S T A T E O F M I C H I G A N BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION * * * * *

Transcription

1 S T A T E O F M I C H I G A N BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION * * * * * In the matter, on the Commission s own motion ) to implement the provisions of Section 6t(1) of ) Case No. U PA 341 ) ) At the July 31, 2017 meeting of the Michigan Public Service Commission in Lansing, Michigan. PRESENT: Hon. Sally A. Talberg, Chairman Hon. Norman J. Saari, Commissioner Hon. Rachael A. Eubanks, Commissioner ORDER, NOTICE OF PUBLIC HEARINGS, AND OPPORTUNITY TO COMMENT Through this order, the Commission commences the 120-day integrated resource planning (IRP) proceeding pursuant to Section 6t(1) of Public Act 341 of 2016 (Act 341), which amended Public Act 3 of 1939 and became effective on April 20, Background In many jurisdictions around the country, regulated electric utilities use IRP to identify and evaluate options for meeting electricity needs over a specified time period. Modeling tools are used to help evaluate a combination of supply-side and demand-side resources under different scenarios and assumptions related to load growth, fuel prices, emissions, and other variables. As part of comprehensive energy policy reform, Act 341 establishes a new IRP framework for electric utilities whose rates are regulated by the Commission. The IRP provisions are an

2 important component of the new energy law, which is expected to increase affordability for customers, improve the reliability of electricity, and help protect the environment. Specifically, Section 6t(1) of Act 341 requires the Commission, with input from the Michigan Agency for Energy (MAE), the Michigan Department of Environmental Quality (MDEQ), and other interested parties, to commence a proceeding to establish parameters related to the IRP process. This proceeding must be commenced within 120 days of the effective date of the act and every five years thereafter. The Commission has 120 days from the date commencing the IRP planning process to issue an order to conclude the proceeding. 1 As part of the proceeding, the Commission, in conjunction with MAE, MDEQ, and other interested parties, must assess the potential for both demand response and energy waste reduction, take an inventory of existing or proposed environmental requirements affecting electric utilities, identify key inputs such as planning reserve margin levels, and establish modeling scenarios and assumptions to be used by each utility in filing company-specific IRP cases under Section 6t(3) of Act 341. The Commission must also provide opportunities for input from other state agencies and the public. Specifically, the Commission must accomplish the following: (a) Conduct an assessment of the potential for energy waste reduction in this state, based on what is economically feasible, as well as what is reasonable achievable. (b) Conduct an assessment for the use of demand response programs in this state, based on what is economically and technologically feasible, as well as what is reasonably achievable. The assessment shall expressly account for advanced metering infrastructure that has already been installed in this state and seek to fully maximize potential benefits to ratepayers in lowering utility bills. (c) Identify significant state or federal environmental regulations, laws, or rules and how each regulation, law, or rule would affect electric utilities in this state. 1 Pursuant to Section 6t(2), this proceeding is not treated as a contested case proceeding. The Commission s decisions in this proceeding are not appealable until a final order is issued in an individual utility IRP proceeding. Page 2 U-18418

3 (d) Identify any formally proposed state or federal environmental regulation, law, or rule that has been published in the Michigan Register or the Federal Register and how the proposed regulation, law, or rule would affect electric utilities in this state. (e) Identify and required planning reserve margins and local clearing requirements in areas of this state. (f) Establish modeling scenarios and assumptions each electric utility should include in addition to its own scenarios and assumptions in developing its integrated resource plan filed under subsection (3), including, but not limited to, all of the following: (i) Any required planning reserve margin and local clearing requirements. (ii) All applicable state and federal environmental regulations, laws, and rules identified in this subsection. (iii) Any supply-side and demand-side resources that reasonable could address any need for additional generation capacity, including, but not limited to, the type of generation technology for any proposed generation facility, projected energy waste reduction savings, and projected load management and demand response savings. (iv) Any regional infrastructure limitations in this state. (v) The projected cost of different types of fuel used for electric generation. (g) Allow other state agencies to provide input regarding any other regulatory requirements that should be included in modeling scenarios and assumptions. (h) Publish a copy of the proposed modeling scenarios and assumptions to be used in the integrated resource plans on the commission s website. (i) Before issuing the final modeling scenarios and assumptions each electric utility should include in developing its integrated resource plan, receive written comments and hold hearings to solicit public input regarding the proposed modeling scenarios and assumptions. MCL 460.6t(1). Discussion On March 10, 2017, the Commission Staff (Staff), MAE and MDEQ initiated a collaborative process with stakeholders to address the requirements of Section 6t(1). Subsequently, the Staff held eleven stakeholder meetings that led to the development of an IRP Strawman Proposal. The Strawman Proposal contains proposed modeling scenarios, along with multiple assumptions or sensitivities related to load growth or other variables for each scenario, which, if approved, Page 3 U-18418

4 would have to be modeled by utilities in their individual IRP applications along with any additional modeling scenarios identified by the utility. To allow the Commission to consider the IRP Strawman Proposal and seek additional feedback on its contents as part of the instant proceeding, the Commission directs the Staff to file the final version in this docket by August 31, 2017, with a copy posted on the Commission s website in accordance with section 6t(1). In order to provide interested persons the opportunity input on the Strawman Proposal and the overall IRP process, the Commission is scheduling three public hearings in various locations in the state. The hearings are intended to provide information about the parameters of the IRP process, to receive public comment on the IRP process, and to answer questions about the IRP process. The time and location of the three public hearings are as follows: TIME: Wednesday, September 6 1:00 p.m. 5:00 p.m. LOCATION: Schoolcraft College Haggerty Road Livonia, MI TIME: Wednesday, September 13 1:00 p.m. - 5:00 p.m. LOCATION: L.V. Eberhard Center 301 West Fulton, Room 210 Grand Rapids, MI TIME: Tuesday, September 19 12:00 p.m. 4:00 p.m. LOCATION: Northern Michigan University University Center-Huron/Erie Room 1401 Presque Isle Marquette, MI Page 4 U-18418

5 The public hearings will be conducted by an Administrative Law Judge authorized to preside over Commission proceedings. A court reporter will attend each hearing to transcribe the proceedings for the record. Pursuant to Section 6t(1), and given their expertise, the Commission also solicits input from MDEQ and MAE on topics including, but not limited to, identifying existing and proposed environmental regulations, laws, or rules, as well as identifying required planning reserve margins and local clearing requirements in areas of this state. The Staff shall coordinate with these agencies to ensure information is submitted in a timely manner for consideration by the Commission, and shall collaborate with these agencies in preparing for and conducting the public hearings described above. The Commission also invites participation by other state agencies to provide their perspective on relevant issues. In addition to the public hearings, any person may submit written or electronic comments regarding the provisions of Section 6t(1). Comments must be filed with the Commission no later than 5:00 p.m. on October 6, Reply comments must be filed with the Commission no later than 5:00 p.m. on October 20, Written comments should be sent to: Executive Secretary, Michigan Public Service Commission, P.O. Box 30221, Lansing, MI Electronic comments may be ed to mpscedockets@michigan.gov. All comments should reference Case No. U All information submitted to the Commission in this matter will become public information available on the Commission s website and subject to disclosure. Page 5 U-18418

6 THEREFORE, IT IS ORDERED that: A. This order commences the statewide proceeding to establish integrated resource planning parameters. B. The Commission Staff shall file the final draft of its integrated resource plan Strawman Proposal in this docket no later than August 31, 2017, and post a copy on the Commission s website. C. Three public hearings as set forth in this order shall be conducted in designated locations for the opportunity for interested persons to attend and provide public comments regarding the integrated resource planning process as set forth in Section 6t(1) of Public Act 341 of 2016, MCL 460.6t(1). D. The Commission Staff is directed to coordinate with the Michigan Department of Environmental Quality and the Michigan Agency for Energy in preparing for and conducting the public hearings. E. Interested persons may file written or electronic comments on the integrated resource planning procedures to be adopted by the Commission pursuant to Section 6t(1) of Public Act 341 of 2016, MCL 460.6t(1). The comments must be received no later than 5:00 p.m. on October 6, 2017, and reply comments must be received no later than 5:00 p.m. on October 20, The Commission encourages input from other state agencies on regulatory requirements or other considerations for purposes of establishing the modeling scenarios and assumptions. F. The Executive Secretary shall serve a copy of this order on electric utilities that are rate regulated, other state agencies, and all known stakeholders identified by the Commission Staff. G. Each electric utility whose rates are regulated by the Commission shall serve a copy of this order on all intervenors in its most recently completed general rate case, currently pending general Page 6 U-18418

7 rate case, currently pending and recently completed power supply cost recovery case, currently pending and recently completed renewable energy plan and energy optimization plan cases, and any currently pending state reliability mechanism case. The Commission reserves jurisdiction and may issue further orders as necessary. MICHIGAN PUBLIC SERVICE COMMISSION Sally A. Talberg, Chairman Norman J. Saari, Commissioner By its action of July 31, Rachael A. Eubanks, Commissioner Kavita Kale, Executive Secretary Page 7 U-18418

8 P R O O F O F S E R V I C E STATE OF MICHIGAN ) Case No. U County of Ingham ) Angela McGuire being duly sworn, deposes and says that on July 31, 2017 A.D. she electronically notified the attached list of this Commission Order via transmission, to the persons as shown on the attached service list (Listserv Distribution List). Subscribed and sworn to before me This 31st day of July, 2017 Angela McGuire Lisa Felice Notary Public, Eaton County My Commission Expires April 15, 2020

9 GEMOTION DISTRIBUTION SERVICE LIST ITC Energy Michigan Energy Michigan Mid American Noble Americas Cloverland Cloverland Village of Baraga Linda Brauker Village of Clinton Tri-County Electric Co-Op Tri-County Electric Co-Op Tri-County Electric Co-Op Aurora Gas Company Citizens Gas Fuel Company Consumers Energy Company SEMCO Energy Gas Company Superior Energy Company Upper Peninsula Power Company WEC Energy Group Upper Peninsula Power Company Midwest Energy Coop Midwest Energy Coop Midwest Energy Coop Alger Delta Cooperative Cherryland Electric Cooperative Great Lakes Energy Cooperative Great Lakes Energy Cooperative Great Lake Energy Cooperative Liberty Power Delaware (Holdings) Stephson Utilities Department Ontonagon County Rural Elec Presque Isle Electric & Gas Cooperative, INC Thumb Electric Bishop Energy AEP Energy CMS Energy Just Energy Solutions Constellation Energy Constellation Energy Constellation New Energy DTE Energy First Energy MidAmerican Energy Updated

10 GEMOTION DISTRIBUTION SERVICE LIST My Choice Energy Calpine Energy Solutions Santana Energy Spartan Renewable Energy, Inc. (Wolverine Power Marketing Corp) Xcel Energy City of Escanaba City of Crystal Falls Lisa Felice Michigan Gas & Electric City of Gladstone Integrys Group Lisa Gustafson Tim Hoffman Interstate Gas Supply Inc Thomas Krichel Bay City Electric Light & Power Lansing Board of Water and Light Lansing Board of Water and Light Marquette Board of Light & Power Premier Energy Marketing LLC City of Marshall Doug Motley Dan Blair Marc Pauley City of Portland Alpena Power Liberty Power Wabash Valley Power Wolverine Power Lowell S. Integrys Energy Service, Inc WPSES Realgy Energy Services Volunteer Energy Services First Energy Solutions Hillsdale Board of Public Utilities Michigan Gas Utilities/Upper Penn Power/Wisconsin Michigan Gas Utilities/Qwest Zeeland Board of Public Works Direct Energy Direct Energy Direct Energy Direct Energy Realgy Corp. Jim Weeks Updated

11 GEMOTION DISTRIBUTION SERVICE LIST Indiana Michigan Power Company Santana Energy MEGA ITC Holdings Updated

12 U SPECIAL DISTRIBUTION REGULATED ELECTRIC UTILITIES OTHER STATE AGENCIES STAKEHOLDERS Ancona, Ronald (LARA) Anderson, Madhu (LARA) Baldwin, Julie (LARA) Ballinger, Brian (LARA) Beck, Lynn (LARA) Blair, Daniel (LARA) Brader, Valerie (LARA) Buckmaster, Tarek (DEQ) Bukowski, Breanna (DEQ) Butcher, Angela (LARA) Byrne, Michael (LARA) Cadwell, Wendy (LARA) Cantin, Heather (LARA) Chislea, David (LARA) Cole, Cathy (LARA) Corbin, Susan (LARA)

13 U SPECIAL DISTRIBUTION Doherty, Roger (LARA) Donofrio, Lauren (AG) Durian, Heather (AG) Eubanks, Rachael (LARA) Evans, Nicholas (LARA) Freeman, Allan (LARA) Gould, Karen (LARA) Hadala, Merideth (LARA) Hague, Beverly (LARA) Hanser, Erik (LARA) Harlow, Jesse (LARA) Holley, Reka (LARA) Hudson, Patrick (LARA) Isakson, David (LARA) Jackson, Robert (LARA) Janiszewski, John (AG) Janssen, Bonnie (LARA)

14 U SPECIAL DISTRIBUTION Kale, Kavita (LARA) Katsarelas, Nancy (LARA) Kitts, Gary (LARA) Kulesia, Steven (LARA) Leffert, Kaitlyn (DEQ) Makinde, Lumi (LARA) Maupin, Mary (DEQ) Mazuchowski, Donald (LARA) Midkiff-Powell, Dolores (LARA) Miller, Nathan (LARA) Moody, Michael (AG) Mullkoff, Sarah (LARA) Nichols, Bob (LARA) Novak, Terri (LARA) Nyberg, David (GOV) Palnau, Judy (LARA) Patrick, Jan (LARA) Poli, Patricia (LARA) Proudfoot, Paul (LARA) Quilico, Nora (LARA) Network subscriber; Revere, Nicholas (LARA) Rittenhouse, Amy (LARA)

15 U SPECIAL DISTRIBUTION Rogers, Danielle (LARA) Roseberry, Joel (LARA) Rusnak, Jill (LARA) Saari, Norm (LARA) Sattler, Spencer (AG) Network subscriber; Simon, Carol (LARA) Simpson, Naomi (LARA) Slaughter, Derrell (LARA) Stocking, Eric (LARA) Stosik, Bill (LARA) Stow, April (LARA) Talberg, Sally (LARA) Trachsel, Katherine (LARA) VanSteel, James (LARA) Walker, David (LARA) West, Samantha (DEQ); Network subscriber; Woolcock, Susana (LARA)