Calculation of Incremental Costs of Compliance

73
MICHIGAN PUBLIC SERVICE COMMISSION Case No: U-17301 Witness: M.R.Bleckman CONSUMERS ENERGY COMPANY Exhibit: A-1 (MRB-1R) Date: July 2013 Page: 1 of 1 Calculation of Incremental Costs of Compliance ($ Millions) Line PA295 Reference Description 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 (a) (b) (c) (d) (e) (f) (g) (h) (i) (j) (k) (l) (m) 1 Sec. 47 (2)(a) Sum of Costs: 2 Sec. 47 (2)(a)(i,ii,iii,iv) Capital, O&M, ROE, Financing, Interconnect & Substation, & Ancillary $0.6 $1.2 $2.7 $19.3 $42.0 $57.7 $78.0 $77.0 $76.3 $73.7 $72.4 3 Sec. 47 (2)(a)(v)(A) Costs of REC Purchases 0.0 0.0 2.4 0.4 0.0 0.0 0.0 0.0 0.0 0.0 0.0 4 Sec. 47 (2)(a)(v)(B) Costs of Contracts under Sec. 33(1) - Estimated PPA Charges 0.1 1.0 (0.2) 36.3 73.6 78.6 83.5 82.7 81.9 82.0 83.6 5 Sec. 47 (2)(a)(vi) State & Federal Government Actions Related to Renewable Energy 0.0 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 6 Sec. 47 (2)(a)(vii) Additional Costs Determined necessary by the Commission 0.0 0.5 1.0 1.2 1.2 1.4 2.6 3.4 3.4 3.3 3.3 7 Sec. 47 (2)(b) Subtractions from the Sum of Costs: 8 Sec. 47 (2)(b)(i) Revenue from the Sale of Environmental Attributes - REC Sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 9 Sec. 47 (2)(b)(iii) Tax Credits to Promote Renewable Energy - PTC 0.0 0.0 0.0 0.0 (2.9) (5.7) (19.3) (20.0) (20.7) (20.7) (21.4) 10 Sec. 47 (2)(b)(iv) Cost Recovered under the PSCR (Transfer Rate) (0.2) (1.3) (2.9) (37.2) (90.2) (98.8) (125.7) (127.4) (127.5) (129.6) (133.5) 11 Sec. 47 (2)(b)(v) Revenue from Wholesale Renewable Energy Sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 12 Sec. 47 (2)(b)(vi) Additional Revenue as Determined by the Commission 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 13 Sec. 47 (2)(b)(vii) Revenues Recovered in Rates for Renewable Energy Costs Included in (a) 0.0 0.0 (3.7) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 14 Subtotal - Prior to Interest on Regulatory Liabilities $0.6 $1.6 ($0.6) $20.0 $23.8 $33.4 $19.2 $15.7 $13.5 $8.9 $4.5 15 Sec. 47 (2)(a)(ii) Interest on Regulatory Liabilities - from Exhibit A-16 (WML-1R) line 3 (0.0) (0.3) (0.3) (1.0) (0.6) (1.0) (2.0) (3.2) (3.6) (4.2) (4.1) 16 Total Incremental Costs of Compliance $0.6 $1.3 ($0.9) $19.0 $23.2 $32.3 $17.2 $12.5 $9.9 $4.7 $0.4 Line PA295 Reference Description 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Total (a) (b) (n) (o) (p) (q) (r) (s) (t) (u) (v) (w) (x) 1 Sec. 47 (2)(a) Sum of Costs: 2 Sec. 47 (2)(a)(i,ii,iii,iv) Capital, O&M, ROE, Financing, Interconnect & Substation, & Ancillary $71.2 $73.7 $90.9 $112.9 $111.1 $108.9 $105.0 $102.5 $100.3 $65.3 $1,442.6 3 Sec. 47 (2)(a)(v)(A) Costs of REC Purchases 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 $2.7 4 Sec. 47 (2)(a)(v)(B) Costs of Contracts under Sec. 33(1) - Estimated PPA Charges 83.5 84.3 90.9 94.3 98.7 99.2 102.7 106.5 112.9 77.0 $1,553.0 5 Sec. 47 (2)(a)(vi) State & Federal Government Actions Related to Renewable Energy 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 0.1 $2.9 6 Sec. 47 (2)(a)(vii) Additional Costs Determined necessary by the Commission 3.3 3.3 2.8 2.3 2.3 2.3 2.3 2.3 2.1 1.3 $45.7 7 Sec. 47 (2)(b) Subtractions from the Sum of Costs: 8 Sec. 47 (2)(b)(i) Revenue from the Sale of Environmental Attributes - REC Sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 $0.0 9 Sec. 47 (2)(b)(iii) Tax Credits to Promote Renewable Energy - PTC (22.1) (22.1) (22.8) (23.4) (20.0) (2.9) (2.9) (2.9) (2.9) (2.0) ($234.8) 10 Sec. 47 (2)(b)(iv) Cost Recovered under the PSCR (Transfer Rate) (135.6) (138.5) (150.3) (174.1) (182.1) (184.5) (191.0) (197.4) (207.4) (142.8) ($2,577.9) 11 Sec. 47 (2)(b)(v) Revenue from Wholesale Renewable Energy Sales 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 $0.0 12 Sec. 47 (2)(b)(vi) Additional Revenue as Determined by the Commission 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 $0.0 13 Sec. 47 (2)(b)(vii) Revenues Recovered in Rates for Renewable Energy Costs Included in (a) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 ($3.7) 14 Subtotal - Prior to Interest on Regulatory Liabilities $0.5 $0.9 $11.8 $12.1 $10.2 $23.1 $16.2 $11.1 $5.1 ($1.0) $230.6 15 Sec. 47 (2)(a)(ii) Interest on Regulatory Liabilities - from Exhibit A-16 (WML-1R) line 3 (4.2) (4.4) (4.3) (3.9) (3.6) (3.0) (2.2) (1.7) (1.3) (0.9) ($49.9) 16 Total Incremental Costs of Compliance ($3.7) ($3.5) $7.5 $8.1 $6.6 $20.1 $14.0 $9.4 $3.8 ($1.9) $180.7 REP Period ends August 31, 2029

Transcript of Calculation of Incremental Costs of Compliance

Page 1: Calculation of Incremental Costs of Compliance

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PA29

5 R

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Des

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2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

(a)

(b)

(c)

(d)

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PA29

5 R

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Des

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2020

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2029

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Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-1
Page 2: Calculation of Incremental Costs of Compliance

MIC

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expa

nsio

n of

EA

RP

(Pha

ses

3 - 2

5) w

as a

ppro

ved

by th

e C

omm

issi

on in

its

July

28,

201

1 or

der i

n M

PS

C C

ase

No.

U-1

6543

, at t

his

time

all c

ontra

cts

asso

ciat

ed w

ith th

e E

AR

P P

hase

s 3

- 25

have

not

bee

n ap

prov

ed b

y th

e C

omm

issi

on.

***

The

prog

ram

con

cept

and

bud

get w

as a

ppro

ved

by th

e C

omm

issi

on in

its

July

28,

201

1 or

der i

n M

PS

C C

ase

No.

U-1

6543

. A

pla

n fo

r im

plem

enta

tion

of

this

pro

gram

is p

rese

nted

in th

is c

ase.

lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-2
Page 3: Calculation of Incremental Costs of Compliance

MIC

HIG

AN

PU

BLI

C S

ER

VIC

E C

OM

MIS

SIO

NC

AS

E N

O.:

U-1

7301

EX

HIB

IT:

A-3

(TP

C-2

)C

ON

SU

ME

RS

EN

ER

GY

CO

MP

AN

Y

WIT

NE

SS

: TP

Cla

rkD

ATE

: M

ay 2

013

PA

GE

: 1

of 1

(a)

(b)

(c)

(d)

(e)

(f)(g

)(h

)(i)

(j)(k

)(l)

(m)

(n)

(o)

(p)

(q)

(r)

(s)

MW

hM

Wh

MW

hM

Wh

MW

hM

Wh

MW

hM

Wh

MW

hM

Wh

MW

hM

Wh

MW

hM

Wh

MW

hM

Wh

MW

hM

Wh

120

095

238

1,26

327

00

00

00

00

00

00

01,

533

220

1081

81,

126

5,67

21,

757

514

533

210

00

00

00

00

00

10,6

293

2011

1,48

51,

137

5,53

02,

900

1,44

85,

082

4,88

40

00

00

00

00

022

,466

420

121,

804

1,12

75,

047

2,25

71,

373

4,93

44,

519

013

,559

9,82

510

3,95

239

,716

3,67

012

,629

9,15

155

021

3,61

95

2013

1,60

71,

065

5,79

43,

208

1,42

85,

645

6,17

78,

100

14,3

759,

821

121,

233

45,5

5986

,977

81,0

8328

,854

465

042

1,39

26

2014

1,59

91,

065

5,79

43,

208

1,42

85,

645

6,17

78,

100

14,3

589,

810

121,

276

45,5

5987

,002

81,1

1728

,784

1,26

90

422,

193

720

151,

590

1,06

95,

815

3,22

11,

434

5,66

66,

199

8,12

914

,370

9,81

812

1,50

745

,723

87,1

6781

,266

28,8

572,

860

3,65

442

8,34

48

2016

1,58

21,

066

4,35

10

05,

651

6,18

38,

109

14,3

349,

793

121,

207

45,6

0886

,962

81,0

5828

,811

3,18

47,

251

425,

151

920

171,

574

1,06

50

00

5,64

56,

177

8,10

014

,315

9,78

012

1,11

245

,559

86,8

9880

,994

28,7

753,

181

7,22

342

0,39

710

2018

1,56

61,

065

00

05,

645

6,17

78,

100

14,3

649,

813

121,

187

45,5

5986

,957

81,0

4928

,853

3,16

47,

223

420,

723

1120

191,

557

798

00

05,

645

6,17

78,

100

14,3

759,

821

121,

233

45,5

5986

,977

81,0

8328

,854

3,14

87,

223

420,

551

1220

201,

549

00

00

5,67

26,

205

8,13

814

,379

9,82

412

1,73

345

,771

87,3

4381

,420

28,8

913,

132

7,28

042

1,33

513

2021

1,53

40

00

05,

686

6,22

18,

158

14,4

369,

863

122,

069

45,8

8687

,606

81,6

4129

,014

3,11

57,

280

422,

508

1420

2279

50

00

05,

666

6,19

98,

129

14,3

739,

820

121,

663

45,7

2387

,309

81,3

6628

,895

3,09

97,

251

420,

287

1520

2312

00

00

5,64

56,

177

8,10

014

,315

9,78

012

1,11

245

,559

86,8

9880

,994

28,7

753,

082

7,22

341

7,67

216

2024

00

00

05,

651

6,18

38,

109

14,3

969,

835

121,

387

45,6

0887

,091

81,1

8528

,888

3,06

67,

251

418,

651

1720

250

00

00

5,64

56,

177

8,10

014

,358

9,81

012

1,27

645

,559

87,0

0281

,117

28,7

843,

050

7,22

341

8,10

218

2026

00

00

05,

666

6,19

98,

129

14,3

709,

818

121,

507

45,7

2387

,167

81,2

6628

,857

3,03

37,

251

418,

986

1920

270

00

00

5,68

66,

221

8,15

814

,436

9,86

312

2,06

945

,886

87,6

0681

,641

29,0

142,

959

7,28

042

0,81

820

2028

00

00

05,

631

6,16

18,

080

14,2

759,

753

120,

656

45,4

4586

,551

80,6

8628

,691

2,57

47,

223

415,

727

2120

29*

00

00

03,

808

4,16

65,

463

9,45

86,

462

77,3

6930

,730

55,6

0851

,377

18,8

061,

508

4,87

226

9,62

722

TOTA

L19

,077

10,8

2239

,266

16,5

787,

625

104,

850

112,

787

135,

300

252,

845

173,

310

2,12

3,54

980

0,73

21,

452,

792

1,36

2,96

848

9,55

645

,943

102,

709

7,25

0,70

9

* P

artia

l Yea

r

EA

RP

- E

xper

imen

tal A

dvan

ced

Ren

ewab

le P

rogr

amZF

S -

Zeel

and

Farm

Ser

vice

sS

VD

- S

ceni

c V

iew

Dai

ryW

MR

E -

WM

Ren

ewab

le E

nerg

yN

AN

R -

Nor

th A

mer

ican

Nar

tura

l Res

ourc

esFC

D -

Frem

ont C

omm

unity

Dig

este

rS

CW

F I (

HS

C 2

) - S

tone

y C

orne

rs W

ind

Farm

I (H

erita

ge S

tone

y C

orne

rs 2

)S

CW

F I (

HS

C 3

) - S

tone

y C

orne

rs W

ind

Farm

I (H

erita

ge S

tone

y C

orne

rs 3

)G

WF

I - G

arde

n W

ind

Farm

I

WM

RE

Pine

Tr

ee

Acr

es

EAR

P-So

lar

Phas

e 1

-2

Bee

be

Ren

ewab

le

Ener

gy

Har

vest

II

Win

dfar

mH

erita

ge

GW

F I

Her

itage

SC

WF

I (H

SC 2

)

EAR

P-So

lar

Phas

e 3

-25

EAR

P-A

naer

obic

D

iges

tion

REP

A H

isto

rical

and

Pro

ject

ed O

n-Pe

ak E

lect

ric P

rodu

ctio

n

Elk

Rap

ids

Hyd

ro

ZFS

Plan

t 2SV

D

Free

port

SVD

Fe

nnvi

lleW

MR

E N

orth

ern

Oak

s

NA

NR

Le

nnon

FCD

Her

itage

SC

WF

I (H

SC 3

)

Mic

higa

n W

ind

2Ye

arTO

TAL

lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-3
Page 4: Calculation of Incremental Costs of Compliance

MIC

HIG

AN

PU

BLI

C S

ER

VIC

E C

OM

MIS

SIO

NC

AS

E N

O.:

U-1

7301

EX

HIB

IT:

A-4

(TP

C-3

)C

ON

SU

ME

RS

EN

ER

GY

CO

MP

AN

Y

WIT

NE

SS

: TP

Cla

rkD

ATE

: M

ay 2

013

PA

GE

: 1

of 1

(a)

(b)

(c)

(d)

(e)

(f)(g

)(h

)(i)

(j)(k

)(l)

(m)

(n)

(o)

(p)

(q)

(r)

(s)

MW

hM

Wh

MW

hM

Wh

MW

hM

Wh

MW

hM

Wh

MW

hM

Wh

MW

hM

Wh

MW

hM

Wh

MW

hM

Wh

MW

hM

Wh

120

092

275

1,51

411

00

00

00

00

00

00

01,

803

220

1032

71,

099

6,70

72,

020

596

549

213

00

00

00

00

00

11,5

113

2011

594

1,23

16,

627

3,28

71,

618

6,11

15,

582

00

00

00

00

00

25,0

504

2012

722

1,14

76,

144

2,56

71,

624

6,21

45,

387

017

,191

12,6

0513

2,61

347

,579

4,64

517

,980

9,62

222

026

6,06

55

2013

643

1,22

26,

647

3,68

01,

638

6,47

67,

085

9,29

116

,375

11,1

8813

8,98

852

,259

99,7

2892

,960

32,9

9418

60

481,

358

620

1463

91,

222

6,64

73,

680

1,63

86,

476

7,08

59,

291

16,3

9211

,199

138,

945

52,2

5999

,703

92,9

2633

,064

508

048

1,67

27

2015

636

1,21

76,

622

3,66

71,

632

6,45

17,

058

9,25

616

,380

11,1

9113

8,71

452

,063

99,5

3892

,777

32,9

911,

144

4,16

448

5,50

28

2016

633

1,22

04,

962

00

6,46

87,

077

9,28

116

,416

11,2

1613

9,01

452

,200

99,7

4392

,985

33,0

371,

274

8,29

948

3,82

69

2017

630

1,22

20

00

6,47

67,

085

9,29

116

,435

11,2

2913

9,10

952

,259

99,8

0793

,049

33,0

731,

272

8,28

547

9,22

310

2018

626

1,22

20

00

6,47

67,

085

9,29

116

,386

11,1

9613

9,03

452

,259

99,7

4892

,994

32,9

951,

266

8,28

547

8,86

211

2019

623

913

00

06,

476

7,08

59,

291

16,3

7511

,188

138,

988

52,2

5999

,728

92,9

6032

,994

1,25

98,

285

478,

423

1220

2062

00

00

06,

444

7,05

19,

246

16,3

7111

,185

138,

488

52,0

0599

,362

92,6

2332

,957

1,25

38,

271

475,

875

1320

2161

40

00

06,

427

7,03

29,

221

16,3

1411

,146

138,

152

51,8

6799

,099

92,4

0232

,834

1,24

68,

229

474,

583

1420

2231

80

00

06,

451

7,05

89,

256

16,3

7711

,189

138,

558

52,0

6399

,396

92,6

7732

,953

1,23

98,

257

475,

794

1520

235

00

00

6,47

67,

085

9,29

116

,435

11,2

2913

9,10

952

,259

99,8

0793

,049

33,0

731,

233

8,28

547

7,33

716

2024

00

00

06,

468

7,07

79,

281

16,3

5411

,174

138,

834

52,2

0099

,614

92,8

5832

,960

1,22

68,

299

476,

346

1720

250

00

00

6,47

67,

085

9,29

116

,392

11,1

9913

8,94

552

,259

99,7

0392

,926

33,0

641,

220

8,28

547

6,84

418

2026

00

00

06,

451

7,05

89,

256

16,3

8011

,191

138,

714

52,0

6399

,538

92,7

7732

,991

1,21

38,

257

475,

890

1920

270

00

00

6,42

77,

032

9,22

116

,314

11,1

4613

8,15

251

,867

99,0

9992

,402

32,8

341,

184

8,22

947

3,90

720

2028

00

00

06,

493

7,10

49,

315

16,4

7511

,256

139,

565

52,3

9610

0,15

493

,357

33,1

571,

030

8,32

847

8,62

821

2029

*0

00

00

4,26

24,

663

6,11

510

,586

7,23

286

,557

34,3

9362

,237

57,4

8621

,061

603

5,45

330

0,64

622

TOTA

L7,

631

11,9

9045

,870

18,9

128,

746

120,

546

128,

987

154,

486

289,

949

198,

958

2,44

0,47

991

6,50

91,

660,

647

1,56

1,19

255

8,65

218

,377

117,

211

8,25

9,14

3

* P

artia

l Yea

r

EA

RP

- E

xper

imen

tal A

dvan

ced

Ren

ewab

le P

rogr

amZF

S -

Zeel

and

Farm

Ser

vice

sS

VD

- S

ceni

c V

iew

Dai

ryW

MR

E -

WM

Ren

ewab

le E

nerg

yN

AN

R -

Nor

th A

mer

ican

Nar

tura

l Res

ourc

esFC

D -

Frem

ont C

omm

unity

Dig

este

rS

CW

F I (

HS

C 2

) - S

tone

y C

orne

rs W

ind

Farm

I (H

erita

ge S

tone

y C

orne

rs 2

)S

CW

F I (

HS

C 3

) - S

tone

y C

orne

rs W

ind

Farm

I (H

erita

ge S

tone

y C

orne

rs 3

)G

WF

I - G

arde

n W

ind

Farm

I

Har

vest

II

Win

dfar

mH

erita

ge

GW

F I

EAR

P-A

naer

obic

D

iges

tion

Her

itage

SC

WF

I (H

SC 2

)

REP

A H

isto

rical

and

Pro

ject

ed O

ff-Pe

ak E

lect

ric P

rodu

ctio

n

Elk

Rap

ids

Hyd

ro

ZFS

Plan

t 2SV

D

Free

port

SVD

Fe

nnvi

lleW

MR

E N

orth

ern

Oak

s

NA

NR

Le

nnon

FCD

Her

itage

SC

WF

I (H

SC 3

)

Mic

higa

n W

ind

2Ye

arTO

TAL

WM

RE

Pine

Tr

eeB

eebe

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ergy

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P-So

lar

Phas

e 1

-2

EAR

P-So

lar

Phas

e 3

-25

lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-4
Page 5: Calculation of Incremental Costs of Compliance

MIC

HIG

AN

PU

BLI

C S

ER

VIC

E C

OM

MIS

SIO

NC

AS

E N

O.:

U-1

7301

EX

HIB

IT:

A-5

(TP

C-4

)C

ON

SU

ME

RS

EN

ER

GY

CO

MP

AN

Y

WIT

NE

SS

: TP

Cla

rkD

ATE

: M

ay 2

013

PA

GE

: 1

of 1

(a)

(b)

(c)

(d)

(e)

(f)(g

)(h

)(i)

(j)(k

)(l)

(m)

(n)

(o)

(p)

(q)

(r)

(s)

MW

MW

MW

MW

MW

MW

MW

MW

MW

MW

MW

MW

MW

MW

MW

MW

MW

MW

120

090.

00.

21.

50.

40.

00.

00.

00.

00.

00.

00.

00.

00.

00.

00.

00.

00.

02.

12

2010

0.0

0.2

1.5

0.6

0.4

1.4

1.4

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

0.0

5.5

320

110.

00.

21.

50.

60.

41.

40.

30.

00.

00.

00.

00.

00.

00.

00.

00.

00.

04.

44

2012

0.0

0.3

1.5

1.0

0.4

1.4

1.2

0.0

1.8

1.2

13.1

0.0

0.0

0.0

0.0

0.0

0.0

21.9

520

130.

00.

31.

50.

60.

41.

51.

22.

31.

10.

725

.010

.710

.87.

82.

60.

00.

066

.56

2014

0.0

0.3

1.5

0.6

0.4

1.5

1.2

2.3

1.1

0.7

25.8

11.3

10.9

7.9

2.7

0.0

0.0

68.2

720

150.

90.

31.

50.

60.

41.

51.

22.

31.

10.

725

.811

.310

.97.

92.

71.

81.

872

.78

2016

1.0

0.3

1.5

0.0

0.0

1.5

1.2

2.3

1.1

0.7

25.8

11.3

10.9

7.9

2.7

2.0

1.8

72.0

920

171.

00.

30.

00.

00.

01.

51.

22.

31.

10.

725

.811

.310

.97.

92.

72.

01.

870

.510

2018

1.0

0.3

0.0

0.0

0.0

1.5

1.2

2.3

1.1

0.7

25.8

11.3

10.9

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lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-5
Page 6: Calculation of Incremental Costs of Compliance

MIC

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AN

PU

BLI

C S

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SIO

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lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-6
Page 7: Calculation of Incremental Costs of Compliance

MIC

HIG

AN

PU

BLI

C S

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VIC

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SIO

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* P

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ind

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tone

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indf

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lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-7
Page 8: Calculation of Incremental Costs of Compliance

MIC

HIG

AN

PU

BLI

C S

ER

VIC

E C

OM

MIS

SIO

NC

ase

No:

U-1

7301

Exh

ibit:

A-8

(TP

C-7

)C

ON

SU

ME

RS

EN

ER

GY

CO

MP

AN

Y

Witn

ess:

TPC

lark

Dat

e:M

ay 2

013

Pag

e:1

of 1

(a)

(b)

(c)

(d)

(e)

(f)(g

)(h

)(i)

(j)Ye

arC

ECo

Cal

enda

r Ye

ar R

etai

l Sa

les

Ave

rage

of

Prev

ious

Thr

ee

Year

s Sa

les

10%

C

ompl

ianc

e Le

vel

Bas

elin

e A

lloca

tion

of

REC

s

Gap

to 1

0%

Com

plia

nce

Leve

l

Mul

tiplie

rIn

crem

enta

l R

ECs

Nee

ded

for

Com

plia

nce

Tota

l C

ompl

ianc

e Ta

rget

Tota

l C

ompl

ianc

e Ta

rget

MW

hM

Wh

MW

hR

ECs

REC

s%

REC

sR

ECs

%1

2009

33,1

14,9

33-

--

--

--

-2

2010

33,2

90,1

20-

--

--

--

-3

2011

33,6

02,9

86-

--

--

--

-4

2012

33,7

56,2

6433

,336

,013

3,33

3,60

11,

549,

840

1,78

3,76

120

%35

6,75

21,

906,

593

5.7%

520

1332

,064

,318

33,5

49,7

903,

354,

979

1,54

9,84

01,

805,

139

33%

595,

696

2,14

5,53

66.

4%6

2014

32,3

26,2

0833

,141

,189

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91,

549,

840

1,76

4,27

850

%88

2,13

92,

431,

980

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720

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32,7

15,5

973,

271,

560

1,54

9,84

01,

721,

719

100%

1,72

1,71

93,

271,

560

10.0

%

Col

(b):

Col

(f) f

rom

A-1

7 (H

WM

-1)

Col

(c):

Col

(g) f

rom

A-1

7 (H

WM

-1)

Col

(d):

Col

(c) *

10%

Col

(e):

Col

(m) f

rom

MP

SC

Cas

e N

o. U

-165

81 E

xhib

it A

-20

(DFR

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Col

(f):

Col

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Col

(e)

Col

(g):

From

200

8 P

A 2

95 S

ectio

n 27

(3)(

a)(ii

i)(B

)C

ol (h

): C

ol (f

) * C

ol (g

)C

ol (i

): C

ol (e

) + C

ol (h

)C

ol (j

): C

ol (i

) / C

ol (c

)

Cal

cula

tion

of R

enew

able

Ene

rgy

Cre

dit P

ortfo

lio T

arge

ts fo

r 201

2-20

15C

ompl

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e fo

r Jur

isdi

ctio

nal C

usto

mer

s

lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-8
Page 9: Calculation of Incremental Costs of Compliance

MIC

HIG

AN

PU

BLI

C S

ER

VIC

E C

OM

MIS

SIO

NC

ase

No:

U-1

7301

Witn

ess:

TPC

lark

CO

NS

UM

ER

S E

NE

RG

Y C

OM

PA

NY

E

xhib

it:A

-9 (T

PC

-8R

)D

ate:

July

201

3P

age:

1 of

2

(a)

(b)

(c)

(d)

(e)

(f)(g

)(h

)(i)

(j)(k

)

Year

REC

s G

ener

ated

in

Cur

rent

Yea

r

Ince

ntiv

e R

ECs

from

C

urre

nt Y

ear

Tota

l REC

s fr

om C

urre

nt

Year

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in

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rent

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r

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ntiv

e R

ECs

from

C

urre

nt Y

ear

Tota

l REC

s fr

om C

urre

nt

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REC

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ener

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in

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rent

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r

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ntiv

e R

ECs

from

C

urre

nt Y

ear

Tota

l REC

s fr

om C

urre

nt

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Tota

l REC

s fr

om C

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nt

Year

REC

sR

ECs

REC

sR

ECs

REC

sR

ECs

REC

sR

ECs

REC

sR

ECs

120

091,

471,

793

135,

583

1,60

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64,

447

406

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32,

674

470

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615,

373

220

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614,

003

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036

1,75

4,03

93,

930

510

4,44

022

,140

5,27

627

,416

1,78

5,89

53

2011

1,63

8,91

913

7,44

11,

776,

360

4,84

757

55,

422

47,5

1611

,178

58,6

941,

840,

476

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515,

451

125,

504

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297

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945

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1,25

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102

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2892

6,68

784

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11,

085,

843

1,25

81,

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101

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355

22,4

3691

6,79

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2951

8,51

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564,

072

723,

836

1,08

172

4,91

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5,19

112

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607,

981

1,89

6,97

022

Tota

l27

,009

,303

2,48

7,20

529

,496

,508

13,5

11,3

1336

5,29

713

,876

,610

15,5

34,1

0955

2,65

516

,086

,764

59,4

59,8

82

Col

(d):

Col

(b) +

Col

(c)

Col

(g):

Col

(e) +

Col

(f)

Col

(j):

Col

(h) +

Col

(i)

Col

(k):

Col

(d) +

Col

(g) +

Col

(j)

Ren

ewab

le E

nerg

y C

redi

t Por

tfolio

for S

ales

to J

uris

dict

iona

l and

Non

-Jur

isdi

ctio

nal C

usto

mer

sJa

nuar

y 20

09 -

Aug

ust 2

029

Exis

ting

Ren

ewab

les

Bui

ld R

enew

able

sR

EPA

Ren

ewab

les

lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-9
Page 10: Calculation of Incremental Costs of Compliance

MIC

HIG

AN

PU

BLI

C S

ER

VIC

E C

OM

MIS

SIO

NC

ase

No:

U-1

7301

Witn

ess:

TPC

lark

CO

NS

UM

ER

S E

NE

RG

Y C

OM

PA

NY

E

xhib

it:A

-9 (T

PC

-8R

)D

ate:

July

201

3P

age:

2 of

2

(a)

(b)

(c)

(d)

Year

Tota

l REC

s fr

om

Ren

ewab

le

Ener

gy P

lan

Tota

l REC

s fo

r Ju

risdi

ctio

nal

Sale

s

Tota

l REC

s fo

r N

on-

Juris

dict

iona

l Sa

les

REC

sR

ECs

REC

s1

2009

1,61

5,37

31,

599,

739

15,6

342

2010

1,78

5,89

51,

769,

171

16,7

243

2011

1,84

0,47

61,

823,

207

17,2

694

2012

2,21

3,27

52,

192,

073

21,2

025

2013

2,67

6,97

12,

650,

570

26,4

016

2014

2,83

9,40

42,

811,

466

27,9

387

2015

3,26

3,32

33,

231,

233

32,0

918

2016

3,19

8,12

03,

166,

847

31,2

729

2017

3,15

1,08

23,

120,

439

30,6

4310

2018

3,09

9,23

53,

069,

250

29,9

8511

2019

2,95

2,84

92,

923,

951

28,8

9812

2020

2,97

4,53

12,

945,

296

29,2

3513

2021

3,00

3,80

02,

974,

228

29,5

7214

2022

3,01

9,52

82,

989,

693

29,8

3415

2023

3,38

6,28

43,

352,

748

33,5

3616

2024

3,40

9,69

33,

406,

585

3,10

817

2025

3,39

6,80

53,

396,

805

018

2026

3,35

7,47

63,

357,

476

019

2027

3,36

4,10

23,

364,

102

020

2028

3,01

4,69

33,

014,

693

021

2029

1,89

6,97

01,

896,

970

022

Tota

l59

,459

,882

59,0

56,5

3940

3,34

2

Col

(b):

Col

(k) f

rom

Pag

e 1

of A

-9 (T

PC

-8R

).

Ren

ewab

le E

nerg

y C

redi

t Por

tfolio

for S

ales

to J

uris

dict

iona

l and

Non

-Jur

isdi

ctio

nal C

usto

mer

sJa

nuar

y 20

09 -

Aug

ust 2

029

Page 11: Calculation of Incremental Costs of Compliance

MIC

HIG

AN

PU

BLI

C S

ER

VIC

E C

OM

MIS

SIO

NC

ase

No:

U-1

7301

Witn

ess:

TPC

lark

CO

NS

UM

ER

S E

NE

RG

Y C

OM

PA

NY

E

xhib

it:A

-10

(TP

C-9

R)

Dat

e:Ju

ly 2

013

Pag

e:1

of 5

(a)

(b)

(c)

(d)

(e)

(f)(g

)(h

)(i)

Year

REC

Por

tfolio

St

anda

rdTo

tal R

EC

Com

plia

nce

Obl

igat

ion

REC

s fr

om

Cur

rent

Yea

rR

ECs

Use

d fr

om C

urre

nt

Year

REC

s U

sed

from

Ban

kTo

tal R

ECs

Use

d fo

r C

ompl

ianc

e

Tota

l REC

s So

ldC

umul

ativ

e R

ECs

Ban

ked

and

Car

ried

Ove

r to

Nex

t Ye

ar1

2009

0.0%

01,

599,

739

00

00

1,59

9,73

92

2010

0.0%

01,

769,

171

00

00

3,36

8,91

03

2011

0.0%

01,

823,

207

00

00

5,19

2,11

74

2012

5.7%

1,90

6,59

32,

192,

073

01,

906,

593

1,90

6,59

30

5,47

7,59

75

2013

6.4%

2,14

5,53

62,

650,

570

298,

158

1,84

7,37

92,

145,

536

05,

982,

631

620

147.

3%2,

431,

980

2,81

1,46

634

5,11

22,

086,

868

2,43

1,98

00

6,36

2,11

77

2015

10.0

%3,

271,

560

3,23

1,23

375

2,38

82,

519,

171

3,27

1,56

00

6,32

1,79

08

2016

10.0

%3,

271,

560

3,16

6,84

772

8,23

02,

543,

329

3,27

1,56

00

6,21

7,07

89

2017

10.0

%3,

271,

560

3,12

0,43

971

9,66

72,

551,

893

3,27

1,56

00

6,06

5,95

710

2018

10.0

%3,

271,

560

3,06

9,25

068

4,48

02,

587,

080

3,27

1,56

00

5,86

3,64

711

2019

10.0

%3,

271,

560

2,92

3,95

168

4,38

52,

587,

174

3,27

1,56

00

5,51

6,03

812

2020

10.0

%3,

271,

560

2,94

5,29

668

4,35

62,

587,

203

3,27

1,56

00

5,18

9,77

413

2021

10.0

%3,

271,

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(g):

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Col

(f)

Col

(i):

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(h) +

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r Yr (

i)

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ewab

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Janu

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2009

- A

ugus

t 202

9

lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-10
Page 12: Calculation of Incremental Costs of Compliance

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U-1

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Witn

ess:

TPC

lark

CO

NS

UM

ER

S E

NE

RG

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ly 2

013

Pag

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of 5

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l REC

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Year

120

091,

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134,

253

1,59

1,82

00

00

1,59

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2010

1,59

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81,

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621

00

03,

329,

441

320

111,

623,

605

136,

108

1,75

9,71

30

00

5,08

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44

2012

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0,93

412

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21,

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236

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093

04,

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297

520

131,

297,

374

119,

449

1,41

6,82

30

1,45

2,30

60

4,78

3,81

46

2014

1,35

8,53

712

5,86

71,

484,

405

01,

741,

756

04,

526,

463

720

151,

406,

146

129,

621

1,53

5,76

60

1,68

1,17

10

4,38

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88

2016

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8,74

11,

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501

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099

04,

074,

460

920

171,

354,

621

126,

168

1,48

0,78

90

1,83

2,22

60

3,72

3,02

310

2018

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0,11

012

4,74

01,

464,

850

01,

902,

600

03,

285,

273

1120

191,

206,

271

114,

212

1,32

0,48

30

1,84

8,70

30

2,75

7,05

312

2020

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7,22

311

6,58

01,

343,

803

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667,

220

02,

433,

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1320

211,

253,

520

119,

424

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379

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015,

474

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496,

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251,

239,

269

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828

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2026

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239,

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h)

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Sum

mar

y of

REC

s fr

om E

xist

ing

Res

ourc

esJa

nuar

y 20

09 -

Aug

ust 2

029

Page 13: Calculation of Incremental Costs of Compliance

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VIC

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MIS

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NC

ase

No:

U-1

7301

Witn

ess:

TPC

lark

CO

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UM

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S E

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402

4,80

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2010

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54,

398

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09,

203

320

114,

800

570

5,37

00

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857

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00

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585

2013

269,

524

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3429

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829

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264

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480

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480

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472

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890

00

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4,85

343

,190

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128,

043

00

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2025

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334

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0,83

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120,

830

00

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2026

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5,84

31,

258

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11,

087,

101

00

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2027

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5,84

31,

258

1,08

7,10

11,

087,

101

00

020

2028

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258

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7,10

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836

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h)

Ren

ewab

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for J

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dict

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plia

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Sum

mar

y of

REC

s fr

om B

uild

Res

ourc

esJa

nuar

y 20

09 -

Aug

ust 2

029

Page 14: Calculation of Incremental Costs of Compliance

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VIC

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MIS

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NC

ase

No:

U-1

7301

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ess:

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lark

CO

NS

UM

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3,11

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225

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00

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58,1

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00

88,3

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2012

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7,20

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5,75

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520

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038

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2016

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0,11

60

728,

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02,

142,

618

920

1789

0,87

129

,112

919,

983

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9,66

70

2,34

2,93

410

2018

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881

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3891

9,92

00

684,

480

02,

578,

374

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1989

0,17

628

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083

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8,47

10

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392

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4491

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919,

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02,

756,

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(h):

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Col

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h)

Ren

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REC

s fr

om R

EPA

Res

ourc

esJa

nuar

y 20

09 -

Aug

ust 2

029

Page 15: Calculation of Incremental Costs of Compliance

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BLI

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VIC

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OM

MIS

SIO

NC

ase

No:

U-1

7301

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120

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2010

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110

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2012

1,90

6,59

31,

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093

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536

1,45

2,30

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271,

560

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600

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480

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193,

271,

560

1,84

8,70

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213,

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560

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Mix

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plia

nce

Che

ckJa

nuar

y 20

09 -

Aug

ust 2

029

Page 16: Calculation of Incremental Costs of Compliance

MIC

HIG

AN

PU

BLI

C S

ER

VIC

E C

OM

MIS

SIO

NC

ase

No:

U-1

7301

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h Ye

ar

Tota

l New

R

enew

able

C

apac

ity

Onl

ine

By

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1 of

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h Ye

ar

Am

ount

O

ver/(

Und

er)

Com

plia

nce

MW

MW

MW

MW

MW

120

090

33

220

100

88

320

110

99

420

1210

129

639

75

2013

200

101

297

398

198

620

1420

629

950

57

2015

500

206

302

509

98

2016

206

300

506

920

1720

630

050

610

2018

206

300

506

1120

1920

629

950

512

2020

206

299

505

1320

2120

629

950

514

2022

306

297

603

1520

2330

629

760

316

2024

306

297

603

1720

2530

629

760

318

2026

306

297

603

1920

2730

629

760

320

2028

306

296

602

2120

2930

629

359

9

Col

(b):

From

200

8 P

A 2

95 S

ectio

n 27

(1)(

a)C

ol (e

): C

ol (c

+ d

)C

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ol (e

- b)N

ew R

enew

able

Ene

rgy

Cap

acity

Por

tfolio

Janu

ary

2009

- A

ugus

t 202

9

lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-11
Page 17: Calculation of Incremental Costs of Compliance

MICHIGAN PUBLIC SERVICE COMMISSION CASE NO.: U-17301EXHIBIT: A-12 (TPC-11R)

CONSUMERS ENERGY COMPANY WITNESS: TPClarkDATE: July 2013PAGE: 1 of 1

(a) (b) (c) (d) (e) (f)Year REPA Build TOTAL TOTAL Transfer Price

Total Energy Total Energy Energy Transfer CostMWh MWh MWh $ $/MWh

1 2009* 3,336 0 3,336 156,921 47.05 2 2010 22,140 0 22,140 1,276,740 57.67 3 2011 47,516 0 47,516 2,863,103 60.26 4 2012 479,683 31,467 511,150 37,196,175 72.77 5 2013 902,750 267,551 1,170,301 90,157,361 77.04 6 2014 903,865 349,509 1,253,374 98,777,285 78.81 7 2015 913,847 685,046 1,598,892 125,726,916 78.63 8 2016 908,977 685,235 1,594,212 127,426,474 79.93 9 2017 899,619 685,235 1,584,854 127,461,572 80.42

10 2018 899,585 685,235 1,584,820 129,645,777 81.80 11 2019 898,974 685,235 1,584,209 133,529,870 84.29 12 2020 897,210 685,235 1,582,445 135,579,766 85.68 13 2021 897,091 685,235 1,582,325 138,483,420 87.52 14 2022 896,081 762,993 1,659,074 150,861,548 90.93 15 2023 895,008 1,081,187 1,976,195 175,877,553 89.00 16 2024 894,997 1,081,187 1,976,183 183,797,245 93.01 17 2025 894,945 1,081,187 1,976,132 186,173,711 94.21 18 2026 894,876 1,081,187 1,976,062 192,409,563 97.37 19 2027 894,725 1,081,187 1,975,911 198,724,056 100.57 20 2028 894,355 1,081,187 1,975,541 208,489,797 105.54 21 2029* 570,273 699,099 1,269,372 142,388,039 112.17 22 Total 15,509,853 13,394,193 28,904,045 2,587,002,891

* Partial Year

Source:Column (b) Sum of Col (p) from Exhibit A-2 (TPC-1) and Col (p) from Exhibit A-3 (TPC-2)Column (c) Forecast production of CEC Owned Renewable Generators subject to Transfer PriceColumn (d) Sum of Col (b) and (c)Column (e) Col (s) from page 1 of Exhibit A-13 (TPC-12R) plus Col (f) from page 3 of Exhibit A-13 (TPC-12R)Column (f) Col (e) divided by Col (d)

Renewable Energy Plan Transfer Price Calculation

lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-12
Page 18: Calculation of Incremental Costs of Compliance

MIC

HIG

AN

PU

BLI

C S

ER

VIC

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OM

MIS

SIO

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O.:

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24,2

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72,

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00

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12

2010

71,1

9112

8,35

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2,59

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2,59

957

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60,6

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00

00

00

00

00

1,27

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2011

154,

642

138,

437

737,

839

367,

604

188,

338

678,

949

597,

295

00

00

00

00

00

2,86

3,10

34

2012

214,

480

178,

974

882,

162

405,

465

229,

667

846,

603

779,

018

02,

228,

910

1,64

3,77

817

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6,18

2,68

658

5,13

02,

094,

793

1,29

0,89

53,

246

035

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520

1318

8,50

619

1,90

21,

032,

066

553,

079

231,

610

908,

906

1,06

4,23

31,

462,

125

2,23

6,46

31,

561,

624

20,8

29,5

217,

639,

140

14,2

71,6

5513

,123

,236

4,64

0,38

728

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069

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620

1418

7,65

020

4,08

71,

093,

733

576,

735

233,

481

939,

274

1,11

6,00

51,

554,

294

2,26

1,97

41,

600,

529

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28,7

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782

14,8

23,3

2813

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4,79

0,72

179

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,804

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720

1534

0,14

921

3,32

71,

178,

157

616,

470

242,

536

967,

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1,19

3,56

81,

678,

638

2,26

2,67

61,

679,

102

22,7

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15,7

09,7

7414

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5,06

2,18

223

7,91

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576

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1636

0,97

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6,86

096

6,47

10

01,

040,

779

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81,

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179

2,29

4,59

91,

700,

912

22,5

75,8

568,

247,

517

16,1

54,7

4414

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5,00

9,37

550

6,67

780

9,93

977

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920

1736

6,66

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1,22

70

00

1,05

9,83

91,

249,

431

1,76

1,51

02,

328,

166

1,72

3,84

522

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8,26

1,96

716

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14,9

50,0

765,

076,

018

540,

551

903,

283

77,5

23,5

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2018

377,

547

237,

968

00

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542

1,28

4,92

91,

812,

896

2,36

1,99

71,

746,

960

22,4

98,1

958,

464,

912

16,8

80,6

6515

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5,14

5,88

256

5,42

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978

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1120

1939

3,19

118

6,03

10

00

1,10

2,73

71,

340,

692

1,89

0,96

02,

467,

883

1,81

9,30

322

,602

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8,81

6,03

617

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,930

16,0

01,8

615,

359,

085

582,

007

972,

334

81,1

13,4

1012

2020

407,

965

00

00

1,12

4,57

11,

380,

728

1,96

5,74

72,

533,

049

1,86

3,82

522

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9,05

7,14

817

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16,0

56,9

145,

494,

232

598,

975

1,01

0,25

681

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1320

2142

4,66

50

00

01,

158,

811

1,41

8,19

02,

056,

614

2,63

7,36

11,

935,

094

22,3

42,1

089,

471,

988

18,0

41,7

6916

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5,70

6,78

461

8,65

01,

059,

876

83,0

33,1

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2022

226,

177

00

00

1,18

4,88

71,

446,

721

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2,59

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128,

481

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6,86

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10,8

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231,

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1,21

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2,24

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240

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1,25

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280

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1,32

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500

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176,

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600

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903,

580

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8,58

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357

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0,58

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7,92

476

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TAL

3,71

5,62

91,

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394

6,73

3,40

42,

744,

269

1,18

3,11

320

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24,4

21,0

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lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-13
Page 19: Calculation of Incremental Costs of Compliance

MIC

HIG

AN

PU

BLI

C S

ER

VIC

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OM

MIS

SIO

NC

AS

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7301

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of 2

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(b)

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ar

$$

$$

$1

2009

00

00

02

2010

00

00

03

2011

00

00

04

2012

2,18

5,94

00

00

2,18

5,94

05

2013

20,1

94,4

710

00

20,1

94,4

716

2014

20,9

66,3

205,

006,

231

00

25,9

72,5

527

2015

22,1

71,9

4226

,727

,701

07,

681

48,9

07,3

248

2016

22,7

92,6

0227

,046

,961

023

,563

49,8

63,1

259

2017

23,1

67,2

7526

,742

,725

028

,072

49,9

38,0

7110

2018

23,8

00,9

7127

,077

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028

,878

50,9

06,8

5811

2019

24,7

94,8

1327

,591

,581

030

,066

52,4

16,4

6012

2020

25,7

31,5

8727

,922

,109

031

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53,6

84,7

5813

2021

26,9

66,0

2428

,451

,705

032

,575

55,4

50,3

0514

2022

28,0

71,1

2829

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,861

4,68

6,05

933

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61,8

09,8

1615

2023

29,4

04,5

2529

,601

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24,6

07,9

9834

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83,6

48,4

9416

2024

30,9

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8936

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86,6

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93,2

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3620

2028

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460,

446,

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109,

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472,

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Page 20: Calculation of Incremental Costs of Compliance

MIC

HIG

AN

PU

BLI

C S

ER

VIC

E C

OM

MIS

SIO

NC

AS

E N

O.:

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7301

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Year

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t Fr

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o)

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ntor

y

REC

$R

EC$

$/R

ECR

EC$

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EC$

$1

2009

1,59

9,73

938

6,49

90

00.

241,

599,

739

386,

499

193,

249

00

(386

,499

)2

2010

1,76

9,17

12,

121,

237

00

0.74

3,36

8,91

02,

507,

736

1,44

7,11

70

0(2

,121

,237

)3

2011

1,82

3,20

73,

590,

055

00

1.17

5,19

2,11

76,

097,

791

4,30

2,76

30

0(3

,590

,055

)4

2012

2,19

2,07

37,

812,

760

00

1.88

5,47

7,59

710

,318

,857

8,20

8,32

41,

906,

593

3,59

1,69

4(4

,221

,066

)5

2013

2,65

0,57

014

,386

,672

00

3.04

5,98

2,63

118

,184

,181

14,2

51,5

192,

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Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-14
Page 21: Calculation of Incremental Costs of Compliance

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Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-15
Page 22: Calculation of Incremental Costs of Compliance

MIC

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Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-16
Page 23: Calculation of Incremental Costs of Compliance

MIC

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Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-17
Page 24: Calculation of Incremental Costs of Compliance

MICHIGAN PUBLIC SERVICE COMMISSION Case No: U-17301CONSUMERS ENERGY COMPANY Exhibit A-18 (HWM-2)

Witness: H. W. Miller IIIDate: May 2013

Page 1 of 1Forecasted Customer Count & Number of LightsUsed For Renewable Portfolio Surcharge Development

( a ) ( b ) ( c ) ( d ) ( e ) ( f ) ( g ) ( h ) ( i ) ( j )

Line No. Month Year Residential GS GSD GP GPD GUL ( 2 ) GU GML

1 1 2013 1574581 181,592 23,263 1,234 1,696 171,200 473 3252 2 2013 1574952 181,594 23,264 1,235 1,696 171,200 473 3263 3 2013 1572308 181,100 23,202 1,233 1,694 171,200 472 3244 4 2013 1569131 181,081 23,200 1,233 1,694 171,200 471 3235 5 2013 1568721 181,209 23,216 1,234 1,695 171,200 472 3236 6 2013 1,568,976 181,310 23,229 1,234 1,696 171,200 472 3237 7 2013 1,568,428 181,102 23,203 1,234 1,695 171,200 472 3238 8 2013 1,569,685 181,219 23,218 1,234 1,696 171,200 472 3229 9 2013 1,568,576 180,903 23,179 1,233 1,694 171,200 471 32210 10 2013 1,574,085 180,934 23,183 1,234 1,694 171,200 471 32111 11 2013 1,575,067 180,767 23,162 1,233 1,694 171,200 470 32112 12 2013 1,574,435 180,400 23,117 1,232 1,692 171,200 470 32313 Annual 2013 18,858,945 2,173,211 278,438 14,805 20,334 2,054,400 5,658 3,87914 Annual 2014 18,894,607 2,182,260 279,591 14,857 20,399 2,054,400 5,676 3,87615 Annual 2015 18,934,559 2,189,519 280,504 14,887 20,449 2,054,400 5,691 3,87616 Annual 2016 18,979,791 2,195,371 281,243 14,923 20,491 2,054,400 5,704 3,87417 Annual 2017 19,030,988 2,200,105 281,834 14,941 20,512 2,054,400 5,715 3,87418 Annual 2018 19,088,561 2,203,924 282,314 14,955 20,534 2,054,400 5,724 3,87419 Annual 2019 19,151,992 2,211,663 283,291 14,977 20,598 2,054,400 5,729 3,87420 Annual 2020 19,219,931 2,214,168 283,603 14,987 20,613 2,054,400 5,735 3,87421 Annual 2021 19,291,532 2,216,199 283,857 14,995 20,625 2,054,400 5,740 3,87422 Annual 2022 19,369,121 2,217,846 284,062 15,002 20,635 2,054,400 5,743 3,87423 Annual 2023 19,452,517 2,219,183 284,228 15,007 20,643 2,054,400 5,746 3,87424 Annual 2024 19,539,693 2,220,266 284,363 15,011 20,649 2,054,400 5,749 3,87425 Annual 2025 19,629,201 2,221,145 284,473 15,014 20,654 2,054,400 5,751 3,87426 Annual 2026 19,719,858 2,221,858 284,562 15,017 20,658 2,054,400 5,753 3,87427 Annual 2027 19,809,869 2,222,436 284,634 15,019 20,662 2,054,400 5,754 3,87428 Annual 2028 19,898,105 2,222,905 284,692 15,021 20,664 2,054,400 5,755 3,87429 Annual 2029 19,983,752 2,223,283 284,739 15,022 20,666 2,054,400 5,757 3,87430 1 2029 1,666,347 185,792 23,793 1,254 1,725 171,200 481 32331 2 2029 1,666,740 185,796 23,793 1,254 1,725 171,200 482 32332 3 2029 1,663,942 185,284 23,730 1,252 1,722 171,200 480 32333 4 2029 1,663,912 185,258 23,726 1,252 1,722 171,200 480 32334 5 2029 1,663,477 185,387 23,742 1,252 1,723 171,200 480 32335 6 2029 1,663,748 185,485 23,755 1,253 1,723 171,200 480 32336 7 2029 1,663,655 185,272 23,728 1,252 1,722 171,200 480 32337 8 2029 1,664,988 185,388 23,742 1,252 1,723 171,200 480 32338 9 2029 1,663,812 185,064 23,702 1,251 1,721 171,200 479 32339 10 2029 1,667,240 185,090 23,705 1,251 1,721 171,200 479 32340 11 2029 1,668,280 184,919 23,684 1,250 1,720 171,200 479 32341 12 2029 1,667,611 184,548 23,638 1,249 1,718 171,200 478 323

Notes:( 1 ) Excludes ROA, Municipal Pumping, and Wholesale.( 2 ) Number of lights.

Secondary ( 1 ) Primary ( 1 ) Street Lighting

lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-18
Page 25: Calculation of Incremental Costs of Compliance

Case No.:  U‐173

01Exhibit:  A‐19 (DFR

‐1R)

Witn

ess:  D

FRon

kDa

te:  July 201

3Page:  1 of 3

MICHIGAN

 PUBLIC SER

VICE

 COMMISSION

CONSU

MER

S EN

ERGY CO

MPA

NY

ATT

AC

HM

ENT

A -

REN

EWA

BLE

EN

ERG

Y PL

AN

SU

RC

HA

RG

E SU

MM

AR

Y

Units

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

Sale

s Fo

reca

stM

WH

33,114

,933

33,290

,120

33,602

,986

33,756

,264

32,064

,318

32,326

,208

‐                

‐            

‐            

‐            

‐            

RP

S R

equi

rem

ent (

3-yr

runn

ing

Ave

rage

)M

WH

36,376

,081

35,233

,114

34,005

,248

33,336

,013

33,549

,790

33,141

,189

32,715

,597

‐            

‐            

‐            

‐            

RP

S R

equi

red

RE

C's

Mill

ions

0.00

0.00

0.00

1.91

2.15

2.43

3.27

3.27

3.27

3.27

3.27

(-) R

EC

's fr

om E

xist

ing

Ren

ewab

le E

nerg

y S

uppl

y(P

re R

PS

)M

illio

ns1.59

1.74

1.76

1.63

1.42

1.48

1.54

1.51

1.48

1.46

1.32

Req

uire

d N

ew R

ECs

Mill

ions

(1.59)

             

(1.74)

              

(1.76)

           

0.28

                

0.73

                 

0.95

                     

1.74

              

1.76

          

1.79

          

1.81

          

1.95

          

RPS

Ren

ewab

le E

nerg

y C

redi

t Com

plia

nce

Req

uire

d N

ew R

EC

sM

illio

ns(1.59)

             

(1.74)

              

(1.76)

           

0.28

                

0.73

                 

0.95

                     

1.74

              

1.76

          

1.79

          

1.81

          

1.95

          

RE

Cs

Obt

aine

d Fr

om N

ew R

esou

rces

Mill

ions

0.01

0.03

0.06

0.57

1.23

1.33

1.70

1.66

1.64

1.60

1.60

RE

Cs

Car

ried

Ove

rM

illio

ns1.60

3.37

5.19

5.48

5.98

6.36

6.32

6.22

6.07

5.86

5.52

Incr

emen

tal C

ompl

ianc

e w

ith N

ew R

EC

s%

N/A

N/A

N/A

201.5%

169.3%

140.0%

97.7%

94.1%

91.6%

88.8%

82.2%

Ove

rall

Com

plia

nce

%%

N/A

N/A

N/A

387.3%

378.8%

361.6%

293.2%

290.0%

285.4%

279.2%

268.6%

RPS

Ren

ewab

le E

nerg

y C

apac

ity C

ompl

ianc

eR

equi

red

Nam

epla

te C

apac

ityM

W0.

00.

00.

00.

020

0.0

200.

050

0.0

500.

050

0.0

500.

050

0.0

Obt

aine

d N

amep

late

Cap

acity

in C

ompa

ny's

Pla

nM

W3.3

8.1

8.9

397.2

397.9

504.9

508.6

505.7

505.7

505.7

505.0

Cap

acity

Com

plia

nce

Bal

ance

MW

3.3

8.1

8.9

397.2

197.9

304.9

8.6

5.7

5.7

5.7

5.0

Cap

acity

Com

plia

nce

%%

N/A

N/A

N/A

N/A

198.9%

252.5%

101.7%

101.1%

101.1%

101.1%

101.0%

Uni

ts20

2020

2120

2220

2320

2420

2520

2620

2720

2820

29Sa

les

Fore

cast

MW

H‐

                

‐                 

‐               

‐                  

‐                   

‐                       

‐                

‐            

‐            

‐            

RP

S R

equi

rem

ent (

3-yr

runn

ing

Ave

rage

)M

WH

‐                

‐                 

‐               

‐                  

‐                   

‐                       

‐                

‐            

‐            

‐            

RP

S R

equi

red

RE

C's

Mill

ions

3.27

3.27

3.27

3.27

3.27

3.27

3.27

3.27

3.27

2.18

(-) R

EC

's fr

om E

xist

ing

Ren

ewab

le E

nerg

y S

uppl

y(P

re R

PS

)M

illio

ns1.34

1.37

1.31

1.32

1.36

1.36

1.35

1.36

1.01

0.56

Req

uire

d N

ew R

ECs

Mill

ions

1.93

              

1.90

               

1.96

             

1.95

                

1.91

                 

1.91

                     

1.92

              

1.91

          

2.26

          

1.62

          

RPS

Ren

ewab

le E

nerg

y C

redi

t Com

plia

nce

Req

uire

d N

ew R

EC

sM

illio

ns1.93

              

1.90

               

1.96

             

1.95

                

1.91

                 

1.91

                     

1.92

              

1.91

          

2.26

          

1.62

          

RE

Cs

Obt

aine

d Fr

om N

ew R

esou

rces

Mill

ions

1.60

1.60

1.68

2.03

2.05

2.04

2.01

2.01

2.00

1.33

RE

Cs

Car

ried

Ove

rM

illio

ns5.19

4.89

4.61

4.69

4.83

4.95

5.04

5.13

4.87

4.59

Incr

emen

tal C

ompl

ianc

e w

ith N

ew R

ecs

%83

.1%

84.3%

85.7%

104.2%

107.1%

106.5%

104.5%

104.8%

88.6%

82.4%

Ove

rall

Com

plia

nce

%%

258.6%

249.5%

240.9%

243.4%

247.5%

251.4%

254.0%

256.8%

249.0%

310.4%

RPS

Ren

ewab

le E

nerg

y C

apac

ity C

ompl

ianc

eR

equi

red

Nam

epla

te C

apac

ityM

W50

0.0

500.

050

0.0

500.

050

0.0

500.

050

0.0

500.

050

0.0

500.

0O

btai

ned

Nam

epla

te C

apac

ity in

Com

pany

's P

lan

MW

505.0

505.0

603.2

603.0

603.0

603.0

603.0

602.7

602.2

599.0

Cap

acity

Com

plia

nce

Bal

ance

MW

5.0

5.0

103.2

103.0

103.0

103.0

103.0

102.7

102.2

99.0

Cap

acity

Com

plia

nce

%%

101.0%

101.0%

120.6%

120.6%

120.6%

120.6%

120.6%

120.5%

120.4%

119.8%

lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-19
Page 26: Calculation of Incremental Costs of Compliance

Case No.:  U‐173

01Exhibit:  A‐19 (DFR

‐1R)

Witn

ess:  D

FRon

kDa

te:  July 201

3Page:  2 of 3

Uni

ts20

0920

1020

1120

1220

1320

1420

1520

1620

1720

1820

19R

even

ue R

equi

rem

ent

Bui

ld/B

OT

$Mil

$0.6

4$1

.21

$2.6

7$1

9.29

$41.

98$5

7.65

$78.

03$7

6.98

$76.

31$7

3.73

$72.

40P

PA

$Mil

$0.1

5$1

.01

($0.

25)

$36.

28$7

3.60

$78.

59$8

3.53

$82.

66$8

1.90

$82.

04$8

3.55

Exp

erim

enta

l Adv

ance

d R

enew

able

Pro

gram

$Mil

$0.0

0$0

.51

$1.0

0$1

.17

$1.2

0$1

.45

$2.6

0$3

.36

$3.3

5$3

.34

$3.3

3R

EC

Pur

chas

es (S

ales

)$M

il$0

.00

$0.0

0$0

.00

$0.0

0$0

.00

$0.0

0$0

.00

$0.0

0$0

.00

$0.0

0$0

.00

Tota

l$M

il$0

.78

$2.73

$3.42

$56.74

$116

.78

$137

.69

$164

.16

$163

.00

$161

.57

$159

.12

$159

.29

New

REC

s O

btai

ned

Gen

erat

ion

Bas

ed B

uild

/BO

TM

WH

4,40

43,

892

4,80

035

,778

269,

524

350,

681

682,

919

683,

145

683,

182

683,

216

683,

139

PP

AM

WH

2,64

821

,927

47,0

5547

5,08

889

3,84

789

4,97

190

4,86

090

0,08

989

0,87

189

0,88

189

0,17

6S

ubto

tal

MW

H7,

052

25,8

2051

,855

510,

866

1,16

3,37

01,

245,

652

1,58

7,78

01,

583,

234

1,57

4,05

31,

574,

098

1,57

3,31

6P

urch

ase

(Sol

d)M

illio

ns0.

000.

000.

000.

000.

000.

000.

000.

000.

000.

000.

00In

cent

ive

(PA

295

Sec

39

(2))

Mill

ions

0.00

0.01

0.01

0.06

0.07

0.08

0.11

0.08

0.07

0.03

0.03

Tota

lM

illio

ns0.

010.

030.

060.

571.

231.

331.

701.

661.

641.

601.

60

Fore

cast

ed T

rans

fer P

rice

per M

WH

$/M

WH

$47.

05$5

7.67

$60.

26$7

2.77

$77.

04$7

8.81

$78.

63$7

9.93

$80.

42$8

1.80

$84.

29

Am

ount

reco

vere

d th

roug

h PS

CR

$Mil

$0.2

$1.3

$2.9

$37.

2$9

0.2

$98.

8$1

25.7

$127

.4$1

27.5

$129

.6$1

33.5

Tran

sfer

pric

e x

volu

me

of e

nerg

y

Incr

emen

tal C

ost o

f Com

plia

nce

$Mil

$0.6

$1.3

-$0.

9$1

9.0

$23.

2$3

2.3

$17.

2$1

2.5

$9.9

$4.7

$0.4

Uni

ts20

2020

2120

2220

2320

2420

2520

2620

2720

2820

29R

even

ue R

equi

rem

ent

Bui

ld/B

OT

$Mil

$71.

23$7

3.71

$90.

87$1

12.8

7$1

11.1

1$1

08.8

7$1

05.0

2$1

02.5

1$1

00.2

6$6

5.27

PP

A$M

il$8

3.49

$84.

27$9

0.95

$94.

25$9

8.73

$99.

19$1

02.6

6$1

06.5

0$1

12.9

2$7

7.00

Exp

erim

enta

l Adv

ance

d R

enew

able

Pro

gram

$Mil

$3.3

3$3

.31

$2.8

1$2

.32

$2.3

1$2

.30

$2.2

9$2

.27

$2.1

4$1

.35

RE

C P

urch

ases

(Sal

es)

$Mil

$0.0

0$0

.00

$0.0

0$0

.00

$0.0

0$0

.00

$0.0

0$0

.00

$0.0

0$0

.00

Tota

l$M

il$1

58.05

$161

.29

$184

.62

$209

.44

$212

.15

$210

.36

$209

.97

$211

.28

$215

.33

$143

.62

New

REC

s O

btai

ned

Gen

erat

ion

Bas

ed B

uild

/BO

TM

WH

683,

110

683,

099

760,

065

1,07

5,08

91,

084,

853

1,08

5,84

31,

085,

843

1,08

5,84

31,

085,

843

723,

836

PP

AM

WH

888,

392

888,

259

887,

227

886,

144

894,

181

894,

945

894,

875

894,

725

894,

355

595,

191

Sub

tota

lM

WH

1,57

1,50

31,

571,

358

1,64

7,29

21,

961,

234

1,97

9,03

41,

980,

788

1,98

0,71

81,

980,

567

1,98

0,19

81,

319,

027

Pur

chas

e (S

old)

Mill

ions

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

0.00

Ince

ntiv

e (P

A 2

95 S

ec 3

9 (2

))M

illio

ns0.

030.

030.

040.

070.

070.

060.

030.

030.

020.

01To

tal

Mill

ions

1.60

1.60

1.68

2.03

2.05

2.04

2.01

2.01

2.00

1.33

Fore

cast

ed T

rans

fer P

rice

per M

WH

$/M

WH

$85.

68$8

7.52

$90.

93$8

9.00

$93.

01$9

4.21

$97.

37$1

00.5

7$1

00.5

7$1

00.5

7

Am

ount

reco

vere

d th

roug

h PS

CR

$Mil

$135

.6$1

38.5

$150

.3$1

74.1

$182

.1$1

84.5

$191

.0$1

97.4

$207

.4$1

42.8

Tran

sfer

pric

e x

volu

me

of e

nerg

y

Incr

emen

tal C

ost o

f Com

plia

nce

$Mil

-$3.

7-$

3.5

$7.5

$8.1

$6.6

$20.

1$1

4.0

$9.4

$3.8

-$1.

9

Page 27: Calculation of Incremental Costs of Compliance

Case No.:  U‐173

01Exhibit:  A‐19 (DFR

‐1R)

Witn

ess:  D

FRon

kDa

te:  July 201

3Page:  3 of 3

Uni

ts20

0920

1020

1120

1220

1320

1420

1520

1620

1720

1820

19N

on-V

olum

etric

Sur

char

geM

eter

(or c

usto

mer

) For

ecas

t R

esid

entia

l10

00s

1,56

7.0

1,56

9.2

1,57

2.3

1,57

2.6

1,57

1.6

1,57

4.6

1,57

7.9

1,58

1.6

1,58

5.9

1,59

0.7

1,59

6.0

Sec

onda

ry C

omm

erci

al10

00s

200.9

199.6

197.4

196.7

197.0

197.

919

8.5

199.

119

9.5

199.

820

0.5

Prim

ary

and

Indu

stria

l10

00s

10.5

10.4

10.4

10.3

10.2

10.2

10.3

10.3

10.3

10.3

10.4

Lig

htin

g (N

umbe

r of L

ight

s)10

00s

172.9

172.9

172.0

171.5

171.2

171.

217

1.2

171.

217

1.2

171.

217

1.2

Met

ered

Lig

htin

g &

Unm

eter

ed S

ervi

ce10

00s

0.7

0.8

0.8

0.8

0.8

0.8

0.8

0.8

0.8

0.8

0.8

Tot

al10

00s

1,95

2.0

1,95

2.9

1,95

2.9

1,95

1.9

1,95

0.8

1,95

4.6

1,95

8.7

1,96

3.0

1,96

7.7

1,97

2.9

1,97

8.9

Max

imum

Sur

char

ge (a

ll ra

te c

lass

es a

t cap

s) R

esid

entia

l$M

il$1

8.8

$56.5

$56.6

$56.6

$56.6

$56.

7$5

6.8

$56.

9$5

7.1

$57.

3$5

7.5

Sec

onda

ry C

omm

erci

al$M

il$1

3.3

$39.7

$39.3

$39.1

$39.2

$39.

4$3

9.5

$39.

6$3

9.7

$39.

8$3

9.9

Prim

ary

and

Indu

stria

l$M

il$7

.9$2

3.4

$23.3

$23.3

$23.1

$23.

0$2

3.1

$23.

1$2

3.2

$23.

2$2

3.3

Lig

htin

g &

Unm

eter

ed$M

il$0

.5$1

.6$1

.6$1

.6$1

.6$1

.6$1

.6$1

.6$1

.6$1

.6$1

.6 T

otal

$Mil

$40.5

$121

.2$1

20.8

$120

.6$1

20.4

$120

.6$1

20.9

$121

.2$1

21.5

$121

.8$1

22.2

Plan

ned

Surc

harg

e* R

esid

entia

l$M

il$1

5.7

$47.2

$35.5

$11.2

$9.8

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

Sec

onda

ry C

omm

erci

al$M

il$5

.9$1

7.5

$13.7

$5.8

$5.3

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

Prim

ary

and

Indu

stria

l$M

il$3

.8$1

1.1

$8.5

$3.0

$2.8

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

Lig

htin

g &

Unm

eter

ed$M

il$0

.3$1

.3$1

.1$0

.6$0

.5$0

.0$0

.0$0

.0$0

.0$0

.0$0

.0 T

otal

$Mil

$25.7

$77.1

$58.8

$20.6

$18.4

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

Year

End

Reg

ulat

ory

Liab

ility

Bal

ance

Pro

pose

d M

inim

um

$Mil

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

For

ecas

t$M

il$2

5.0

$100

.6$1

60.2

$161

.0$1

56.9

$133

.5$1

15.3

$101

.6$9

1.2

$85.

9$8

5.7

Car

ryin

g C

harg

es (S

hort-

term

inte

rest

)$M

il$0

.0$0

.3$0

.3$1

.0$0

.6$1

.0$2

.0$3

.2$3

.6$4

.2$4

.1 T

otal

Bal

ance

$Mil

$25.0

$100

.8$1

60.5

$162

.1$1

57.6

$134

.5$1

17.3

$104

.8$9

4.9

$90.2

$89.8

*Pla

nned

Sur

char

ge b

y R

ate

Cla

ss a

re E

stim

ated

.

Uni

ts20

2020

2120

2220

2320

2420

2520

2620

2720

2820

29N

on-V

olum

etric

Sur

char

geM

eter

(or c

usto

mer

) For

ecas

t R

esid

entia

l10

00s

1,60

1.7

1,60

7.6

1,61

4.1

1,62

1.0

1,62

8.3

1,63

5.8

1,64

3.3

1,65

0.8

1,65

8.2

1,66

4.6

Sec

onda

ry C

omm

erci

al10

00s

200.

820

0.9

201.

120

1.2

201.

320

1.4

201.

420

1.5

201.

513

4.5

Prim

ary

and

Indu

stria

l10

00s

10.4

10.4

10.4

10.4

10.4

10.4

10.4

10.4

10.4

6.9

Lig

htin

g (N

umbe

r of L

ight

s)10

00s

171.

217

1.2

171.

217

1.2

171.

217

1.2

171.

217

1.2

171.

211

4.1

Met

ered

Lig

htin

g &

Unm

eter

ed S

ervi

ce10

00s

0.8

0.8

0.8

0.8

0.8

0.8

0.8

0.8

0.8

0.5

Tot

al10

00s

1,98

4.8

1,99

0.9

1,99

7.6

2,00

4.6

2,01

2.0

2,01

9.5

2,02

7.2

2,03

4.7

2,04

2.1

1,92

0.7

Max

imum

Sur

char

ge (a

ll ra

te c

lass

es a

t cap

s) R

esid

entia

l$M

il$5

7.7

$57.

9$5

8.1

$58.

4$5

8.6

$58.

9$5

9.2

$59.

4$5

9.7

$40.

0 S

econ

dary

Com

mer

cial

$Mil

$39.

9$4

0.0

$40.

0$4

0.0

$40.

1$4

0.1

$40.

1$4

0.1

$40.

1$2

6.8

Prim

ary

and

Indu

stria

l$M

il$2

3.3

$23.

3$2

3.3

$23.

4$2

3.4

$23.

4$2

3.4

$23.

4$2

3.4

$15.

6 L

ight

ing

& U

nmet

ered

$Mil

$1.6

$1.6

$1.6

$1.6

$1.6

$1.6

$1.6

$1.6

$1.6

$1.0

Tot

al$M

il$1

22.5

$122

.7$1

23.0

$123

.3$1

23.6

$123

.9$1

24.2

$124

.5$1

24.7

$83.4

Plan

ned

Surc

harg

e* R

esid

entia

l$M

il$0

.0$0

.0$0

.0$0

.0$0

.0$0

.0$0

.0$0

.0$0

.0$0

.0 S

econ

dary

Com

mer

cial

$Mil

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

Prim

ary

and

Indu

stria

l$M

il$0

.0$0

.0$0

.0$0

.0$0

.0$0

.0$0

.0$0

.0$0

.0$0

.0 L

ight

ing

& U

nmet

ered

$Mil

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

Tot

al$M

il$0

.0$0

.0$0

.0$0

.0$0

.0$0

.0$0

.0$0

.0$0

.0$0

.0

Year

End

Reg

ulat

ory

Liab

ility

Bal

ance

Pro

pose

d M

inim

um

$Mil

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

$0.0

For

ecas

t$M

il$8

9.3

$92.

6$8

5.2

$77.

4$7

1.2

$51.

7$3

8.4

$29.

6$2

6.1

$28.

5 C

arry

ing

Cha

rges

(Sho

rt-te

rm in

tere

st)

$Mil

$4.2

$4.4

$4.3

$3.9

$3.6

$3.0

$2.2

$1.7

$1.3

$0.9

Tot

al B

alan

ce$M

il$9

3.5

$97.0

$89.5

$81.4

$74.8

$54.7

$40.6

$31.2

$27.5

$29.4

*Pla

nned

Sur

char

ge b

y R

ate

Cla

ss a

re E

stim

ated

.

Page 28: Calculation of Incremental Costs of Compliance

MIC

HIG

AN

PU

BLI

C S

ER

VIC

E C

OM

MIS

SIO

NC

AS

E N

O.:

U

-173

01E

XH

IBIT

: A

-20

(DFR

-2 )

CO

NS

UM

ER

S E

NE

RG

Y C

OM

PA

NY

W

ITN

ES

S:

DFR

onk,

Jr.

DA

TE:

MA

Y 2

013

PA

GE

: 1

of 1

Expe

rimen

tal A

dvan

ced

Ren

ewab

le P

rogr

am-S

olar

Cap

acity

Allo

catio

n Pl

an

(a)

(b)

(c)

(d)

(e)

(f)(g

)P

hase

#Q

uarte

rC

lass

Nam

epla

teE

stim

ated

A

war

ded

Rat

eE

stim

ated

P

rodu

ctio

n O

ver

Con

tract

Ter

m

Est

imat

ed

Pay

men

ts O

ver

Con

tract

Ter

m

Line

(kW

)($

/kW

h)(k

Wh)

($)

1P

hase

120

1010

32.7

0.45

and

0.6

515

,426

,802

7,54

1,71

92

Pha

se 2

2011

987.

70.

375

and

0.52

515

,382

,992

6,47

0,70

73

Pha

se 3

-10

1Q-2

012

to 1

Q20

13R

esid

entia

l52

6.3

0.24

9 to

0.2

59

8

,591

,405

2,

173,

401

4P

hase

3-1

04Q

-201

1 to

4Q

2012

Non

-Res

iden

tial

172.

00.

219

to 0

.229

2,8

08,6

27

627,

148

5P

hase

11

2Q-2

013

Non

-Res

iden

tial

203.

90.

209

3,3

28,1

34

695,

580

6P

hase

12

2Q-2

013

Res

iden

tial

121.

70.

249

1,9

84,9

32

494,

248

7P

hase

13

3Q-2

013

Res

iden

tial

125.

00.

249

2,0

39,7

95

507,

909

8P

hase

14

4Q-2

013

Non

-Res

iden

tial

750.

00.

199

12,2

33,6

53

2,43

4,49

79

Pha

se 1

54Q

-201

3R

esid

entia

l17

5.0

0.24

9

2

,856

,189

71

1,19

110

Pha

se 1

61Q

-201

4R

esid

entia

l17

5.0

0.24

9

2

,855

,060

71

0,91

011

Pha

se 1

72Q

-201

4N

on-R

esid

entia

l75

0.0

0.19

9

11

,942

,482

2,

376,

554

12P

hase

18

2Q-2

014

Res

iden

tial

175.

00.

249

2,8

38,6

39

706,

821

13P

hase

19

3Q-2

014

Res

iden

tial

175.

00.

249

2,8

09,7

19

699,

620

14P

hase

20

4Q-2

014

Non

-Res

iden

tial

125.

00.

199

1,9

09,7

79

380,

046

15P

hase

21

4Q-2

014

Res

iden

tial

175.

00.

249

2,7

68,5

86

689,

378

16P

hase

22

1Q-2

015

Res

iden

tial

125.

00.

249

1,9

36,3

53

482,

152

17P

hase

23

4Q-2

013

Dev

elop

e r75

.00.

249

1,1

86,8

67

295,

530

18P

hase

24

2Q-2

014

Dev

elop

e r75

.00.

249

1,1

38,1

24

283,

393

19P

hase

25

4Q-2

014

Dev

elop

e r75

.00.

249

1,1

07,7

47

275,

829

20S

ub-T

otal

Pha

se 1

& 2

2020

.430

,809

,794

14,0

12,4

2621

Non

-Res

iden

tial

2000

.9

32

,222

,675

6

,513

,825

22

Res

iden

tial &

Dev

elop

er19

98.0

32,1

13,4

17

8,0

30,3

82

23To

tal

6019

.3

95

,145

,886

2

8,55

6,63

3

lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-20
Page 29: Calculation of Incremental Costs of Compliance

MIC

HIG

AN

PU

BLI

C S

ER

VIC

E C

OM

MIS

SIO

NC

AS

E N

O.:

U-1

7301

EX

HIB

IT:

A-2

1 (D

FR-3

)C

ON

SU

ME

RS

EN

ER

GY

CO

MP

AN

YW

ITN

ES

S:

DFR

onk,

Jr.

DA

TE:

MA

Y 2

013

PA

GE

:1

of 1

EAR

P-A

NA

ERO

BIC

DIG

ESTI

ON

PR

OG

RA

MTR

AN

SFER

CO

ST A

NA

LYSI

S

Line

(a)

(b)

(c)

(d)

(e)

(f)(g

)(h

)(i)

(j)(k

)(l)

Yea

rR

esou

rce

Ade

quac

y C

apac

ity

On-

Pea

k P

rodu

ctio

nO

ff-P

eak

Pro

duct

ion

Tota

l P

rodu

ctio

nO

n P

eak

LMP

Off

Pea

k LM

PA

vera

ge

LMP

Ene

rgy

Val

ueC

apac

ity

Val

ue

(Cal

enda

r Y

ear )

Cap

acity

V

alue

Tota

l Tra

nsfe

r C

ost

(MW

)(M

Wh)

(MW

h)(M

Wh)

($/M

Wh)

($/M

Wh)

($/M

Wh)

($)

($/M

W-Y

ear)

($)

($)

120

150.

381,

548

1,76

43,

312

42.2

634

.38

39.3

513

0,32

1

16,6

14

6,23

0

13

6,55

1

220

160.

753,

072

3,51

66,

588

50.8

938

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44.1

729

0,96

6

69,5

48

52,1

61

34

3,12

6

320

170.

753,

060

3,51

06,

570

52.5

939

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45.7

330

0,47

3

109,

598

82

,198

382,

671

4

2018

0.75

3,06

03,

510

6,57

053

.47

41.2

546

.95

308,

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11

3,52

6

85,1

44

39

3,58

7

520

190.

753,

060

3,51

06,

570

55.7

343

.65

49.2

732

3,72

5

117,

599

88

,199

411,

924

6

2020

0.75

3,08

43,

504

6,58

856

.99

45.8

351

.10

336,

625

12

1,81

9

91,3

64

42

7,98

9

720

210.

753,

084

3,48

66,

570

60.0

848

.44

53.9

435

4,35

6

126,

207

94

,655

449,

011

8

2022

0.75

3,07

23,

498

6,57

062

.19

50.6

356

.07

368,

376

13

0,76

6

98,0

74

46

6,45

1

920

230.

753,

060

3,51

06,

570

63.9

053

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58.2

038

2,36

6

135,

490

10

1,61

7

483,

983

10

2024

0.75

3,07

23,

516

6,58

865

.47

55.2

960

.06

395,

647

14

0,38

7

105,

290

50

0,93

7

1120

250.

753,

060

3,51

06,

570

66.8

556

.90

61.5

540

4,35

3

145,

464

10

9,09

8

513,

451

12

2026

0.75

3,07

23,

498

6,57

069

.36

58.8

063

.78

419,

067

15

0,72

7

113,

046

53

2,11

2

1320

270.

753,

084

3,48

66,

570

70.4

160

.44

65.1

742

8,16

7

156,

183

11

7,13

7

545,

305

14

2028

0.75

3,06

03,

528

6,58

873

.18

62.6

267

.56

445,

055

16

1,83

9

121,

379

56

6,43

4

1520

290.

753,

060

3,51

06,

570

75.0

264

.91

69.6

445

7,56

7

167,

700

12

5,77

5

583,

342

16

2030

0.75

3,06

03,

510

6,57

079

.01

67.5

072

.88

478,

829

17

3,77

7

130,

333

60

9,16

2

1720

310.

753,

060

3,51

06,

570

86.4

372

.14

78.8

251

7,85

0

180,

082

13

5,06

1

652,

911

18

2032

0.75

3,09

63,

492

6,58

889

.82

75.0

182

.03

540,

430

18

6,61

7

139,

962

68

0,39

3

1920

330.

753,

072

3,49

86,

570

94.5

779

.08

86.3

856

7,54

8

193,

389

14

5,04

2

712,

589

20

2034

0.75

3,06

03,

510

6,57

098

.71

82.5

290

.11

592,

055

20

0,41

2

150,

309

74

2,36

4

2120

350.

311,

284

1,43

42,

718

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6685

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89.3

124

2,73

1

203,

383

63

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306,

288

22

Tota

l61

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69,8

1013

0,95

08,

284,

948

2,15

5,63

210

,440

,580

Not

e:[1

] 201

5 an

d 20

35 a

re h

alf y

ears

[2] C

apac

ity F

acto

r = 7

5%[3

] Nam

epla

te (M

W) =

1 M

W

lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-21
Page 30: Calculation of Incremental Costs of Compliance

MIC

HIG

AN

PU

BLI

C S

ER

VIC

E C

OM

MIS

SIO

NC

AS

E N

O.:

U-1

7301

EX

HIB

IT:

A-2

2 (D

FR-4

)C

ON

SU

ME

RS

EN

ER

GY

CO

MP

AN

YW

ITN

ES

S:

DFR

onk,

Jr.

DA

TE:

MA

Y 2

013

PA

GE

:1

of 1

Line

(a)

(b)

(c)

(d)

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Not

e:[1

] Cap

acity

Fac

tor =

75%

[2] N

amep

late

(MW

) = 1

.0

EAR

P-A

NA

ERO

BIC

DIG

ESTI

ON

PR

OG

RA

M

($/M

Wh)

($/M

Wh)

($/M

Wh)

110.

0012

0.00

($/M

Wh)

($/M

Wh)

($/M

Wh)

70.0

086

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90.0

010

0.00

($/M

Wh)

80.0

0

OFF

ER P

RIC

E A

NA

LYSI

S

lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-22
Page 31: Calculation of Incremental Costs of Compliance

MIC

HIG

AN

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onk,

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ize

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Not

e:[1

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$3,

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[2] C

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ity F

acto

r = 7

5%[3

] IC

C is

the

Incr

emen

tal C

ost o

f Com

plia

nce

lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-23
Page 32: Calculation of Incremental Costs of Compliance

Case No.: U-17301 Exhibit: A-24 (DFR-6) Witness: DFRonk, Jr.

Date: May 2013 Page 1 of 3David F. Ronk

From: Sent: To:

Subject:

Madeleine Weil <[email protected]> Tuesday, June 05, 2012 11:30 AM

Harlow, Jesse (LARA); Raymond E. Mcquillan; Slaughter, Derrell E (LARA); Baldwin, Julie (LARA); MaNin, David E. S.; Cook, Steven J (LARA); Bradley Klein; Bzdok, Christopher M; Trachsel, Katherine A (LARA); Dave Marvin; Gottschalk, Daniel J (LARA); Smith, Kristin (AG); Erickson, Donald (AG); David F. Ronk; Farkas, Brian (AG) EARP meeting follow-up

As a follow-up to last week's call, I am providing a summary of Connecticut's new ZREC program and links to supporting documentation. This is a very straightforward, well-designed program and I won't be surprised if it winds up serving as a model for other next-generation SREC programs in other markets outside of Connecticut.

After the summary points below, I'm adding some commentary in italics highlighting the favorable program design features of this program.

Program Summary:

A ZREC is a "zero-emission renewable energy credit"- solar, wind, small hydro. CT has a separate LREC "low-emission REC" procurement program targeting fuel cells.

The two investor-owned utilities in CT- United Illuminating (UI} and CT Light & Power (CL&P)- are responsible for implementing the program. They're implementing it in tandem using the same rules, the same procurement format, the same timeline. It is very helpful to the solar industry to have a common process for both utilities -this makes the application process much more efficient and helps keep costs down. Links to program documents below are from CL&P's website, but the Ul documents are identical.

The approved budget for new ZREC contracts is $8 million per year for six years, and contract terms are 15 years each, so the total ZREC program budget is $720 million over 20 years. The $8 million is apportioned to the two utilities by their electricity deliveries ... CL&P has $6.4 million in annual funding and Ul has $1.6 million. CT has provided a high degree of transparency around the annual budget and timeline for the program. This allows for long-term planning and efficiencies. My company, for example, is considering setting up an assembly plant for our PV racking system in Connecticut because we anticipate being able to do business there for at least the next six years.

The utilities will conduct annual procurements as follows:

The overall budget per utility will be evenly allocated between three system-size tiers. One-third will be allocated to ZRECs from large (250kW-1000kW} systems, one-third from medium {100kW-250kW} systems, and one-third from small (less than 100kW) systems.

There will be a reverse auction for large and medium system ZRECs in the first half of the year. Size limitations apply per-meter, not per site. Bidders will submit a fixed price/kWh for a 15-year contract for

1

lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-24
Page 33: Calculation of Incremental Costs of Compliance

Case No.: U-17301 Exhibit: A-24 (DFR-6) Witness: DFRonk, Jr.

Date: May 2013 Page 2 of 3

ZRECs for each size category. The RFP for this year's auction is out right now- see http://www.cl­p.com/downloads/LREC%20ZREC%20RFP%202012-05-01.pdf?id=4294987917&dl=t. This process will ensure the ZRECs are competitively priced. Officially, there is a ceiling price of $350, but we expect winning bid prices to be much lower.

Bid prices for projects that use technology "manufactured, researched, or developed" in Connecticut are discounted by 10% for evaluation purposes. There is some uncertainty about how this will be applied, and the utilities have filed a motion for clarification with PURA the regulatory authority. This credit, plus the certainty of a 6-year program, will undoubtedly generate new economic development activity in CT, above and beyond jobs associated with installation.

Standard 15-year contracts will be signed with successful bidders ... see contracts at http://www.cl­p.com/downloads/LREC ZREC Contract RFP 2012-05-0l.pdf?id=4294987918&dl=t

The small system price will be offered through a tariff rider. The price will be equivalent to the weighted average accepted bid price in the medium system auction, plus 10%. Small systems will be price takers. Project developers and investors will have a certain price to plan around. The 10% adder accounts for economies of scale available to larger system sizes.

The utilities will repeat this process in each of the next five years. Since the program is sized by the annual budget, rather than the annual capacity, we expect that CT will procure more ZRECs at lower prices

year after year.

The utilities are not purchasing the energy produced by these systems. Energy will be used on-site.

Please let me know if you have any questions ... I'm happy to provide additional details and/or put you in touch with program staff at the two utilities.

Madeleine Weil

Madeleine Weil

[email protected]

-----Original Appointment-----From: Harlow, Jesse (LARA) [mailto:[email protected]] Sent: Tuesday, June 05, 2012 8:55 AM To: Raymond E. Mcquillan ([email protected]); Slaughter, Derrell E (LARA); Baldwin, Julie (LARA); Marvin, David E. S.; Cook, Steven J (LARA); Bradley Klein; Madeleine Weil; Bzdok, Christopher M; Trachsel, Katherine A (LARA); 'Dave Marvin'; Gottschalk, Daniel J (LARA); Smith, Kristin (AG); Erickson, Donald (AG); David F. Rank; Farkas, Brian (AG); Harlow, Jesse (LARA)

2

Page 34: Calculation of Incremental Costs of Compliance

Case No.: U-17301 Exhibit: A-24 (DFR-6) Witness: DFRonk, Jr.

Date: May 2013 Page 3 of 3

Subject: Solar Meeting When: Tuesday, July 17, 2012 12:30 PM-2:30 PM (UTC-06:00) Central Time (US & Canada). Where: MPSC-Room-ConfRmC; MPSC-Resource/Speaker Phone1; MPSC-Resource/Conference Card 1

Follow-up to our May 31, 2012 meeting to discuss the future of Consumers Energy's solar program.

Dial In: (877) 336-1828

Access: 222-0392#

3

Page 35: Calculation of Incremental Costs of Compliance

Case No.: U-17301 Exhibit: A-25 (DFR-7) Witness: DFRonk, Jr.

Date: May 2013 Page 1 of 7

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lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-25
Page 36: Calculation of Incremental Costs of Compliance

Case No.: U-17301 Exhibit: A-25 (DFR-7) Witness: DFRonk, Jr.

Date: May 2013 Page 2 of 7

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Page 37: Calculation of Incremental Costs of Compliance

Case No.: U-17301 Exhibit: A-25 (DFR-7) Witness: DFRonk, Jr.

Date: May 2013 Page 3 of 7

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Page 38: Calculation of Incremental Costs of Compliance

Case No.: U-17301 Exhibit: A-25 (DFR-7) Witness: DFRonk, Jr.

Date: May 2013 Page 4 of 7

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Page 39: Calculation of Incremental Costs of Compliance

Case No.: U-17301 Exhibit: A-25 (DFR-7) Witness: DFRonk, Jr.

Date: May 2013 Page 5 of 7

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Page 40: Calculation of Incremental Costs of Compliance

Case No.: U-17301 Exhibit: A-25 (DFR-7) Witness: DFRonk, Jr.

Date: May 2013 Page 6 of 7

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Page 41: Calculation of Incremental Costs of Compliance

Case No.: U-17301 Exhibit: A-25 (DFR-7) Witness: DFRonk, Jr.

Date: May 2013 Page 7 of 7

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Page 42: Calculation of Incremental Costs of Compliance

Case No.: U-17301 Exhibit: A-26 (DFR-8) Witness: DFRonk, Jr.

Date: May 2013 Page 1 of 2

* DRAFT for discussion purposes only * Consumers Energy Solar Stakeholder Working Group Solar capacity factor 1200 MWh/MW Cost modeling for 50 MW solar program expansion contract length 15 years

7/17/2012 initial price (small) $ 0.24 per kWh

initial price (large) $ 0.22 per kWh

price adjustment $ 0.01 per block

Small Systems(< 20 kW)

New capacity Total generation Price I kWh Total cost %attributable Estimated ICC Cost/REC Block# (MW) (MWh) ($) ($M) to PSCR ($M) ($)

1 4 72000 $ 0.24 $ 17.3 33% $ 11.6 $ 161 2 4 72000 $ 0.23 $ 16.6 36% $ 10.5 $ 147 3 4 72000 $ 0.22 $ 15.8 40% $ 9.5 $ 132 4 4 72000 $ 0.21 $ 15.1 44% $ 8.5 $ 118 5 4 72000 $ 0.20 $ 14.4 48% $ 7.6 $ 105

TOTAL 20 360000 $ 79.2 $ 47.7 $ 133

Large systems (20-500 kW)

New capacity Total generation Price I kWh Total cost %attributable Estimated ICC Cost/ REC Block# (MW) (MWh) ($) ($M) to PSCR ($M) ($)

1 6 108000 $ 0.22 $ 23.8 36% $ 15.2 $ 141 2 6 108000 $ 0.21 $ 22.7 40% $ 13.7 $ 127 3 6 108000 $ 0.20 $ 21.6 44% $ 12.1 $ 112 4 6 108000 $ 0.19 $ 20.5 48% $ 10.6 $ 98 5 6 108000 $ 0.18 $ 19.4 53% $ 9.2 $ 85

TOTAL 30 540000 $ 108.0 $ 60.8 $ 113

Current ICC (U-16581) $ 457 million Current residential surcharge (U-16581) $ 0.52 dollars/month

Add'IICC due to expanded program $ 108 million Add'! residential surcharge due to expanded program $ 0.12 dollars/month

lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-26
Page 43: Calculation of Incremental Costs of Compliance

Case No.: U-17301 Exhibit: A-26 (DFR-8) Witness: DFRonk, Jr.

Date: May 2013 Page 2 of 2

Transfer Prices

$/MWh 2013 43.13

2014 44.83

2015 48.75

2016 64.91

2017 66.50

2018 69.29

2019 71.63

2020 74.10

2021 77.04

2022 80.01

2023 83.14

2024 87.14

2025 90.52

2026 93.26

2027 96.65

2028 100.31

2029 104.11

2030 107.23

2031 110.45

2032 113.76

2033 117.17

2034 120.69

Page 44: Calculation of Incremental Costs of Compliance

Case No.: U-17301 Exhibit: A-27 (DFR-9) Witness: DFRonk, Jr.

Date: May 2013 Page 1 of 4

~--" ...

David F. Ronk

From: Sent: To:

Subject:

Good Morning,

Madeleine Wei I < [email protected] >

Thursday, August 02, 2012 11:34 AM

Harlow, Jesse (LARA); Smith, Kristin (AG); Erickson, Donald (AG); Bradley Klein; Bzdok,

Christopher M; Farkas, Brian (AG); Marvin, David E. S.; David F. Rank; Baldwin, Julie

(LARA); Trachsel, Katherine A (LARA); Raymond E. McQuillan; Cook, Steven J (LARA);

Slaughter, Derrell E (LARA); Gottschalk, Daniel J (LARA); Dave Marvin; Sally A. Scripps;

[email protected]; KEITH G. TROYER; THOMAS P CLARK Solar Meeting Follow-Up (CECa EARP)

At our last meeting on July 1ih, I promised to circulate some examples of solar program application fees and contract termination clauses. Please review the information below and let me know if you have any questions.

Thank you,

Madeleine Wei I

Application Fees and Deposits

There are a couple different varieties of ways that program administrators assess fees ... I've tried to include a few examples of each. Sometimes they are just fees and non-fundable. Sometimes fees are refunded for projects that don't ultimately participate in the program, either because they don't win the bid, get in the queue fast enough, or because they are deemed ineligible. Sometimes fees are more accurately security deposits ... you get them back when your project goes in service. All of these are fees and/or deposits for the solar incentive programs only. Most utilities also have interconnection fees that are separate and additional to these.

Puerto Rico Green Energy Fund

o Application fee- not refundable

II 15-100 kW = $1000

II 100-300 kW = $2,000

II 300 kW-1 MW = $4,000

Long Island Power Authority

o Application fee- not refundable

II 50-150kW = $500

1

lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-27
Page 45: Calculation of Incremental Costs of Compliance

Case No.: U-17301 Exhibit: A-27 (DFR-9) Witness: DFRonk, Jr.

Date: May 2013 Page 2 of 4

r--_---

• 150-500kW = $1500

• 500kW and up = $5000

LA Dept of Water & Power

o Application fee- not refundable

• 30-150kW = $500

• 151-999kW = $1000

California Solar Initiative (includes PG&E, SDG&E, SCE)

o Application fee- returned if a project is deemed ineligible

• 10-50 kW = $1,250

• 50-100 kW = $2,500

• 100-250 kW = $5,000

• 250-500 kW = $10,000

• 500 kW-1 MW = $20,000

Delaware SREC program

o Application fee/Development deposit- returned if the bid is unsuccessful or upon proof that the project is completed within a one-year window.

o $100 per kW.(DC} of nameplate capacity.

Colorado- Xcel Energy

o Application fee- fully refundable if the project is completed within 12 months of application submission

• 10-500kW = $1500

Connecticut ZREC program

o Performance Assurance Deposit- assessed after contracts are signed and returned upon project commissioning

• 250kW-1MW = 20% ofthe max annual quantity of ZRECs multiplied by the purchase price,

• 100-250kW = 10% of the max annual quantity of ZRECs multiplied by the purchase price

2

Page 46: Calculation of Incremental Costs of Compliance

Case No.: U-17301 Exhibit: A-27 (DFR-9) Witness: DFRonk, Jr.

Date: May 2013 Page 3 of 4

'•

• <100kW = 5% of the max annual quantity of ZRECs multiplied by the purchase price

Arizona APS

o Development Deposit- due 30 days after incentive reservation is confirmed and returned upon project commissioning

• <200kW = $3000

• 200kW-500kW = $6000

• >SOOkW = $10,000

o A second deposit equal to 2% of the lifetime incentive funding is due 120 days after the incentive award notification (bond or letter of credit accepted)

Project Termination Clauses

The question we discussed at the meeting was: how do utilities/states deal with contract defaults or early termination? Again, there is quite a bit of variation. Most utilities allow for some delay in REC delivery (typically 12 months) after which the contract is considered in default. Here are some examples of default clauses for production based incentives:

Arizona APS: Seller must pay APS for the incremental additional cost of replacement RECs through the remainder ofthe contract term.

Colorado Xcel: Seller must pay Xcel the value of the remaining years of SRECs.

Arizona TEP: Seller must pay TEP back for ALL of the incentives already paid through the contract term.

Connecticut ZRECs: No penalty for early termination, seller just loses the value of the remainder of the contract period.

Indianapolis Power & Light: No penalty for early termination, seller just loses the value of the remainder ofthe contract period.

LIP A: No penalties ... No penalty for early termination, seller just loses the value of the remainder of the contract period.

Madeleine Wei!

3

Page 47: Calculation of Incremental Costs of Compliance

Case No.: U-17301 Exhibit: A-27 (DFR-9) Witness: DFRonk, Jr.

Date: May 2013 Page 4 of 4

[email protected]

4

Page 48: Calculation of Incremental Costs of Compliance

Case No.: U-17301 Exhibit: A-28 (DFR-10)

Witness: DFRonk, Jr. Date: May 2013

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Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-28
Page 49: Calculation of Incremental Costs of Compliance

Case No.: U-17301 Exhibit: A-28 (DFR-10)

Witness: DFRonk, Jr. Date: May 2013

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Page 50: Calculation of Incremental Costs of Compliance

Case No.: U-17301 Exhibit: A-28 (DFR-10)

Witness: DFRonk, Jr. Date: May 2013

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Page 51: Calculation of Incremental Costs of Compliance

Case No.: U-17301 Exhibit: A-28 (DFR-10)

Witness: DFRonk, Jr. Date: May 2013

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Case No.: U-17301 Exhibit: A-28 (DFR-10)

Witness: DFRonk, Jr. Date: May 2013

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Page 53: Calculation of Incremental Costs of Compliance

Case No.: U-17301 Exhibit: A-28 (DFR-10)

Witness: DFRonk, Jr. Date: May 2013

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Page 54: Calculation of Incremental Costs of Compliance

Case No.: U-17301 Exhibit: A-28 (DFR-10)

Witness: DFRonk, Jr. Date: May 2013

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Page 55: Calculation of Incremental Costs of Compliance

Case No.: U-17301 Exhibit: A-28 (DFR-10)

Witness: DFRonk, Jr. Date: May 2013

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Page 56: Calculation of Incremental Costs of Compliance

Case No.: U-17301 Exhibit: A-28 (DFR-10)

Witness: DFRonk, Jr. Date: May 2013

Page 9 of 9

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Page 57: Calculation of Incremental Costs of Compliance

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lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-29
Page 58: Calculation of Incremental Costs of Compliance

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.62

75.6

778

.80

80.9

69

Sep

33.6

335

.80

37.7

745

.51

45.7

147

.29

49.4

551

.62

54.3

455

.98

58.6

860

.15

61.4

164

.24

65.5

967

.81

70.6

310

Oct

32.3

133

.92

35.6

642

.37

42.8

543

.08

45.5

248

.14

49.9

851

.89

54.2

856

.25

57.0

459

.58

60.7

062

.98

65.5

911

Nov

32.2

634

.86

36.4

942

.78

44.2

244

.74

46.8

149

.45

51.1

952

.76

55.8

657

.23

58.2

661

.11

62.3

264

.11

66.8

412

Dec

36.1

337

.32

39.4

650

.51

48.0

250

.24

54.3

153

.89

56.4

360

.24

60.7

262

.36

64.7

866

.46

67.6

270

.60

71.6

013

Ann

ual*

34.9

335

.86

38.1

444

.24

45.8

547

.07

49.4

051

.15

53.9

856

.13

58.2

960

.14

61.6

463

.83

65.1

967

.64

69.7

2*

May

-Dec

onl

y fo

r 201

3

Mon

th20

1320

1420

1520

1620

1720

1820

1920

2020

2120

2220

2320

2420

2520

2620

2720

2820

2914

Jan

-38

.56

41.7

543

.37

54.9

053

.38

54.7

656

.15

58.8

060

.48

62.8

663

.80

64.5

567

.45

68.0

870

.39

72.3

915

Feb

-38

.11

41.2

141

.30

52.7

152

.16

53.4

453

.13

58.1

759

.80

61.2

860

.31

63.3

265

.86

66.7

067

.07

70.4

216

Mar

-35

.20

37.5

439

.95

46.0

946

.21

47.3

449

.97

51.8

653

.10

55.5

857

.88

58.6

460

.40

62.1

664

.77

66.6

417

Apr

-34

.32

36.5

943

.28

43.2

944

.70

45.2

246

.43

49.6

750

.51

54.3

559

.75

57.2

058

.43

60.5

363

.24

64.6

518

May

34.3

635

.96

37.2

849

.23

46.5

849

.30

49.7

950

.37

54.7

157

.25

56.5

758

.50

61.1

462

.70

63.7

166

.61

67.2

819

Jun

42.7

342

.30

45.5

357

.51

55.9

957

.45

62.1

562

.31

66.0

269

.96

69.6

071

.22

75.2

075

.84

77.3

882

.01

82.3

120

Jul

45.5

946

.41

49.9

360

.31

60.2

862

.32

65.8

168

.41

72.0

574

.65

77.0

979

.05

80.9

684

.13

85.2

988

.55

90.6

121

Aug

50.0

450

.39

54.7

666

.20

65.7

867

.64

70.3

773

.21

77.4

279

.81

82.4

083

.84

84.9

589

.60

90.1

794

.31

96.4

522

Sep

38.3

039

.99

41.8

953

.24

52.7

454

.35

56.5

758

.35

61.5

062

.78

65.2

366

.34

67.5

371

.05

72.2

574

.75

77.7

723

Oct

35.6

636

.37

38.1

148

.35

48.0

147

.24

49.6

852

.14

53.6

555

.23

57.2

858

.99

59.2

262

.33

63.0

165

.39

68.2

024

Nov

35.5

037

.42

39.0

848

.23

49.4

949

.21

50.8

953

.50

54.6

855

.60

58.8

059

.32

59.9

563

.45

64.1

065

.77

68.6

225

Dec

41.2

241

.11

43.4

759

.69

55.2

757

.71

62.7

459

.94

62.3

767

.15

65.7

366

.69

69.4

871

.03

71.5

875

.26

74.8

826

Ann

ual*

40.4

339

.68

42.2

650

.89

52.5

953

.47

55.7

356

.99

60.0

862

.19

63.9

065

.47

66.8

569

.36

70.4

173

.18

75.0

2*

May

-Dec

onl

y fo

r 201

3

Mon

th20

1320

1420

1520

1620

1720

1820

1920

2020

2120

2220

2320

2420

2520

2620

2720

2820

2927

Jan

-32

.88

35.3

836

.99

41.6

542

.56

44.9

447

.51

50.1

352

.20

55.1

757

.20

58.9

160

.89

62.6

164

.67

67.3

128

Feb

-33

.18

35.6

436

.22

41.9

643

.08

45.3

946

.55

50.4

052

.43

55.1

356

.58

59.1

161

.06

62.6

764

.35

67.1

529

Mar

-31

.72

33.8

535

.97

38.9

440

.36

42.6

645

.33

47.7

049

.97

52.6

455

.15

56.4

858

.23

60.1

562

.79

64.7

230

Apr

-31

.12

33.1

935

.94

36.9

038

.60

40.6

943

.00

45.4

147

.14

50.4

652

.92

53.5

055

.35

57.1

459

.12

61.3

731

May

28.3

530

.95

32.4

636

.46

37.0

039

.04

41.1

943

.06

46.1

748

.08

49.8

952

.03

54.0

655

.51

57.1

159

.17

61.1

432

Jun

29.7

531

.65

33.6

938

.30

38.3

339

.99

42.8

644

.32

46.8

649

.56

51.1

553

.18

55.3

756

.43

58.0

860

.82

62.4

733

Jul

30.9

933

.45

35.4

541

.62

41.8

343

.55

45.8

448

.04

50.4

952

.66

55.0

257

.11

58.5

460

.73

62.2

064

.50

66.6

934

Aug

30.9

933

.62

35.5

441

.47

41.7

543

.50

45.7

848

.02

50.5

652

.67

55.1

957

.31

58.6

761

.01

62.4

964

.70

66.8

735

Sep

29.3

831

.99

34.0

338

.49

39.3

240

.86

42.9

745

.50

47.8

249

.81

52.7

254

.53

55.8

458

.05

59.5

361

.50

64.1

436

Oct

29.2

531

.69

33.4

336

.93

38.1

739

.31

41.7

444

.50

46.6

548

.86

51.5

653

.76

55.0

757

.08

58.6

060

.80

63.2

137

Nov

29.3

232

.54

34.1

437

.83

39.4

240

.67

43.1

045

.77

48.0

250

.17

53.1

955

.32

56.7

258

.99

60.7

062

.61

65.2

338

Dec

31.5

033

.88

35.8

042

.16

41.4

243

.45

46.6

548

.38

51.0

453

.96

56.1

758

.43

60.5

162

.30

64.0

266

.36

68.6

239

Ann

ual*

29.9

432

.39

34.3

838

.20

39.7

241

.25

43.6

545

.83

48.4

450

.63

53.1

955

.29

56.9

058

.80

60.4

462

.62

64.9

1*

May

-Dec

onl

y fo

r 201

3

Fore

cast

ed E

nerg

y Va

lue

May

201

3 - 2

029

24 x

7 A

vera

ge ($

/MW

h)

On-

Peak

Ave

rage

($/M

Wh)

Off-

Peak

Ave

rage

($/M

Wh)

Page 59: Calculation of Incremental Costs of Compliance

MIC

HIG

AN

PU

BLI

C S

ER

VIC

E C

OM

MIS

SIO

NC

ase

No:

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7301

Exh

ibit:

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OM

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3P

age:

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Line

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(b)

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(d)

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(f)(g

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(j)(k

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120

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68,

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9,26

79,

599

9,59

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599

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599

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599

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7,59

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9,59

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599

9,59

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599

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2020

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39,

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10,3

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10,3

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10,6

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10,6

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10,6

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10,6

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11,0

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11,0

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11,8

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12,3

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12,3

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12,3

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12,7

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Not

es:

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Cal

enda

r Yea

r val

ue fo

r 201

3 is

bas

ed o

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ay-D

ecem

ber o

nly.

[2]

All

pric

es a

bove

are

bas

ed o

n U

nfor

ced

Cap

acity

(UC

AP

), no

t Ins

talle

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atin

gs.

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alue

May

201

3 - 2

029

Page 60: Calculation of Incremental Costs of Compliance

MICHIGAN PUBLIC SERVICE COMMISSION Case No.: U-17301CONSUMERS ENERGY COMPANY Exhibit A-30 (MHR-1R)

Witness: MHRossDate: July 2013Page: 1 of 1

Calculation of the Revised Renewable Energy Plan Rate Design Target ($000)

( b ) ( c )Projected REP REP Rate

Line No. ICC Costs (1) Design Target (2)

1 2009 Hist 628$ 25,649$ 2 2010 Hist 1,596 77,128 3 2011 Hist (588) 58,791 4 2012 Hist 20,044 20,561 5 2013 Fcst 23,826 18,672 6 2014 Fcst 33,367 9,336 7 2015 Fcst 19,237 - 8 2016 Fcst 15,695 - 9 2017 Fcst 13,546 - 10 2018 Fcst 8,915 - 11 2019 Fcst 4,517 - 12 2020 Fcst 548 - 13 2021 Fcst 888 - 14 2022 Fcst 11,750 - 15 2023 Fcst 12,060 - 16 2024 Fcst 10,173 - 17 2025 Fcst 23,071 - 18 2026 Fcst 16,219 - 19 2027 Fcst 11,055 - 20 2028 Fcst 5,098 - 21 2029 Fcst (1,024) -

230,619$ 210,138$

22 Current REP Surcharges 210,138$ 23 Revised REP Surcharges 0

210,138$

NotesICC - Incremental Cost of Compliance(1) Exhibit A-1 (MRB-1R), line 14, page 1 & 2(2) WP-MRB-2R

Year

( a )

lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-30
Page 61: Calculation of Incremental Costs of Compliance

MIC

HIG

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MIS

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lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-31
Page 62: Calculation of Incremental Costs of Compliance

MICHIGAN PUBLIC SERVICE COMMISSION Case No.: U-17301CONSUMERS ENERGY COMPANY Exhibit A-32 (MHR-3R)

Witness: MHRossDate: July 2013Page: 1 of 1

Comparison of Present and Revised Renewable Energy Plan Surcharges

( a ) ( b ) ( c ) ( d ) ( e )Present Revised

Line No. Units Surcharge Surcharge Surcharge Percent($/Unit) ($/Unit) ($/Unit) (%)

1 Residential Class Bills 0.52 0.00 (0.52) -100.0%

Secondary Class2 Tier 1 (0 - 1,250 kWh) Bills 0.90 0.00 (0.90) -100.0%3 Tier 2 (1,251 - 5,000 kWh) Bills 3.60 0.00 (3.60) -100.0%4 Tier 3 (5,001 - 30,000 kWh) Bills 7.20 0.00 (7.20) -100.0%5 Tier 4 (30,001 - 50,000 kWh) Bills 10.80 0.00 (10.80) -100.0%6 Tier 5 (Above 50,000 kWh) Bills 14.40 0.00 (14.40) -100.0%

Primary Class7 Tier 1 (0 - 5,000 kWh) Bills 3.60 0.00 (3.60) -100.0%8 Tier 2 (5,001 - 10,000 kWh) Bills 10.80 0.00 (10.80) -100.0%9 Tier 3 (10,001 - 30,000 kWh) Bills 18.00 0.00 (18.00) -100.0%10 Tier 4 (30,001 - 50,000 kWh) Bills 36.00 0.00 (36.00) -100.0%11 Tier 5 (Above 50,000 kWh) Bills 90.00 0.00 (90.00) -100.0%

Lighting & Unmetered Class12 Unmetered Lighting GUL Luminaire 0.25 0.00 (0.25) -100.0%13 Metered Lighting GML14 Tier 1 (0 - 1,250 kWh) Bills 0.90 0.00 (0.90) -100.0%15 Tier 2 (1,251 - 5,000 kWh) Bills 1.80 0.00 (1.80) -100.0%16 Tier 3 (Above 5,000 kWh) Bills 2.70 0.00 (2.70) -100.0%

Unmetered Service GU17 Tier 1 (0 - 1,250 kWh) Bills 0.20 0.00 (0.20) -100.0%18 Tier 2 (1,251 - 5,000 kWh) Bills 0.80 0.00 (0.80) -100.0%19 Tier 3 (Above 5,000 kWh) Bills 1.40 0.00 (1.40) -100.0%

DescriptionDifference

lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-32
Page 63: Calculation of Incremental Costs of Compliance

M.P.S.C. No. 13 - Electric Consumers Energy Company Sheet No. D-2.10

SURCHARGES

Energy Efficiency Renewable Energy Energy Efficiency Self-Directed Plan Surcharge Electric Program Surcharge Customer Surcharge (Case No. U-17301) (Case No. U-16736) (Case No. U-16670) Effective beginning the Effective beginning the Effective beginning the Rate Schedule July 2014 Bill Month(5) June 2013 Bill Month(3) June 2012 Bill Month (2)

Residential Rates $ 0.00/billing meter $0.002579/kWh NA Rate GS and GSD (1)

Tier 1: 0 – 1,250 kWh/mo. $ 0.00/billing meter $ 1.49/billing meter $ 0.04/billing meter Tier 2: 1,251 – 5,000 kWh/mo. $ 0.00/billing meter $ 8.11/billing meter $ 0.20/billing meter Tier 3: 5,001 – 30,000 kWh/mo. $ 0.00/billing meter $ 48.76/billing meter $ 1.17/billing meter Tier 4: 30,001 – 50,000 kWh/mo. $ 0.00/billing meter $ 48.76/billing meter $ 1.17/billing meter Tier 5: > 50,000 kWh/mo. $ 0.00/billing meter $ 48.76/billing meter $ 1.17/billing meter Rate GP, GPD and MMPP (1)

Tier 1: 0 – 5,000 kWh/mo. $ 0.00/billing meter $ 3.99/billing meter $ 0.10/billing meter Tier 2: 5,001 – 10,000 kWh/mo. $ 0.00/billing meter $ 29.44/billing meter $ 0.72/billing meter Tier 3: 10,001 – 30,000 kWh/mo. $ 0.00/billing meter $ 76.89/billing meter $ 1.80/billing meter Tier 4: 30,001 – 50,000 kWh/mo. $ 0.00/billing meter $175.91/billing meter $ 4.26/billing meter Tier 5: > 50,000 kWh/mo. $ 0.00/billing meter $802.80/billing meter $17.49/billing meter Rate E-1 NA NA NA Rate GSG-1 NA NA NA Rate GSG-2 NA NA(4) NA Rate GML Tier 1: 0 – 1,250 kWh/mo. $ 0.00/billing meter NA NA Tier 2: 1,251 – 5,000 kWh/mo. $ 0.00/billing meter NA NA Tier 3: >5,000 kWh/mo. $ 0.00/billing meter NA NA Rate GUL $ 0.00/luminaire NA NA Rate GU-XL $ 0.00/luminaire NA NA Rate GU Tier 1: 0 – 1,250 kWh/mo. $ 0.00/billed account NA NA Tier 2: 1,251 – 5,000 kWh/mo. $ 0.00/billed account NA NA Tier 3: >5,000 kWh/mo. $ 0.00/billed account NA NA Rate PA NA NA NA Rate ROA-R, ROA-S, ROA-P NA As in Delivery Rate Schedule As in Delivery Rate Schedule

All Surcharges shall be applied on a monthly basis. The customer’s consumption will be reviewed annually in the January bill month. Following the annual review, the customer may be subsequently moved to the Surcharge level for their applicable rate for the next billing period based on the customer’s average consumption for the previous year. In situations where no historical consumption is available, the monthly Surcharge level will be based on the lowest consumption category for the secondary rate schedules or the lowest consumption category for primary rate schedules. No retroactive adjustment will be made due to the application of the REP or EE Surcharges associated with increases or decreases in consumption. (1) Municipal Pumping customers shall be excluded from the Renewable Energy Plan Surcharge. (2)An eligible customer who files and implements a self-directed plan in compliance with Rule C12 is required to pay the Energy Efficiency Self-Directed

Program Surcharge. (3)An Energy Efficiency Program Surcharge will be in effect for the period of the June 2009 Bill Month through the December 2015 Bill Month. The amount

may vary during specific months as authorized by the Michigan Public Service Commission. Applicable cases include Case Nos. U-15805, U-16302, U-16303, U-16412, U-16670 and U-16736. The Surcharge for the period of the June 2012 Bill Month through the May 2013 Bill Month includes a financial incentive award approved by the Michigan Public Service Commission in Case No. U-16736. The Company will file a new tariff sheet to reflect the change in surcharges once the financial incentive recovery period has been completed.

(4)Rate GSG-2 Customers are eligible to opt-in to the Energy Efficiency Electric Program Surcharge for a two year pilot program beginning with the June 2012 bill month. A GSG-2 customer electing to participate in the Energy Efficiency Electric Program will be charged the GPD, Tier 5: > 50,000 kWh/mo rate of $802.80 per billing meter per month.

(5)A Renewable Energy Plan Surcharge will be in effect for the period of the September 2009 Bill Month through the August 2029 Bill Month. The amount may vary during specific months as authorized by the Michigan Public Service Commission. Applicable cases include Case Nos. U-15805, U-16543, U-16581 and U-17301.

Issued XXXXXX XX, 20XX by Effective for bills rendered on and after J. G. Russell, the Company’s July 2014 Bill Month President and Chief Executive Officer, Jackson, Michigan Issued under authority of the Michigan Public Service Commission dated XXXXXX XX, 20XX in Case No. U-17301

Case No.: U-17301 Exhibit: A-33 (MHR-4R)

Witness: MHRoss Date: July 2013

Page 1 of 1

lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-33
Page 64: Calculation of Incremental Costs of Compliance

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lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-34
Page 65: Calculation of Incremental Costs of Compliance

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lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-35
Page 66: Calculation of Incremental Costs of Compliance

 

M.P.S.C. No. 13 - Electric Consumers Energy Company Sheet No. C-48.00

(Continued From Sheet No. C-47.00)

C10. RENEWABLE ENERGY PLAN (REP) (Contd)

C10.2 Green Generation Program (Contd)

I. Customer Termination from the Green Generation Program

(3) The customer has not met the payment terms and conditions as required under the Green Generation Program, in which case the customer shall remain liable for contracted amounts,

(4) The customer selects an alternate energy supplier after meeting all contract terms executed under the Green Generation Program, and/or

(5) The customer is no longer a customer in the Company's service territory.

J. Company Termination of the Green Generation Program

Company termination of the Green Generation Program may occur under the following cases:

(1) Renewable Energy Resources are unavailable or cannot be procured to serve the program,

(2) The expenses of the Green Generation Program exceed the revenues collected from the Green Generation Program Fund or any other Green Generation Program pre-established revenue sources,

(3) Federal and/or State laws are established that may make the Green Generation Program unnecessary, noncompliant, or in need of revision,

(4) There is insufficient interest and/or participation by customers as compared to the time and costs involved in offering the Green Generation Program, and/or

(5) Other reasons not contemplated, as discussed with the Commission and agreed upon as sufficient to terminate the Green Generation Program.

C10.3 Experimental Advanced Renewable Program (AR Program)

The purpose of this rule is to develop and test programs to enable the development of Michigan's renewable energy resources. The Experimental Advanced Renewable Program (AR Program) offered between July 1, 2009 and July 1, 2011 consists of approximately 2 MW and is closed to new business. The AR Program offered between October 1, 2011 and December 31, 2015 consists of approximately 3.25 MW. As Ordered in Case No. U-16543 dated July 26, 2011, initially 1500 kW is reserved for residential customers and 1500 kW is reserved for Non-Residential customers. As orderd in Case No. U-17301, dated XXXXXX XX, 2014, the AR Program consists of approximately 4 MW with 2000 kW reserved for residential, including the Developer Program and 2000 kW reserved for the Non-Residential customers.

A customer participating in the AR Program is required to install and operate an eligible generation system with direct current nameplate capacity of no less than 1 kW and no more than 150 kW, except that any residential customer participating in this program is required to install and operate an eligible generation system with direct current nameplate capacity no greater than 20 kW. A customer participating in the AR Program is required to install and operate an eligible generation system that when combined with all other customer owned generation systems serving the customer's premises meets the eligibility criteria for net metering in Rule B8 of this Electric Rate Book, Electric Interconnection and Net Metering Standards,

R 460.640. The Company reserves the right to extend, modify or terminate the experimental program.

A customer participating in the AR Program under this rate is not eligible to participate in the Company’s Net Metering program with a system contracted to provide output to the Company under the AR Program. Tax exempt entities are not eligible to sell electricity to the Company under the AR Program's residential rates. Customers with unsatisfactory payment history on their delivery account are not eligible to participate. An individual or entity served under this rate relinquishes any rights to market or sell Renewable Energy Credits (RECs) including Michigan RECs, Michigan Incentive RECs and Federal RECs associated with any energy sold to the Company under this program. The Company shall own and use the RECs created.

(Continued on Sheet No. C-48.10) Issued XXXXXX XX, 2014 Effective for service rendered on J.G. Russell, and after XXXXXX XX, 2014 President and Chief Executive Officer Jackson, Michigan Issued under authority of the Michigan Public Service Commission dated XXXXXX XX, 2014 in Case No. U-17301

Case No.: U-17301 Exhibit: A-36 (DFR-11)

Witness: DFRonk Date: July 2013

Page 1 of 8

lhblair
Text Box
Case: U-17301 Hearing Date: 11-6-2013 Exhibit: A-36
Page 67: Calculation of Incremental Costs of Compliance

 

M.P.S.C. No. 13 - Electric Consumers Energy Company Sheet No. C-48.10

(Continued From Sheet No. C-48.00)

C10. RENEWABLE ENERGY PLAN (REP) (Contd)

C10.3 Experimental Advanced Renewable Program (AR Program) (Contd)

A Developer Program is offered by the Company for eligible developers integrating photovoltaic solar electricity generating systems into residential construction projects. Residential construction projects must be new construction on vacant properties in order to qualify for the Developer Program. Capacity for the Developer Program is allocated from the total capacity reserved for residential customers.

A. Eligible Equipment

To participate in the program, an individual or entity must be capable of generating electricity from natural sunlight through a photovoltaic solar electricity generating system owned by the customer constructed using Michigan workforce labor, or using equipment made in the State of Michigan and must then transmit all energy generated on the premises by such equipment to the Company's distribution system and sell such energy to the Company. The individual or applicant applying to participate shall be required to provide evidence of eligibility.

(1) To qualify as a solar energy system constructed using Michigan workforce labor: Michigan labor shall be calculated by dividing the number of labor hours attributed to the construction (defined as in-field labor) of the renewable energy system performed by residents of the state of Michigan by the total labor hours attributed to the construction of the renewable energy system. The calculation must achieve a minimum of 60% for systems completed on or before December 31, 2012, 65% for systems completed after December 31, 2012 but on or before December 31, 2014 and 70% for systems completed after December 31, 2014 to qualify for inclusion in the program.

(2) To qualify as a solar energy system constructed using equipment made in the state of Michigan: Michigan made equipment shall be calculated by dividing the U.S. dollar cost of all equipment and materials made (defined as manufactured or assembled) in the state of Michigan by the total U.S. dollar cost of all equipment and materials used to construct the renewable energy system. The calculation must achieve a minimum of 50% for the solar energy system to qualify for inclusion in the program.

(3) Equipment must be certified by a nationally recognized testing laboratory to IEEE 1547.1 testing standards and in compliance with UL 1741 scope 1.1A, effective May 7, 2007, and its installation must meet all current local and state electric and construction code requirements. See the requirements of Rule B1 of this Electric Rate Book, Technical Standards for Electric Service, R 460.3101 - 460.3908.

B. Distribution Requirements

(1) All facilities operated in parallel with the Company’s system must meet the Parallel Operation Requirements set forth in Rule C1.6 B. The Company shall own, operate and maintain all metering and auxiliary devices (including any telecommunication links, if applicable). Meters furnished, installed and maintained by the Company shall meter generation equipment for customers that sell energy to the Company.

(2) Energy delivered to the Company shall be alternating current, 60-hertz, single-phase or three-phase (as governed by Rule B8. Electric Interconnection and Net Metering Standards) Secondary Voltage service. The Company will determine the particular nature of the voltage in each case. The Company may discontinue purchases during system emergencies, maintenance and other operational circumstances.

(3) Energy and Demand Registering Meters are required for each generating unit served under this rate. For a customer with a secondary system in which the Company elects to measure the service on the primary side of any transformers, 3% shall be deducted for billing purposes from the energy measurements thus made. For a customer with a primary system in which the Company elects to measure the service on the secondary side of any transformers, 3% shall be added for billing purposes from the energy measurements thus made.

(Continued on Sheet No. C-48.20) Issued XXXXXX XX, 2014 Effective for service rendered on J.G. Russell, and after XXXXXX XX, 2014 President and Chief Executive Officer Jackson, Michigan Issued under authority of the Michigan Public Service Commission dated XXXXXX XX, 2014 in Case No. U-17301

Case No.: U-17301 Exhibit: A-36 (DFR-11)

Witness: DFRonk Date: July 2013

Page 2 of 8

Page 68: Calculation of Incremental Costs of Compliance

 

M.P.S.C. No. 13 - Electric Consumers Energy Company Sheet No. C-48.30

(Continued From Sheet No. C-48.20)

C10. RENEWABLE ENERGY PLAN (REP) (Contd)

C10.3 Experimental Advanced Renewable Program (AR Program) (Contd)

C. Allocation (Contd)

(1) Allocation of contracts to serve generation associated with residential customers:

(a) There shall be four quarterly allocation cycles conducted each year in which 125 175 kW shall be allocated to residential customers in each allocation cycle. In the event application capacity exceeds the allocation cycle offered capacity, capacity shall be awarded based on a random selection from valid residential applications submitted for that allocation cycle.

(b) The Developer Program is included in the residential AR Program. There shall be three separate 75 kW phases that will be held semi-annually. Developers must apply to reserve residential capacity, with a minimum fee of $350. All fees collected will be placed into the remaining AR fund, the fees for the non-awarded developers will be returned to them.. If there is more capacity reserved than available during the primary developer application period, a secondary auction will be held with the eligible developers that submitted applications during the primary application period. Developers will be granted six months from the time of award to secure residential participants from their reserved capacity allotment. Any capacity not assigned to a new residential construction home within six months of award will be forfeited. Projects will have one year from the end of the six month award window to complete construction and achieve commercial operation of the generating system.

(2) Allocation of contracts to serve generation associated with Non-Residential customers: There shall be two semi-annual allocation cycles conducted each year in which 250 750 kW shall be allocated to Non-Residential customers in each allocation cycle. In the event application capacity exceeds the allocation cycle offered capacity, capacity shall be awarded based on a random selection from the valid Non-Residential applications submitted for that allocation cycle.

Beginning June 30, 2013, the frequency of Non Residential allocations will be increased to quarterly, if the amount of remaining capacity allocated to Non Residential systems is sufficient to allow no less than two 150 kW systems to be provisionally awarded in each allocation phase.

(3) The Company may evaluate the capacity allocated to Non-Residential and residential customers at each allocation cycle, based on applications, awards, and/or connected systems of prior allocation cycles. Should the demand for a class of customer be significantly less than the allocation capacity reserved for the class, the capacity awarded by class may be modified by the Company.

(4) A customer may only submit one application per allocation cycle for each account. A customer may be awarded more than one contract through various allocation cycles. However, each allocation must be separately metered by the Company and shall require a separate system access charge. The sum of the direct current nameplate capacity of the systems installed may not exceed the amount of capacity eligible based on the customer's delivery account.

(5) The Company shall provide notice to each applicant regarding the status of their application. Applicants selected will be conditionally awarded contingent upon the following:

(a) Submission of an interconnection application and execution of a renewable energy purchase agreement, within a number of days specified by the Company. The renewable energy purchase agreement will become effective upon receipt by the Company of a generator interconnection operating agreement and detailed data regarding the solar generation system from the customer, including but not limited to the manufacturer and model number of the solar panels and inverter and number of solar panels and inverters, and a meter read obtained by Company personnel following notification from the participating customer that the system is ready to operate.

(b) Submission of evidence of financing, equipment purchase, or an otherwise binding obligation to purchase and install the solar generating system, within a number of days specified by the Company.

(6) In the event that a customer is awarded a contract and subsequently fails to perform in accordance with the terms of the program, the capacity allocated to that contract shall be awarded to other qualified customers in a subsequent allocation cycle.

(Continued on Sheet No. C-48.40)

Issued XXXXXX XX, 2014 Effective for service rendered on J.G. Russell, and after XXXXXX XX, 2014 President and Chief Executive Officer Jackson, Michigan Issued under authority of the Michigan Public Service Commission dated XXXXXX XX, 2014 in Case No. U-17301

Case No.: U-17301 Exhibit: A-36 (DFR-11)

Witness: DFRonk Date: July 2013

Page 3 of 8

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M.P.S.C. No. 13 - Electric Consumers Energy Company Sheet No. C-48.40

(Continued from Sheet No. C-48.30)

C10. RENEWABLE ENERGY PLAN (REP) (Contd) C10.3 Experimental Advanced Renewable Program (AR Program) (Contd) D. Contractual Price

For participants in the AR Program as offered between July 1, 2009 and July 1, 2011, the contractual price is as stated on Experimental Advanced Renewable Program AR Rate Schedule.

For participants in the AR Program as offered beginning October 1, 2011, the price to be paid by the Company for the generation of renewable energy shall not be less than $0.20 per kWh and shall not exceed $0.26 per kWh. The price for the initial allocation cycle shall be $0.229 per kWh for Non-Residential applications and $0.259 per kWh for residential applications.

For participants in the AR Program with contracts awarded after June 30, 2013, the minimum price of $0.20 per kWh shall not apply.

For participants in the Developer Program, the contractual price will be the rate offered in the residential phase that directly follows the developer solicitation.

In subsequent allocation cycles, the price may be adjusted by the Company at its sole discretion based on the amount of capacity included in valid applications for the prior allocation cycle. For each five percent increment that the amount of capacity exceeded the amount of capacity solicited in the prior allocation cycle and the current allocation cycle, the price shall be reduced by $0.001 per kWh except that the price reduction shall be no more than $0.010 per kWh from one allocation cycle to the next allocation cycle. For each ten percent increment that the amount of capacity was less than the amount of capacity offered in that allocation, the price shall be increased by $0.001 per kWh. The price shall not be less than $0.20 per kWh or exceed $0.26 per kWh. For contracts awarded after June 30, 2013, the minimum price of $0.20 per kWh shall not apply.

Participants providing service with a generating system constructed after October 1, 2011 that qualify for both the Michigan Labor and Michigan Material requirements shall be awarded an incentive price of $0.001 per kWh for all energy delivered.

E. Termination of Agreements

In the event that the customer ceases to operate the equipment or ownership of the equipment changes, then the customer should notify the Company of the circumstances and provide notice of the need to terminate the agreement. The premises and/or the customer referenced within a contractual agreement for service under this program may be restricted from participating in the program until after the original date set for expiration of the agreement.

C10.4 Experimental Advanced Renewable Program – Anaerobic Digestion Program (AD Program)

The purpose of this rule is to develop and test programs to enable the development of Michigan's renewable energy resources. The program is designed to purchase renewable energy from generators utilizing anaerobic digestion technology. The AD Program consists of approximately 2.4 MW.

A customer participating in the AD Program is required to install and operate an eligible generation system with direct current nameplate capacity of no less than 150 kW and no more than 1 MW. The Company reserves the right to extend, modify or terminate the experimental program.

A customer participating in the AD Program under this rate is not eligible to participate in the Company’s Net Metering program with a system contracted to provide output to the Company under the AD Program. Customers with unsatisfactory payment history on their delivery account are not eligible to participate. An individual or entity served under this rate relinquishes any rights to market or sell Renewable Energy Credits (RECs) including Michigan RECs, Michigan Incentive RECs and Federal RECs associated with any energy sold to the Company under this program. The Company shall own and use the RECs created.

(Continued on Sheet No. C-48.50)

Issued XXXXXX XX, 2014 Effective for service rendered on J.G. Russell, and after XXXXXX XX, 2014 President and Chief Executive Officer Jackson, Michigan Issued under authority of the Michigan Public Service Commission dated XXXXXX XX, 2014 in Case No. U-17301

Case No.: U-17301 Exhibit: A-36 (DFR-11)

Witness: DFRonk Date: July 2013

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M.P.S.C. No. 13 - Electric Consumers Energy Company Sheet No. C-48.50

(Continued from Sheet No. C-48.40)

C10.4 Experimental Advanced Renewable Program – Anaerobic Digestion Program (AD Program) (Cont)

A. Eligible Equipment

To participate in the program, an individual or entity must own an anaerobic digestion system capable of generating electricity through methane produced from waste. The system must transmit all energy generated on the premises by such equipment to the Company's distribution system and sell such energy to the Company. The individual or applicant applying to participate shall be required to provide evidence of eligibility.

(1) Equipment must be certified by a nationally recognized testing laboratory to IEEE 1547.1 testing standards and in compliance with UL 1741 scope 1.1A, effective May 7, 2007, and its installation must meet all current local and state electric and construction code requirements. See the requirements of Rule B1 of this Electric Rate Book, Technical Standards for Electric Service, R 460.3101 - 460.3908.

B. Distribution Requirements

(1) All facilities operated in parallel with the Company’s system must meet the Parallel Operation Requirements set forth in Rule C1.6 B. The Company shall own, operate and maintain all metering and auxiliary devices (including any telecommunication links, if applicable). Meters furnished, installed and maintained by the Company shall meter generation equipment for customers that sell energy to the Company.

(2) Energy delivered to the Company shall be alternating current, 60-hertz, single-phase or three-phase (as governed by Rule B8. Electric Interconnection and Net Metering Standards) Secondary Voltage service. The Company will determine the particular nature of the voltage in each case. The Company may discontinue purchases during system emergencies, maintenance and other operational circumstances.

(3) Energy and Demand Registering Meters are required for each generating unit served under this rate. For a customer with a secondary system in which the Company elects to measure the service on the primary side of any transformers, 3% shall be deducted for billing purposes from the energy measurements thus made. For a customer with a primary system in which the Company elects to measure the service on the secondary side of any transformers, 3% shall be added for billing purposes from the energy measurements thus made.

(4) The customer must meet the Interconnection Standards referenced in Rule B8 of this Electric Rate Book, Electric Interconnection and Net Metering Standards, R 460.615 - R 460.628, for the class of generator installed. Additionally, an electric utility may study, confirm, and ensure that an eligible electric generator installation at the customer's site meets the IEEE 1547 anti-islanding requirements. Utility testing and approval of the interconnection and execution of a parallel operating agreement must be completed prior to the equipment operating in parallel with the distribution system of the utility.

(5) The customer is required to obtain the characteristics of service from the Company prior to the installation of equipment. The Company shall provide the characteristics in writing upon request. In the event that the equipment proposed for connection is not compatible with these characteristics, the Company shall have no obligation to modify its distribution system or provide any monetary compensation to the customer. The equipment shall be installed on the same premises to which energy is delivered to the customer, or on land contiguous to the premises to which energy is delivered to the customer that is owned by the customer or which the customer has a documented long-term lease in a format acceptable to the Company.

(Continued on Sheet No. C-48.60)

Issued XXXXXX XX, 2014 Effective for service rendered on J.G. Russell, and after XXXXXX XX, 2014 President and Chief Executive Officer Jackson, Michigan Issued under authority of the Michigan Public Service Commission dated XXXXXX XX, 2014 in Case No. U-17301

Case No.: U-17301 Exhibit: A-36 (DFR-11)

Witness: DFRonk Date: July 2013

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M.P.S.C. No. 13 - Electric Consumers Energy Company Sheet No. C-48.60

(Continued from Sheet No. C-48.50)

C10.4 Experimental Advanced Renewable Program – Anaerobic Digestion Program (AD Program) (Cont)

B. Distribution Requirements (Cont)

(6) Distribution facilities to which the equipment is connected shall be secondary. Any service facilities shall be dedicated to the generator and shall not be shared with those providing service to any customer. The Company shall determine the characteristics of service. Should the installation of new Company distribution facilities be necessary for the equipment, all costs for the distribution facilities installed may be charged to the applicant in advance of construction as a nonrefundable contribution. Necessary overhead service facilities shall be provided at no cost to the applicant. If the applicant desires underground service facilities, the difference in cost between overhead and underground service facilities shall be charged to the applicant in advance of construction as a nonrefundable contribution.

(7) If, in the sole judgment of the Company, it appears that connection of the equipment and subsequent service through the Company's facilities may cause a safety hazard, endanger the Company facilities or the customer's equipment or to disturb the Company's service to other customers, the Company may refuse or delay connection of the equipment to its facilities.

C. Allocation

The Company will award contracts to participating customers through a series of semiannual cycles. Customers electing to participate in the AD Program are required to submit an application to the Company in accordance with a notice issued by the Company. Customers must also submit an application fee of $10 per kW capacity applied. The application fee is non-refundable and will be used for program funding. For customers selected to participate in the program, the application fee will be applied to any costs associated with modifications to the Company’s distribution system to allow interconnection of the customer’s generator. The Company shall issue such a notice approximately 30 days prior to each allocation cycle application deadline. In the event the application capacity exceeds the allocation cycle offered capacity, participants who have submitted valid applications will be selected through a random selection process. Allocation cycles shall be conducted as long as capacity is available under the program to allocate; however. a customer who wishes to participate in the program must submit an application for consideration for a specific allocation cycle. To participate in more than one allocation cycle, an application for each allocation cycle must be submitted by the customer. Application and information concerning the allocation process shall be made available by the Company at http://www.consumersenergy.com/AD a minimum of 30 days prior to each allocation cycle application deadline.

(1) A customer may only submit one application per allocation cycle for each account. A customer may be awarded more than one contract through various allocation cycles. However, each allocation must be separately metered by the Company and shall require a separate system access charge. The sum of the direct current nameplate capacity of the systems installed may not exceed the amount of capacity eligible based on the customer's delivery account.

(2) The Company shall provide notice to each applicant regarding the status of their application. Applicants selected will be conditionally awarded contingent upon the following:

(a) Submission of an interconnection application and execution of a renewable energy purchase agreement, within a number of days specified by the Company. The renewable energy purchase agreement will become effective upon receipt by the Company of a generator interconnection operating agreement and detailed data regarding the anaerobic digestion system from the customer.

(Continued on Sheet No. C-48.70)

Issued XXXXXX XX, 2014 Effective for service rendered on J.G. Russell, and after XXXXXX XX, 2014 President and Chief Executive Officer Jackson, Michigan Issued under authority of the Michigan Public Service Commission dated XXXXXX XX, 2014 in Case No. U-17301

Case No.: U-17301 Exhibit: A-36 (DFR-11)

Witness: DFRonk Date: July 2013

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M.P.S.C. No. 13 - Electric Consumers Energy Company Sheet No. C-48.70

(Continued from Sheet No. C-48.60)

C10.4 Experimental Advanced Renewable Program – Anaerobic Digestion Program (AD Program) (Cont)

C. Allocation (Cont)

(b) Submission of evidence of financing, equipment purchase, or an otherwise binding obligation to purchase and install the anaerobic digestion system, within a number of days specified by the Company.

(c) In the event that a customer is awarded a contract and subsequently fails to perform in accordance with the terms of the program, the capacity allocated to that contract shall be awarded to other qualified customers in a subsequent allocation cycle.

(3) In the event that a customer is awarded a contract and subsequently fails to perform in accordance with the

terms of the program, the capacity allocated to that contract shall be awarded to other qualified customers in a subsequent allocation cycle.

D. Contractual Price

For participants in the AD Program as offered beginning January 1, 2014, the price to be paid by the Company for the generation of renewable energy shall be $86 per MWh.

E. Termination of Agreements

In the event that the customer ceases to operate the equipment or ownership of the equipment changes, then the customer should notify the Company of the circumstances and provide notice of the need to terminate the agreement. The premises and/or the customer referenced within a contractual agreement for service under this program may be restricted from participating in the program until after the original date set for expiration of the agreement.

C11. NET METERING PROGRAM

A. The Net Metering Program is offered as authorized by 2008 PA 295 and the Commission in Case Nos. U-15787, U-15803 and U-15919.

B. Net Metering Definitions

(1) Category 1 – eligible electric generator(s) with aggregate generation of 20 kW or less that use equipment certified by a nationally recognized testing laboratory to IEEE 1547.1 testing standards and in compliance with UL 1741 scope 1.1A.

(2) Category 2 – eligible electric generator(s) with aggregate generation greater than 20 kW and not more than 150 kW.

(3) Category 3 – methane digester(s) with aggregate generation greater than 150 kW but not more than 550 kW.

(4) Eligible Electric Generator – a renewable energy system or a methane digester with a generation capacity limited to the customer's electric need and that does not exceed the following:

(i) For a renewable energy system, 150 kW of aggregate generation at a single site (ii) For a methane digester, 550 kW of aggregate generation at a single site

(5) Full Retail Rate – the power supply and distribution components of the cost of electric service. Full Retail Rate does not include surcharges, the system access charge or other charges that are assessed on a per meter basis.

(6) Imputed Customer Usage – calculated as the sum of the metered on-site generation and the net of the bidirectional flow of power across the customer interconnection during the billing period.

(7) Modified Net Metering – a utility billing method that applies the power supply energy component of the customer's otherwise applicable tariff rate to the net of the bidirectional flow of kWh across the customer interconnection with the utility distribution system during a billing period or time-of-use period. Category 2 and Category 3 customers qualify for Modified Net Metering. (Continued on Sheet No. C-49.00)

Issued XXXXXX XX, 2014 Effective for service rendered on J.G. Russell, and after XXXXXX XX, 2014 President and Chief Executive Officer Jackson, Michigan Issued under authority of the Michigan Public Service Commission dated XXXXXX XX, 2014 in Case No. U-17301

Case No.: U-17301 Exhibit: A-36 (DFR-11)

Witness: DFRonk Date: July 2013

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M.P.S.C. No. 13 - Electric Consumers Energy Company Sheet No. D-40.05

EXPERIMENTAL ADVANCED RENEWABLE PROGRAM-ANAEROBIC DIGESTION PROGRAM

Availability: Subject to any restrictions and requirements of Rule C10.4, an individual or entity who is a delivery customer of the Company that generates electricity from a anaerobic digestion system owned by the customer is eligible to sell power to the Company under the terms set forth in this schedule. Monthly Rate: System Access Charge:

Equal to the System Access Charge of the Customer's Delivery Account but not in excess of $50, assessed per generator meter, to be paid to the Company by the customer or to be deducted from the payment to the customer by the Company.

Sales of Energy to the Company:

$86.00 per MWh purchased by the Company payable to the customer

Purchase of Energy from the Company for generator station power:

For all energy supplied by the Company, the charges shall be as provided for under the General Service Secondary Rate GS Schedule or General Service Primary Rate GP Schedule, for all per kWh charges only, including additional charges such as, but not limited to, applicable Surcharges, Securitization Charges and Power Supply Cost Recovery Charges.

General Terms:

This program is subject to all general terms and conditions shown on Sheet No. D-1.00. Payment of Energy Purchases:

The Company reserves the right to transfer amounts due to the Company or the customer under this schedule to an active account for energy purchases from the Company.

Term and Form of Contract:

Sales of energy to the Company under this schedule shall require a written contract with a term of 20 years.

Issued XXXXXX XX, 2014 Effective for service rendered on J.G. Russell, and after XXXXXX XX, 2014 President and Chief Executive Officer Jackson, Michigan Issued under authority of the Michigan Public Service Commission dated XXXXXX XX, 2014 in Case No. U-17301

Case No.: U-17301 Exhibit: A-36 (DFR-11)

Witness: DFRonk Date: July 2013

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