Michigan PSC approves DTE Electric’s revised long-term energy plan
DTE Electric Co.’s revised integrated resource plan (IRP) gained the approval of the Michigan Public Service Commission (MPSC) on Wednesday after the company integrated every recommendation the commission had previously made back in February.
The IRP is DTE’s long-term strategy for providing reliable, cost-effective electric service to its customers over the next 15 years.
In its Feb. 20 order on DTE’s original filing, the MPSC cited a lack of competitive bidding and other issues that it said inhibited the commission from assessing the full range of alternatives such as utility- and third party-owned wind and solar projects.
“The Commission’s order today represents a step in the right direction, but it also means the work must continue for DTE and for all the various stakeholders interested in their energy planning,” James Gignac, lead Midwest energy analyst for the Climate & Energy program at the Union of Concerned Scientists, told Daily Energy Insider.
Efforts are taking shape, however, and can be seen in some of the changes DTE agreed to adopt: expanding programs to help customers cut energy waste through greater efficiency in appliances, insulation, and equipment; increasing annual energy savings to 1.75 percent this year and 2 percent in 2021 to match Consumers Energy Co.; conducting further analysis of the proposed Belle River coal-fired power plant retirement in 2029-2030; and removing costs associated with all but two proposed demand response pilots.
At this time, the company has not been approved to pursue new supply-side renewable resources – those will need to be presented in DTE’s ongoing renewable energy plan case.
“That’s where a lot of details about how DTE will pursue renewable energy will be worked out,” Gignac said. “Especially issues about competitive bidding, competitive pricing, so that the company can evaluate projects by independent developers and smaller developers, and compare that to other wind and solar options.”
Combined with an energy waste reduction plan, a technical conference to consider modeling software for future planning and another proceeding about prices offered to smaller renewable developers under the federal Public Utility Regulatory Policies Act (PURPA) later this year, efforts should culminate in another IRP to be submitted in 2023. That means things are on an expedited schedule, requiring the next IRP filing a full two years sooner than normally required. So while the order does not resolve all issues, Gignac said the expedited schedule will get things like the Belle River retirement analysis out of the way sooner. It could even culminate in an earlier retirement for the site, as the company makes investments in renewables and energy efficiency.
“While we’re happy that some positive changes were made in this plan, there’s still quite a bit of work to come as we all look toward how DTE will pursue its aggressive carbon reduction goals,” Gignac said. “It’s important the company develops plans that can meet those plans in the most beneficial way for customers. The remaining coal-fired power plants that DTE operates, the question is: can those be retired sooner and replaced with clean energy resources and not more investments in natural gas plants?”
Under its revised IRP, DTE did not include a pathway with a new gas plant. Gignac labeled this as a positive effort on DTE’s part to present a plan that demands higher levels of efficiency and solar without any gas plants offsetting them.
The final order from the MPSC came after comments from a wide range of sources on the issue, from the Michigan Department of Attorney General to environmental groups, the Michigan Energy Innovation Business Council, wind and solar developers, the Michigan Public Power Agency, and others.
