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2017-12-06 / News

U.P. Utility Customer Capacity Demonstration Charges Set

The MPSC recently set the state reliability mechanism (SRM) capacity charge for three Upper Peninsula utilities. The charge is the amount that would be collected from customers of alternative electric suppliers (AES) if those suppliers don’t have enough power to serve anticipated needs.

The charges set for fullservice customers include:

—Upper Michigan Energy Resources Corp. (UMERC): $229,523/ megawatt-year, or $629/ megawatt-day (Case No. U- 18253).

—Upper Peninsula Power Co. (UPPCO): $90,810/megawatt-year, or $249/megawatt-day (Case No. U-18254).

—Cloverland Electric Co-op: $228,891/megawatt -year, or $627/megawattday (Case No. U-18258).

The charge is required under the state’s new energy laws and applies to AESs serving customers in the electric choice program. The charge determination and an earlier capacity demonstration ruling by the MPSC are intended to improve resource adequacy in the state.

If an AES cannot demonstrate it has enough future generating capacity or chooses not to arrange for capacity to meet the new requirements, the law requires that a capacity charge be assessed by the local utility that also serves the area’s customers.

For more information about the MPSC visit or sign up for one of its listservs to keep up to date on MPSC matters.

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