Title
Resolution to Approve the 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 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.
Since then, DTE has 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 is not expected to reach its DG cap for several years. Thus, there is no immediate need to determine tariff options for customers with DG systems because they will continue to be connected under Rider 18 at least until the new 6% cap is reached.
Among other things, the Stipulation and Settlement Agreement:
1. Dismisses Case No. U-21376;
2. Directs DTE to refile a DG case when the installed DG capacity reaches 90% of the prevailing cap;
3. Directs DTE to continue connecting DG systems even if the prevailing DG cap is reached until the refiled case is resolved for a period of up to 12 months after the refiling; and
4. Directs DTE to file annual reports with updated data on DG systems, including remaining available capacity.
MPSC Staff and all other intervening parties in Case No. U-21376 have expressed their intention to sign the St...
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