Michigan Commission Approves Revisions to Resource Planning Parameters and Utilities’ Filing Requirements

The Michigan Public Service Commission on Oct. 27 authorised two orders implementing revised planning parameters and filing obligations for integrated resource plans, or IRPs, the long term proposals of regulated electric utilities for delivering power that are mandatory of the state’s regulated electric utilities.

IRPs outline an electric utility’s long-term projections for certifying consistent service over 20 years, with certain obligations for reporting 5,10 and 15-year plans. Legislation enacted in 2016 directed each rate-regulated electric utility to file an IRP and directed the commission to establish filing requirements and deadlines. The commission’s directives include identifying potential revisions to the IRP modeling parameters or the filing requirements to better accommodate transmission alternatives to prepare for next formal review of the planning parameters expected to take place in 2022.

In 2019, the commission performed a statewide energy assessment, following an energy predicament during a harsh winter cold period, which detected shortcomings in the inherent planning procedures and found fields that could be enhanced, including IRP modelling parameters and filing obligations. In 2020, the commission launched a proceeding to research best practices in integrated resource and distribution planning pursuant to the assessment and MI Power Grid Initiatives. Planning parameters at the outset started to update, as part of the commission’s MI Power Grid initiative, which was designed to assist the state through fast moving transitions in the energy sector and allow smoother shift to clean, distributed supplies of energy. Comments from these events led to the advancement of updated drafts of the planning parameters and filing requirements.

The order on resource planning parameters requires electric utilities whose rates are regulated by the commission to model the adopted developments and sensitivities as part of their respective IRP filings. The other order approves the filing requirements and instructions for certificate of public convenience and necessity application instructions.