Summary of MPSC Case No. U-18383 on Distributed Generation Program
Section 173 of Act 342 directs the Commission to establish the new Distributed Generation Program through meetings and tariff development. Section 183(1) allows existing net metering program participants to continue for up to 10 years. Comments were requested on the implementation and clarity of these sections by interested parties like William K. Wheadon, Phil Von Voigtlander, Joe DeFors, and Anne H. Magoun.
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MPSC Case No. U-18383 In the matter, on the Commission s own motion, to implement the provisions of Sections 173 and 183(1) of 2016 PA 342 (New Distributed Generation Program) SUMMARY OF COMMENTS
Section 173 Includes the elements of the new Distributed Generation Program Directs the Commission to establish the program Commission staff are conducting a series of meetings to undertake the study, develop the tariff, and implement the program
Section 183(1) A customer participating in a net metering program approved by the commission before the commission establishes a tariff pursuant to section 6a(14) of 1939 PA 3, MCL 460.6a, may elect to continue to receive service under the terms and conditions of that program for up to 10 years from the date of enrollment.
In an order requesting comments issued on May 11, 2017, the Commission provided interested parties an opportunity to comment on the following: Would a business as usual approach fulfill the requirements of Section 173 of Act 342?
Comment Request (Continued) Does Section 183(1) of Act 342 allow customers to enroll in the net metering program until the conclusion of the rate cases filed after June 1, 2018, and continue receiving service under this tariff for up to 10 years from the date of enrollment?
Comment Request (Continued) If the Commission were to determine that Section 183 of Act 342 does not apply to new net metering customers (e.g., customers who enter the net metering program after the effective date of the Act), how should the Commission proceed in order to provide clarity to customers and suppliers until the new distributed generation program tariffs are in place after June 1, 2018?
Comments were due on June 1, 2017 Commenters Individuals William K. Wheadon Phil Von Voigtlander Joe DeFors Anne H Magoun
Commenters Entities Great Lakes Renewable Energy Association Board of Directors Vote Solar Initiative and the Solar Energy Industries Association Northport Energy Sunrun, Inc. DTE Electric Company Consumers Energy Company Chart House Energy LLC Michigan Electric & Gas Association Union of Concerned Scientists Natural Resource Defense Council Michigan Energy Innovation Business Council Environmental Law & Policy Center
Reply comments were due on June 15, 2017 Reply Commenters Sunrun, Inc. DTE Electric Company
Question 1 Would a business as usual approach fulfill the requirements of Section 173 of Act 342?
Answer 1 All 18 commenters supported a business as usual approach to net metering until a new Distributed Generation Tariff is in place after June 2018.
New, interim rules would be confusing and cause uncertainty. - Great Lakes Renewable Energy Association The Company agrees that a business as usual approach fulfills the requirements of Section 173 of Act 342. - DTE
It is reasonable and responsible to continue existing rules until a new rule is adopted and not throw uncertainty into the process of people and businesses that are affected by those rules. It would be irresponsible to create a situation where a set of un-vetted interim rules replaced established rules. - Chart House Energy Not only would a business as usual case fulfill the requirements of Section 173, the very language of the statute requires such an approach. - Michigan Energy Innovation Business Council
Question 2 Does Section 183(1) of Act 342 allow customers to enroll in the net metering program until the conclusion of the rate cases filed after June 1, 2018, and continue receiving service under this tariff for up to 10 years from the date of enrollment?
Answer 2 All 14 comments from utilities and other organizations with an interest in distributed generation supported that Section 183(1) of Act 342 allows customers to enroll in the net metering program until the conclusion of the rate cases filed after June 1, 2018, and continue receiving service under this tariff for up to 10 years from the date of enrollment.
Under the plain language of the statute, any customer who enrolls in net metering before the Section 6a(14) tariff is approved is entitled to continue under that tariff for ten years after the enrollment date. - Environmental Law & Policy Center Consumers Energy believes the ten-year grandfathering provision of Section 183 of Act 342 applies to customers who enroll in the Net Metering/Distributed Generation Program authorized by Public Act 295 of 2008 or Act 342 before the Commission establishes the cost-of- service based distributed generation tariff pursuant to Section 6a(14) of Act 341. - Consumers Energy
While PA 342 arguably gives the Commission some discretion to determine the cutoff date for grandfathering existing NEM customers, the plain meaning of PA 342 clearly supports setting the cutoff date at the conclusion of any rate cases filed after June 1, 2018. - Sunrun, Inc. Because the plain language of Act 341 clearly allows customers to enroll in the currently-approved net metering program and receive that service for up to 10 years from the date of enrollment, and because a contrary decision by the Commission could cause significant harm to customers and suppliers of distributed generation, we strongly support this approach by the Commission. - Union of Concerned Scientists
Question 3 If the Commission were to determine that Section 183 of Act 342 does not apply to new net metering customers (e.g., customers who enter the net metering program after the effective date of the Act), how should the Commission proceed in order to provide clarity to customers and suppliers until the new distributed generation program tariffs are in place after June 1, 2018?
Answer 3 There were mixed comments among the 14 utilities and other parties interested in distributed generation. For the most part, this question was moot because there was general support that Section 183(1) of Act 342 allows customers to enroll in the net metering program until the conclusion of the rate cases filed after June 1, 2018, and continue receiving service under this tariff for up to 10 years from the date of enrollment.
Answer 3 Continued Some commenters did add that if the Commission determined that Section 183 did not apply, the Commission should be tasked with quickly making a decision as to how to handle new distributed generation customers. The Commission would also be responsible for communicating this decision to new DG customers.
If the Commission were to determine that Section 183 of Act 342 does not apply to customers entering the net metering program after the effective date of the Act, the Company recommends that the Commission make such determination as soon as practicable, given that Act 342 is already effective. - DTE If Section 183 does not apply, new DG customers should be placed on the existing tariffs, subject to the possibility that tariffs will be changed upon completion of the cost study in 2018 and implementation of new tariffs. - Michigan Electric & Gas Association
Consumers Energy submits that the Commission could inform distributed generation customers who enroll in the Distributed Generation Program after the Commission establishes a cost-of-service based distributed generation tariff pursuant to Section 6a(14) of Act 341 that they will be subject to the cost-of-service distributed generation tariff when that tariff is implemented as part of a rate case filed after June 1, 2018. - Consumers Energy NRDC s reading of the law does not see the potential for this finding. - Natural Resources Defense Council
For more information: U-18383 In the matter, on the Commission s own motion, to implement the provisions of Sections 173 and 183(1) of 2016 PA 342 hadalam@Michigan.gov
