Welcome to the November edition of the MPSC Spotlight. At top of mind this month has been solutions to reliability issues presented by climate change and other challenges, the impetus behind a two-day technical conference the Commission held to help get to the bottom of what’s causing repeat power outages in Michigan and what needs to be done to strengthen the grid and improve reliability. You can also read about Commissioner Tremaine Phillips’ testimony on electric vehicles before the Michigan Senate Energy and Technology Committee, the MPSC’s annual winter energy outlook, the completion of a study on rate designs for distributed energy resources, and Commission orders released at its Nov. 4 meeting.

MPSC hosts two-day technical conference to explore solutions to improve reliability of electric service in Michigan after repeated summer power outages

The MPSC’s Technical Conference on Emergency Preparedness, Distribution Reliability, and Storm Response took place over two days — Oct. 2 and Nov. 5 — and brought together experts and representatives from consumer advocates, environmental groups, regulated utilities, businesses and communities impacted by power outages.

The goal of the conference was to address the issues that led to major power outages across Michigan over the summer during extreme storms. Panels explored the scale and degree of necessary improvements and the regulatory and technological solutions to improve electric reliability, with a focus on efforts that address environmental justice, equity, and cost to customers. 

“It really is just the beginning,” said Commissioner Katherine Peretick (pictured). “Now is when we need to take the action and make the improvements that we all recognize are needed.”   

Commissioner Tremaine Phillips noted that the MPSC has devoted significant amounts of time investigating and taking steps to boost reliability but has yet to see the kind of improvement needed to prevent frequent mass outages even as costs to ratepayers remain high. 

“Given that context, I’m continuing to ask, ‘What do we need to do differently?’ — especially in light of the increased stressors to our system” from developments such as severe storms fueled by climate change and growing demand for electricity for electric vehicles, Phillips said. “We as a Commission must continue to investigate and implement best practices and solutions that put customers at the center of this discussion and increase awareness of how outages impact customers, particularly the most vulnerable.” 

Chairman Dan Scripps told participants to expect the Commission to approve orders in the coming weeks and months taking action on planning, modeling, forecasting and other steps that lead to a hardened, more resilient Michigan power grid better able to withstand current and future challenges. 

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Related links:   

Watch Day 1 of the Technical Conference 

Watch Day 2 of the Technical Conference 

Commissioner Phillips testifies on electric vehicles before Senate Energy and Technology Committee

Commissioner Tremaine Phillips appeared Oct. 19 before the Michigan Senate Energy and Technology Committee to provide an overview of the opportunities and challenges facing wider adoption of electric vehicles in Michigan. 

“There’s been a tremendous amount of development that has taken place in the transportation electrification sector, and we’re going to all need to work together, particularly this next decade, in order to facilitate that growth,” Phillips told the Committee, chaired by Sen. Dan Lauwers, R-Brockway Township.

Michigan’s major automakers are investing billions in research and development in EVs and have pledged to have EVs account for as much as 50% of their vehicle sales by 2030. Readying the power grid for the influx of electric vehicles continues to be a major focus of state and federal governments as well as the private sector. The Michigan Council on Future Mobility and Electrification recently released its second report highlighting the significance of vehicle electrification industry to Michigan economy and workforce. Furthermore, the recently passed U.S. infrastructure package includes $7.5 billion in financial support for electric vehicle charging infrastructure. 

Phillips noted that the MPSC has approved pilot projects with several Michigan utilities that are testing technology innovations, customer response, rate design and other factors to help gather data and lessons that will inform long-term decision making around transportation electrification infrastructure. 

You can view a recording of Commissioner Phillips’ testimony at Senate TV. 

MPSC’s annual Winter Energy Appraisal finds a mixed outlook with demand mostly rising — along with energy commodity prices

Michiganders can expect to pay higher prices for energy this winter, according to the MPSC’s 2021-2022 Winter Energy Appraisal, as demand for energy in most sectors increases. 

Among the key findings: 

• Residential demand for natural gas is expected to rise about 1% while demand from the power generation sector is expected to drop by about 4%.

• Propane demand is projected to increase nearly 10%, even as prices at the beginning of October were 80 cents per gallon higher than the year before.

• Electricity demand is expected to rise about 3% compared to 2020, driven largely by industrial and commercial demand. Residential electricity rates edged up with a median rate increase of 2.1% between October 2020 and October 2021 for investor-owned utilities.

• Demand for motor gasoline is expected to increase by 7.9% to 4.2 billion gallons in 2021. Midwest gasoline prices are expected to average $2.86 per gallon for 2021, and $2.72 in 2022, up from $2.04 in 2020.

Commission holds hearings on Consumers Energy’s integrated resource plan

The MPSC held two public hearings recently to gather public input on Consumers Energy’s integrated resource plan (IRP), which lays out the utility’s long-term strategy for providing electric service to customers. 

The Commission held a virtual public hearing on Oct. 4 and an in-person hearing at Saginaw Valley State University on Oct. 21. You can watch a recording of the virtual public hearing on the MPSC’s YouTube channel. 

The Commission held the hearings to take public comment on Consumers’ long-range forecasts for ensuring reliable service over the next 20 years, with specific requirements for reporting 5-, 10- and 15-year projections. Michigan’s 2016 energy laws require IRPs for each electric utility whose rates are regulated by the MPSC. 

Among other steps, Consumers’ IRP proposes phasing out all coal plants and reducing carbon emissions 60% by 2025.  Consumers Energy’s IRP was filed in June in Case No. U-21090 and remains pending before the Commission. 

MPSC presents distributed energy resources rate design study

The MPSC presented a report Nov. 1 to Gov. Gretchen Whitmer and the Legislature providing a broad exploration of how customer-owned electric generation and storage options are changing the ways electricity customers use the power grid, how that can impact cost allocation, and the pros and cons of rate design options. 

The study, Smart Rate Design for Distributed Energy Resources, was prepared by the Regulatory Assistance Project for the MPSC at the request of Sen. Dan Lauwers, R-Brockway Township, Chairman of the Senate Energy and Technology Committee, in Senate Resolution 142 of 2020.

The MPSC in a Feb. 4 order (Case No. U-20960) noted the rapid evolution of distributed energy resources and the impact of these changes now and into the future. The Commission launched a workgroup to study rate designs as part of the MPSC MI Power Grid initiative’s innovative rate offerings subject area. MI Power Grid is the MPSC’s multiyear effort to guide Michigan residents and businesses through fast-paced changes in the energy industry and better enable a transition to clean, distributed sources of electricity.

Decisions released at the MPSC’s Nov.  4 meeting  

Here’s a recap of some of the major orders the MSPC issued Nov. 4: 

• The MPSC approved allowing DTE Electric Co. to provide a one-time voluntary refund of $70 million to be spent on tree trimming as part of the company's efforts to boost system reliability after a summer marked by repeated, extended power outages from severe storms (Case No. U-21128).  The order approved the utility’s request for a one-time regulatory liability and accounting authority to use a portion of unexpectedly higher profits from changed electricity use patterns of its retail customers amid the ongoing COVID-19 pandemic. The utility said the money would fund an additional surge in tree trimming in response to the summer's storms, with the trimming taking place during the remainder of 2021 through 2023.

• The Commission also announced a series of public hearings set for Dec. 9 on proposed updates to rules and technical standards governing utility service that are designed to boost electric service reliability, make power outage credits automatic and strengthen consumer protections for customers of Michigan's electric and natural gas utilities. Among the changes are proposals to raise power outage customer credits to $35 from $25, with an additional $2 per hour beyond acceptable thresholds, and to make credits automatic.

To learn more about orders approved Nov. 4, check out the MPSC’s news release. 

Have a utility complaint, or need help with your utility service? We’re here to help. Submit your complaint or inquiry online or call 800-292-9555.

Tune in to our next regularly scheduled virtual commission meeting on Nov. 18, 2021 at 1 p.m. 

The mission of the Michigan Public Service Commission is to serve the public by ensuring safe, reliable, and accessible energy and telecommunications services at reasonable rates.

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Lansing, MI 48917
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