MPSC Decision on DTE's Rate Case

Sierra Club leaders,

This morning the Michigan Public Service Commission issued their final order for DTE's electric rate case. See the MPSC's press release below and our coalition's response here. Also see the MIRS Capitol Newsletter for the Sierra Club's involvment is this case especially activist Theresa Landrum.

I'd classify this as a nuanced victory, similar to DTE's IRP. The order leaves a few things to be desired, especially not addressing the disproportionate rate budrden placed on residential ratepayers compared to industrial customers. But it delivers on many important priorities that we advocated for, in particular the River Rouge and Belle River coal plants.

Here are the top items for our interests from the Commission's order:

• Cut DTE’s requested $351 million rate increase to $188 million. The 4.7% rate increase will amount to $7.18 more per month for an average American household.
• Stopped investment in the River Rouge coal plant and required development of a community transition plan. DTE will no longer waste customers’ money on a dirty, uneconomic plant which is a source of significant air pollution emissions for the country’s third-most polluted community, the 48217 zip code. DTE sought to recover $11.4 million in capital costs for River Rouge, to extend the life of it until 2022 and burn gases at the facility.
• Required DTE to perform a revised cost-benefit analysis of the Belle River coal plant with earlier retirement dates. The plant is currently not scheduled to retire until 2030, even though cheaper and cleaner energy sources are available.
• Denied DTE’s request to increase the monthly fixed residential charge. Fixed charges negatively impact low-income customers and seniors on a fixed income. The Commission also rejected DTE’s proposed fixed monthly bill and low-income renewable energy pilots, encouraging the utility instead to work with stakeholders to develop stronger programs.
• Reduced DTE’s rate of profit to 9.9%. DTE originally sought to increase its rate of profit to 10.5%. 
• Cut 20% of its strategic capital fund due to misuse. DTE had been diverting the fund to storm response and not spending it fully on strategic investments in the distribution system. The Commission approved only that amount that DTE had previously demonstrated to spend on strategic investments. 

Thank you to the amazing legal team who handled our intervention in this rate case and made sure DTE was held accountable!

In solidarity,

Mike Berkowitz Michigan Campaign Representative Sierra Club Beyond Coal Campaign 248.345.9808 Mike.Berkowitz@sierraclub.org

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NEWS RELEASE Gretchen Whitmer, Governor Sally A. Talberg, Chairman Daniel C. Scripps, Commissioner Tremaine L. Phillips, Commissioner www.michigan.gov/mpsc FOR IMMEDIATE RELEASE   May 7, 2020  Media contact: Matt Helms 517-284-8300 Customer Assistance: 800-292-9555 MPSC approves DTE Electric rate increase as company works to modernize infrastructure, boost reliability   The Michigan Public Service Commission today approved a $188.3 million rate increase for DTE Electric Co. (Case No. U-20561), an increase authorized to include new investments in critical infrastructure, particularly the electric distribution system, to support electrical safety and reliability.  While there is significant need for the utility to replace and modernize aging infrastructure such as substations, poles, and wires to improve reliability, the increase approved was substantially lower than what DTE Electric had sought. The utility had requested a $351 million base rate increase. Instead, the Commission granted an increase of $188,285,000, 47 percent lower than requested. DTE Electric is authorized to implement the rate increase starting May 15.  DTE Electric said the key factors contributing to its projected shortfall are increased investments made in its critical infrastructure facilities to continue safe and reliable service to customers, and associated depreciation and property tax increases, in addition to an increase in operation and maintenance expense. The rate increase is based on the Commission’s review of DTE Electric’s investments, expenses and revenue projected for the 12-month period ending April 30, 2021.  Preliminary estimates are that a residential customer using 500 kilowatt hours of electricity per month would pay approximately $3.93 more per month, a 4.7% increase, starting with the June 2020 bill. The exact amount is still to be verified subject to a seven-day tariff review. The Commission notes that the impact of the increase on customer bills will be softened in the near term by DTE Electric’s recent announcement that it will pass along $30 million to $40 million in bill relief to its electric utility customers for the months of June and July, from savings realized through lower fuel prices spent on generating electricity.     Based on progress to date with tree trimming reducing power outages, the Commission authorized the extension of a multi-year tree trimming program through 2022. This extension will provide DTE Electric greater certainty for workplace attraction and retention in this critical area. Trees are a leading cause of power outages and can create safety hazards when trees come into contact with live electric wires. DTE Electric has more than doubled its tree trimming crews to support this safety and reliability work.    In other highlights from today’s order, the Commission:    Reduced DTE Electric’s authorized return on equity (ROE) from 10 percent to 9.9 percent, consistent with recent decisions in other cases, and maintained the electric utility’s 50-50 debt-to-equity ratio as a balanced capital structure for ratemaking purposes. The company’s overall authorized rate of return is 5.46 percent. DTE Electric had requested an ROE of 10.5 percent.  Disallowed $44 million in capitalized incentive compensation expense tied to the company’s financial performance indicators. This results in a one-time write off of $31 million to remove this amount from the rate base on a going forward basis. Consistent with past practice, the Commission authorized $3.6 million in incentive compensation tied to operational performance metrics as part of DTE’s operation and maintenance expense.  Disallowed over $160 million in capital expenditures at several of DTE Electric’s fossil-fueled plants based on insufficient support for the proposed funding level, potential changes to environmental rules, or uncertain project timing. The Department of Attorney General, Association of Businesses Advocating Tariff Equity (ABATE), Commission Staff and other parties raised concerns about a lack of specificity on project scope, funding and timing. For DTE Electric’s River Rouge plant, the Commission rejected the utility’s request to recover approximately $11.4 million in historical and new capital costs to convert the plant from burning coal to a combination of industrial waste and natural gases. The River Rouge plant is down to one unit, which was slated to close in 2020. The Commission called for a community transition plan to be filed as part of DTE Electric’s next rate case. The plan should address public input DTE Electric has received through public meetings in River Rouge or other outreach to communicate the utility’s plans with the community and receive input from community members.   Directed DTE to provide a revised cost-benefit analysis of its Belle River power plant using alternate retirement dates, consistent with the Commission’s recent decision in DTE Electric’s recent integrated resource plan (Case No. U-20471).  Disallowed funding for numerous information technology projects, $61 million in capital and $1.1 million in operations and maintenance expense, based on insufficient justification or detail on the costs, need, or timing. With a review of IT project-level detail and support being difficult to predict even two years into the future, and given the cost and operational impacts, they present significant risk to the company and customers. The Commission recommended DTE Electric develop a comprehensive information technology plan in coordination with the Commission, Staff, and stakeholders. The plan would strategically and holistically assess IT needs, solutions, risk management, security, and decision-making approaches to support the utility’s customer, business, and operational functions. * Directed DTE Electric to include performance metrics and timelines as part of its long-term electric distribution plan to be submitted to the Commission in 2021 given the pressing need to improve electric reliability, such as reducing the number and duration of outages.  Maintained its production cost allocation methodology based on 4 coincident peak 75-0-25 for allocating costs between different customer classes.  Approved continuation of special rates for eligible low-income customers, including the ability for DTE Electric to continue to enroll customers if enrollments exceed the amount included in rates.  Rejected DTE Electric’s proposed pilots for fixed bill and low-income renewable energy but suggested the utility continue to work with the Commission, the Staff and stakeholders on the development of programs.  Recommended reconsideration of the timing to roll out on-peak summer rates for residential customers given potential challenges with near-term implementation and delay in the initial pilot programs.  Maintained a monthly customer charge of $7.50 for residential customers. In addition to the Attorney General, ABATE and MPSC Staff, intervenors in the case were the Michigan Cable Telecommunications Association; Kroger Co.; Michigan Environmental Council; Natural Resources Defense Council; Sierra Club; Citizens Utility Board; Great Lakes Renewable Energy Association; Residential Customer Group; Environmental Law and Policy Center; Ecology Center; Solar Energy Industries Association; Vote Solar; Utility Workers Union of America Local 223; Energy Michigan; Foundry Association of Michigan; Soulardarity; Central Transport, LLC; Central Transport, Inc.; Crown Enterprises, Inc.; Detroit International Bridge Company; Universal Truckload Services, Inc., and Wal-Mart Inc.    MPSC Chairman Sally Talberg noted that rate cases are subject to a 10-month statutory deadline for the Commission to issue a final decision, and she expressed appreciation for the efforts by the administrative law judge, Staff, and parties to bring this case to a timely resolution, especially given the challenging circumstances with the COVID-19 pandemic.  “The Commission does not take lightly its decision to authorize DTE to raise its rates but we are bound by law to issue a decision now,” Talberg said. “There are pressing needs to upgrade aging infrastructure to ensure safe, reliable electric service.”    Talberg added, “The MPSC has worked closely with other state departments, social service agencies and utilities across the state to strengthen shutoff protections and assistance programs for vulnerable households, and we encourage anyone with financial challenges to not wait and to reach out now for help.”     Residential utility customers may contact their utilities, call 211 or go to www.mi211.org for help. Additional information on assistance is available on the MPSC’s website.      To look up cases from today’s meeting, access the E-Dockets filing system here.  To watch recordings of the MPSC’s meetings, click here.  For information about the MPSC, visit www.Michigan.gov/MPSC, sign up for one of its listservs, or follow the Commission on Twitter.  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.   # # # Update your subscriptions, modify your password or email address, or stop subscriptions at any time on your Subscriber Preferences Page. You will need to use your email address to log in. If you have questions or problems with the subscription service, please contact subscriberhelp.govdelivery.com. This service is provided to you at no charge by Michigan Department of Licensing and Regulatory Affairs.

Emails show Enbridge private security keeping tabs on activists in the Straits of Mackinac

Interlochen Public Radio has obtained emails between a private security contractor working for Enbridge Energy and several law enforcement agencies near the Straits of Mackinac.

The emails show the contractor kept tabs on anti-Line 5 activists (known as water protectors) in the Straits of Mackinac this summer. He shared information about their camp, protests and social media posts with local law enforcement.

The contractor, David Egeler, is employed by a firm called Merrills Investigations. He also appears to be a former commander at the Washtenaw County Sheriff's Department.

Read more ...

Whitmer takes first step to block Enbridge Line 5 tunnel

LANSING — On her first working day in office, Gov. Gretchen Whitmer acted Wednesday to potentially block the Enbridge Line 5 tunnel backed by former Gov. Rick Snyder.

Whitmer announced Wednesday she has turned to newly elected Attorney General Dana Nessel for a legal opinion on six questions related to whether legislation rushed through the Legislature to authorize the proposed Line 5 tunnel under the Straits of Mackinac complies with the state constitution.

Nessel said she welcomed the request and cautioned Enbridge against relying on recently passed legislation to move forward with its plans for a $350 million to $500 million tunnel, while her ruling is pending.

Read more ...

Gov. Whitmer asked Attorney General Dana Nessel to conduct an independent review of Public Act 395

Today Gov. Whitmer asked Attorney General Dana Nessel to conduct an independent review of Public Act 395 — the badly flawed law passed for Enbridge in the lame duck legislature to create a Mackinac Straits Utility Corridor Authority and keep Line 5 in the Mackinac Straits.

Attorney General Nessel has vowed to make her Line 5 review a top priority and for the first time in more than four years, decisions about Enbridge’s oil pipelines will be made by elected officials away from entanglements and influence from Enbridge and the oil industry.

Today’s action by the governor and attorney general is an important step toward clearing the air on Line 5 and protecting the Great Lakes from an Enbridge Line 5 pipeline rupture. Public Act 395 created the fiction of solving the Line 5 problem but in reality, it laid the groundwork for backroom deals that would increase the risk for the Great Lakes and Michigan taxpayers.

For more than four years, former Gov. Snyder and former Attorney General Schuette have overseen a corrupt process intended to produce a good result for Enbridge. These maneuvers came at the expense of protecting the Great Lakes and Michigan’s economy from a high risk oil pipeline rupture in the Mackinac Straits. Under Snyder and Schuette, Enbridge was allowed to fund “independent” Line 5 studies under the auspices of the state that were actually conducted by the oil industry. Those studies predictably led to the current proposal by Snyder and Schuette to keep Line 5 operating in the Mackinac Straits with the possibility of eventually putting Enbridge’s pipelines inside a tunnel.

Gov. Whitmer stated during her campaign that climate change "is a real threat to our environment, our economy, and the health and wellbeing of the people of our state.” With today’s decision by the new governor and backed by a new attorney general, Michigan can begin to reclaim its role as a protector of the Great Lakes and can begin to address the threat posed by climate change.

Onward!

David Holtz
Communications
Oil & Water Don't Mix
602 W Ionia St, Lansing, MI 48933

Gov. Whitmer Signs First Executive Directive to Protect Public Health, Safety and Welfare

LANSING -- Today Governor Gretchen Whitmer signed the first Executive Directive of her administration, Executive Directive 2019-1, to ensure any imminent threat to public health, safety or welfare is immediately reported, assessed, and investigated by department employees, department directors, and agency heads.

“As governor, one of my principal duties is to protect the health, safety, and welfare of all Michigan residents,” said Whitmer. “I am confident that the cabinet I have assembled will put Michiganders first, encourage and empower state employees to speak up if they believe there is a threat to public health and safety, and act promptly on any concerns with my chief compliance officer. This executive directive will ensure that our government works for the people of our state.”

“The people of Michigan deserve peace of mind that their government is working to protect them,” said Liesl Clark, director of the Michigan Department of Environmental Quality. “I am committed to having an open-door policy, listening actively, empowering employees to speak up, and reassuring them that they have protections under the law if they believe there are threats to public health and safety. I look forward to working with Governor Whitmer as we build a state government that puts Michiganders first.”

Under the directive, department employees who become aware of an imminent threat to the public health, safety, or welfare must immediately report it to their department director or agency head. If department directors/agency heads determine there is an imminent threat, they must eliminate or mitigate it if they have the resources to do so, and if they don’t, they must notify the governor’s chief compliance officer and request assistance. If a department director/agency head determines that there is no threat to public health, safety or welfare, they must report the reasons for that determination to the governor’s chief compliance officer.

Information related to any threat to Michiganders health, safety, or welfare must be reported objectively and promptly to eliminate any attempt to thwart discovery or obscure or discolor facts. If a department director/agency head believes that a threat is not being addressed adequately, they must share their concerns directly with the Governor. Department directors/agency heads must also remind their employees of applicable protections under The Whistleblowers' Protection Act and the Whistleblower provisions of the Michigan Civil Service Commission Rules.

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David Holtz
313-300-4454

Leading Citizens Groups To Gov. Snyder: Protect Public Health and Michigan Water by Vetoing Dangerous Legislation

Environmental, social justice organizations and civic groups today called on Governor Snyder to protect Michigan’s water and the health of millions of residents by vetoing destructive bills that don’t safeguard public health.

The citizens groups, which represent hundreds of thousands of Michigan residents, said the Governor should veto the following bills that weaken the state’s basic environmental and public health protections:

• HB 4205: Blocking safeguards that are more protective than federal standards which would prevent the state from proactively setting PFAS drinking water and other important safeguards that protect the people of Michigan.
• SB 1244: Weakening the state’s contaminated site cleanup criteria which will create roadblocks to protecting Michigan residents from PFAS and other contaminants. We support the more than 80 Michigan Department of Environmental Quality staff who called on Governor Snyder to veto this bill.
• SB 1196: Increasing the amount of radioactive waste disposed of in Michigan.
• SB 1211: Removing protections from more than 500,000 acres of wetlands that filter and store our water, reduce flooding and provide habitat for wildlife.

Organizations that have united in the call for Governor Snyder to veto from these lame duck bills include:

• Anglers of the AuSable
• Clean Water Action
• Huron River Watershed Council
• Michigan Demands Action Against Contamination
• Michigan Welfare Rights Organization
• Ecology Center
• Flint Rising
• Flint River Watershed Coalition
• FLOW
• League of Women Voters of Michigan
• Natural Resources Defense Council
• Northern Michigan Environmental Action Council
• Need Our Water (NOW)
• People’s Water Board Coalition
• Sierra Club
• Straits of Mackinac Alliance
• We the People of Detroit

Michigan Chapter Update Dec 2, 2018 - Lame Duck Legislature Dangers

Click here or on the image below to see the newsletter.

2018 Sierra Club MI Election Report

60 Environmental Rules on the Way Out Under Trump

By NADJA POPOVICH, LIVIA ALBECK-RIPKA and KENDRA PIERRE-LOUIS UPDATED Dec. 15, 2017

Since taking office in January, President Trump has made eliminating federal regulations a priority. His administration — with help from Republicans in Congress — has often targeted environmental rules it sees as overly burdensome to the fossil fuel industry, including major Obama-era policies aimed at fighting climate change.

To date, the Trump administration has sought to reverse at least 60 environmental rules, according to a New York Times analysis, based on research from Harvard Law School’s Environmental Regulation Rollback Tracker, Columbia Law School’s Climate Tracker and other sources.

More from the NY Times ...

Metro-Detroit candidate training!

Registration is open for our full Metro-Detroit candidate training! This program is longer and will go deeper than the trainings we did in November and December. 

Please help us spread the word to any progressives or environmentalists interested in running for office or managing campaigns.

Mike Berkowitz

Legislative & Political Director

Sierra Club Michigan Chapter

 

Dear Movement Politician, If this year has taught us anything, it’s that business as usual politics got us into this mess, and it will not get us out. The vast majority of political campaigns are run in a way that serves the 1%: vacuous platforms, campaign and policy priorities dictated by big donors, money spent on TV instead of talking to people, savior candidates unrepresentative of constituents, and almost every important campaign decision made by consultants who couldn’t care less about building a long-term movement. That’s because business as usual politics is based on the premise that the next election day is all that matters. Movement politics is based on a different premise: the next Election Day is the nearest punctuation mark in a very long sentence of building a people-powered movement. This means that our political revolution is happening one voter, one conversation at a time. It is led by people of color, women, immigrants and working class people. It is fueled with our money. It is armed with a bold agenda of racial and economic justice. And to succeed, we must invest in ourselves. Michigan People’s Campaign, Sierra Club and People’s Action have partnered to launch an ambitious training program for movement candidates, campaign staff, and volunteer throw-downers. In 2018, our team of local and national trainers will train 150 movement politicians in 4 regions across Michigan, spanning 33 hours of classroom instruction time, supplemented with webinars and homework. We want to be clear. We aren’t interested in simply adding more people with progressive values to the candidate pool. The Movement Politics Academy is an engine of a political movement contesting for governing power for the 99%. Together, we are all members of a collective that encompasses hundreds of thousands of volunteers, organizers and candidates across the country. People are hungry for a bold issue agenda that calls for a transformed political and economic system- one that puts people and planet first, while dismantling structural sexism and white supremacy.  We agree- no more quick fixes that only tinker with the status quo. Let’s build a new world for ourselves and our loved ones. Join us. Click here to apply   Click Here To Apply  Registration closes on January 15th, 2018.    Dates for the 1st Cohort:  January 26-27,2018 Feburary 2-4, 2018 February 9-10, 2018    * the 33 hours is split between these dates, participants are expected to be present at all sessions.    Location: Metro-Detroit    Click here to see trainer bio's    Copyright (C) 2017 MICHIGAN PEOPLE'S CAMPAIGN All rights reserved.

 

http://www.michiganpeoplescampaign.org/

Michigan People's Campaign
2227 Medford Rd 
Ann Arbor MI 48104 United States

A Watershed Moment: Industrial vs Sustainable Agriculture - Michigan Chapter Update 6.4.17

Click here or on image to view full Update

Fight Over Line 5 Heats Up - Michigan Chapter Update 3.19.17

MI Chapter Update 3-5-17

Tell MDEQ to Deny Nestle's Water Withdrawal Expansion! - MI Chapter Update 2-19-17

Sierra Club At the State Capitol - MI Chapter Update 2-5-17

RESIST! - MI Chapter Update 1-15-17

Year in Review: The Good, the Bad, and the OMG! - MI Chapter Update 1-1-17

Midwestern lawmakers green the grid, slightly

Benjamin Storrow, E&E News reporter

Published: Monday, December 19, 2016

Midwestern state capitals buzzed with energy legislation in the dying days of 2016.

In Illinois, legislators handed out $2.4 billion in subsidies to two nuclear plants, bolstered the state's renewable energy mandates and gave utilities added financial incentive to pursue energy efficiency measures. Michigan lawmakers haggled over how much of the state's power market should be open to competition but ultimately made few major changes. And in Ohio, legislators passed a plan to effectively make the Buckeye State's renewable power standards optional. The measure's fate now hinges on Gov. John Kasich (R), who has voiced his displeasure with the plan.

The net impact of all that paper-pushing: a slightly greener grid in one of America's most coal-dependent regions.

How much credit, or derision, lawmakers can claim is unclear. Coal was already under siege from cheap natural gas in the Midwest. Wind, too, has made inroads — especially in Illinois, where it accounts for the majority of new capacity.

"On the margin, some of the legislation will have an impact," said Travis Miller, an analyst who tracks the power sector at the investment research firm Morningstar. "But these are very large power markets, and at the end of the day, economics are going to drive what type of generation is in the energy mix."

That's not to dismiss the entirety of what lawmakers did, particularly in Illinois. Subsidies for Exelon Corp.'s two nuclear plants make the economic landscape for Dynegy Inc.'s coal plants even more challenging, analysts said. The Illinois Power Generating Co., an Dynegy subsidiary, filed for bankruptcy a few days after the bill passed.

Lawmakers in Springfield, Ill., provided a fix to Illinois' renewable portfolio standard, ensuring an annual budget of $200 million in renewable energy credits. Greens are especially excited that roughly half of that sum will go toward distributed and community solar.

"Illinois will have more wind power and solar energy, as they receive policy support and are increasingly economic in the marketplace," said Howard Learner, executive director of the Environmental Law and Policy Center in Chicago. "The public wants more clean renewable energy, and the public is going to get more clean renewable energy."

The bill also set energy efficiency goals of 21.5 percent and 13 percent, respectively, by 2030 for a pair of distribution utilities, Commonwealth Edison and Ameren Corp. (Energywire, Dec. 2)

Coal's struggle for survival

In Michigan, lawmakers boosted the state's renewable portfolio standard from 10 percent to 15 percent by 2021 (Energywire, Dec. 16).

The bill calls on utilities to provide a more robust analysis of their long-term plans to the Michigan Public Service Commission. Independent power providers will be able to submit bids when utilities file plans for generation projects greater than 225 megawatts. Though the commission is under no obligation to accept those bids, they can use them as a benchmark for rejecting the utilities' plans.

"I think these bills have clarified and reinforced the course we're on, which is a steady move away from coal and a reorganization of power markets toward wind and solar," said Nachy Kanfer, deputy regional director of the Sierra Club's Beyond Coal campaign.

More telling, perhaps, is what the debates symbolize: Baseload power generators, like coal and nuclear facilities, are struggling to compete in markets with stagnant power demand and weak prices.

The dynamic is particularly acute in states like Illinois and Ohio, which boast competitive wholesale power markets.

Illinois lawmakers followed in the steps of New York in giving financial assurances to nuclear plants. Michigan lawmakers ultimately rebuffed calls to either expand or eliminate the 10 percent of its power market now open to competition. Instead, they effectively required independent producers to guarantee their supply.

The fights look set to continue. Ohio utilities are now lobbying lawmakers to re-regulate struggling coal facilities, guaranteeing them a financial return. The Midcontinent Independent System Operator has also proposed reforms to ensure future capacity, in a move analysts say would bolster struggling baseload plants (Energywire, July 15).

Utilities' switch to natural gas would likely be even greater if the matter were left to the market, said Paul Patterson, a financial analyst at Glenrock Associates LLC.

"What you're seeing is people having second thoughts about what the outcome will be," he said. "Otherwise, competition will drive out a lot of the generation we have, and we don't like the idea of that happening."

Clean Energy Emerges from Lame Duck! - MI Chapter Update 12-18-16

More Ways to Get Active with Sierra Club - MI Chapter Update 12-4-16