Consumers Energy: Energy Optimization Plan and RPS

According to the Consumers Energy (CMS) energy optimization plan (case no. U-15805) approved by the PSC in May 2009, CMS proposes $3.1 billion in spending on renewable energy in the next 20 years. This is expected to result in annual electric savings of 1,611 GWh and annual natural gas savings of 8,870 MMCF. Consumers Energy’s RPS plan proposes that by 2015, 10% of retail sales will be derived from a combination of renewable energy sources and advanced cleaner energy (ACE). By 2029, CMS’s generation portfolio will include 912 MW of new renewable and ACE generation capacity. CMS will own roughly 49% of this capacity with the remaining 51% owned by third parties and purchased through power purchase agreements.

Experimental Advanced Renewable Program (EARP)
In addition to its RPS, the Consumers Energy Experimental Advanced Renewable Program (EARP) for interconnection was recently approved by the PSC and began on August 27, 2009. Its purpose is to develop and test programs to enable the development of Michigan's renewable energy resources. According to their press release concerning the program, the program offers the following rates for energy produced by qualifying Solar Photovoltaic systems:

• For residential systems available in 2009, the approved rate is $0.65/kWh.
• For residential systems available in 2010, the approved rate is $0.525/kWh.
• For nonresidential systems available in 2009, the approved rate is $0.45/kWh.
• For nonresidential systems available in 2010, the approved rate is $0.375/kWh.

The rates paid to participant systems will be fixed under contract for up to 12 years. Residential systems must have a name plate capacity of at least 1 kW, with a maximum size of 150 kW. Commercial systems must have a minimum nameplate capacity of 20 kW, with a maximum size of 150 kW. Systems equipped with a battery back up system or other energy storage system will not be allowed to participate under the EARP pilot. All net energy produced by the solar energy system must be delivered to the utility, and the utility will own any Renewable Energy Credits and Capacity associated with the system. Any energy consumed by the system during periods of non-operation will be billed at an appropriate retail rate, with all associated taxes and fees. Participants will also be assessed a System Access Charge for the EARP service that is equivalent to the existing distribution account used to qualify for the program.

To qualify for the program, participants must be Consumers Energy customers with an existing distribution account in good standing. The solar PV system must also be installed on the premises of the existing account or on an adjacent property owned or leased by the account holder. Installed systems must be manufactured in Michigan or constructed by a Michigan Work force to qualify. To enroll in the EARP pilot, customers will follow the existing interconnection process.

To learn more about the interconnection process, click here.

To apply for the Consumers Energy EARP Program, click here.