Michigan RPSMIRECS and Energy Credit

Compliance WebinarDecember 13, 2012

MICHIGAN PUBLIC SERVICE COMMISSION

Agenda

1.Description of steps to show compliance within MIRECS2.Compliance dates for 2012 filings 3. Staff’s calculated compliance requirement4. Staff MIRECS team contact information5. Discussion and questions

Steps to Show Compliance Within MIRECS

1. Create New Compliance Sub-Account•Beginning in 2012, each year will have its own

2. Transfer Credits into Compliance Sub-Account•Retire energy credits by transferring eligible and non-expired energy credits to the 2012 compliance sub-account of the electric service provider

3. Review Compliance Report• Ensure “percentage of mandate achieved” is equal to or

greater than 100%4. Submit for Compliance5. MPSC Reviews

Creation of Sub-Account

Screen Shot of Compliance Report (submittal of compliance sub-account)

Submittal of Sub-Account

For Assistance: See contacts at end of document or http://mirecs.org/newsevents/downloads/MIRECS-ESP-Training-01172012-V1.pdf

After the Compliance Sub-Account is submitted

– MPSC Staff will review– Once review is complete an e-mail will be sent noting

whether the activities and the amount of energy credits the ESP retired met the compliance standard

– The notice will state whether the submission was accepted or rejected – if rejected, a note of why and how to correct will be included

– The review may take many weeks to complete– Staff to submit notice of compliance to docket if ESP

is not subject to a reconciliation case

June 30 Annual Report Filing and MIRECS Compliance Submittal Date

• All municipalities• All AES• Upper Peninsula Power Company• Northern States Power Company• Indiana Michigan Power Company• Consumers Energy Company• Wisconsin Electric Power Company

July 31 Annual Report Filing and MIRECS Compliance Submittal Date

• Midwest Energy Cooperative• Thumb Electric Cooperative• Alger Delta Electric Cooperative Association• Cherryland Electric Cooperative• Great Lakes Energy Cooperative• Ontonagon Co. Rural Electrification Asscn.• Presque Isle Electric and Gas Co-op• Tri-County Electric Cooperative

August 31 Annual Report Filing and MIRECS Compliance Submittal Date

• Detroit Edison Company • Alpena Power Company• Wisconsin Public Service Corporation• Cloverland Electric Cooperative• Bayfield Electric Cooperative

Energy Credit Compliance Requirements for 2012

• Staff’s calculation of energy credit requirement

• If any differences are noted, please contact Staff

• Include in MIRECS as: “Annual requirement (MWH)”

Annual Requirement (MWh)Calculation

A B C A*B-C = D E D*E = F G F+G

10%

Sales (either 3

year average or

weather normalized)

Baseline (October

2007-September 2008 REC) Subtotal 20% Subtotal Baseline

2012 Requirement

Annual Requirement (MWh)

A B C A*B-C = D E D*E = F G F+G

ESP 10%

Sales (either 3

year average or

weather normalized)

Baseline (October

2007-September 2008 REC) Subtotal 20% Subtotal Baseline

2012 Requirement

Alpena Power Company 0.1 321,887 - 32,189 0.2 6,438 - 6,438 Consumers Energy 0.1 33,336,014 1,549,840 1,783,761 0.2 356,752 1,549,840 1,906,592 Detroit Edison Company 0.1 41,715,637 566,819 3,604,745 0.2 720,949 566,819 1,287,768 Indiana Michigan Power Company 0.1 2,839,271 17,360 266,567 0.2 53,313 17,360 70,673 Northern States Power Company 0.1 142,223 16,211 (1,989) 0.2 (398) 16,211 15,813 Upper Peninsula Power Company 0.1 831,879 112,372 (29,184) 0.2 (5,837) 112,372 106,535 Wisconsin Public Service Corporation 0.1 273,320 37,569 (10,237) 0.2 (2,047) 37,569 35,522 Wisconsin Electric Power Co 0.1 2,670,926 53,196 213,897 0.2 42,779 53,196 95,975 Cloverland Electric Cooperative 0.1 803,349 301,126 (220,791) 0.2 (44,158) 301,126 256,968 Great Lakes Energy Cooperative 0.1 1,339,882 69,139 64,849 0.2 12,970 69,139 82,109 Midwest Energy Cooperative 0.1 599,228 - 59,923 0.2 11,985 - 11,985 Ontonagon County Rural Electricification Association 0.1 28,118 2,246 566 0.2 113 2,246 2,359 Presque Isle Electric and Gas Co-op 0.1 237,036 12,405 11,299 0.2 2,260 12,405 14,665 Thumb Electric Cooperative 0.1 152,604 1,562 13,698 0.2 2,740 1,562 4,302 Alger Delta Cooperative Electric Association 0.1 59,000 920 4,980 0.2 996 920 1,916 Bayfield Electric Cooperative 0.1 199 4 16 0.2 3 4 7 Cherryland Electric Cooperative 0.1 364,483 18,767 17,681 0.2 3,536 18,767 22,303 Homeworks Tri-County Electric Cooperative 0.1 316,048 16,111 15,494 0.2 3,099 16,111 19,210

A B C A*B-C = D E D*E = F G F+G

ESP 10%

Sales (either 3

year average or

weather normalized)

Baseline (October

2007-September 2008 REC) Subtotal 20% Subtotal Baseline

2012 Requirement

City of Bay City 0.1 320,118 - 32,012 0.2 6,402 - 6,402 City of Charlevoix 0.1 61,313 - 6,131 0.2 1,226 - 1,226 City of Crystal Falls 0.1 16,227 4,400 (2,777) 0.2 (555) 4,400 3,845 City of Dowagiac 0.1 64,982 - 6,498 0.2 1,300 - 1,300 City of Eaton Rapids 0.1 86,165 2,263 6,354 0.2 1,271 2,263 3,534 City of Escanaba 0.1 143,846 - 14,385 0.2 2,877 - 2,877 City of Gladstone 0.1 31,967 - 3,197 0.2 639 - 639 City of Harbor Springs 0.1 37,197 - 3,720 0.2 744 - 744 City of Hart Hydro 0.1 40,480 804 3,244 0.2 649 804 1,453 City of Norway 0.1 29,377 21,080 (18,142) 0.2 (3,628) 21,080 17,452 City of Petoskey 0.1 105,474 - 10,547 0.2 2,109 - 2,109 City of Portland 0.1 36,040 1,746 1,858 0.2 372 1,746 2,118 City of Sebewaing 0.1 39,391 - 3,939 0.2 788 - 788 City of South Haven 0.1 131,330 - 13,133 0.2 2,627 - 2,627 City of St. Louis 0.1 37,528 680 3,073 0.2 615 680 1,295 City of Stephenson 0.1 6,068 - 607 0.2 121 - 121 City of Sturgis 0.1 219,917 11,232 10,760 0.2 2,152 11,232 13,384 City of Wakefield 0.1 13,166 - 1,317 0.2 263 - 263 Chelsea Dept of Electric & Water 0.1 91,502 - 9,150 0.2 1,830 - 1,830

Annual Requirement (MWh)

A B C A*B-C = D E D*E = F G F+G

ESP 10%

Sales (either 3

year average or

weather normalized)

Baseline (October

2007-September 2008 REC) Subtotal 20% Subtotal Baseline

2012 Requirement

Coldwater Board of Public Utilties 0.1 280,710 - 28,071 0.2 5,614 - 5,614 Croswell Municipal Light & Power Dept 0.1 35,391 - 3,539 0.2 708 - 708 Daggett Electric Dept 0.1 1,370 - 137 0.2 27 - 27 Detroit Public Lighting Dep 0.1 486,249 - 48,625 0.2 9,725 - 9,725 Grand Haven Board of Light & Power 0.1 267,333 - 26,733 0.2 5,347 - 5,347 Hillsdale Board of Public Utilities 0.1 121,172 - 12,117 0.2 2,423 - 2,423 Holland Board of Public Works 0.1 945,650 - 94,565 0.2 18,913 - 18,913 Lansing Board of Water & Light 0.1 2,149,614 8,675 206,286 0.2 41,257 8,675 49,932 Lowell Light & Power 0.1 61,596 - 6,160 0.2 1,232 - 1,232 Marquette Board of Light & Power 0.1 86,165 14,016 (5,400) 0.2 (1,080) 14,016 12,936 Marshall Electric Dept 0.1 107,012 1,318 9,383 0.2 1,877 1,318 3,195 Negaunee Dept of Public Works 0.1 22,057 - 2,206 0.2 441 - 441 Newberry Water & Light Board 0.1 18,520 4,931 (3,079) 0.2 (616) 4,931 4,315 Niles Utility Dept 0.1 125,745 - 12,575 0.2 2,515 - 2,515 Traverse City Light & Power 0.1 318,204 778 31,042 0.2 6,208 778 6,986 Union City Electric Dept 0.1 15,165 1,625 (109) 0.2 (22) 1,625 1,603 Wyandotte Dept of Municipal Service 0.1 275,249 - 27,525 0.2 5,505 - 5,505 Village of Baraga 0.1 18,391 - 1,839 0.2 368 - 368 Village of Clinton 0.1 22,142 - 2,214 0.2 443 - 443 Village of L'Anse 0.1 13,174 - 1,317 0.2 263 - 263

Annual Requirement (MWh)

A B C A*B-C = D E D*E = F G F+G

ESP 10%

Sales (either 3

year average or

weather normalized)

Baseline (October

2007-September 2008 REC) Subtotal 20% Subtotal Baseline

2012 Requirement

Village of Paw Paw 0.1 - - 0.2 - - - Zeeland Board of Public Works 0.1 302,830 - 30,283 0.2 6,057 - 6,057 CMS ERM Michigan LLC 0.1 172,640 - 17,264 0.2 3,453 - 3,453 Commerce Energy Inc 0.1 17,359 - 1,736 0.2 347 - 347 Constellation NewEnergy Inc 0.1 - - 0.2 - - - Direct Energy Business LLC 0.1 315,780 - 31,578 0.2 6,316 - 6,316 FirstEnergy Solutions Corp 0.1 1,916,423 - 191,642 0.2 38,328 - 38,328 Glacial Energy of Illinois, Inc. 0.1 509,442 - 50,944 0.2 10,189 - 10,189 Integrys Energy Services Inc 0.1 - - 0.2 - - - Quest Energy LLC 0.1 - 0.2 - - - Midamerican Energy Company 0.1 - - 0.2 - - - Noble Americas Energy Solutions LLC f/k/a Sempra 0.1 2,026,973 - 202,697 0.2 40,539 - 40,539 Spartan Renewable Energy Inc 0.1 64,070 - 6,407 0.2 1,281 - 1,281 UP Power Marketing LLC 0.1 19,493 - 1,949 0.2 390 - 390 Wolverine Power Marketing Cooperative Inc 0.1 1,131,516 28,279 84,873 0.2 16,975 28,279 45,254

Annual Requirement (MWh)

Energy Credits within the Compliance Sub-Account

• Energy credits which expire while in the sub-account may not be removed and used elsewhere

• Prior to submittal, non-expired energy credits may be removed from the compliance sub-account

• Once the sub-account is submitted, the energy credits are locked into the sub-account (they cannot be removed or transferred)

• An Electric Service Provider may transfer energy credits into the Compliance sub-account until the annual report filing date

• Credits associated with energy generated within 120 days after the start of the calendar year may be used

Contacts – MPSC MIRECS Team

• Julie Baldwin, Manager– BaldwinJ2@Michigan.gov– (517)241-6115

• Katie Trachsel, CPA– TrachselK@Michigan.gov – (517)373-1808

• Erika Vallance– VallanceE@Michigan.gov– (517)241-3786

Q&A From Webinar

• During the webinar a question of the similarities of the MIRECS compliance and the PJM Reserve account was asked.

• To Staff’s knowledge, credits being placed into the PJM Reserve account are not able to be removed by the participant and may be automatically submitted for compliance purposes at the year end. Within MIRECS, credits may be transferred to and from the compliance sub-account by the participant (if energy credits remain eligible). Also within MIRECS the sub-account is not automatically submitted, but rather the participant needs to “submit” to the MPSC Staff for review.