State of Michigan press release:
The Michigan Public Service Commission today approved settlement agreements involving the integrated resource plans (IRP) for two electric utilities in Michigan’s Upper Peninsula, marking the utilities’ long-range strategies for meeting customer electricity needs.
The MPSC approved a settlement agreement between Upper Peninsula Power Co. (UPPCO) and parties including the Michigan Department of Attorney General, MPSC Staff, Citizens Against Rate Excess, and Circle Power LLC (Case No. U-20350) on UPPCO’s IRP. The Association of Businesses Advocating Tariff Equity and Verso Corporation filed statements of non-objection.
Under the agreement, UPPCO will:
- Remove from its IRP, pending further study and analysis, plans for a natural gas reciprocating internal combustion engine the company had proposed to build to replace a combustion turbine that failed catastrophically in 2018.
- Increase its energy waste reduction target to 1.65 percent for 2020 and 1.75 percent for 2021, up from the 1.5 percent proposed by UPPCO. Energy waste reduction helps lower costs through reductions in energy use; it’s estimated that every $1 spent on energy waste reduction saves around $4 in avoided energy costs.
- Proceed with a long-term, 125-megawatt power purchase agreement on a proposed solar facility, with a financial compensation mechanism below the maximum allowed by law.
- Move ahead on its proposal to allow its Hoist and McClure hydroelectric generating facilities to operate directly in the wholesale power market, which will increase UPPCO’s capacity credits with the Midcontinent Independent System Operator, the regional transmission organization. This move will increase the reported capacity of the two units by a combined 7.6 MW, benefiting customers in the form of avoided capacity cost purchases in the future.
- File a new IRP by Dec. 6, 2024.
UPPCO press release:
Upper Peninsula Power Company (UPPCO) today announced the Michigan Public Service Commission (Commission) approved the settlement that was reached in its Integrated Resource Plan (IRP) case. The approved settlement sets the stage for more clean, reliable and affordable energy to be delivered to all UPPCO customers.
“We’re encouraged by the fact the parties in the case were able to reach settlement, including the Commission Staff, the Department of the Attorney General and Citizens Against Rate Excess (CARE),” said Jim Larsen, UPPCO’s Chief Executive Officer. “The approved plan reflects our commitment to add significantly more renewable energy to our generation portfolio. Under the approved plan, our portfolio will be expanded to include more than 50% renewable energy by 2025.”
“Our IRP establishes the company’s long-term plan for meeting the future energy needs of our customers,” said Brett French, Vice President of Business Development and Communications. “Renewable energy has become a viable, cost-competitive resource, as evidenced by UPPCO’s competitive bidding process. Under the settlement that was approved by the Michigan Public Service Commission, our customers will benefit from considerable cost savings in the future and increased reliability.”
“The approved plan capitalizes on technological advancements, reductions in construction costs, and appreciable cost savings produced by new generation facilities. These attributes square nicely with the feedback we received from our customers – they want clean, renewable energy and price stability.”
The IRP also expands upon UPPCO’s Energy Waste Reduction program to save customers even more on their energy bills.
The Michigan Public Service Commission determined UPPCO’s IRP is the most reasonable and prudent means of meeting its customers energy and capacity needs and appropriately balances a
variety of factors.
