MPSC kicks off implementation of changes made to Michigan's energy laws in 2023

The Michigan Public Service Commission today took steps to open implementation proceedings on changes made on Nov. 28, 2023, to Michigan’s energy laws, including public acts that grant authority to the MPSC for siting of utility-scale clean energy projects, increase renewable portfolio standards for Michigan utilities to 60% by 2035 and raise energy waste reduction targets.

The Commission today issued seven orders pertaining to implementation of the new energy laws approved by the Legislature and signed by Gov. Gretchen Whitmer:

• Case No. U-21547 deals with Public Act 233, which provides siting authority to the MPSC for utility-scale solar, wind, and energy storage projects under specified conditions. Today’s order directs MPSC Staff to engage with experts, local government agencies, project developers and other interested persons in transparent and open meetings beginning in March, with recommendations on application filing instructions, guidance relating to compatible renewable energy ordinances, and recommendations on other issues to be filed by Staff by June 21, 2024.
• Case No. U-21567 concerns Public Act 229, which increases utility energy waste reduction (EWR) targets, requires municipal and cooperative utilities to participate in EWR programs, and establishes mandatory amounts utilities must spend on EWR for low-income customers. The Commission directed MPSC Staff to work with utilities, other departments and agencies within state government, low-income advocacy organizations and other interested persons to develop strategies around income verification and program coordination to minimize barriers to participation in low-income EWR programs and reduce overly burdensome verification processes. The Commission seeks comments on issues related to PA 229 to be filed in this docket by July 17, 2024, with reply comments due by Aug. 9, 2024.
• Case No. U-21568 addresses Public Act 235, which, among other things, increases electric utilities’ renewable energy portfolio standards to 50% in 2030 and 60% by 2035. The Commission today set dates for all Michigan electricity providers to file amended renewable energy plans in 2024 and 2025 and invites interested persons to file comments by March 8, 2024, with replies due by March 22, 2024.
• Case No. U-21569 takes up another aspect of Public Act 235: an increase in the size of Michigan’s distributed generation (DG) program, from 1% of an electric utility’s or alternative electric supplier’s average five-year in-state peak load average to 10%, and other changes to the DG program. The MPSC seeks comment on a number of issues related to the higher DG cap and any other relevant matters related to the DG program, with comments due by March 26, 2024, and reply comments by April 16, 2024.
• Case No. U-21570 takes up Public Act 231 and related parts of Public Act 253. PA 231 allows the MPSC to consider climate, environmental justice and affordability matters in long-term energy planning. Today’s order directs MPSC Staff to commence studies on the potential for energy waste reduction, demand response, and electrification of transportation, buildings and industry no later than Sept. 30, 2024. The Commission directed Staff to file a redline version of the Michigan Integrated Resource Planning Parameters and Integrated Resource Plan Filing Requirements that will be updated pursuant to the requirements of Public Acts 231 and 235 of 2023, by Sept. 30, 2024, along with a straw proposal related to providing formats and guidelines for municipal electric utilities, cooperative electric utilities, and alternative electric suppliers to submit a clean energy plan pursuant to the requirements of PA 235 of 2023. Staff also was directed to conduct engagement sessions with interested persons regarding the implementation of Acts 231 and 235 of 2023 with specific focus on receiving feedback on the redlined version of the Michigan Integrated Resource Planning Parameters and Integrated Resource Plan Filing Requirements and the straw proposal. The Commission directed MPSC Staff to file the three potential studies in this docket by July 31, 2025.
• Case No. U-21571 deals with energy storage provisions of PA 235. The order issues guidance for sections 101(1)-(9) and 103, directs MPSC Staff to draft a straw proposal to aid in determining a standard methodology for determining rate regulated and alternative energy suppliers’ individual energy storage targets and file to the docket by May 31, 2024. Comments on the straw proposal from interested persons will be due by Aug. 1, 2024. The order also directs Staff to engage with interested persons and, if practical, an outside contractor to develop a report on long-duration and muti-day energy storage resources. Finally, the order requires investor-owned utilities to file energy storage reports consistent with the new law.
• Case No. U-21572 addresses Public Act 235’s requirement that the MPSC study and report to Governor Whitmer and state lawmakers on electric issues unique to the Upper Peninsula. Today’s order directs MPSC Staff to engage with Midcontinent Independent System Operator, American Transmission Company, Upper Michigan Energy Resources Corp. and other U.P utilities, Cleveland-Cliffs Inc., and others to develop the study and file it to the docket no later than Nov. 22, 2024. The Commission directed Staff to conduct at least one public hearing in the U.P. to help inform the report, with notice of the hearings filed at least 30 days in advance, and also provided an opportunity for interested members of the public to comment on the elements to be included in the study.

MPSC DIRECTS REGULATED AND COOPERATIVE UTILITIES TO FILE NEW APPLICATIONS FOR APPROVAL OF INTERCONNECTION PROCEDURES

The Commission today directed Michigan’s investor-owned electric utilities and member-regulated electric cooperatives to file updated applications for approval of interconnection procedures to reflect changes in state’s energy laws enacted by the Legislature and Gov. Gretchen Whitmer in 2023. Owing to the updated energy laws, the MPSC denied pending applications filed in Case Nos. U-21455 et al. and directed the utilities to file new applications by March 22, 2024. Comments on the new applications may be filed in case dockets by May 22, 2024, with reply comments due June 5. The order covers rate-regulated utilities Northern States Power Co.-Wisconsin, Indiana Michigan Power Co., Upper Peninsula Power Co., Upper Michigan Energy Resources Corp., Consumers Energy Co., DTE Electric Co., Alpena Power Co., and member-regulated Alger Delta Cooperative Electrical Association, Cherryland Electric Cooperative, Cloverland Electric Cooperative, Great Lakes Energy Cooperative, HomeWorks Tri-County Electric Cooperative, Midwest Energy & Communications, Ontonagon County Rural Electrification Association, Presque Isle Electric & Gas Co-op and Thumb Electric Cooperative. Meanwhile, the Commission also converted DTE Electric’s interconnection procedures application (Case No. U-21482) to a contested matter, and announced it is seeking comment on a proposed standard level 1, 2 and 3 interconnection agreement. Comments on this matter must be submitted with reference to Case No. U-21543 by March 27, 2024, with replies due by April 26, 2024.

MPSC OKs ALL-PARTY AGREEMENT FOR 2024-25 CONSUMERS ENERGY’S ENERGY WASTE REDUCTION PLAN

The Commission today approved a settlement agreement involving Consumers Energy Co.’s Energy Waste Reduction (EWR) plan for 2024-25 (Case No. U-21321). Under the agreement, Consumers will seek to meet 2% annual energy savings for electric and 1% annual savings for natural gas. In addition, the settlement agreement includes details on program design elements for Consumers’ Income-Qualified Multifamily EWR program; provides for pilots focused on health and safety measures as well as lighting and heating, ventilation, and air conditioning in commercial buildings; adds new measures relating to building envelope improvements and heat pump education and awareness; and outlines how Consumers will engage with programs to support its customers under the Inflation Reduction Act, among other commitments. In addition to Consumers, parties to the settlement agreement included Attorney General Dana Nessel, the Natural Resources Defense Council, National Housing Trust, the Ecology Center, Sierra Club and MPSC Staff.

To look up cases from today’s meeting, access the MPSC’s E-Dockets filing system.

DISCLAIMER: This document was prepared to aid the public’s understanding of certain matters before the Commission and is not intended to modify, supplement, or be a substitute for the Commission’s orders. The Commission’s orders are the official action of the Commission.