Michigan PSC Expands Retail Supplier, Utility Resource Adequacy Horizon Due To "Expected Shortfall"

The Michigan PSC has directed the state's utilities and retail suppliers to file assessments of their abilities to meet their customers' expected electric requirements for the years 2015 through 2019.

While the PSC annually requires LSEs to file plans to meet load obligations, typically the assessments cover shorter periods.

"The Commission's investigation spans a five-year period because of the expected retirement of older generating units in the state as a result of new air quality requirements," the PSC said in a news release

"This marks the first time the MPSC has directed utilities to provide assessments covering five years and asked AESs [retail suppliers] to do the same, in light of the expected capacity shortfalls in Michigan as early as 2016 and the time necessary to plan and arrange for new capacity supplies, including new generation and demand-side options," said MPSC Chairman John D. Quackenbush.

"With the expected retirements of several coal-fired power plants in the near future, the probability of electric outages resulting from potential shortages during peak load periods, extreme weather, equipment failures, or other system disruption increases. Prompt attention is required to ensure that capacity supplies are planned to reliably meet customer demands, including customers served by alternative electric suppliers. The assessments are intended to provide a meaningful and transparent picture of the supply outlook and associated risks for the state as a whole and for individual providers," Quackenbush said.

Each assessment, including those of retail suppliers, "should include the LSE's expected peak demand."

Case No. U-17751