The Michigan Public Service Commission (MPSC) today issued an order that establishes procedures for the MPSC staff to follow as it works with the Michigan Department of Environmental Quality (DEQ) on proposed new coal-fired electric generating plants.

On Feb. 3, Governor Jennifer M. Granholm issued an executive directive (ED 2009-02) that directed the DEQ, before issuing a permit for the construction of a new coal-fired electricity generating plant, to determine whether there is a feasible and prudent alternative consistent with public health and safety and environmental concerns.

On April 1, the MPSC entered into a Memorandum of Understanding (MOU) with the DEQ that clarified each participant's role and responsibility regarding a review that will look at electric generation alternatives and providing technical assistance to the DEQ. 

The DEQ is charged with issuing permits in response to applications filed seeking authority to construct a new coal-fired electricity generating plant.

The MPSC has two tasks, pursuant to the MOU:

·         Providing technical assistance to the DEQ on all matters related to the need for electric generation in the state, as it relates to the analysis that looks at alternatives to coal-fired generation.

·         Reviewing the alternatives analysis to assess whether energy efficiency, renewable energy, or other alternatives meet future electricity needs.

The DEQ is responsible for reviewing the alternatives analysis to assess the affect of the plants and alternatives on human health and the environment.

Today's order directs the MPSC staff to perform the following activities:

A.   As required, the Regulatory Affairs Division shall open separate dockets for each investigation and shall manage the files and information gathered as part of the process.  Although the investigation process established by this order will not be conducted as a contested case proceeding, the information in the dockets opened for each investigation shall be available to the general public pursuant to the Commission's e-file system.

B.   The Electric Reliability Division shall assume the lead role in all technical investigations required by the MOU.  The Electric Reliability Division shall contact existing DEQ permit applicants within 3 business days of the issuance of this order to inform each applicant of the review process established by the Commission.  Subsequently, the Electric Reliability Division shall contact new DEQ permit applicants within 3 business days of discovery of the filing of a permit application to inform the new applicants of the review process established by the Commission.

C.   Each permit applicant shall submit an electric generation alternatives analysis (EGAA) to the Commission.  Each EGAA shall include all of the following information:

·               Consideration of alternatives that would reduce emissions of the criteria pollutants [nitrogen oxides (NOx), carbon monoxide (CO), volatile organic compounds (VOCs), particulate matter (PM), particulate matter less than 10 microns (PM₁₀), sulfur dioxide (SO2), lead (Pb), other hazardous air pollutants, including mercury (Hg), and carbon dioxide (CO2)] from the proposed facility;

·               The analysis should address cost, reliability, availability, and technical feasibility of the alternatives examined.  Cost should be presented in a manner that facilitates a comparative analysis (i.e., dollars per megawatt-hour (MWh) for each option);

·               Reduced generating capacity - description of future energy requirements and the adequacy of existing supplies.  Provide the basis for the proposed design and address whether smaller boilers, a reduced number of boilers, or no new boilers are viable options in light of the other alternatives addressed;

·              Improved energy efficiency at existing units - description of the energy efficiency measures available at existing units owned or controlled by the applicant to fully or partially offset the emissions from the proposed facility;

·              Potential supply resources - description of the technologies considered for new generation including the consideration of renewable energy sources, clean fuels (primary fuel and fuel alternatives), and lower emitting technologies.

o        Renewable energy sources (i.e., wood, other biomass, etc.)

o        Clean fuels (i.e., low sulfur coal, etc.)

o        Lower emitting technologies

§         Natural gas

§         Wind

§         Solar

§         Hydroelectric

§         Nuclear

§         Wave Energy

§         Geothermal

§         Combined Heat and Power

§         Other innovative fuel combustion techniques

§         Cleaner technologies

§         Sequestering activities

·               Demand side management/reduction - description of load management, energy efficiency, and distributed generation as a means of affecting forecasted load requirements;

·               Combinations of these alternatives raised in public comments received during the DEQ public comment period.

D.   The Staff and the applicant shall meet approximately 7 days after submittal of the Electric Generation Alternatives Analysis with weekly update meetings thereafter, as necessary.

E.   After the filing of an EGAA with the Commission, the public shall have 30 days to comment on the filing.

F.   After conclusion of the public comment period, the Staff shall within 60 days review the filed comments, continue review of the EGAA filing, perform any required analysis, and develop and prepare a report to the DEQ.  In developing this report, the Staff shall give consideration to all reasonable and relevant filed comments.  The applicant shall provide the Staff with any information necessary to assist the Staff in the evaluation and review of the EGAA filing.  

G.   In accordance with the MOU, the Staff will review the alternatives analysis for the proposed coal-fired electricity generating plants to assess whether energy efficiency, renewable energy, or other alternatives meet future electricity needs.

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

Case No. U15958