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Welcome to the June 2022 MPSC Spotlight newsletter! This month’s issue reports on the MPSC’s approval of a settlement agreement governing Consumers Energy’s integrated resource plan, the Mid-America Regulatory Conference in Chicago (and in Grand Rapids in 2023!), the MPSC’s annual summer energy report, a recent energy assistance fair in Benton Harbor, and other news and information.
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Commissioners and other MPSC Staff attended the Mid-America Regulatory Conference (MARC) in Chicago. MARC represents an association of regional organizations of utility and energy regulatory agencies from Michigan and 13 other states from the Upper Midwest to Texas. The annual conference is a way for utility commissioners, staff and others in the energy industry to share ideas and discuss state, regional and national regulatory and policy issues.
In 2023, it’s the MPSC’s turn to host the conference in Grand Rapids – Michigan was supposed to be the host site in 2020, but that was canceled because of the COVID-19 pandemic. We’ll have more to share as the MPSC finalizes details.
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The MPSC on June 23 approved a settlement agreement governing Consumers Energy’s integrated resource plan, or IRP, as the Commission also initiated a broad review of additional ways to shore up Michigan’s reserves of energy supply.
The Consumers Energy IRP settlement includes:
- Closing three coal-fired units at the J.H. Campbell coal-fired power plant in Ottawa County’s Port Sheldon Township in 2025.
- Purchase of the Covert Generating Station, a natural gas-fired power plant in Van Buren County’s Covert Township, in 2023, boosting reliability and adding capacity.
- Not accelerating to 2023 the retirement of the D.E. Karn Generating Complex’s units 3 and 4, which run on natural gas and fuel oil, keeping them operating through May 2031.
- Bringing thousands of new megawatts of solar energy capacity online in the next several years as part of the company’s plans to add about 8,000 MW of solar generation by 2040.
More information regarding Consumers Energy’s approved IRP can be found in the Commission’s Issue Brief.
Meanwhile, the Commission accepted the MPSC Staff’s report that all but one of Michigan’s electric load serving entities (LSEs) owns or has contractual rights for sufficient capacity to meet their capacity obligations four years from now, as state law requires (Case No. U-21099).
Noting concern about tightening capacity across the Midcontinent Independent System Operator’s (MISO) Zone 7, which covers most of the Lower Peninsula, the Commission requested comment from utilities, other LSEs and stakeholders on ways to bring additional capacity resources to the market to ensure reliable electricity service. The Commission asked for comment on whether the MPSC’s ban on DR aggregation for utility customers should be lifted, whether energy storage resources such as batteries should be allowed to participate simultaneously in wholesale and retail markets, whether the Commission should implement forward capacity obligations that exceed MISO requirements in upcoming capacity demonstrations or a forward LCR applicable to Michigan LSEs. The Commission also requested comments on what actions could be taken at the RTOs to improve transmission connections to neighboring areas as well as provide better price signals to independent generators, and any other actions the Commission could take to help develop additional in-state capacity resources.
The Commission directed Spartan Renewable Energy (Case No. U-21250) to show cause why it should not be found in violation of its statutory capacity demonstration obligations after the MPSC Staff’s finding that the alternative electric supplier did not demonstrate sufficient capacity to meet its customers’ capacity needs in the 2025-2026 planning year.
Read more about these orders and others from the MPSC’s June 23 meeting.
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The MPSC released its Michigan Energy Appraisal Summer Outlook 2022 on June 17, detailing rising demand and prices across all energy sectors and outlining ways Michiganders can find help with home energy costs.
National and global uncertainty persist in putting pressure on energy supply and pricing. The MPSC’s annual report finds that Michigan drivers can expect higher prices for gasoline and diesel to continue amid increases in demand for both automotive fuels. Demand for electricity is expected to rise in the industrial sector but decline among commercial and residential customers. Natural gas demand is expected to grow significantly across all sectors.
Michiganders struggling with these costs have options for help. Those having trouble paying home energy costs may contact their electric or natural gas utilities for information about financial assistance, or contact Michigan 211 by calling 211 or going to www.mi211.org. Michigan 211 is a free, confidential service that connects Michiganders with a broad range of assistance programs and services and other resources, including help with food, housing, transportation and home energy bills.
More energy assistance information is available through the MPSC’s energy assistance consumer tip. Utility customers also can help reduce their costs by using energy efficiently. Check out the MPSC's consumer tip on beating the heat for suggestions on reducing energy use. The U.S. Department of Energy has additional spring and summer tips for saving energy.
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The MPSC held the second of its series of energy assistance fairs and listening sessions on May 24 in Benton Harbor. The events help connect Michigan families to state and local resources for home energy assistance while also gathering public feedback on energy affordability and accessibility and the availability of energy assistance programs.
Other participating organizations included the Michigan Department of Health and Human Services, TrueNorth Community Services, Catholic Community Center, Indiana Michigan Power Co., Michigan Gas Utilities Corp., Midwest Energy & Communications, DTE Energy, and MPSC Customer Assistance Staff.
Additional meetings are planned for other locations around the state and are anticipated to occur in the fall. Stay tuned for details!
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The MPSC on May 26 kicked off its annual assessment of the funding factor for a state program that provides energy assistance to income-qualified households.
The Low-Income Energy Assistance Fund, or LIEAF, provides $50 million in critical energy assistance and self-sufficiency services to Michigan households each year. It is funded through a monthly per-meter charge assessed on retail electric billing meters in all rate classes, and the assessment cannot exceed $1. The surcharge last year was set at 87 cents.
LIEAF funds are distributed through nonprofit service agencies across the state through the Michigan Energy Assistance Program (MEAP), which in 2021 provided energy assistance and self-sufficiency services to 57,101 qualifying households. The MPSC must set the LIEAF funding factor no later than July 31 each year for the following fiscal year, based on participation by investor-owned, municipally owned and rural electric cooperative utilities.
Learn more about this year’s assessment in Case No. U-17377.
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Here’s information on other orders the Commission approved May 26 and June 23:
- The MPSC held a second public hearing June 22 on proposed Interconnection and Distributed Generation Standards ruleset (Case No. U-20890). The MPSC has proposed the updates as part of the ongoing MI Power Grid effort to maximize the benefits of Michigan's transition from centralized, large power plants to clean, distributed sources of energy.
- The Commission commenced a license revocation proceeding against the alternative gas supplier Realgy LLC, directing the company to demonstrate why it should be allowed to keep its license to operate under the Commission’s Gas Customer Choice program in light of persistent complaints about violations of rules governing the company’s marketing and business practices (Case No. U-21247). After the Commission opened a formal investigation in February 2021 into complaints about Realgy’s marketing and business practices, the Commission in December 2021 approved a settlement agreement resolving issues in the case. But MPSC Staff has since documented additional violations of the settlement agreement and tariff provisions. The MPSC held discussions since then with Realgy, but the Commission is not confident identified issues have been resolved and is concerned additional violations are still occurring.
For more about recently approved orders, check out the MPSC’s news release from May 26 or from June 23.
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 July 7, 2022, at 1:30 p.m.
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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.
Michigan Public Service Commission
517-284-8100
7109 W. Saginaw Hwy,
Lansing, MI 48917
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