Michigan PSC approves updates to utilities’ long-term integrated resource plans, new power purchase agreements

The parameters and filing requirements for Michigan utilities’ integrated resource plans (IRPs) will soon change, owing to two orders adopted by the Michigan Public Service Commission (MPSC) last week.

IRPs establish utilities’ long-range plans for providing electricity over 20 years, with additional reporting requirements for the intervening five-, 10- and 15-year projections. They have been required since 2016 when new state energy laws were passed, but a Statewide Energy Assessment conducted in 2019 following a winter-induced energy emergency identified gaps in current planning processes and made recommendations for improvements.

Following updated parameters under the MI Power Grid initiative and the MI Healthy Climate Plan, as well as input from public hearings, the final updated Michigan IRP Parameters directed regulated utilities to demonstrate modeling scenarios and sensitivities in accordance with new parameters.

“We appreciate the work of MPSC Staff and stakeholders on these updated parameters and filing requirements,” MPSC Chair Dan Scripps said. “Their collaboration produced well-informed improvements that will have a lasting positive impact on Michigan’s energy future.”

These were not the only cases undertaken by the MPSC last week. At the same time, among other items, it also approved new power purchase agreements between Consumers Energy and a series of solar companies: Allegheny Solar LLC, Aluminum Solar LLC, Hogan Solar LLC, Johnsfield Solar LLC, Surbrook Solar LLC, and Topanga Solar LLC for 70.699 MW of electric capacity supplied for 20 years. DTE Electric also received approval to advance four solar energy projects it will own and operate for its voluntary green pricing program, with approximately 380 MW of electric capacity. In neither case will this affect customer rates.

That said, the MPSC did approve cost measures for DTE that would allow it to reconcile power supply costs and revenues with its power supply cost recovery plan. This will amount to $99.88 million of under-recovery, including interest. Further, the company was authorized to implement a gas costs recovery factor of $2.53 per thousand cubic feet of gas effective April 1, 2021, through March 31, 2022, and to include a supplier of last resort reservation charges reflected in monthly billings.