Energy Policy

Michigan State Reliability Mechanism Capacity Update

In November 2017 the Michigan Public Service Commission (MPSC) set SRM capacity charges for all five utilities in the state. Customers who purchase energy supply through alternative electric suppliers (AES) will be subject to that capacity charge if the AES has not demonstrated that it has sufficient capacity to serve its customers through May 2022.

The charge is mandatory in Public Act 341, one of the state’s new energy laws. It applies to AESs serving customers under the state’s electric choice program. The MPSC’s orders for SRM capacity values for each utility are summarized in the table below:

(1): MPSC UPPCO Order (Case U-18254): 12/1/2017
(2): MPSC DTE Order (Case U-18248): 11/21/2017
(3): MPSC Consumers Order (Case U-18248: 11/21/2017
(4): MPSC Cloverland Order (Case U-18258): 12/1/2017
(5): MPSC UMERC Order (Case U-18253): 12/1/2017

What are Constellation’s plans for representing its capacity demonstration in Michigan?
Customers and channel partners should understand that Constellation plans to fully meet its capacity demonstration obligations for its customers when we file our four-year report to the MPSC on February 9, 2018.

What’s Next?
Going forward, the SRM capacity charges must be evaluated by the MPSC at least once per year. Therefore, we expect further regulatory rulings and refinements to the process as 2018 unfolds. There may also be changes in the legislative arena. In any event, Constellation will have representation in these proceedings. We will endeavor to provide input on all these matters in support of our customers.  As usual, we will keep our customers and channel partners informed throughout the process.

Learn more about what’s happening in Michigan by visiting constellation.com/MIStrategy.

Guest Author: Rich Spilky, Principal, Retail Analytics
As a Principal in Retail Analytics at Constellation, Rich develops competitive and leading-edge products for industrial, commercial, and residential customers within competitive markets across the country. He has extensive knowledge and experience in leading retail electric pricing and invoicing initiatives. Rich is proficient in influencing favorable regulatory outcomes affecting the retail energy industry across local, state and federal levels.

You may also be interested in these related articles: