PSC Sets Capacity Charges Applicable To Shopping Customers At 3 More Utilities

The Michigan PSC has set the amount for the state reliability mechanism (SRM) capacity charge at 3 more utilities that customers of alternative retail electric suppliers shall pay if their supplier fails to demonstrate that it has enough capacity into the future, or elects not to arrange generating capacity to meet the applicable requirements

The SRM charges set for full-service customers were as follows, beginning June 1, 2018:

• Upper Michigan Energy Resources Corp. (UMERC): $229,523/megawatt-year, or $629/megawatt-day (Case No. U-18253).

• Upper Peninsula Power Co. (UPPCO): $90,810/megawatt-year, or $249/megawatt-day (Case No. U-18254).

• Cloverland Electric Co-op: $228,891/megawatt-year, or $627/megawatt-day (Case No. U-18258).

These charges for full service customers will also be paid by customers of alternative electric suppliers who do not make a showing of adequate capacity, with the capacity charge applicable no earlier than June 1, 2018

The PSC ruled that the capacity charge for suppliers not showing adequate capacity shall be collected by the utility directly from the customers of such supplier, and the capacity charge will not be assessed to the retail supplier itself