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The press release below was published by the DELEG and MPSC the other day. This is very important for those of you with PV systems or those planning to install them.
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.
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