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PSC Directs Retail Suppliers To File Five-Year Resource Adequacy Plans

December 23, 2015

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Copyright 2010-15 EnergyChoiceMatters.com
Reporting by Karen Abbott • kabbott@energychoicematters.com

As in prior years, the Michigan PSC has ordered electric utilities and other load-serving entities (LSEs), including retail suppliers, to file assessments of their plans for meeting customer loads during the 2016 to 2020 timeframe.

Each assessment should include the LSE’s expected peak demand and the resources available and committed to meet peak demand, including applicable regional transmission organization (RTO) requirements such as expected reserves by applying MISO’s 2016-2017 planning year reserve for each of the five years. Each assessment should justify the expected reserve margin in light of the LSE’s circumstances, including the reliability characteristics of its resource base and the characteristics and diversities of the customer load. Load forecasts should separately identify choice load and bundled load. Each assessment should also distinguish between in-state and out-of-state generation resources, and any applicable transmission service, and analyze how this generation is expected to serve customer demand and meet applicable RTO requirements such as MISO Module E requirements

Each assessment shall further provide details for each year regarding the actual deliverability of generation output and purchased power under peak operating conditions, and transmission capabilities and constraints or other factors such as pricing affecting deliverability and reliance on resources located in other RTOs or other resource zones within an RTO. Further, each assessment shall identify all supply side resources designated to meet reserve requirements for each year of the five year forecast – including generation units that are owned by the LSE affiliates or otherwise committed to serve the load, firm contract capacity supported by commitments of designated unit or system resources, and demand response or load curtailment measures – in sufficient detail (i.e., unit-level and contract-level information) to verify that no resource is being credited more than once toward the planning requirements of one or more load-serving entities. To the extent that the LSE plans to rely on the MISO capacity auction, other power purchase agreement (PPA) market purchases of capacity, or other capacity purchased from the market on an as-needed basis to meet some or all of its needs, the LSE should address potential pricing risks or transmission availability risks.

Case No. U-17992

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