Title
Resolution to Approve the Settlement Agreement in Michigan Public Service Commission Case Nos. U-20713 and U-20851 Regarding DTE's Voluntary Green Pricing Program and Approve the Memorandum of Understanding with DTE to Work Together to Explore Potential Landfill Solar Project
Memorandum
In 2020, the City of Ann Arbor intervened in Michigan Public Service Commission Cases U-20713 and U-20851 relating to DTE's Voluntary Green Pricing (VGP) program and its renewable energy build plans for the upcoming five years because the City found the pricing in the VGP program to be too high, DTE's projections of future renewable energy builds to be too low, and the offerings through the VGP program to be too limited and missing strategic programmatic opportunities that customers are interested in procuring.
Through the work of the various intervenors, including the City, the proposed settlement agreement addresses all of the City's priorities, as previously discussed with Council, including:
Objective A: Lower prices for participation in MI Green Power programs
* Related Issue: Small users (residents) now pay much more than large users (City, businesses) for VGP offerings.
* Proposed Settlement:
o Eliminates differential treatment of residential customers vs. larger users in the VGP program by eliminating the prior divisions between projects (i.e. eliminates the 17/19 split).
o Allows all categories of customers to access the same lower-cost projects.
Objective B: Ensure supply of renewables can meet demand
* Related Issue: Federal tax credits mean projects built sooner are cheaper.
* Proposed Settlement
o Despite push from others, there is no reduction to the proposed build plan.
o Commitment to explore strategies that will maximize tax credits even for projects built in later years, to keep prices down.
o Regular review of forecasts to adjust to changes in demand.
o Commitment to increase build plan to accommodate approx. 400 MW for Ann Arbor if we sign ...
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