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MEGA Electric Utility Tariff Measures For Large Industrial Customers

MEGA Electric Utility Tariff Measures For Large Industrial Customers. James A. Ault, President Michigan Electric & Gas Association 110 W. Michigan Avenue, Suite 375 Lansing, MI 48933 517.484.7730. MEGA Board of Directors. Michigan Electric & Gas Association (MEGA).

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MEGA Electric Utility Tariff Measures For Large Industrial Customers

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  1. MEGA Electric Utility Tariff Measures For Large Industrial Customers James A. Ault, President Michigan Electric & Gas Association 110 W. Michigan Avenue, Suite 375 Lansing, MI 48933 517.484.7730

  2. MEGA Board of Directors

  3. Michigan Electric & Gas Association (MEGA)

  4. Basic Industrial Tariff Offerings • Time of Use / Peak – Off Peak • Interruptible Service (Curtailment) • Capacity Buyback / Demand Response • Market Pricing Options • Economic Development Rider • Load Retention Contract • Special Contracts

  5. Industrial Tariff Business Issues • Utility in position of offering favorable options to certain customers vs others • Industrial processes limit ability of customer to use interruptible rates • Customer concern with impact of interruptions on work in progress • Legal and regulatory limits on cross subsidies (e.g. Michigan cost of service law – 2008)

  6. Alpena Power Company • Large Industrial Service tariff • Alternate Energy Manufacturing Service • Facility closed 6 or more months • Hemlock variety targeted special contract • Special Power Contracts • Allowed per Tariff • MPSC approval required

  7. Indiana Michigan Power (AEP) • Contract Service Interruptible Power CS-IRP • No MI customers • Buy through option at market prices • Demand Response Service DRS – Indiana • DRS-1 PJM emergencies • DRS-2 curtailment at market price • DRS-3 ancillary markets – few takers • Economic Development Rider EDR • Customer who qualifies given reduced billing demand • 10 new jobs demonstrated (Indiana) • Not presently effective in Michigan (cross subsidy issues)

  8. Xcel Energy (NSP – Wisconsin) • Large Industrial Service MI-1 • Peak Controlled Time of Day MPC-1 • Experimental Market-Based and Real Time Pricing CMP-1; RTP-1 (Wisconsin)

  9. Wisconsin Public Service • Cp-1M Large Industrial Service • Cp-I2M Interruptible Rider (emergency or economic) • Cp-ND Next Day • 1 year term • Pricing for critical (5 days/yr), peak (100), mid-economy (100) and economy (200)pe • OPE Online Power Exchange • Customer load reduction offers • RTMP Real Time Market Pricing (Wisconsin) • Non-firm • LMP + MISO + $10 mWh

  10. We Energies • General Primary – Time of Use Cp-1 • General Primary – Interruptible Cp-2 • General Primary – Curtailable Cp-3 • Experimental Dollars for Power DFP • Credits for load reduction • Experimental Power Market Incentives PMI • Market prices for curtailment

  11. Upper Peninsula Power Company • Large Industrial Rate Cp-U • Capacity Buyback Rider Cp-1B • Interruptible Rider Cp-I • Real Time Market Pricing RTMP

  12. Wisconsin Contract Service Tariff CST • Wis. Stat. 196.192 • Requires a market compensation option for interruptions • Also contract market pricing options • Allow customers to gain market benefits subject to market risks • PSCW must determine there is no harm to either utility shareholders or other customers

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