Recent Projects – Michigan

In May, the U.S. Department of Energy (DOE) issued an order under Section 202(c) of the Federal Power Act requiring a coal-fired power plant in Michigan to continue operating past its scheduled retirement date. DOE claimed that the plant’s continued operation was necessary to reduce the risk of regional energy supply shortfalls over the summer. But DOE’s claim contradicts the conclusions reached by the Michigan Public Service Commission and the Midcontinent Independent System Operator, the entities responsible for ensuring sufficient energy supply to meet regional demand.

In an amicus brief submitted in litigation challenging DOE’s Order, we explain that decisions about “resource adequacy,” or the amount of energy supply necessary to meet demand, belong jurisdictionally to the states, supported by the Federal Energy Regulatory Commission and regional grid operators. We also describe the complex, region-specific analyses that resource adequacy planning requires. Finally, we explain that DOE is not the proper entity to make decisions about resource adequacy planning, and the reasoning underlying its order does not establish that this specific plant is necessary to regional resource adequacy.

In October 2023, the Michigan Public Service Commission issued an order in the benefit cost analysis (BCA) matter for which we filed comments in June. The order adopts several of our recommendations, and specifically cites us for several of them.

In the aftermath of summer storms that resulted in widespread and prolonged power outages, Michigan's Public Service Commission requested comments on whether utilities should continue to rely exclusively on historical data when planning for extreme events. In comments filed jointly with the Sabin Center for Climate Change Law at Columbia Law School, and the Initiative for Climate Risk and Resilience Law, Policy Integrity suggested processes and tools that the Commission should direct utilities to use to identify and mitigate vulnerabilities to the impacts of extreme weather and climate change impacts more generally.