Utilities_ energy policy rewrite brings certainty to planning for new power plants – crain’s detroit business

LANSING — A rewrite of Michigan’s energy law will give the state’s two large electric utilities more certainty as they begin to plan for new power plants within the next few years.

It also will give customers who buy their electricity from suppliers on the open market a degree of confidence that they’ll be involved in the process of determining how much their electric provider could pay a utility to buy power in the event it doesn’t have enough to cover demand.

Concerns about reliability of the state’s electric grid have been at the root of the energy policy debate during the two-year legislative term that ended this week, particularly related to provisions about electric choice. Static electricity images Michigan allows 10 percent of the state’s electricity to be deregulated and bought on the market; choice customers largely consist of manufacturers and school districts with large electricity needs.

Questions about reliability have accelerated as Detroit-based DTE Energy Co. Electricity and magnetism worksheets middle school and Jackson-based Consumers Energy take old, coal-fired plants offline. K electric jobs 2015 DTE plans to shut down 11 of its 17 coal units by 2023, with the bulk of the retirements — eight, at three separate plants — still ahead. Electricity units calculator in pakistan Consumers closed its seven oldest coal plants in April.

The legislation is the result of a compromise negotiated by Gov. R gasquet Rick Snyder, which led to bipartisan support in both chambers on the last day of lame-duck session. Gas utility cost A package of two bills is headed to Snyder for his signature.

Until this past week, utilities and a coalition advocating for electric choice held seemingly immovable positions on how best to solve the capacity problem, and legislation that made it out of the Senate in the fall appeared close to dying in the House.

The bills adopted Thursday give Michigan flexibility to adapt to changing technology, such as the advancement of wind or solar power, without having to ask for short-term legislative fixes, said state Sen. Q gastrobar leblon Mike Nofs, R-Battle Creek, and the sponsor of the lead bill in the package.

“It’s a good compromise,” Nofs said. Gas stoichiometry practice sheet “(Choice) does keep competition out there. U save gas station grants pass It keeps pressure on the utilities to keep prices down, and yet it doesn’t penalize utilities.”

The updated state policy will require utilities and alternative suppliers serving the state’s 10 percent electric choice market to plan several years out to show they have enough capacity on hand — either owned or under contract in the case of alternative suppliers that don’t produce their own electricity. Gas x ultra strength during pregnancy It also will ease choice customers’ concerns about earlier versions of the bill that they said would have imposed a new capacity charge on alternative energy suppliers, to be paid to utilities if they fall short of demand, without allowing them to offer input on the process or the amount.

The version approved Thursday will call for a hearing before the Michigan Public Service Commission, the state’s energy regulator, in which all interested groups can submit testimony before such a charge is imposed.

The bills also don’t dictate how utilities generate electricity, said Valerie Brader, executive director of the Michigan Agency for Energy, the Snyder administration’s energy office. Gas x directions That could matter since it’s still unclear what federal energy policy could look like in President-elect Donald Trump’s administration, as well as whether President Obama’s proposed carbon reduction rules will survive the transition.

Trump has said he favors coal, though utility executives and Brader say the business case for electricity includes more natural gas and less coal in the future.

The retirement of coal-fired plants in Michigan will require replacement generation down the line. Electricity videos for 4th grade DTE in September said it plans to spend upwards of $1 billion on several natural gas-fired plants in 2021, which could power 850,000 homes in Southeast Michigan. Electricity prices by country Irene Dimitry, DTE’s vice president of business planning and development, said Friday the utility has not yet determined how many plants will be built.

“It definitely gives us some better insight as to what we will need to plan for,” Dimitry said of the legislation. Gas after eating eggs “Prior to this passing, that dialogue just never happened. Gas station in spanish … Electricity font We will see what people are forecasting.”

Consumers has not announced similar plans for new gas plants, though utility spokesman Dan Bishop said new gas plants will be part of Consumers’ portfolio in the future. K electric bill In the meantime, Bishop said, it is investing in wind farms and an expansion at a Ludington pumped storage hydroelectic facility it jointly owns with DTE.

In addition, New Orleans-based Entergy Corp. F gas certification logo plans to close the Palisades nuclear plant in Van Buren County by October 2018; Consumers has an agreement with Entergy to purchase the power it generates.

“No question (reliability) was a driving factor of the legislative debate in Lansing,” he said. Electricity and magnetism study guide “When you’re planning a billion-dollar investment, you need to know what your market is. Gas 85 vs 87 The alternative suppliers have been selling power they do not have, and that has been the reliability weak point in the current system.”

DTE could be among the first to use a new planning process created in the legislation, known as integrated resource planning. Electricity inside human body The process requires utilities to submit plans for their entire electric portfolio — including gas or renewable energy — to state regulators. Electricity invented or discovered Brader said she could see DTE applying to build its new gas-fired plants in the near future in hopes the public service commission will allow it to recover the costs later through rates, and it likely would submit an integrated resource plan at the same time.

“We’re moving to an energy system that by financials will be driven more by waste reduction, natural gas and renewables,” she said. Gas pressure definition chemistry “What was important to us was making sure our law caught up with that reality.”

A new provision in the bill also would require current choice customers who return to a regulated utility to stay with that utility for six years. Gas 2016 At least 11,000 customers of DTE and Consumers are waiting to enter the choice prorgam because of the cap.

Utilities have wanted alternative suppliers to demonstrate they have enough electricity available to meet customers’ needs, in part because large numbers of customers switching between regulated utilities and market suppliers makes it difficult to plan for new power plants. V gashi Customers who leave regulated utilities to buy power from alternative suppliers worried earlier in the legislative process that it would become too expensive for their suppliers to continue to provide electricity.

Both utilities and a coalition of choice advocates, including schools and large industrial power users, agreed that fixing capacity issues was a priority, said Josh Lunger, director of government affairs for the Grand Rapids Area Chamber of Commerce and a spokesman for the choice coalition. Gas 6 weeks pregnant They disagreed on the approach.

Provisions that allow for contested hearings with state regulators about charges and a new state planning process that allows independent power producers to offer alternatives to utilities’ proposals for new plants creates fairness for both utilities and choice suppliers, Lunger said.

“The flexibility and the ability to manage your own risk of electric choice and have that kind of customer-driven product is important, but no one’s willing to risk reliability to get that. Emitra electricity bill payment And that’s what we were communicating to the legislators,” he said. Electricity flow chart “It also allows a basic fairness that if … Grade 9 static electricity test an alternative provider does have the ability to meet its load, they’re not being unfairly restricted just because they’re an alternative supplier.”