The Michigan Public Service Commission (MPSC) today approved an experimental electric vehicle tariff (rate) for The Detroit Edison Company, making it the first utility in Michigan to offer specific rates for electric vehicles for residential customers.

“As manufacturers begin to sell plug-in electric vehicles, it is important that Michigan’s electric utilities be ready as well,” said MPSC Chairman Orjiakor Isiogu.  “The program approved today will help Detroit Edison evaluate the effect of electric vehicles on its electric system, offers off-peak rates that customers can use to charge vehicles, and offers the infrastructure required to charge these vehicles.”

In its application, Detroit Edison proposed to make this experimental electric tariff available on an optional basis to a maximum of 2,500 residential customers seeking separately-metered service for the sole purpose of charging licensed electric vehicles.

Most customers enrolled for service under this tariff will receive a separate meter that is capable of recording the energy used to charge the electric vehicles and the time of day that the charging occurs.  Eligible customers will be provided two rate options:  one that provides a lower rate for charging during off-peak hours (hours other than between 9 a.m. and 11 p.m. Monday through Friday) and another that provides for a monthly flat fee of $40 per vehicle.

The utility’s experimental tariff will run through Dec. 31, 2012.  Detroit Edison will, at the customer’s option, fund up to $2,500 for the separately metered circuit including the approved charging station; or if the approved charging station is provided by the manufacturer, Detroit Edison will fund up to $2,500 for the separately metered circuit and the installation of the charging station.  Customers who opt for this equipment will be required to execute an agreement with the company that specifies terms and conditions regarding the use of such equipment.

The tariff is approved for service rendered on and after Aug. 11.

The MPSC is an agency within the Department of Energy, Labor & Economic Growth.

Case No. U-16406

The Michigan Public Service Commission (MPSC) today released the “Michigan Energy Appraisal: Summer 2010.”  The appraisal, published since 1978, reviews the projected prices and availability of energy in Michigan over the summer months.

The demand for energy in Michigan is expected to increase in nearly every sector for 2010, primarily due to real and expected improvements to the U.S. and Michigan economies.  Due to above average reserves, no supply issues are anticipated for the summer or winter seasons.  Petroleum and natural gas prices are expected to remain relatively stable, with gasoline prices projected to average under $3 during this summer’s driving season. It should be noted that the economic uncertainty also translates into higher levels of uncertainty in these projections.

Electricity -  Michigan’s total electric sales are projected to increase by 2.1 percent in 2010, following a 6.7 percent decrease in 2009, assuming normal summer temperatures.  Impacted by the recession, sales in 2009 were the lowest seen since 1997 with declines in all sectors: residential, commercial, and industrial.  Part of last year’s decline can be attributed to the cooler than normal summer, which saw cooling degree days 35 percent below normal, and what appears to be the bottom of the economic recession affecting the economy in Michigan and the nation.  Even with the projected moderate increase in 2010, sales will only approach a return to their 1998 levels.

Natural Gas   -  Natural gas prices have risen slowly over the past year, i nfluenced by the recovering state of the U.S. economy and world energy markets. Total annual natural gas sales in Michigan for 2010 are projected to be 785.7 billion cubic feet (Bcf), an increase of 8.7 percent over 2009.  However, due to the large storage capacity in Michigan, there will be sufficient supplies to meet anticipated demand for the coming winter.  Forecasts are based on normal weather for the remainder of the year.  Natural gas usage, usually dictated in large part by winter weather conditions, may receive its biggest bump this year from an increase in industrial use and electric power generation, which are projected to experience double digit growth rates in Michigan.

Petroleum -  The continued i ncrease in surplus world oil production capacity can more than offset most anticipated supply problems which should help offset upward pressure on gasoline and other petroleum product prices from increased global economic activity for the balance of the year.  However, it should be noted that substantial speculative activity in global petroleum markets is resulting in high levels of price volatility.  World oil demand is expected to increase in 2010 by 1.6 million barrels per day (m/b/d) to a total of 86.1 m/b/d.  This projection is from the EIA’s May 2010 “Short-Term Energy Outlook.”  Global oil prices are currently fluctuating in the $65 to $85 per barrel range after dropping as low as $36 in December of 2008.  EIA predicts an average of $84 per barrel for the remainder of 2010.  However, recent declines in energy markets due to the worsening European debt crisis will likely result in a lower average oil price in 2010.

Motor Gasoline -   In 2010, gasoline sales in Michigan are expected to increase 0.9 percent following a decline of 0.8 percent in 2009 and marking the first time since 2004 that gasoline sales in Michigan are projected to increase.  The current uptick is due to a nascent and gradual recovery in state economic activity.  Projected sales for 2010 are 4,331.9 million gallons.  Gasoline prices are expected to remain relatively flat this summer, barring any unforeseen production/supply disruptions.

Distillate Fuel Oil -  Distillate sales in Michigan in 2010 are projected to increase by 3.9 percent to just over one billion gallons.  Diesel fuel remains the prime component of distillate demand, with the majority being used by trucks on highways.  Relative improvement in the state’s economic condition is the primary cause for this increase in demand as more goods are shipped by truck and rail.

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The Michigan Energy Appraisal is prepared every six months.  The Energy Appraisal is available on the Commission’s website at:  http://www.dleg.state.mi.us/mpsc/reports/energy (http://cis.state.mi.us/mpsc/reports/energy)

April 19, 2010

Thousands of Michigan utility customers have reduced their energy usage and lowered their bills by becoming more energy efficient, since Michigan utilities began to offer their energy optimization programs last year, the Michigan Public Service Commission (MPSC) notes.

“The cheapest energy is the energy you never use,” said MPSC Chairman Orjiakor Isiogu. “That’s the idea behind the energy efficiency programs that Michigan utilities began to offer customers last summer and fall.”

In only a few months, thousands of electric and natural gas customers jumped on the energy efficiency bandwagon.  For example, in 2009:  Detroit Edison reported that some 9,000 customers recycled appliances; and Consumers Energy reported that 10,000 customers took advantage of rebates for installing energy efficient furnaces or HVAC systems.

Thousands of other electric and natural gas customers across   Michigan made other energy efficiency improvements — from upgrading water heaters and clothes washers to switching to compact fluorescent light bulbs.

“Customers who have recycled old, inefficient appliances have, in many cases, replaced them with more efficient models or have not replaced them at all,” noted Commissioner Monica Martinez.  “What’s more, these customers see an immediate reduction in their energy use, and as a result, have lower bills.  In fact, simply getting rid of that extra fridge may result in cutting an electric bill by 5 to 10 percent.”

Each utility’s energy efficiency program is different, so customers are encouraged to check periodically with their utility on what’s currently available.

Low-income customers should ask their utility about energy efficiency programs available to them — such as weatherization.

To encourage even more energy efficiency, the state of Michigan recently announced appliance rebate programs designed to complement the utility programs.  These programs provide rebates for appliances not covered by utility programs; reach rural areas not served by utility natural gas programs; and push the marketplace by providing rebates for appliances that exceed the ENERGY STAR standards.

In addition, Michigan companies – such as Whirlpool – benefit from sales of the energy efficient appliances.

Dishwashers, clothes washers, propane furnaces, and water heaters are a few of the covered items.  More information is available at MIRebates.com (http://mirebates.com/).

“As you consider ways to improve the environment around you this Earth Day and every day, think energy efficiency first,” added Commissioner Greg White.  “As Michigan becomes more energy efficient, all utility customers benefit because the need for new electric generation is delayed.  Conservatively speaking, every dollar spent on a utility’s energy efficiency program yields $3 in savings.  So, energy efficiency is the smartest and quickest approach to save on energy bills and to plan for Michigan’s energy future.”

Michigan residents are encouraged to take the ENERGY STAR pledge on its “Change the World” Web site: energystar.gov/changetheworld (http://www.energystar.gov/changetheworld) .

There, people have the opportunity to pledge to switch to energy efficient lighting, make improvements to their heating and cooling systems, weatherize their homes, and purchase ENERGY STAR qualified products.   Pledgers should select “State of Michigan” as the organization that referred them.

The Michigan Public Service Commission (MPSC) today issued an order approving $1,686,370 in Michigan energy efficiency grants for all customer classes to two organizations.

“My fellow Commissioners and I are extremely pleased to announce these grants,” said MPSC Chairman Orjiakor Isiogu.  “The grants awarded today will move Michigan forward in garnering the research and tools needed to establish the feasibility of the deployment of offshore wind technologies in Michigan.”

The Commission on November 20, 2009 issued a request for proposals for Michigan energy efficiency grants for all customer classes.  Based on its review, the MPSC awarded the following grants:

Grand Valley State University, Michigan Alternative and Renewable Energy Center, in partnership with the University of Michigan Memorial Phoenix

Energy Institute – $1,336,370 to conduct and/or perform studies to explore the feasibility of deployment of offshore wind technologies in Michigan.

Superior Watershed Partnership – $350,000 to conduct and/or perform studies to explore the feasibility of deployment of offshore wind technologies in Michigan’s Upper Peninsula.

The grants are part of the Low Income and Energy Efficiency Fund, which provides energy bill assistance for low income customers and promotes the efficient use of energy by all customer classes.

The MPSC is an agency within the Department of Energy, Labor &  Economic Growth.

Case No. U-13129

The Michigan Public Service Commission (MPSC) staff today filed its annual net metering program report, which shows that the number of net metering customers in Michigan has more than doubled from July 1, 2008 through June 30, 2009.

“The number of net metering electric customers who have added small, renewable energy electric generation projects onsite has more than doubled,” noted MPSC Chairman Orjiakor Isiogu.  “That demonstrates the high interest electric customers have in producing electricity from renewable sources at their homes and businesses.”

The MPSC in May last year adopted net metering and interconnection rules for small, renewable electric generation projects onsite, as required by Public Act 295 of 2008.  The report issued today said the number of net metering customers increased from 53 in the 2007-2008 year to 137 in the 2008-2009 period.  Wind proved the most popular with the number of installations increasing from 29 to 96 during the period, while solar installations increased from 23 to 39 during the same time period.  Customers are located throughout the state.

The entire report is available on the MPSC’s Web site michigan.gov/netmetering (http://www.michigan.gov/netmetering).

The MPSC is an agency within the Department of Energy, Labor & Economic Growth.

In August, the MPSC approved the contract that designated APX, Inc. as the state’s administrator of the Michigan Renewable Energy Certification System (MIRECS).

“The infrastructure needed to track environmental credits in Michigan is now in place,” said MPSC Chairman Orjiakor Isiogu.  “That will help Michigan meet its renewable energy goals as the state moves toward the new energy economy.”

The company today launched MIRECS, a Web-based infrastructure that will create, track and enable trading of environmental credits through a unique, traceable digital certificate issued for every megawatt-hour of qualifying energy generated by facilities registered with MIRECS or imported into MIRECS.

Public Act 295 of 2008 requires the MPSC to establish both a renewable energy credit certification and tracking program and an advanced cleaner energy credit certification and tracking program.

More information is available on the MIRECS Web site:  mirecs.org (http://www.mirecs.org/).

The MPSC is an agency within the Department of Energy, Labor & Economic Growth.

All Michigan electric utility customers will have a utility-sponsored energy efficiency program available to them by the end of November, with an emphasis on switching to CFLs.

“Compact fluorescent light bulbs offer electric customers a quick, easy and affordable way to see an immediate reduction on their bills,” Commissioner Martinez said at an event hosted by Michigan Energy Options in East Lansing.  “And they are now available around the state at lower prices, thanks to utility-sponsored energy efficiency programs and a MPSC grant.

“The result will be a significant improvement in energy efficiency across the state.  That will help customers save money, cut the need for new electric generation, and reduce greenhouse gas emissions.  You could call what’s happening in Michigan an energy efficiency revolution taking place one light at a time.”

Martinez noted that ENERGY STAR qualified compact fluorescent light bulbs save $30 or more in energy costs over each bulb’s lifetime; use up to 75 percent less energy than incandescent bulbs; last up to 10 times longer; can be used in most incandescent fixtures already in the home; and offer bright, warm light.

Joining Commissioner Martinez today were Teri VanSumeren, manager of Consumers Energy Company’s Energy Efficient Solutions program; Michael McNalley, director of DTE’s Energy Efficiency and Business Energy Services; Susan Devon, assistant general manager of the Lansing Board of Water and Light; and Mike Buda, director of external affairs at the Michigan Electric Cooperative Association, who all highlighted their CFL discount programs.  Jennifer Binkley-Power, of Michigan Energy Options, and East Lansing Mayor Vic Loomis also highlighted their roles in energy efficiency.

Utility-sponsored CFL discount programs are part of each utility’s mandated energy optimization program.  More information on the DTE CFL program is available here: http://www.dteenergy.com/residentialCustomers/saveEnergy/rebates/resEnergyStarLighting.html (http://www.dteenergy.com/residentialCustomers/saveEnergy/rebates/resEnergyStarLighting.html)

More information on Consumers Energy’s lighting rebate program is available here: http://www.consumersenergy.com/eeprograms/Landing.aspx?ID=799 (http://www.consumersenergy.com/eeprograms/Landing.aspx?ID=799)

Customers of other electric utilities are encouraged to contact their local electric utility to find out details about available CFL programs.

To promote energy efficiency and environmental stewardship, Governor Jennifer M. Granholm has proclaimed October 15 as “ENERGY STAR Change a Light Day.”

Governor Granholm has once again joined with the Environmental Protection Agency (EPA), Department of Energy (DOE), Department of Housing and Urban Development (HUD), and Governors from across the country to celebrate ENERGY STAR Change a Light Day and bring attention to the critical importance of using energy wisely at home. This commemorative day is part of the national ENERGY STAR Change a Light, Change the World Campaign to encourage Americans to take simple actions at home to help preserve our energy resources and be part of the solution to global climate change. The national educational campaign is run in partnership with hundreds of businesses, energy efficiency organizations, state and territory governments, and more. This annual campaign encourages Americans to be energy aware on ENERGY STAR Change a Light Day – and all year long.

More information about ENERGY STAR is also available toll-free by calling 1-888-STAR-YES or on their Web site:   energystar.gov/changetheworld (http://www.energystar.gov/index.cfm?fuseaction=globalwarming.showPledgeHome).

CFLs contain a small amount of mercury, so it is important to dispose of them properly.  The Michigan Department of Community Health has a helpful fact sheet that contains information on proper disposal:  michigan.gov/documents/mdch/CFL_Fact_Sheet_193840_7.pdf (http://www.michigan.gov/documents/mdch/CFL_Fact_Sheet_193840_7.pdf).

The MPSC is an agency within the Department of Energy, Labor & Economic Growth.

The final report incorporated the concerns of people who submitted comments by mail or via electronic mail and in person at the two public hearings held in Bad Axe and Scottville.  It identifies the same four regions with the highest level of wind energy harvest potential as in the proposed report issued on June 2.

“I am pleased to submit the board’s final report to the MPSC,” said board chairman David Walters.  “The board has spent a considerable amount of time analyzing where Michigan’s greatest potential lies for wind energy projects.  During the public comment period, including both public hearings, we heard comments both pro and con about issues related to wind energy.  We acknowledged those comments and concerns in the final report, and are grateful for the public’s input.”

The 11-member board was appointed by the Michigan Public Service Commission (MPSC) on Dec. 4, 2008, as required by Public Act 295 of 2008, also known as the Clean, Renewable and Efficient Energy Act.  Its proposed report presented its preliminary findings related to:   A list of regions in the state with the highest level of wind energy harvest potential

A description of the estimated maximum and minimum wind generating capacity in megawatts that can be installed in each identified region

An estimate of the annual maximum and minimum energy production potential for each identified region

An estimate of the maximum wind generation capacity already in service in each identified region

The proposed and final reports identified the same four regions all located in the Lower Peninsula:  one in the Thumb and three along the western side of the state.  Region 1 includes parts of Allegan County; Region 2 includes parts of Antrim and Charlevoix counties; Region 3 includes parts of Benzie, Leelanau, and Manistee counties; and Region 4 includes parts of Huron, Sanilac, Tuscola, Bay and Saginaw counties.

Today’s report reiterates that the transition to increased wind energy development in Michigan will depend on a number of factors, such as state and federal policies and incentives, community acceptance, wind resources, land availability, and economic considerations.  Another factor that may affect the scope and pace of wind energy development will be the ability of the electric transmission system to support the delivery of such power to customers.

Now that the final report has been submitted, transmission companies and electric utilities have the task of identifying for planning purposes the electric transmission facilities needed to deliver the estimated minimum and maximum wind energy potential from each of these regions.  They are required to submit this information to the Wind Energy Resource Zone Board, which will review that information.

Following that, the MPSC will issue a final order that designates the area of Michigan likely to be most productive of wind energy as the primary wind energy resource zone and may designate additional wind energy resource zones.  The MPSC is also required to submit a report to the Michigan legislature on the effect that setback requirements and noise limitations under local zoning or other ordinances may have on wind energy development in wind energy resource zones.  The report will also include any recommendations the MPSC may have for legislation addressing those issues.  The Commission will also conduct hearings in various areas of the state to receive public comment on the report.

The entire proposed report is available at  michigan.gov/windboard  (http://www.michigan.gov/windboard) .

The MPSC is an agency within the Department of Energy, Labor & Economic Growth.

The Michigan Public Service Commission is scheduled to make recommendations later this month to the Michigan Department of Environmental Quality on the need for power and availability of a cleaner alternative to coal.

The remainder of this article can be read here http://www.crainsdetroit.com/article/20090811/FREE/908119986

Consumers Energy is pleased to announce the recent approval of the Company’s proposed Experimental Advanced Renewable Program (“EARP”).  The Michigan Public Service Commission recently approved the plan as part of the Company’s renewable energy plan filing, and the rate AR tariff was approved on June 3rd.  Per our approved tariff, the new Rate AR program will commence on August 27, 2009, and work is underway to make the necessary changes to our internal processes to accommodate this new program.  The company expects that we will be able to begin accepting interconnection applications for EARP systems after July 1, 2009.

The program offers the following rates for energy produced by qualifying Solar Photovoltaic systems:

For residential systems available in 2009, the approved rate is $0.65/kWh.  For residential systems available in 2010, the approved rate is $0.525/kWh.
For nonresidential systems available in 2009, the approved rate is $0.45/kWh.  For nonresidential systems available in 2010, the approved rate is $0.375/kWh.

The rates paid to participant systems will be fixed under contract for up to 12 years.  Residential systems must have a name plate capacity of at least 1 kW, with a maximum size of 150 kW.  Commercial systems must have a minimum nameplate capacity of 20 kW, with a maximum size of 150 kW.   Systems equipped with a battery back up system or other energy storage system will not be allowed to participate under the EARP pilot.  All net energy produced by the solar energy system must be delivered to the utility, and the utility will own any Renewable Energy Credits and Capacity associated with the system.  Any energy consumed by the system during periods of non-operation will be billed at an appropriate retail rate, with all associated taxes and fees.  Participants will also be assessed a System Access Charge for the EARP service that is equivalent to the existing distribution account used to qualify for the program.
To qualify for the program, participants must be Consumers Energy customers with an existing distribution account in good standing.  The solar PV system must also be installed on the premises of the existing account or on an adjacent property owned or leased by the account holder.   Installed systems must be manufactured in Michigan or constructed by a Michigan Work force to qualify.

To enroll in the EARP pilot, customers will follow the existing interconnection process, documentation and instructions for which are currently being revised to conform with the State’s new interconnection rules.  If any new distribution facilities outside of a new overhead service are required to connect an EARP system, the costs will be charged as a non-refundable participant contribution.  Upgrades to existing distribution facilities will be covered by the MPSC’s interconnection rules as set forth in U-15787.

The Experimental Advanced Renewable Program pilot has a capacity limit of 2,000 kW of installed nameplate capacity, with 500 kW reserved for residential customers.  Participants will be taken on a first come, first serve basis.  To prevent unqualified applicants from blocking space in the EARP queue, participants will have 45 calendar days after being notified that all necessary review of their application is complete to show qualified evidence that they have the resources necessary to construct the project.  While an unqualified participant will not be removed from the interconnection process at 45 days, they will be moved to the end of the line for EARP participation until it can be shown that the resources to proceed with the project are available.  While payments under Rate AR can not begin until August 27th, interested parties may begin reserving space in the queue by emailing AR_Tariff_Inquiries@cmsenergy.com and providing the name  and address of the existing Consumers Energy account holder, the location the system will be installed, the proposed size of the system, and the expected rate class.

If there are any questions or concerns, please direct inquiries to AR_Tariff_Inquiries@cmsenergy.com.