LANSING – The Michigan Public Service Commission ordered its staff Tuesday to begin examining what public utilities are required to pay certain power generators under the Public Utility Regulatory Policies Act of 1978.
Consumers Energy and DTE Energy both have contracts with qualified facilities under the act, the first of which expire at the end of the year.
“Conditions today are significantly different than those faced in 1978 when PURPA became of the law of the land,” PSC Chair John Quackenbush said in a statement. “Some of the initial PURPA power contracts between Qualifying Facilities and Michigan utilities are about to expire, and there is significant uncertainty over the future of these contracts. Now is an appropriate time for a comprehensive examination of PURPA and avoided cost issues.”
The commission gave staff until April 8, 2016, to bring back a recommendation from a technical advisory committee on the issue (case No. U-17973).
ENERGY OPTIMIZATION: The commission also approved settlements allowing Upper Peninsula Power Company and Wisconsin Electric Power Company to implement energy optimization plans for 2016-17 and reconciling DTE’s expenses for its 2014 plan. UPPCo customers would see a 20-cent monthly charge (case No. U-17775) and WEPCo customers would see 25 cents (case No. U-17777), while DTE natural gas customers would see a 41-cent cut (case No. U-17841).
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