Michigan Regulator Asks DTE Electric to Submit Revised Resource Plan

The Michigan Public Service Commission on Feb. 20 sent DTE Electric Company back to the drawing board on its long-term resource plan, citing fundamental flaws including lack of competitive bidding for supply-side resource additions. The agency recommended that DTE issue a request for proposals for new generation, and raise the proposed energy efficiency targets.

Considering the significant deficiencies, including a starting point that included a range of non-approved and non-optimized resources, the agency recommended removal of all unapproved supply-side resources. The commission also recommended inclusion of energy waste reduction levels of 1.75 percent in 2020 and 2 percent in 2021. The statutory minimum is one percent, and DTE had proposed 1.65 percent in 2020 and 1.75 percent in 2021.

The agency expressed its intent to review these proposals as part of an accelerated renewable energy plan amendment proceeding, evaluate DTE’s capacity outlook under the Public Utility Regulatory Policies Act, and examine a “truly integrated approach” that considers both demand- and supply-side resources as part of the next IRP under an accelerated schedule.

The commission also found that DTE’s plans to not to retire the coal-fired Belle River power plant until 2029-2030 were inadequately justified because an analysis of avoiding new environmental upgrade costs was not considered. The agency indicated it would scrutinize such costs in rate proceedings until a new cost-benefit analysis with earlier retirements dates could be analyzed in DTE’s next IRP.

While expressing support for two of DTE’s ongoing demand response pilots, the commission recommended that the company remove the costs associated with other DR pilots, saying that makes more sense to offer pilots in future rate cases or in DR reconciliation cases.

DTE may file a revised IRP by March 21.

The company has until April 1, 2020 to update its renewable energy plan case. The commission set a Nov. 13, 2020 deadline for review of capacity need and avoided costs under the federal Public Utility Regulatory Policies Act, and Sept. 1, 2023, for DTE’s next IRP.