The Michigan Public Service Commission (MPSC) today established the Michigan Planning Consortium to improve the planning process for electricity infrastructure projects and possible ways to reduce costs to ratepayers. 

"Currently, national electricity infrastructure planning is a mix of national, regional and local initiatives," said MPSC Chairman Orjiakor Isiogu.  "Michigan has many entities such as independent transmission-only companies, generation and distribution utilities and alternative resource providers whose focus is on Michigan's energy infrastructure. 

"With rising energy costs, however, the MPSC needs to ensure that there is adequate coordination among different entities to thoroughly examine the costs that affect Michigan ratepayers and businesses.  This requires a comprehensive infrastructure planning process to make sure that Michigan's electric needs are met in ways that consider all the alternatives and result in the most reasonable cost solutions."

In today's order, the MPSC directs the MPSC Operations and Wholesale Markets Division staff to work with involved stakeholders, including, but not limited to, representatives from regional transmission organizations (RTOs), transmission owners, generators, distribution companies, independent power producers, and alternative energy suppliers.

The Consortium has a four-fold purpose in its work to complement, not duplicate, ongoing state and regional processes as they develop:

·        Ensuring adequate sharing of information throughout the planning process on a local and detailed level. 

·        Evaluating energy infrastructure alternatives, including proposed transmission projects.

·        Examining the cost effects of various alternatives on Michigan customers.

·        Recommending the most effective ways for Michigan stakeholders to participate in regional planning processes, and related state and Federal Energy Regulatory Commission (FERC) proceedings, including MPSC Act 30 certification proceedings.

The Consortium will be policy and implementation oriented.  Policy issues will be addressed by creating and maintaining a forum to identify and make recommendations to the MPSC for improving the planning process for electricity infrastructure.  Implementation issues will be addressed through consideration of energy infrastructure solutions to an identified need.  The Consortium will recommend solutions to the MPSC after considering, evaluating and integrating transmission, generation, distribution, energy efficiency and demand side options.  Recommendations to the MPSC could include results of negotiations between customers and resource providers, suggested MPSC, Midwest ISO, or FERC action, or proposed Consortium action in these forums.

Today's order recommends that the Consortium meet at least monthly and directs it to report to the MPSC by June 2009 on its accomplishments, efficacy on developing electricity infrastructure, and whether or how the Consortium should continue.

The MPSC is an agency within the Department of Labor & Economic Growth. 

Case No. U-15590