MPSC Approves DTE Electric`s Revised Integrated Resource Plan
The Michigan Public Service Commission recently (4/15) approved a revised integrated resource plan (IRP) for DTE Electric Co. that addresses concerns raised when the Commission in February recommended substantial changes to the utility's long-term strategy for providing reliable, cost-effective electric service to its customers (Case No. U-20471).
DTE Electric said in its filings that it has agreed to adopt changes recommended by the Commission and has adjusted the plan for generating electricity over the next 15 years accordingly. In its Feb. 20 order, the Commission said it found DTE's IRP lacked competitive bidding and had other shortcomings identified by stakeholders that precluded the Commission from assessing the full range of alternatives such as utility- and third party-owned wind and solar projects.
The Commission did not approve new supply-side renewable resources proposed by DTE Electric, instead directing the company to present them in its ongoing renewable energy plan case, including competitive bidding information on the proposals, to be decided by the Commission on an expedited basis.
Among the changes DTE agreed to adopt:
- Expanding programs to help customers cut energy waste through more efficient appliances, insulation and equipment. Energy waste reduction programs such as these are the most cost-effective option to replace aging coal plants and protect the environment.
- Increasing its annual energy savings goals to 1.75 percent in 2020 and 2 percent in 2021, the same levels approved for Consumers Energy Co. The statutory minimum is 1 percent; DTE had originally proposed 1.65 percent in 2020 and 1.75 percent in 2021.
- Conducting further analysis of the company's proposed retirement of the coal-fired Belle River power plant in 2029-2030, which the Commission said was inadequately justified because the avoidance of new environmental upgrade costs was not considered in the analysis.
- Keeping two of DTE's ongoing demand response (DR) pilots but removing costs associated with other demand response pilots proposed by the company. The Commission said DTE may offer the new pilots in future rate cases or in DR reconciliation cases, when more information about the scope, purpose and costs of the projects will be available on the record.
- Filing its next IRP by Sept. 21, 2023, two years sooner than required by statute.
Since the Commission's Feb. 20 order, comments were filed in the case by the City of Ann Arbor; the Michigan Department of Attorney General; Great Lakes Renewable Energy Association; Michigan Environmental Council/Natural Resources Defense County/Sierra Club; Michigan Energy Innovation Business Council/Institute for Energy Innovation; Soulardarity; Environmental Law & Policy Center, et al.; MPSC Staff; Energy Michigan Inc., and Geronimo Energy. Other intervenors included the Association of Businesses Advocating Tariff Equity; Union of Concerned Scientists; Vote Solar; ITC Transmission Co.; Cypress Creek Renewables; Convergen Energy; Midland Cogeneration Venture LP; Heelstone Development, and Michigan Public Power Agency.
An issue brief on DTE Electric Co.'s integrated resource plan is available here.
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