Michigan PSC approves new 245 MW solar facility, advances reliability measures
The Michigan Public Service Commission (MPSC) last week approved a certificate of public necessity requested by Indiana Michigan Power Co. (I&M) to build a 245 MW solar energy facility known as the Lake Trout project.
The facility will supply enough power to energize approximately 73,500 homes from its location in Blackford County, Indiana. In granting its certificate, the commission essentially declared that the project’s size, fuel type and design were the most reasonable way to meet I&M’s power needs, while its estimated capital costs and financing will likely be recoverable through customer rates dictated in a future rate case. I&M competitively bid a purchase and sale agreement for the Trout Lake project.
I&M will defer the incurred project costs of the facility as a regulatory asset for 30 months from its in-service date, until the company’s base rates are reset to reflect the cost. Based on the MPSC’s allowances, the project costs could rise to up to $532 million. While work is scheduled to begin in fall 2024, Trout Lake isn’t expected to achieve operational status until 2026.
At the same time, the MPSC issued three new orders for immediate work on three paths to reliability and resiliency on the power grid, with focuses on communication, coordination, and data accessibility/efficacy. DTE Electric Co. and Consumers Energy were therefore directed to improve communication protocols between utilities and local governments during weather events and outages.
Further, the commission approved refunds for customers of SEMCO Energy Co. and Michigan Gas Utilities Corp.: more than $5.66 million for customers of SEMCO and more than $3.26 million for customers of PEPL. These funds were ordered in regards to the Panhandle Eastern Pipe Line Co., after the Federal Energy Regulatory Commission (FERC) finalized a rate increase from PEPL in August 2019, and caused a need for refunding of the difference between interim and FERC-approved rates. They will appear as bill credits for customers’ bills between January and March 2024.
Other items on the MPSC docket in recent days included approving new voluntary green pricing programs for customers to voluntarily specify certain amounts of electricity purchases for renewable energy resources, increases to customer data transparency, an expedited pilot review work plan for Consumers and approval for it to file proposals of individual pilot programs and temporary waivers from certain reporting requirements for a group of electric cooperatives unable to otherwise report data due to gaps in technological or other capabilities. The latter waiver gave those organizations an exemption to the reporting requirement until Dec. 31, 2029.
