeting in its Michigan service territory and work with stakeholders to define modeling inputs. I&M’s energy waste reduction targets will be determined by its plan cases until the next IRP.
At the same time, it must conduct a Market Potential Study to help evaluate energy waste reduction potential in its Michigan service territory and collaborate with both the Lower Peninsula Market Potential Study and the MPSC’s MI Power Grid competitive procurement workgroup. I&M has had to commit not to extend the lease of its Rockport Unit 2 coal plant without pre-approval from the Commission and must include the results of a competitive bid process for new energy resources as part of its next IRP.
For any plan filed, the MPSC must find that it represents the most reasonable and prudent means of meeting I&M’s energy and capacity needs.
