MPSC takes additional steps to improve utility reliability and grid resilience

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The MPSC today adopted recommendations on moving forward with exploration of utility relocation of overhead electric lines underground, among other steps the Commission took today to help improve electric reliability in Michigan.

The Commission adopted MPSC Staff recommendations filed in its Oct. 31, 2025, Electric Undergrounding Report, with revisions (Case No. U-21388). The Commission in April 2023 launched efforts to improve grid reliability after a series of severe storms that spring. The effort included a technical workshop in September and October 2025 on the costs and benefits of moving overhead electric wires underground, and included feedback received at a May 2025 public hearing in Gaylord following an ice storm that left tens of thousands of northern Michigan residents without power.

The Commission found that utilities proposing undergrounding projects should present a thorough justification on a project-specific basis, demonstrating that the undergrounding project is the most cost-effective means to achieve reliability and resilience improvements. The Commission directed MPSC Staff, Consumers Energy, DTE Electric and Indiana Michigan Power Co. to work jointly to identify and define data points to support and serve as inputs to emerging grid reliability metrics, including the Sustained Interruption Reduction Index (SIRI) and the Restoration Effectiveness Plus Area Index Resilience (REPAIR) metrics. These new metrics were proposed as part of the Commission's technical workshop, and were developed by the Institute of Electrical and Electronics Engineers' (IEEE) Distribution Resilience Taskforce. When defined and identified, these two new reliability metrics must be reported annually to the MPSC by all regulated utilities, and Michigan would be among the first states nationally to adopt resilience-oriented metrics.

Separately, the Commission today provided guidance for three northern Michigan utilities to file their next distribution system plans (DSPs) (Case No. U-20147).

The Commission's order reviews the first DSPs filed by Alpena Power Co., Northern States Power Co. and Upper Peninsula Power Co., along with comments and replies filed in the case. Pursuant to Commission orders, DSPs are designed to provide a comprehensive understanding of anticipated utility needs, priorities, and spending outside of the contested rate case process and must be filed every three years by investor-owned electric utilities serving customers in Michigan and include a 5-year investment plan and a 10- to 15-year outlook.

COMMISSION APPROVES REPLACEMENT EQUIPMENT SUPPLY AGREEMENT FOR DTE ELECTRIC'S TRENTON CHANNEL ENERGY CENTER

The MPSC granted ex parte approval to DTE Electric Co. for an equipment supply agreement (ESA) with LG Energy Solution Vertech Inc. for the utility's 220-megawatt Trenton Channel Energy Center battery storage facility (Case No. U-21566). DTE Electric sought approval for the new ESA after a previous contractor failed to meet a delivery date for equipment and later filed for bankruptcy. DTE Electric notes that the replacement ESA with LG shaves more than $30 million off the costs approved in the previous ESA. The Trenton Channel Energy Center is being built on the site of a former coal-burning power plant that DTE retired in 2022.

MPSC APPROVES FOUR ENERGY STORAGE PROJECTS TOTALING 660 MW OF NEW CAPACITY

The Commission approved tolling agreements and self-build arrangements for DTE Electric to construct and procure an additional 660 MW of battery storage projects. Specifically, the Commission approved tolling agreements for the 75-MW Coldwater River Storage Project and the 100-MW Tuscola II Energy Storage Project, as well as DTE Electric's application for approval of the 190-MW Isabella Energy Center Project and the 295-MW Meridian Energy Center Project and associated contracts. The projects will help ensure adequate resources are available to promote grid-scale reliability as Michigan's load profile continues to change.

COMMISSION GRANTS ALTERNATIVE ELECTRIC SUPPLIER LICENSE TO MCV RETAIL CO., REQUIRES FILING OF RENEWABLE ENERGY PLAN

The MPSC conditionally approved MCV Retail Co.'s application to be a licensed alternative electric supplier (AES) and directed the company to file a renewable energy plan within 90 days as required under state law (Case No. U-22022). Approval was conditioned on the company's compliance with all applicable provisions of the statute and the Commission's orders. Other conditions include the company providing service to customers within a reasonable time and complying with net metering requirements. MCV Retail is an affiliate of Midland Cogeneration Venture LP (MCV LP), an independent power producer and subsidiary of Capital Power Corp. that operates the 1560 megawatt (MW) natural gas-fired electric and steam co-generation plant in Midland, the largest such cogeneration plant in the country. MCV Retail indicated in its application that it did not intend to serve retail open access customers but rather will "facilitate self-service power transactions between MCV LP and persons obtaining self-service power under MCL 460.10a (4)."

MPSC APPROVES SETTLEMENT AGREEMENT ON INDIANA MICHIGAN POWER CO.'S COST ALLOCATION BETWEEN CUSTOMERS IN 2 STATES

The Commission approved a settlement agreement on Indiana Michigan Power Co.'s application to change the methodology for allocating electric generation costs between customers in its Michigan and Indiana retail jurisdictions (Case No. U-21968). The methodology is meant to protect customers in the two states from paying the costs of providing service to customers in the other state. The Michigan Department of Attorney General, the Association of Businesses Advocating Tariff Equity and MPSC Staff participated in the proceeding.

COMMISSION TO CONVENE NEW WORKGROUP TO REVIEW, REVISE COMPETITIVE PROCUREMENT GUIDELINES AS PART OF ONGOING EFFORTS TO PROMOTE AFFORDABILITY IN UTILITY PROCUREMENT PRACTICES

The MPSC today directed MPSC staff to convene a workgroup to review and revise competitive procurement guidelines, helping to ensure that the guidelines need to do more to ensure fair consideration of third-party renewable energy developers (Case No. U-20852). The Commission directed Staff to convene the workgroup within 60 days and, afterward, to file a revised draft of the Competitive Procurement Guidelines for Rate-Regulated Utilities. As part of its work in the MPSC's MI Power Grid effort, the Commission in 2021 adopted updates to competitive bidding rules aimed at encouraging fair, transparent and nondiscriminatory processes for utilities to use when soliciting competitive bids for new energy resources, reducing costs and maximizing value for utility customers.

MPSC TO HOLD TECHNICAL CONFERENCE ON ADVANCED METERING INFRASTRUCTURE

The MPSC will soon convene a technical conference on the future implementation of advanced metering infrastructure (AMI) such as smart meters that allow utilities to remotely monitor energy consumption, detect outages and more (Case No. U-22065). The Commission today directed MPSC Staff to hold the technical conference within 90 days. The conference will review AMI implementation so far, what benefits have been realized from it, what frustrations or barriers prevented realizing full AMI benefits, and other issues. The Commission directed Staff to file a report on this matter by Aug. 31, 2026, summarizing the conference and providing recommendations for future AMI implementation.

MPSC ADOPTS UPDATES TO GAS SAFETY RULES

The MPSC today formally adopted changes to the state's gas safety rules involving reporting thresholds and federal safety standards (Case No. U-21847). The move formally amends Michigan's gas safety rules so that they adopt current federal gas safety standards, while also raising the threshold at which gas operators must report incidents to the MPSC, to $25,000 in estimated property damage from the current $10,000. With today's adoption, the rules changes will be transmitted to the Michigan Office of Administrative Hearings and Rules for filing with the Secretary of State.

COMMISSION OKs CONSUMERS ENERGY PIPELINES IN PROJECTS

TO OFFSET DECLINING STORAGE FIELDS

The MPSC today gave Consumers Energy the go-ahead on projects to get more natural gas out of declining storage fields. The Commission approved Consumers' application for approval to construct and operate two new pipelines to connect the utility's new R-510 and R-511 wells to the East Ray mainline at the utility's storage facility in Macomb County (Case No. U-21992). The Commission approved the 300-foot R-510 Well Line and the roughly 290-foot R-511 Well Line, which will connect the new wells to existing transmission facilities. The new wells are being installed in the Ray Storage Field to offset the natural decline of the reservoir. The utility's estimated cost for the project is $1,223,768. Consumers' recovery of that amount would be reviewed by the MPSC as part of a future natural gas rate case. Similarly, the Commission approved two new gas lines to serve new P-301 and P-302 wells in Consumers' Puttygut Storage Field in St. Clair County (Case No. U-21993). The new approximately 260-foot P-301 and P-302 Well Lines will transport gas from the new wells to existing transmission facilities. Consumers is installing the new wells in its Puttygut Storage Field to offset the reservoir's natural decline. Consumers' estimated cost for the project is $1,248,572. The utility's recovery of the cost will be reviewed in a future natural gas rate case.

MPSC OKs CONSUMERS ENERGY'S POWER SUPPLY COST RECOVERY PLAN

The Commission authorized Consumers Energy Co.'s application for approval for a power supply cost recovery (PSCR) plan for the year ending Dec. 31, 2025 (Case No. U-21592). The Commission approved Consumers' proposed Consumers Energy Company's proposed PSCR factor of $0.00909 per kilowatt-hour and accepted the utility's five-year forecast. The MPSC also approved Consumers' proposed PSCR factor ceiling price adjustment, or contingency, mechanism for the 2025 PSCR plan year.

COMMISSION APPROVES DTE ELECTRIC'S POWER SUPPLY COST RECOVERY PLAN

The MPSC approved DTE Electric Co.'s application for approval of its power supply cost recovery plan for the year ending Dec. 31, 2025 (Case No. U-21594). The Commission approved DTE Electric's PSCR factor of 7.6 mills per kilowatt-hour and accepted the utility's five-year forecast.

MPSC APPROVES DTE GAS' RECONCILIATION OF GAS COST RECOVERY PLAN

The Commission approved DTE Gas Co.'s application for approval of reconciliation of its gas cost recovery (GCR) plan revenues and expenses for the year ending March 31, 2024 (Case No. U-21272). DTE Gas will reflect a net overrecovery, with interest, of $1,962,351 as its 2024-2025 gas cost recovery beginning balance. The utility will reflect a net overrecovery, with interest, of $52,286 as its 2024-2025 gas customer choice beginning balance.

MPSC PERMITS CONSUMERS ENERGY TO CONTINUE ALTERNATIVE TESTING OF NATURAL GAS METERS

The MPSC approved Consumers Energy's application for approval of a waiver of meter testing requirements and seeking ex parte approval of alternative natural gas diaphragm meter testing procedures until Dec. 31, 2028 (Case No. U-21995). The Commission previously granted the waiver in September 2024 in Case No. U-21341. The MPSC found that the alternative procedures will permit Consumers to test and exchange natural gas meters more efficiently. The Commission approved waiving requirements in Mich Admin Code, R 460.2351 and R 460.2351a of the Commission's Technical Standards for Gas Service and directed the utility to file annual meter testing reports no later than March 1 of each year.

COMMISSION APPROVES BLUEWATER GAS STORAGE'S REQUEST FOR TEMPORARY MODIFICATION OF INSPECTION SCHEDULE FOR THREE WELLS

The MPSC approved Bluewater Gas Storage LLC's application to temporarily modify inspection schedule requirements (Case No. U-20745). The company sought to delay logging for three wells by one year, saying they were logged in 2021 with no integrity issues found. Bluewater said it requested the logging be modified to align with federal inspections required by the U.S. Department of Transportation's Pipeline and Hazardous Materials Safety Administration (PHMSA) and would return to their original 5-year cycle after inspections are completed in 2027.

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 newsletter or 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. Watch recordings of the MPSC's meetings on the MPSC's YouTube channel.

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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