Midwest Regulatory Update

Midwest Regulatory Update

ILLINOIS

Manuel Flores Named ICC Chair
Illinois Gov. Pat Quinn appointed Manuel Flores, a Chicago alderman, as Chairman of the Illinois Commerce Commission (ICC). Upon Senate confirmation, Flores would replace Chairman Charles Box, whose term expired in January 2009 but who continued to serve until a replacement was confirmed. Flores has been involved in various green energy initiatives as an alderman.

ICC Issues Proposed Order Approving Long-Term Wind Contracts in IPA Plan
The Illinois Commerce Commission (ICC) recently issued a proposed order which would approve the ability of Illinois Power Agency (IPA) to procure long-term renewable resources for the purpose of the state utilities’ renewable portfolio standards (RPS) compliance.

Direct Energy Business, as part of the Illinois Competitive Energy Association (ICEA), has filed an exception to change the order. If this order moves forward, the costs of the long-term contracts for utility RPS compliance will impact all alternative retail electric suppliers (ARES)—and ultimately consumers—through the Alternative Compliance Payment Rate, from which ARES are mandated to pay to cover at least 50 percent of their RPS compliance. This would then affect the RPS charges that ARES pass on to customers.

MICHIGAN

Consumers Energy Files Electric Tariff to Refund Nuclear Decommissioning Fees
Consumers Energy recently filed an electric tariff with the Michigan Public Service Commission (MPSC) to refund the Palisades Nuclear Decommissioning Fee. The credit will go through in June 2010 at a rate of $0.004588/kWh.

All consumers will receive the credit however most will not see the impact in their bill due to the rate increases that are resulting from the state’s 10 percent cap on electric choice. Direct Energy Business has been working with Energy Michigan, a regional advocacy group, and with regulators to advocate on behalf of increasing or eliminating the electric choice cap by pointing out how credits and refunds hide the true cost of energy for consumers and how the cap eliminates competitive rate alternatives.

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