MPSC sets renewable energy rates
The Michigan Public Service Commission (MPSC) officially set rates last week for renewable energy developers.
These new, avoided cost rates mean that renewable energy facilities in Michigan must be paid that rate for the power they supply to the grid, and the state’s major utilities. Back in June, the MPSC had established avoided cost calculations linked to the energy costs and capacity from natural gas facilities, while also updating the development and financing system for small renewable projects. Under the new rule, those projects can go up to 20 years under contract. They are also allowed to go up to 2 megawatts, whereas previously they could only go up to 100 kilowatts and still be eligible.
“The Commission adopted a strong methodology that reflects the value solar provides to Michigan during peak periods,” Margrethe Kearney, senior staff attorney with the Environmental Law & Policy Center in Grand Rapids, Michigan, said. “This decision makes Michigan more attractive for renewable energy development at no additional cost to ratepayers.”
Solar industry officials and advocates have hailed the decision for its business generating potential.
“The Commission correctly recognized the significant long-term value of solar to Michigan, and the need to update old rules to capture that value,” Rick Umoff, director of State Affairs for the Solar Energy Industries Association, said. “Solar companies can now ratchet up investment in Michigan’s economy, creating well-paying jobs and providing clean reliable energy to the state.”
