Michigan

Summary: Michigan’s interconnection standard delineates five separate tiers of interconnection, and covers systems of all sizes with the largest interconnection tier – 2MW systems and above. However, utilities are the final arbiters of which types of systems and sizes are suitable for their distribution systems. Fees for interconnection range from $100 to $500, depending on system size.

Links:

• The order adopting the state’s interconnection rules can be found here: Order
• Links to information about Customer Generation in Michigan can be found here: Michigan Public Service Commission
• For additional information, visit the DSIRE database

Contact:

Julie Baldwin
Michigan Public Service Commission
Operations & Wholesale Markets Division
P.O. Box 30221
Lansing, MI 48909
Phone: (517) 241-6115 
E-Mail: baldwinj2@michigan.gov
Web site: http://www.michigan.gov/mpsc

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Description: Applicable to only a small geographic area, the Next Energy Authority Act created the NextEnergy Zone that is located in TechTown—Wayne State University’s Research and Technology Park in Detroit, which provides for property tax exemptions for alternative energy systems, including CHP, provided the system is located within the NextEnergy Zone.

Links:

• Authority 1: Michigan Compiled Laws §211.9(i)
• Authority 2: Michigan Compiled Laws § 207.821 et seq.
• More details of this tax incentive are available in the DSIRE database.

Contact:

Public Information
Michigan Economic Development Corporation
300 North Washington Square
Lansing, MI 48913
Phone: (888) 522-0103 
E-Mail: alt-energy@michigan.org 
Web site: http://www.michigan.org

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Description: Detroit Edison offers standby service on a contractual basis, for a specified amount of demand, which includes a small reservation fee. Actual usage is billed at the regular rate applicable to the facility. Billing demand is calculated using a monthly maximum OR 65% of the previous summer’s demand, whichever is higher. Consumers Energy Company provides standby service for CHP customers through a contractual agreement as well, for a specified amount of demand, which includes a small reservation fee. Actual usage is charged through high demand and low energy charges. Billing demand is based on a monthly maximum, and there is a 12-month ratchet. Both of these rates are seen as not supportive to CHP.

Links:

• Detroit Edison’s Rider No. 3 can be found among the book of rates here: Rates
• Consumers Energy Company Auxiliary or Standby Rider can be found here: Company Site
• More information about best practices in utility rate design can be found on the EPA’s CHP Partnership website

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Description: In October 2008, Michigan enacted Public Act 295, requiring the state's utilities to generate 10% of their retail electricity sales from renewable energy resources by 2015. The standard allows utilities to use energy efficiency and advanced cleaner energy systems to meet a limited portion of the requirement. Eligible energy efficiency measures include both changes in equipment and changes in customer behavior directly attributable to an energy efficiency program or energy optimization plan. Advanced cleaner energy facilities are loosely defined as electric generating facilities using a new technology, but industrial CHP is specifically identified as an eligible technology. The compliance period for the standard begins in 2012.
Links:

• See the Michigan Public Service Commission website with Energy Plan Cases
• Authority 1: Public Act 295 (2008)
• For more information, visit the DSIRE database page on Michigan’s Renewable Energy Standard.

Contact:
Julie Baldwin
Michigan Public Service Commission
Operations & Wholesale Markets Division
P.O. Box 30221
Lansing, MI 48909
Phone: (517) 241-6115
E-Mail: baldwinj2@michigan.gov
Web Site: http://www.michigan.gov/mpsc
 
Tom Stanton
Michigan Public Service Commission
Operations & Wholesale Markets Division
P.O. Box 30221
Lansing, MI 48909
Phone: (517) 241-6086
E-Mail: stantont1@michigan.gov
Web Site: http://www.michigan.gov/mpsc

Last Updated 08/27/2009

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