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Michigan

Legislative activities

The Michigan legislature has addressed demand response and net metering legislation. “In October 2008, Governor Granholm signed a bill that fosters the deployment of demand response (Senate Bill 213)… In October 2008, Governor Granholm signed a bill that directs the Michigan Public Service Commission to set standards for integrated resource plans (House Bill 5524). The new law requires that integrated resource plans address demand response.” [1] Also as part of the same bill the legislature established a statewide net metering program for renewable energy systems. [3]


Regulatory activities

The Michigan Public Service Commission approved a rate schedule for industrial-scale distributed generation by 1982 and later included the establishment of residential-scale net metering by 2009. By 2008, the Commission had industrial load/demand-side management and curtailable service. As part of the demand-side management effort effective 2008, some utilities started a pilot program to curtail peak load of customers based on hourly pricing. Residential and business Time-of-Day rates were also passed by the Commission by 2007. [4, 5, 6, 7, 8]

Parts of Michigan are within the PJM footprint so within that area there is the opportunity for end-use customers to participate in demand response though curtailment service providers.

“In January 2007, the Michigan Public Service Commission determined that all but two of the qualifying utilities in Michigan already offered time-based rates that satisfied PURPA Standard 14 (“Time-Based Metering and Communications”) as enacted in EPACT 2005. The Commission, however, did not use language in its January 2007 Order specifically indicating that it was deciding not to adopt PURPA Standard 14.

In January 2007, the Michigan Public Service Commission presented to the Governor its “21st Century Energy Plan,” which recommends demand response and AMI. The Commission then created four working groups to support the plan—two of the groups will consider demand response and the smart grid through, respectively, the “Demand Response Team” and the “Smart Grid Team.”” [1]

“In January 2007, the Michigan Public Service Commission (PSC) submitted its 21st Century Electric Energy Plan in response to an executive order from the governor the year before. One of the recommendations in the energy plan is that Michigan’s PSC be authorized to require the use of active load management measures by utilities (forecasted to reduce demand by 570 MW in 10 years). The plan also recommends pilot programs employing advanced metering infrastructure to provide real-time price information to customers.

In Consumers Energy’s Balanced Energy Initiative, the company forecasted that load management, demand response, and interruptible load programs would reduce retail peak by 9.3 percent by 2030. The reduction would be implemented through a comprehensive AMI program that includes central air conditioning load management and demand response programs for residential and small commercial customers. This program would reduce peak demand as well as ongoing energy requirements.

Consumers Energy plans to conduct a demand response and information pilot aimed at assessing customer behavior in the smart grid environment. The centerpiece of this pilot is a randomized program which places AMI-enabled customers into various dynamic pricing and information treatments while comparing them with strategic control groups…

In addition to future efforts, demand reduction has been conducted in Michigan for many years. Detroit Edison maintains a significant Direct Load Control Interruptible Air Conditioning (IAC) program, which was established over 20 years ago during the days of demand-side management.” [2]

Distributed generators include qualifying cogeneration, net metering facilities, and distributed solar photovoltaic systems where prices are at a negotiated contract rate, at a published contract rate, at the companies avoided cost, or at the full service tariff retail rate depending on the type of distributed generator and the utility.

Time-of-Day rates break the cost for electricity into on-peak and off-peak pricing.

Demand-side management includes interruptible and curtailment rates, that charges a reduced rate to customers for allowing specific electrical equipment to be controlled by the company based on individual contracts, or hourly prices.


Utilities and Rate Schedules

Alpena Power Co.
- Alpena Power Co. Residential Tariffs

Consumers Energy
- Consumers Energy Rates

Detroit Edison
- Detroit Edison Residential Rates

Indiana Michigan Power Company
- Indiana Michigan Power Company Rates

Upper Peninsula Power Company

Wisconsin Electric Power Company
- Wisconsin Electric Power Company Rates

Wisconsin Public Service

Xcel Energy
- Xcel Energy Residential Rates
- Xcel Energy Business Rates

See the National Rural Electric Cooperative Association (NRECA) for information on consumer-owned Cooperatives: http://www.nreca.org/members/MemberDirectory/Pages/default.aspx


State-Level Incentives

Michigan offers a refundable photovoltaic manufacturing tax credit, photovoltaic purchase tariff, and alternative energy personal property tax exemption. The state has grants for energy efficiency programs, and utility rebates for solar.

More information can be found in the Database of State Incentives for Renewables & Efficiency (DSIRE): http://www.dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=MI


Additional Resources

State Energy Office:
- Department of Energy, Labor & Economic Growth Energy Division

State Authority Dealing with Energy Regulation:
- Department of Energy, Labor & Economic Growth Michigan Public Service Commission
- Docket Search: http://efile.mpsc.state.mi.us/efile/

Michigan Compiled Laws

Database of State Incentives for Renewables & Efficiency (DSIRE): http://www.dsireusa.org/incentives/index.cfm?re=1&ee=1&spv=0&st=0&srp=1&state=MI


References

[1] Demand Response and Smart Metering Policy Actions Since the Energy Policy Act of 2005: A Summary for State Officials, Prepared by the U.S. Demand Response Coordinating Committee for The National Council on Electricity Policy, Fall 2008. URL: http://www.oe.energy.gov/DocumentsandMedia/NCEP_Demand_Response_1208.pdf
[2] Draft for Comment of the National Action Plan on Demand Response The Federal Energy Regulatory Commission Staff Docket No. AD09-10, Prepared with the support of The Brattle Group, GMMB, Customer Performance Group, David Lineweber. URL: http://www.ferc.gov/legal/staff-reports/03-12-10-demand-response.pdf
[3] Database of State Incentives for Renewables & Efficiency, Michigan – Net metering, 05/27/2010. URL: http://www.dsireusa.org/incentives/incentive.cfm?Incentive_Code=MA01R&re=1&ee=1
[4] Alpen Power Company, Rate Book for Electric Service, 8/19/2014. URL: http://www.alpenapower.com/wp-content/uploads/2013/12/Complete-Rate-Book-MPSC-9.pdf
[5] DTE Energy, Electric Rate Book, 8/13/2014. URL: https://www2.dteenergy.com/wps/wcm/connect/2ab3cd68-cf7b-4946-9a14-f9a8d62a20de/detroitEdisonTariff.pdf?MOD=AJPERES&CACHEID=2ab3cd68-cf7b-4946-9a14-f9a8d62a20de
[6] AEP Indian Michigan Power, Michigan Rates & Tariffs. URL: https://www.indianamichiganpower.com/account/bills/rates/IandMRatesTariffsMI.aspx
[7] WE, Tariffs. URL: http://www.we-energies.com/business/elec/elecratesmi.htm
[8] Xcel Energy, Commercial & Industrial Service Rates, 1/1/2010. URL: https://www.xcelenergy.com/Save_Money_&_Energy/Business