MPSC approves additional pause for further negotiations in Consumers Energy dam sale

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The Michigan Public Service Commission today approved a second request from Consumers Energy Co. to postpone issuing an order on the utility's request to sell its hydroelectric fleet to a private company (Case No. U-21985).

Consumers Energy on Nov. 3 filed a second waiver of its right to have an order issued in the case within the statutory 180 days allowed, following an earlier waiver of the deadline that was to expire on Nov. 9. Consumers said it needed the extra time for further discussions of a potential resolution to the case, providing the "opportunity for a constructive settlement" that addresses concerns raised by participants in the case, and requested that the Commission not issue a final order before Dec. 17, 2026.

The Commission, noting Consumers' ongoing discussions, said it's reasonable to allow negotiations to continue. But the Commission warned that this will be the final extension granted in this case to Consumers, and any settlement agreement reached in the matter must be filed by 5 p.m. Dec. 9. If no settlement is filed by the Dec. 9 deadline, the Commission will issue a final order on the sale on Dec. 17. The Commission indicated that the only way another extension would be granted is if a majority of parties to the case submit a joint request for another extension.

Consumers has proposed to sell to Confluence Hydro 13 utility-owned dams along the Au Sable, Grand, Kalamazoo, Manistee and Muskegon rivers, with a combined electric capacity of 132 megawatts. Confluence would, in turn, sell back the power it generates from the dams to Consumers Energy for 30 years at above-market prices, providing funding for future repair work.

MSPC GRANTS DECLARATORY RULING ON ANN ARBOR CLEAN ENERGY UTILITY

The MPSC today issued a declaratory ruling on the status of Ann Arbor's municipal energy utility, the Ann Arbor Sustainable Energy Utility, or A2SEU (Case No. U-22105). The utility sought the declaratory ruling on whether it is legally considered a municipal utility and what requirements it may have to meet as a municipal energy provider. A2SEU was approved by voters in 2024 to operate in tandem with the city's main electric provider, DTE Electric Co., providing optional solar, battery backup, and other technology for residential and business customers looking to reduce fossil fuel use. The Commission's declaratory ruling today found A2SEU is a municipal utility but with a limited scope, and is not required to comply with reporting and other requirements related to the Michigan Energy Assistance Program, renewable portfolio standards, renewable or clean energy plans, and energy waste reduction standards. The Commission also granted the A2SEU's request for authorization to act as a residential demand response (DR) aggregator despite Michigan's prohibitions on DR aggregation. The authorization allows A2SEU to participate in a Bryant Neighborhood pilot Virtual Power Plant pilot program, and to develop programs to aggregate DR more broadly.

COMMISSION PROVIDES GUIDANCE ON INTERPRETATION OF SECTIONS OF PUBLIC ACT 235 OF 2023

The MPSC today provided guidance on a number of questions pertaining to the implementation of Public Act 235 of 2023 (Case No. U-21568), which expanded Michigan's renewable energy standards. Energy Michigan and Billerud Americas Corp., which operates Upper Peninsula paper mills in Escanaba and Quinnesec, had requested declaratory rulings on interpretation of Sections 28 and 29 of Public Act 235, on issues related to renewable energy credits and behind-the-meter generation resources. Today's order summarizes comments received after the Commission requested input in August from interested parties and provides guidance on the interpretation of the two sections of Public Act 235 at issue.

DTE ELECTRIC SECURITIZATION SURCHARGE ADJUSTED

The Commission approved DTE Electric Co.'s request to adjust the distribution securitization surcharge related to costs from the utility's tree-trimming surge in recent years as well as costs related to the retirement of utility's coal-fired River Rouge power plant (Case No. U-21015). DTE Electric filed an application seeking to adjust the surcharge to 0.0 cents per kilowatt-hour to minimize later customer charges and amounts subject to reconciliation, rather than terminating the charge. DTE Electric intends to file a true-up within four months of Dec. 1, 2026, and will use the charge to credit any over-collection or charge any under-collection.

COMMISSION OKS CONSUMERS ENERGY CO.'S RECONCILIATION OF 2024 DEMAND RESPONSE PROGRAM COSTS

The MPSC approved Consumers Energy's application for authority to reconcile the utility's demand response (DR) program costs for 2024 (Case No. U-21906). Addressing previous concerns about the costs and effectiveness of Consumers' DR programs, the Commission ended the incentive for DR, as it was not producing results.. The Commission warned Consumers that it will carefully review the utility's future Integrated Resource Plan portfolios and power supply cost recovery cases to ensure DR and other cost-effective solutions are properly considered and modeled. The Commission said Consumers has been overly focused on financial incentives to the company instead of overall impact on customers. In DR programs, customers voluntarily enroll and receive reduced rates for agreeing to reduce their electric use during periods of high demand on the grid or when electric generation prices are high.

MPSC APPROVES WAIVERS FOR HYDROMINE CHEBOYGAN

The Commission today granted HydroMine Cheboygan LLC 30-month waivers from some of the rules in the state's Interconnection and Distributed Generation Standards (Case No. U-22154). The waivers allow for continued operation of the facility as it seeks a long-term interconnection agreement with Consumers Energy while also maintaining its critical role in safety and flood control.

COMMISSION GRANTS ALTERNATIVE GAS SUPPLIER LICENSE TO RELIANT ENERGY SERVICES

The MPSC granted an alternative gas supplier license to Reliant Energy Northeast LLC (Case No. U-22178). Reliant provides natural gas to more than 48,000 customers in Delaware, Illinois, Maryland, Massachusetts, New Jersey, New York, Ohio, Pennsylvania and Washington, DC. The company will maintain an office on West Michigan Avenue in Lansing.

The MPSC serves as an expert, impartial regulator committed to consumer protection, fairness and transparency. For information about the MPSC, visit www.michigan.gov/mpsc, sign up for its monthly newsletteror other listservs. Follow the MPSC on Facebook, X/Twitter, LinkedIn or Instagram.

To look up cases from today's meeting, access the MPSC's E-Dockets filing system.

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DISCLAIMER: This document was prepared to aid the public's understanding of certain matters before the Commission and is not intended to modify, supplement, or be a substitute for the Commission's orders. The Commission's orders are the official action of the Commission.

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