STATE OF MICHIGAN DEPARTMENT OF ATTORNEY GENERAL BILL SCHUETTE ATTORNEY GENERAL. November 3, 2017

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1 STATE OF MICHIGAN DEPARTMENT OF ATTORNEY GENERAL P.O. BOX LANSING, MICHIGAN BILL SCHUETTE ATTORNEY GENERAL November 3, 2017 Kavita Kale Executive Secretary Michigan Public Service Commission 7109 W. Saginaw Highway Lansing, MI Dear Ms. Kale: RE: MPSC Case No. U Enclosed for filing in the above-captioned case is the Attorney General s Notice of Intervention, together with a proof of service. This filing is being submitted electronically pursuant to the Commission's Paperless Electronic Filings Program. Sincerely, Celeste R. Gill (P52484) Assistant Attorney General Special Litigation Division (517) Enclosures c: Service List

2 STATE OF MICHIGAN BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION In the Matter of the application of Consumers Energy Company for Approval of a Power Supply Cost Recovery Plan and for Authorization of Monthly Power Supply Cost Recovery Factors for the Year 2018 / MPSC No. U The Attorney General s Notice of Intervention and Appearance The Michigan Department of Attorney General, Special Litigation Division on behalf of the Attorney General, Bill Schuette, gives notice of his intervention and appearance as a party in this proceeding. In response to the application filed by Consumers Energy Company ( Consumers Energy or the Company ) and the notice of hearing issued by the Michigan Public Service Commission (the Commission), the Attorney General states: I. Statement of Interest 1. The Attorney General of the State of Michigan holds such office by virtue of and pursuant to Const 1963, art 5, 21, and by mandate of the qualified electorate of the State of Michigan. 2. The Attorney General intervenes and appears in this proceeding for and on behalf of the People of the State of Michigan and for and on behalf of the State of Michigan, its departments, commissions and agencies, as customers and ratepayers of the Company. Consumers Energy has approximately 1.8 million retail electric customers in Michigan. The interest of these ratepayers is public in 1

3 nature, being common among virtually all electric ratepayers in the Company's service area. The State of Michigan is also a user of and ratepayer for Consumers Energy's electric services. 3. Both statutory and common law of Michigan authorize the Attorney General's intervention and appearance in this proceeding. MCL provides, in pertinent part: [T]he attorney general... may, when in his own judgment the interests of the state require it, intervene in and appear for the people of this state in any other court or tribunal, in any cause or matter, civil or criminal, in which the people of this state may be a party or interested. The Attorney General has the right to intervene whenever the Attorney General, in his discretion, deems it in the public interest to do so. Gremore v People s Community Hosp Auth, 8 Mich App 56; 153 NW2d 377 (1967). When the Attorney General deems it in the public interest to do so, he may intervene in any administrative proceeding at any stage of such a proceeding. Attorney General v Liquor Control Comm, 65 Mich App 88; 237 NW2d 196 (1975). 4. The Attorney General has determined that the interests of both the State and the People of the State of Michigan requires his intervention in this proceeding on their behalf. II. Statement of Positions 5. On September 30, 2017, Consumers Energy filed its application in this case with supporting testimony and exhibits. 2

4 6. The Attorney General takes the position that Consumers Energy must prove all elements of its case, including the reasonableness, justness, and lawfulness of its proposals. 7. The Attorney General takes the position that Consumers Energy holds the burden of proof to show the evidence on the whole record supports its proposals and is consistent with the standards set forth in the applicable statutory scheme. 8. The Attorney General takes the position that Consumers Energy holds the burden of going forward with evidence showing that all projected costs related to its 2018 PSCR Plan identified in the subject application are recoverable under the affirmative, clear, and unmistakable statutory definitions stated in MCL 460.6j(1). 9. The Attorney General takes the position that Consumers Energy must satisfy all statutory requirements before the Commission issues an Order. 10. The Attorney General takes the position that Consumers Energy s proposed sales forecast, upon which the Company bases its PSCR Plan, may not be just and reasonable. 11. The Attorney General takes the position that the decisions underlying the Company s projected PSCR costs may not be just and reasonable. 12. The Attorney General takes the position that Consumer Energy s projected 2018 PSCR expenses may not be just and reasonable. 3

5 13. The Attorney General takes the position that Consumers Energy s proposed recoverable PSCR costs and related proposals may not be just and reasonable. 14. The Attorney General takes the position that the Commission shall among other things, determine whether the Consumers Energy has taken all appropriate actions to minimize the cost of fuel and other relevant factors and, the factors shall not reflect items the Commission could reasonably anticipate would be disallowed under MCL 460.6j(13). 15. The Attorney General takes the position that MCL 460.6j(7) requires the Commission to evaluate a utility s five-year forecast, granting only limited Commission power to warn a utility that certain evidentiary cost items appearing in the five-year forecast would be unlikely to gain Commission approval for the Company to recover in the future. 16. The Attorney General reserves the right to take additional and different positions and/or seek other forms of relief based on the parties various filings, responses to discovery, and briefs. 4

6 III. Relief Requested 17. The Attorney General requests the Michigan Public Service Commission to: A. Enter this Notice of Intervention and Appearance into the official record of the above-captioned case and treat the Attorney General as a party to these proceedings for all purposes; B. Develop a satisfactory evidentiary record and conduct contested case proceedings pursuant to Chapter IV of the Administrative Procedures Act [MCL et seq.]; C. Approve, disapprove, or amend Consumers Energy s 2018 PSCR Plan and related PSCR Factor requested by the Company according to the evidence presented in the whole record; D. If the Commission deems appropriate, indicate if certain projected future costs appearing in the Company s five-year forecast may not be recoverable in the future based on present evidence; and E. Grant any further and additional relief the Commission may decide is reasonable and lawful. Respectfully submitted, Bill Schuette Attorney General Dated: November 3, 2017 Celeste R. Gill Assistant Attorney General Michigan Department of Attorney General Special Litigation Division 525 W. Ottawa Street, 6 th floor P. O. Box Lansing, MI (517)

7 PROOF OF SERVICE - U The undersigned certifies that a copy of the Attorney General s Notice of Intervention was served upon the parties listed below by e- mailing the same to them at their respective addresses on the 3rd day of November Celeste R. Gill Consumers Energy Company: Robert W. Beach Gary A. Gensch, Jr Theresa A.G. Staely Robert.beach@cmsenergy.com Gary.genschjr@cmsenergy.com Theresa.staley@cmsenergy.com mpscfilings@cmsenergy.com MPSC Staff: Amit Singh Meredith Beidler Singha9@michigan.gov Beidlerm@michigan.gov Michigan Department of Attorney General, Special Litigation Unit: Celeste R. Gill gillc1@michigan.gov ag-enra-spec-lit@michigan.gov Midland Cogeneration Venture Ltd. Partnership: Richard J. Aaron Jason Hanselman Kyle M. Asher raaron@dykema.com jhanselman@dykema.com kasher@dykema.com Michigan Power Ltd Partnership and Ada Cogeneration Ltd Partnership David E.S. Marvin dmarvin@fraserlawfirm.com Administrative Law Judge: Dennis Mack Mackd2@michigan.gov Michigan Environmental Council: Christopher M. Bzdok chris@envlaw.com 1