Michigan PSC approves Consumers Energy’s integrated resource plan
Michigan Public Service Commission approved a settlement agreement on Consumers Energy Co.’s integrated resource plan (IRP), which provides long-range plans for delivering electricity.
The plan examines how the company will ensure reliable service over the next 20 years. Highlights of the IRP include the closure of three units at the J.H. Campbell coal-fired power plant in Ottawa County’s Port Sheldon Township in 2025. Further, Consumers’ purchase of the Covert Generating Station, a natural gas-fired power plant in Van Buren County’s Covert Township, in 2023, which will add 1,114 zonal resource credits (ZRCs) to the Midcontinent Independent System Operator’s (MISO) Zone 7 from PJM Interconnection, which serves southwest Michigan.
Also, the company plans to bring thousands of new megawatts (MW) of solar energy capacity online in the next several years. Specifically, it plans to add about 8,000 MW of solar generation by 2040, the year by which Consumers pledges to be carbon-neutral. In addition, Consumers will speed up the deployment of energy storage resources from 2030 to 2024, aiming for 75 MW of storage by 2027 and 550 MW by 2040. Also, it will conduct two solicitations for 700 zonal resource credits of capacity from power purchase agreements with terms up to 10 years.
Finally, the company agreed to donate $5 million in 2022 to a fund that provides income-based energy bill assistance to Consumers Energy’s electric customers, along with $2 million in continued annual donations.
In other news, the commission accepted the MPSC Staff’s report that all but one of Michigan’s electric load serving entities (LSE) either owns or has contractual rights for sufficient capacity to meet its obligations four years from now. The report noted concern about tightening capacity throughout MISO zones, which cover most of Michigan, as well as slimming reserve margins. Further, the commission said that MISO’s 2022-2023 Planning Resource Auction found that all zones within the MISO footprint met their local clearing requirement (LCR), but local resource zones 1-7 cleared at CONE (Cost of New Entry), which for 2022-2023 is set at $236.66 per megawatt-day.
Considering these concerns, the commission is seeking comment from LSEs and stakeholders on matters critical to addressing capacity shortfalls and ways to bring additional capacity resources to the market to ensure reliable electricity service. Comments may be filed by 5 p.m. on Aug. 1. Written comments should be mailed to Executive Secretary, Michigan Public Service Commission, P.O. Box 30221, Lansing, Michigan 48909. Electronic comments may be filed via the MPSC’s E-Dockets website or by email to mpscedockets@michigan.gov. All comments should reference Case Nos. U-21099 et al.
