Michigan PSC Remains "Concerned" Load Serving Entities Do Not Have Adequate Capacity For Lower Peninsula

While the Michigan PSC said there will be enough electricity available to meet customer needs throughout Michigan in the next five years, the PSC said that it, "remains concerned," that load serving entities in the Lower Peninsula do not have adequate capacity to meet the planning reserve requirements.

"The results of the Commission’s five-year outlook yet again illustrate the tightening of capacity supplies in Michigan. Based on the Staff’s analysis in this docket and the recently released 2017 OMS-MISO RAS, Michigan’s near-term supply outlook for the summer of 2018 in Zone 7 [Lower Peninsula, MISO] will be adequate, given the availability of imports from out of state, but is predicted to continue to fall short of the PRMR [planning reserve margin requirements] absent incremental capacity additions through demand response, energy waste reduction, and new generation facilities and/or continued decline of load forecasts. The Commission remains concerned that LSEs in the Lower Peninsula do not have adequate capacity to meet the planning reserve requirements. Thus, in the near term, the regional supply outlook is critical when assessing our situation because LSEs in Zone 7 still need to rely on imports from out of state to meet the minimum required reserve margin. Supplies at the regional level have increased since last year, but it is highly likely that Michigan will need additional capacity resources within the state, due to additional expected retirements, to meet the LCR [local clearing requirement] in the coming years," the PSC said

Zone 7’s near-term supply outlook for the summer of 2018 will be adequate, given the availability of power to import, but the zone is predicted to continue to fall short of being able to cover customer needs with local resources without incremental capacity additions through demand response, energy waste reduction, and new generation facilities and/or a continued decline of load forecasts, the PSC said in a news release

The PSC noted some significant changes which could affect Zone 7’s capacity assessment, including the potential closure of the Palisades Nuclear Generating Station in Covert Township and a change in the available capacity for DTE Electric Co.’s (DTE) St. Clair Power Plant due to a 2016 fire.

Case No. U-18197