Michigan commission sets guidelines for distributed generation, green pricing and electric choice programs

The Michigan Public Service Commission (MPSC) recently established guidelines for a distributed generation program as well as utilities’ volunteer green pricing programs and set electric choice caps for certain electric providers.

The ruling implements aspects of Michigan’s new energy laws, which became effective in April. The new statutes update previous laws passed in 2008.

The MPSC ruled that net metering, which currently compensates customers for excess energy they produce with distributed resources, would stay in effect until new distributed generation tariffs are approved after June 1, 2018.

Customers who enroll in the program before the new tariffs take place can lock in current rates for 10 years.

The law also requires utilities to offer customers the chance to participate in voluntary programs through which they can choose how much of their electricity comes from renewable resources. MPSC directed utilities to submit green pricing programs to the commission for review by Oct. 18.

The commission modified the electric choice cap for 11 utilities serving less than 100,00 Michigan customers. The electric choice cap is the percentage of customers who can be served by alternative electric suppliers (AESs) in a utility’s service area.

DTE Electric Co. recently filed a Certificate of Necessity, the first under the new statutes. The utility is seeking to either build an approximately 1,100 MW natural gas combined cycle generating facility or buy that capacity from another power provider.

The commission opened a contested case docket allowing alternatives to be proposed to the Commission. Under the new law, the Commission must rule within 270 days of DTE filing their application.