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Michigan PSC Stays, Does Not Withdraw, Local Capacity Requirements For Retail Suppliers

September 14,2018



The Michigan PSC has granted a stay, sought by Energy Michigan, of the imposition of local capacity requirements on alternative electric suppliers, but denied rehearing of its order imposing the requirements

The PSC granted the stay given that, as previously reported, a state Court of Appeals has ruled that the Michigan PSC lacks the authority to require alternative electric suppliers to meet local capacity clearing requirements

However, the PSC is appealing such Court's ruling to the state Supreme Court, and noted that a Court of Appeals judgment is effective after the expiration of the time for filing an application for leave to appeal to the Supreme Court, or, if such an application is filed, after the disposition of the case by the Supreme Court.

As such, the PSC said that the Court of Appeals ruling cannot be used to invalidate the PSC's order imposing the local capacity requirements

"The Michigan Supreme Court has not denied leave to appeal or otherwise disposed of the case. Accordingly, the Court of Appeals’ opinion cannot be used to invalidate the Commission’s June 28 order," the PSC said

The PSC also adopted updates to the state reliability mechanism (SRM) capacity demonstrations LSEs including retail suppliers must file to prove adequate long-term arrangements for electric capacity. Approved were updates to the reporting templates and affidavits that electric providers must submit to the Commission. The templates and affidavits will be used for the 2022-23 planning year capacity demonstrations.

The PSC adopted the updates as contained in Appendix B to this staff report (click here)

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