Michigan PSC seeks integrated resource planning recommendations in response to new state emissions goals

Following an executive order by Gov. Gretchen Whitmer that calls for economy-wide carbon neutrality by 2050, the Michigan Public Service Commission (MPSC) requested staff and stakeholders to help update utility integrated resource planning requirements.

These recommendations should reflect reduced greenhouse gas emissions targets that have become a new reality under the executive order and the MI Healthy Climate Plan. That plan calls for reducing greenhouse gas emissions to 28 percent below 1999 levels by 2025, as a stepping stone to the 2050 goal.

As a result, MPSC Chair Dan Scripps challenged participants in the MI Power Grid workgroup to address the changing world. The changes to IRP planning parameters and filing requirements could help new emissions targets be considered in utilities’ IRPs. By affecting things at the long-term planning level, this will also help utilities outline how they will provide reliable, cost-effective service while addressing risks and uncertainties that now incorporate the new goals.

“Driven by customer demand and declining prices, Michigan’s utilities have added thousands of megawatts of renewable resources like wind and solar, and are on track to exceed the statutory goal of obtaining 35% of generation by 2025 from the cleanest energy sources: renewable energy and energy waste reduction,” Scripps, who will also serve on Whitmer’s Council on Climate Solutions established as part of the MI Healthy Climate Plan, said. “Energy waste reduction has been a central part of the state’s energy strategy and will go a long way to achieving the Governor’s goal while also providing customer benefits such as lower bills and improved reliability.”

Emissions from power plants have decreased in recent years with the closure of numerous coal plants in Michigan. Still, the energy sectors remain the largest contributor to climate change in the state. According to Scripps, three utilities — Consumers Energy Co., Upper Michigan Energy Resources Corp., and Indiana Michigan Power Co. — will file their next IRPs in 2021. Despite the impending IRP recommendations, these plans will file before requirements are updated.

As a result, Scripps has asked staff to create recommendations for consideration to address how those utilities could best consider the emission reduction targets. Recommendations at large should be filed in mid-December.