PURPA - Legally Enforceable Obligation

The Legally Enforceable Obligation section was removed from the Draft MIXDG Rules.

In light of FERC Order No. 872, issued on July 16, 2020, and FERC Order N. 872-A, issued on November 19, 2020, the Commission initiated a comment docket in Case No. U-20905 on October 29, 2020. The docket requested comments from interested parties about matters addressed in the FERC Orders. In the Commission's July 2, 2021 Final Order, each utility is ordered to develop criteria for establishing an LEO for Commission review. The Commission shall utilize a legally enforceable obligation review proceeding to review claims pertaining to the establishment of a legally enforceable obligation, as described in this order. An LEO Review Request Form has been posted to initiate an expedited LEO review process.

Additionally, the Commission directed Consumers Energy Co., Upper Peninsula Power Co., Upper Michigan Energy Resources Corp., and Indiana Michigan Power Co to file an application containing their LEO criteria by 5 p.m. September 1, 2021. A copy of the MPSC Press Release for the case can be viewed here.

Utility LEO Criteria

Electric Utility	Case Establishing LEO Criteria	Date Approved
Consumers Energy	U-21131	December 9, 2022
Indiana Michigan Power Co.	U-21127	April 14, 2022
UMERC	U-21130	May 12, 2022
Alpena Power	U-18089	Pending
UPPCO	U-21129	April 14, 2022
Northern States Power Co.	U-21241	November 18, 2022

On November 8, 2018, the Commission issued an order directing Commission Staff to initiate a stakeholder process with the purpose of gathering input to assist Commission Staff with developing rules for defining and establishing a legally enforceable obligation (LEO) under the Public Utility Regulatory Policies Act of 1978.

The topic was part of the Commission's comment proceeding in U-20095.

The rules governing interconnection, distributed generation program and legacy net metering, and PURPA legally enforceable obligation will potentially be combined into a single ruleset. The planned timeframe to develop new rules is nine months with the formal rulemaking process beginning in September 2019 with a target for new rules to be in place sometime in 2020.

Second draft issued February 28, 2020 Draft Interconnection DGLNM LEO Rules- Written comments are requested by the end of the day on Friday, May 1, 2020. Please email your comments and redlined rules documents to evansn@michigan.gov and baldwinj2@michigan.gov. All comments and redlined rules documents will be posted on each stakeholder website.

Commission Staff's first draft issued August 28, 2019 draft proposed ruleset.