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Michigan Public Service Commission

Michigan Public Service Commission. MPSC Staff PURPA Technical Advisory Committee Avoided Cost Administrative Process Proposal (For Discussion at February 10, 2016 PURPA TAC Meeting). PURPA TAC Recommendations.

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Michigan Public Service Commission

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  1. Michigan Public Service Commission MPSC Staff PURPA Technical Advisory Committee Avoided Cost Administrative Process Proposal (For Discussion at February 10, 2016 PURPA TAC Meeting)

  2. PURPA TAC Recommendations • Report issued on April 8, 2016 will evaluate and recommend an avoided cost methodology to the Commission. • Utilities with “all-requirements” supply arrangements would likely have their avoided cost rate based on those purchases. • Report will recommend detailed filing requirements for each utility according to Section 292.302.

  3. Path to Satisfy Act 304 6(j) (13) Assumptions: • The initial Commission proceeding to approve the capacity charges and avoided cost methodology must be a contested case. • Approving an avoided cost methodology and calculation in a contested case for each utility may satisfy the need for contested case capacity approval for each PURPA contract.

  4. PURPA Administrative Process • MPSC issues Order establishing the following: • Establishing separate docket numbers for each rate-regulated utility with the following filings made within 30 days: • cost information pursuant to Section 292.302 of the PURPA regulations • avoided cost calculation based on the methodology recommendations in the PURPA TAC report • Docketed cases are processed in a consolidated manner following the contested case guidelines by one Administrative Law Judge • Parties may contest the methodology, calculation and inputs to the calculation of avoided cost • Commission approves methodology, calculation and inputs to the calculation for each utility and directs utilities to file standard tariffs for QFs 100 kW and smaller • Order directs each utility to file updated avoided cost and calculation inputs every two years

  5. PURPA Contract Approval Process • Utility files executed QF contracts for approval under Act 304 6(j) (13), outside of a PSCR case. • Most likely, at the time of each contract filing, the Commission will determine whether a contested case is needed.

  6. Biennial Process • Assumes that a contested case is not required unless the methodology is being changed. • Electric providers file the following: • FERC Section 292.302 cost data • Inputs and calculations based on previous avoided cost methodology order • Updated avoided cost schedules for the standard rate • Updated information is approved ex parte. • Intervenors can request a contested case.

  7. Possible Timeline • PURPA TAC Report filed April 8, 2016 • Commission issues Order – June 2016 • Within 2 months, utilities make filings pursuant to the Order to kick-off docketed contested cases • Final Order issued within 9 months or earlier if there are settlement(s) – May 2017 • Executed PURPA contracts are filed for approval outside of PSCR case filings. The Commission will determine whether the case can proceed on an ex parte basis.

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