To ensure cost-effective, reliable delivery of power and flexibility to accommodate changing energy resources, Michigan officials are encouraging the Midcontinent ISO and PJM Interconnection to put more focus on long-term regional transmission planning.
The suggestion to Michigan's two grid operators came in Sept. 11 letters from Gov. Gretchen Whitmer and Public Service Commission Chairman Sally Talberg. The letters came the same day the Michigan Public Service Commission released an assessment of the state's energy system. The 220-page report has its roots in an extreme cold snap that blanketed much of the central part of the United States in late January and prompted grid operators to call off some planned maintenance work and tell generators to be ready for any demand changes as temperatures dipped and stayed well-below zero degrees F.
During that period, a Jan. 30 fire at Consumers Energy Co.'s Ray compressor station in Macomb County, just north of Detroit, threatened to disrupt the delivery of natural gas in the state. The disruption led Whitmer to call for an assessment of Michigan's distribution system for electricity, natural gas and propane to determine whether the systems' designs are adequate to handle operational problems, extreme weather events and other changing conditions.
The assessment found that Michigan's energy systems can provide reliable supply and delivery at peak demand and that market forces and regulatory oversight ensure utility companies are making needed investments in supply and delivery. However, security threats, abnormal weather and changing electricity supplies, among other things, can disrupt the system.
While many of the report's 37 recommendations are ways for the commission and utilities to improve reliability and resiliency, some are for work to be done with the MISO and PJM.
Most of Michigan is in the MISO footprint, but a portion of southwestern Michigan, served by American Electric Power Co. Inc. subsidiary Indiana Michigan Power Co., is in PJM. The letters contain similar recommendations for both grid operators but also include MISO-specific suggestions. The state's two largest electric utilities, CMS Energy Corp. subsidiary Consumers Energy and DTE Energy Co. subsidiary DTE Electric Co., are in MISO.
The officials noted that MISO and PJM have ongoing stakeholder discussions related to several of the recommendations but asked for them to be given priority to mitigate risks associated with extreme weather and a changing energy system.
Michigan officials want to improve the testing, design and operation of demand response in MISO and PJM, given that demand response performance did not meet expectations during the cold snap.
Whitmer and Talberg also encouraged continuing efforts with the natural gas industry to improve coordination and emergency preparedness. They further recommended that MISO and PJM work with commission staff and stakeholders on solutions to boost Michigan's import capability in the near term and to develop and appropriate a cost recovery approach for these types of projects.
To MISO, the governor and commission chair said new generation resources need to come online more quickly.
"Despite considerable efforts to improve the MISO generator interconnection queue process, it continues to be cumbersome and is a barrier to bringing on new energy supplies in a timely manner," the letter said. "Addressing these issues is important given the acceleration of power plant retirements in many states due to economic and environmental considerations."
PJM and MISO are reviewing their respective letters, representatives of the grid operators said.
Commission to address resiliency improvements
The commission on Sept. 11 also issued several directives to act on recommendations to strengthen Michigan's energy delivery systems and reduce risks.
Regulators told Upper Michigan Energy Resources Corp., Consumers Energy, DTE Gas Co., Michigan Gas Utilities Corp., Northern States Power Co., Presque Isle Electric & Gas Cooperative Inc. and SEMCO ENERGY Gas Co. to file reports expanding on how they will reliably serve their customers during peak times of colder-than-normal winters to also include contingency options for resilience at key facilities and more resilience in peak-day plans. In the reports, the companies also must show how their systems will be resilient enough to maintain service if there are supply issues that go beyond extreme weather. (Michigan PSC Case Nos. U-20539 through U-20552)
The commission also set up several workgroups, including those that will look into ways to improve response from customers asked to reduce their energy use during periods of system disruption (Case No. U-20628) and review whether natural gas curtailment procedures should be updated to prioritize residential heating over natural gas use for electric generation when appropriate during energy emergencies. (Case No. U-20632)
Regulators further told staff to evaluate making system resilience a part of utilities' long-term electric distribution investment and maintenance plans. (Case No. U-20147)
