After months of negotiations, the Michigan Chamber last year successfully championed legislation to reform the state’s energy policy. Since its passage, the Chamber has been working diligently to ensure the law is implemented as intended. This new law contains critical changes, including: 1) continuation of retail open access; 2) improved electric reliability requirements; and 3) creation of a meaningful competitive bidding process for the procurement of utility generation.
We are pleased to report that the Michigan Public Service Commission (MPSC) has maintained a rigorous schedule for implementing Michigan's 2016 energy law. One recent (and unexpected) order by the MPSC, however, has generated some controversy. The order puts in place a new Local Capacity Requirement on all energy providers in the state. With the order in place, the MPSC is now working to determine how energy providers will comply with the new requirement. The Commission has been taking comment from stakeholders over the past few months and is expected to issue an order within in the coming weeks. The two options on the table are: 1) a requirement that phases in an individual capacity requirement over a short period of time; or 2) a long-term incremental requirement that is based on actual capacity needs at the time. The Chamber filed comments early in this process outlining the tenants of a fair requirement.
We will continue to monitor this developing issue. For more information, if you have any questions regarding this issue, contact Jason Geer at email@example.com or (517) 371-7673.