January 23, 2020
FOR IMMEDIATE RELEASE
FOR IMMEDIATE RELEASE
Contact:
- Hilary Lewis, Communications Director, Vote Solar, hilary@votesolar.org, 202-455-0361
- Paul Dailing, Media Relations Specialist, Environmental Law & Policy Center, pdailing@elpc.org, 312-771-1979
- Jen Bristol, Director of Communications, Solar Energy Industries Association (SEIA), jbristol@seia.org, 202-556-2886
- Mike Berkowitz, Michigan Beyond Coal Campaign Representative, Sierra Club, mike.berkowitz@sierraclub.org, 248-345-9808
I&M Rate Case Settlement Marks Blow to Coal and Gains for Clean Energy
Utility’s original plan would have bolstered super polluting Rockport coal plant and “essentially killed” solar market in Michiana
Lansing, MI - The Michigan Public Service Commission (MPSC) on Thursday approved an all-party settlement in a rate case for the Indiana Michigan Power Company, which serves more than 129,000 customers in southwestern Michigan and the Michiana area.
I&M, a subsidiary of utility giant AEP, filed its request for a rate increase in June. The Environmental Law & Policy Center, Vote Solar, the Ecology Center, the Sierra Club and the Solar Energy Industries Association (SEIA) intervened.
The groups negotiated a settlement that cut the utility’s original annual revenue increase request by $22.1 million dollars, from $58.5 million to $36.4 million, saving money for I&M customers across southwestern Michigan.
The utility’s original plan would have greatly reduced the credit paid to customers who sell electricity from solar panels or wind turbines back to the grid, which would have “essentially killed” the solar market in southwest Michigan, said Environmental Law & Policy Center Staff Attorney Nikhil Vijaykar.
Over three months of negotiations, the environmental groups fought off those changes to the distributed generation tariff. They also successfully countered several of the utilities’ rate design proposals that would have hiked fixed charges on customers’ bills, hurting customers’ ability to implement and benefit from energy efficiency and renewable energy. They also secured a requirement that I&M seek approval from the Michigan Public Service Commission before extending their lease at Rockport coal-burning unit 2, which is one of 22 super polluters in the United States.
“This settlement is a victory on two fronts,” Vijaykar said. “First, we won a reasonable interim rate for distributed generation customers, and kept Michigan moving towards a fair, value-based rate for solar. Second, we kept Indiana Michigan Power’s original regressive rate design proposals out of the picture.”
"Sierra Club applauds the Public Service Commission's approval of this settlement which requires I&M to get permission before extending its money-losing lease with the super polluter Rockport coal-burning plant in Indiana. This decreases the likelihood that I&M will extend its commitment to the massive Rockport unit 2, and instead create an opportunity for Michiganders to demand cleaner and less expensive energy." said Mike Berkowitz, Sierra Club’s Beyond Coal Campaign Representative for Michigan.
“This is about fair rates and the freedom to choose where your energy comes from. Providing fair value for the local, clean energy hardworking Michigan families and businesses produce is essential to achieving our clean energy goals and ensuring customers can go solar if they so choose,” said Will Kenworthy, Midwest Regulatory Director for Vote Solar.
“We’re grateful that the Michigan Public Service Commission saw the I&M proposal for what it was, a backwards attempt to distort energy prices and lowball the value of solar in Indiana and Michigan.This decision is a win for energy consumers and will help to improve customer choice, grow local solar markets and create jobs that can’t be outsourced,” said Nakhia Morrissette, central region director and counsel at SEIA.
The new rates will go into effect Feb. 1. They will not affect I&M customers in Indiana.
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The Environmental Law & Policy Center is the Midwest’s leading public interest environmental legal advocacy organization. We develop strategic campaigns to protect natural resources and improve environmental quality across the region. Our multidisciplinary staff employs teamwork approaches using legal, economic, and public policy tools to produce successes that improve our environment and economy. For more information, visit elpc.org.
Vote Solar’s mission is to make solar a mainstream energy resource across the U.S. Since 2002, Vote Solar has been working to lower solar costs and expand solar access. A 501(c)3 non-profit organization, Vote Solar advocates for state policies and programs needed to repower our electric grid with clean energy. Vote Solar works to remove regulatory barriers and implement key policies needed to bring solar to scale. For more information, visitVoteSolar.org.
The Sierra Club is America’s largest and most influential grassroots environmental organization, with more than 3 million members and supporters nationwide. In addition to creating opportunities for people of all ages, levels and locations to have meaningful outdoor experiences, the Sierra Club works to safeguard the health of our communities, protect wildlife, and preserve our remaining wild places through grassroots activism, public education, lobbying, and litigation. For more information, visit http://www.sierraclub.org.
Celebrating its 46th anniversary in 2020, the Solar Energy Industries Association® is the national trade association of the U.S. solar energy industry, which now employs more than 242,000 Americans. Through advocacy and education, SEIA® is building a strong solar industry to power America. SEIA works with its 1,000 member companies to build jobs and diversity, champion the use of cost-competitive solar in America, remove market barriers and educate the public on the benefits of solar energy. Visit SEIA online at www.seia.org.
