Independent Renewable Energy Producers to Appeal Regulatory Decision on Payments

A group of independent power producers are vowing to appeal a recent Michigan Public Service Commission ruling affecting how their facilities are compensated by Consumers Energy for the electricity they produce.

On Nov. 21, the three-member MPSC ruled in a case involving “avoided costs” paid by Jackson-based Consumers Energy (NYSE: CMS) to small, independent power producers. When their existing contracts expire, the new rates would take effect and would lead to lower payments, according to the Independent Power Producers Coalition of Michigan. The group represents biomass, hydroelectric and waste-to-energy facilities across the state. 

Michigan PURPA Updates Create ‘Level Playing Field For Clean Energy’

Last Wednesday, the Michigan Public Service Commission (MPSC) finalized a new avoided cost formula that utility Consumers Energy must use to buy power from independent, qualified facilities (QFs) under the federal Public Utilities Regulatory Policies Act (PURPA).

Solar advocates say the order will help create the certainty necessary to spur private investments and new growth in Michigan solar energy, while ensuring utility customers’ electricity rates don’t increase.