Title
Resolution to Approve the Updated Stipulation and Settlement Agreement in Michigan Public Service Commission Case No. U-21376 Regarding DTE's Distributed Generation Tariff Options
Memorandum
The attached resolution seeks approval of the Updated Stipulation and Settlement Agreement in the Michigan Public Service Commission ("MPSC") Case No. U-21376. That case was intended to determine what payments DTE would make to customers with rooftop solar or other distributed generation ("DG") systems when the "cap" for the current tariff (Rider 18) was reached. At the time this case was filed, DTE intended to cap participation in its DG program at 1% of its average in-state peak load for the preceding 5 calendar years, consistent with MCL 460.1173(3). The City intervened to represent the interests of residents with DG systems to ensure they were fairly compensated once the 1% DG cap was reached.
In July 2023, DTE agreed to voluntarily increase its DG cap to 6% of its average in-state peak load for the preceding 5 calendar years as part of a settlement agreement in MPSC Case No. U-21193 (DTE's Integrated Resource Plan). As a result of this increase, DTE was not expected to reach its DG cap for several years. Because there was no immediate need to determine tariff options for customers with DG systems, the parties to Case No. U-21376 negotiated a Stipulation and Settlement Agreement, which City Council approved at its meeting on November 6, 2023.
On November 28, 2023, Governor Gretchen Whitmer approved Public Act 235 of 2023, which, in part, raises the DG cap for each electric utility to 10% of its average in-state peak load for the preceding 5 calendar years. Public Act 235 of 2023 will take effect on February 27, 2024.
In response to the passing of this legislation, the parties to Case No. U-21376 re-opened settlement negotiations to update the settlement agreement to conform to Public Act 235 of 2023, which resulted in the Updated Stipulation and Settlement Agree...
Click here for full text