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Distributed Generation and Interconnection

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Public Act 235 increases the Distributed Generation (DG) program cap from 1% to 10% and makes other changes to utility distributed generation programs including program categories, system size, and meter requirements. These changes necessitate review of interconnection standards and utility programs. The Commission issued an order on February 8, 2024 in Case No. U-21569 as part of the implementation of the new distributed generation provisions in the Act. The law took effect on February 27, 2024.

Public Act 235 includes the following provisions:

  • The size of Michigan’s DG program increases, from 1% of an electric utility’s or alternative electric supplier’s average five-year in-state peak load average to 10%.
    • At least 50% of the cap must be reserved for systems under 20 kW.
    • Up to 50% of the cap may be reserved for systems larger than 20 kW but not more than 550 kW.
  • Eligible electric generators are Renewable Energy Systems or Methane Digesters with a capacity of 110% of the customer’s electric consumption over the prior 12 months.
  • Removal of the requirement for systems larger than 20 kW to install and utilize a generation meter.

Commission Actions to Date

The MPSC sought comments on a number of issues related to implementing the higher DG cap and any other relevant matters related to the DG program. These comments were filed in the U-21569 docket on March 26, 2024, and reply comments were filed on April 16, 2024. After considering the comments, the Commission opened the docket in Case No. U-21767 with an Order on July 23, 2024. The July 23 Order granted Michigan’s rate regulated electric utilities waivers from the provision of Public Act 235 requiring the use of a generation meter and from certain generator size limitations within the statute. The Order also directed these utilities to file applications for approval of revised distributed generation tariffs consistent with Public Act 235 by September 20, 2024.

Related MPSC Cases

Distributed Generation Tariffs

Pursuant to the July 23, 2024 Order in U-21767, the utilities’ applications and proposed tariffs were filed in the following dockets:

Alpena Power Company – U-21794

Consumers Energy Company – U-21796

DTE Electric Company – U-21798

Indiana Michigan Power Company U-21795

Northern States Power Company – U-21793

Upper Michigan Energy Resources Corporation – U-21790

Upper Peninsula Power Company – U-21791

Statewide Standard Agreement for Level 1, 2, and 3 Interconnection Projects

The Commission issued an order on February 8, 2024 in Case No. U-21543 requesting comments on a proposed standard level 1, 2, and 3 interconnection agreement which was attached to the order as Exhibit A. Comments were due on March 27, 2024, and reply comments were received through April 26, 2024. On July 23, 2024 the Commission issued an order in the U-21543 docket approving a standard level 1, 2, and 3 interconnection agreement.

Michigan Interconnection and Distributed Generation Standards Interconnection Procedures Cases

On August 23, 2023, pursuant to R460.920(1), rate-regulated utilities and member-regulated co-ops (jointly filing in Case No. U-21481) filed interconnection procedures, forms and requests for waivers in the individual dockets listed below.  Each utility’s and member-regulated coop’s interconnection procedures provide details for interconnection customers about the implementation of the MPSC’s Michigan Interconnection and Distributed Generation Standards (MIXDG rules), which became effective on April 25, 2023.

In light of the DG provisions in the new energy laws (which supersede the MIXDG rules), the Commission issued an Order on February 8, 2024, in Case Nos. U-21455 et al. which (1) directed the utilities to file new applications with updates to reflect the new DG provisions by March 22, 2024, and (2) converted Case No. U-21482 to a contested matter. This restarted the clock on the 360- calendar-day timeline required by Rule 20(2). Comments and reply comments were received in the ex parte cases on May 22 and June 5, 2024, respectively. The Commission will issue final orders on these interconnection procedures no later than March 17, 2025, for all rate-regulated electric utilities. For more information on generator interconnection, please see the MPSC’s Generator Interconnection webpage.

Alpena Power Company – U-21483
Status: January 23, 2025 Order

Consumers Energy Company – U-21480
Status: Pending

DTE Electric Company – U-21482
Status: Pending

Indiana Michigan Power Company – U-21467
Status: Pending

Michigan Electric Cooperative Association – U-21481 (Alger Delta Cooperative Electric Association, Cherryland Electric Cooperative, Cloverland Electric Cooperative, Great Lakes Energy Cooperative, HomeWorks Tri-County Electric Cooperative, Midwest Energy & Communications, Ontonagon County REA, Presque Isle Electric & Gas Co-Op, and Thumb Electric Cooperative) 
Status: July 23, 2024 Order | MECA Interconnection Procedures

Northern States Power Company – U-21455
Status: Pending

Upper Michigan Energy Resources Corporation – U-21479
Status: November 21, 2024 Order | UMERC Interconnection Procedures

Upper Peninsula Power Company – U-21477
Status: September 26, 2024 Order

 

Implementation Status:  In Process

Lead Staff: Cody Matthews

 

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