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The Michigan Public Service Commission today adopted application instructions and procedures that electric providers and independent power producers must use when seeking the Commission's approval for siting of renewable energy projects under Public Act (PA) 233 of 2023.

PA 233, approved by the Legislature and Gov. Gretchen Whitmer, gave the MPSC siting authority for utility-scale solar, wind and energy storage projects under specified conditions.

The Commission in February 2024 directed MPSC Staff to file recommendations on application filing instructions, guidance related to compatible renewable energy ordinances, or CREOs, and other matters. Staff held eight public meetings to engage with experts, local government officials, project developers and other interested persons. Staff conducted research, site visits and consultations with experts in fields such as land use planning and zoning, renewable energy, local government, sound engineering and farmland preservation.

The application instructions were developed to advise applicants throughout the process of obtaining a certificate for a renewable energy facility, aiming to clarify pre-application requirements, fees, required application documents and exhibits, how to submit a completed application, and how to obtain more information.

Today's order summarizes comments from various participants in the Staff's implementation process, and addresses multiple key topics raised by commenters. Among other actions, the Commission:

• Adopted a narrow definition of a CREO, expressly limiting the ordinances to requirements that are "no more restrictive than the provisions included in Sec 226(8)" of PA 233. A CREO may only contain requirements for setback, fencing, height, sound, and other applicable conditions outlined in Sec 226(8) and may not contain more restrictive requirements.
• Restricted the meaning of Affected Local Unit of government, or ALU, to include only local governments that exercise zoning jurisdiction.
• Found that PA 233 doesn't support creation of a CREO dispute resolution process that would allow renewable energy developers to forgo filing for approval of an energy facility through the local siting process if the chief elected official in each ALU provides notification that the ALU has a CREO.
• Found that it will review the entirety of a proposed renewable energy project when it is located in multiple local communities in which some have CREOs and some do not.
• Noted that PA 233 expressly authorizes the Commission to "condition its grant of the application on the applicant taking additional reasonable action related to the impacts of the proposed energy facility," and lists some of the conditions that the Commission may include in a certificate. The Commission, therefore, may condition a certificate on the applicant taking additional reasonable action related to the impacts of the proposed energy facility, including requirements that developers make a good-faith effort to maintain the property where the energy facility is located during construction and operation of the facility.

PA 233 takes effect Nov. 29, 2024. In today's order, the Commission clarified that under the new law, the siting process must originate at the local level in most instances. The Commission can only consider applications in instances in which the relevant unit(s) of government have denied an application, failed to either approve or deny an application within 120 days or added additional provisions more restrictive than those contained in state law while an application is pending. The only exceptions to a project starting at the local level are where a local government has in place a moratorium on project development or where the local government requests that the developer use the statewide application process at the Commission instead of the local siting process. Finally, the Commission acknowledged that the local siting process remains available to project developers while noting that it was providing no guidance on siting processes that fall outside the Commission's jurisdiction.

COMMISSION OKs INDIANA MICHIGAN POWER CO. ENERGY AGREEMENTS

The MPSC today approved power agreements involving Indiana Michigan Power Co. (Case No. U-21189). The Commission approved I&M's amended 30-year, 100-megawatt (MW) power purchase agreement (PPA) for the Elkhart County Solar Project; a new 30-year, 180-MW PPA for the Hoosier Line Solar Project; a new 20-year, 100-MW PPA for the Meadow Lake IV Wind Project, and a new 6-year, 143-MW capacity only purchase agreement with the Lawrenceburg Generation Station.

MPSC APPROVES INDIANA MICHIGAN POWER CO. POWER SUPPLY COST RECOVERY PLAN

The MPSC approved Indiana Michigan Power Co.'s application for its power supply cost recovery (PSCR) plan for the 2024 planning year (Case No. U-21427). The Commission approved I&M's PSCR factor of 11.44 mills per kilowatt-hour and accepted the company's five-year forecast. The Commission, however, warned the utility that it may not recover all costs under its intercompany power agreement with the Ohio Valley Electric Corp. without evidence of good faith efforts to minimize costs, including potential renegotiation of the contract.

COMMISSION AUTHORIZES DTE ELECTRIC ACCOUNTING MEASURE TO MAINTAIN PACE OF TREE TRIMMING

The MPSC today authorized DTE Electric Co. to implement a one-time accounting measure to pull ahead up to $15 million of in tree trimming surge funding (Case No. U-21799). Previous Commission orders permitted DTE Electric to accrue a regulatory asset of $52.7 million for tree trim surge expenses incurred in 2024, and a regulatory asset of $43.7 million for tree trim surge costs incurred in 2025. DTE Electric requested to pull ahead $15 million of the $43.7 million, allowing the utility to maintain its current tree trimming through the end of 2024. Without being able to accelerate the $15 million, DTE Electric said it would have to slow down its tree trimming for the remainder of 2024 so it doesn't spend more than previously authorized, and such a slowdown could adversely impact the company's tree-trimming plans for 2025. The company will reduce costs deferred in 2025 by an equal amount.

For information about the MPSC, visit www.michigan.gov/mpsc, sign up for its monthly newsletter or other listservs. Follow the MPSC on Facebook, X/Twitter or LinkedIn.

To look up cases from today's meeting, access the MPSC's E-Dockets filing system.

Watch recordings of the MPSC's meetings on the MPSC's YouTube channel.

DISCLAIMER: This document was prepared to aid the public's understanding of certain matters before the Commission and is not intended to modify, supplement, or be a substitute for the Commission's orders. The Commission's orders are the official action of the Commission.

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