Michigan PSC Adopts Findings For Process To Set Electric Choice Cap To 0%, Start Date

The Michigan PSC has issued an order interpreting statutory language concerning when the PSC shall set the electric choice cap at a utility to 0%

MCL 460.10a(1)(c) requires the Commission to reduce the cap to 0% for any electric utility serving fewer than 200,000 customers in Michigan if the utility has not had any load served by an AES in the preceding four years. This provision largely impacts AEP's Indiana Michigan Power Company (I&M).

The PSC had sought comment on interpreting the statute and how to implement this provision. Specifically, the Commission had requested that the briefs address the question of whether the cap should immediately be adjusted for any of the applicable utilities on April 20, 2017, which will then remain in effect at that level for no more than two consecutive years, or whether the Commission should wait to adjust the choice cap based on choice participation during 2017 before implementing any required choice cap reduction during 2018.

After considering the briefs, the PSC found that, "Pursuant to MCL 460.10a(1)(c), if a utility serving fewer than 200,000 Michigan customers has not had any load served by an alternative electric supplier during the four-year period of April 20, 2013, to April 20, 2017, the Commission shall issue an order adjusting its choice cap to 0%."

"If the Commission adjusts, during a calendar year, the choice cap of a utility serving fewer than 200,000 Michigan customers who has not had any load served by an alternative electric supplier in the preceding four years, the cap shall be set for the remainder of that calendar year, plus an additional calendar year, for a total of 'no more than 2 consecutive calendar years' pursuant to MCL 460.10a(1)(c), and the cap shall be reviewed after the February 1 annual choice cap filing," the PSC found

"On or before June 22, 2017, all utilities serving fewer than 200,000 Michigan customers pursuant to MCL 460.10a(1)(c) shall file in their assigned docket their preceding calendar year sales, their weather-adjusted sales for the preceding year, the resulting cap with all supporting documentation, and the number of customers currently served in Michigan," the PSC said

"All utilities shall continue to annually file in their assigned dockets their preceding calendar year sales, their weather-adjusted retail sales for the preceding calendar year, the resulting cap with all supporting documentation necessary, and for those utilities subject to the final sentence of MCL 460.10a(1)(c), the number of customers being served. This information shall be filed annually, even if electric choice caps are set at 0%," the PSC said

Case No. U-15801