The Michigan PSC, in Case No. U-18383, set a June 1 deadline for comments on establishing a distributed generation "program "as well as guidelines for customers who are in a net metering program or plan to begin using net metering.

2016 PA 342 requires the Commission to establish a "distributed generation program" within 90 days of the effective date of Act 342. Section 173(1) of the Act states:

"The commission shall establish a distributed generation program by order issued not later than 90 days after the effective date of the 2016 act that amended this section. The commission may promulgate rules the commission considers necessary to implement this program. Any rules adopted regarding time limits for approval of parallel operation shall recognize reliability and safety complications including those arising from equipment saturation, use of multiple technologies, and proximity to synchronous motor loads. The program shall apply to all electric utilities whose rates are regulated by the commission and alternative electric suppliers in this state." (emphasis added)

Section 183(1), which was added as part of Act 342, MCL 460.1183(1) provides an option whereby a customer may elect to continue to participate in the existing net metering program, established by Act 295, for up to 10 years from the date of enrollment.

Additionally, on December 21, 2016, Governor Rick Snyder signed 2016 PA 341 (Act 341) into law. Section 6a(14) of Act 341, MCL 460.6a(14) requires the Commission to conduct a study on the appropriate tariff for customers who participate in the net metering program or the distributed generation program within one year of the effective date of the Act. Section 6a(14)provides: "Within 1 year after the effective date of the amendatory act that added this subsection, the commission shall conduct a study on an appropriate tariff reflecting equitable cost of service for utility revenue requirements for customers who participate in a net metering program or distributed generation program under the clean and renewable energy and energy waste reduction act, 2008 PA 295, MCL 460.1001 to 460.1211. In any rate case filed after June 1, 2018, the commission shall approve such a tariff for inclusion in the rates of all customers participating in a net metering or distributed generation program under the clean and renewable energy and energy waste reduction act, 2008 PA 295, MCL 460.1001 to 460.1211. A tariff established under this subsection does not apply to customers participating in a net metering program under the clean and renewable energy and energy waste reduction act, 2008 PA 295, MCL 460.1001 to 460.1211, before the date that the commission establishes a tariff under this subsection, who continues to participate in the program at their current site or facility."

The Commission said that it, "recognizes that the applicable sections of these statutes may cause administrative inefficiencies and customer and supplier confusion if the Commission were to require a distributed generation program with updated tariff sheets to be established for each rate regulated electric company and alternative electric supplier within 90 days of the effective date of Act 342, and then require updated tariff sheets at the conclusion of rate cases filed after June 1, 2018."

To address these concerns, the Commission Staff (Staff) met with participants of the Distributed Generation Program Workgroup prior to the effective date of Acts 341 and 342 and proposed a “business as usual” approach in which the net metering program would continue unchanged until the conclusion of the tariff study and the conclusion of the rate cases filed after June 1, 2018, thereby limiting the number of tariff revisions to one round. In addition, the Staff proposed that any customers who enter and participate in the net metering program prior to the conclusion of the rate cases filed after June 1, 2018, may elect to continue receiving service under the net metering tariff for up to 10 years, as provided under Section 183(1) of Act 342.

The PSC invited public comment on this approach and related issues (Case No. U-18383)

In another order (Case No. U-18369), the MPSC called for convening a workgroup by June 20 to propose a framework for the evaluation and cost recovery of demand response investments by regulated electric utilities.

Tags:
Michigan   Net Metering   Distributed Generation  

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