LANSING, Mich. — The Michigan Public Service Commission (MPSC) is asking for community feedback regarding Michigan's two largest utility companies.
The commission is hoping to start a discussion about Consumer Energy and DTE's electrical grid reliability as well as the utility company's ability to restore power in a timely manner.
MPSC is seeking to improve the reliability of the two company's infrastructure through possible financial incentives and disincentives.
“We share the public’s frustration with the number and duration of power outages, and particularly those who experience outages over and over again,” said MPSC Chair Dan Scripps. “By focusing on the places where improvement is needed most, we’re working to better connect the financial performance of the utilities with the experience of their customers."
The commission's so-called "straw proposal" will explore the following mechanism's that MPSC laid out in a release:
- Establishing penalties for utilities whose customers experience four or more sustained power interruptions per year. Current service quality standards require that, through December 2029, not more than 6% of a utility’s customers may experience more than 4 sustained outages, and no more than 5% of customers after Jan. 1, 2030. In 2022, DTE Electric had 163,417 such customers, and Consumers Energy 173,273, according to annual utility reports.
- Utilities would be penalized further for having customers experience 7 or more sustained power interruptions. Annual reports filed by the utilities indicate DTE Electric had 16,262 such customers, and Consumers Energy 19,821 in 2022.
- Utilities would be penalized if a circuit ranked in the top 10 worst-performing circuits for 3 or more years within the past 5 years.
- Considering financial mechanisms connected to the time it takes utilities to restore power, including a particular focus on restoration timelines during major storms.
"Today’s actions of offering a straw proposal that ties financial metrics to the duration of outages and the number of customers experiencing multiple outages each year is a significant step towards that goal,” Scripps added in the release.
MPSC is seeking comments from customers and other stakeholders on the straw proposal by 5 p.m. on Friday, Sept. 22. The commission will also take reply comments until Oct. 20.
This new straw proposal is not legally binding and only offers a forum to begin a discussion about possible financial incentives and disincentives towards the two utility companies.
Comments should reference Case No. U-21400 and can be mailed to Executive Secretary, Michigan Public Service Commission, P.O. Box 30221, Lansing, MI 48909, or emailed to mpscedockets@michigan.gov.
The MPSC also announced a $1.7 million contract awarded to Liberty Consulting Group to audit Consumers Energy and DTE's electric distribution systems, including all equipment and operations.
“Through the audit, the MPSC looks forward to a gaining a deeper understanding of the challenges that DTE Electric and Consumers face as we continue to experience increasingly frequent and severe storms so we can develop effective solutions,” Commissioner Katherine Peretick said.
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