The Michigan Public Service Commission today approved Indiana Michigan Power Co.’s (I&M) application for approval of its power supply cost recovery (PSCR) reconciliation for the 12 months ending Dec. 31, 2021 (Case No. U-20805), disallowing the recovery of more than $11.6 million in customer costs.
The Commission set the company’s PSCR reconciliation beginning balance at $4,386,719.
The Commission disallowed $1,025,628 in costs I&M sought to recover for power generated by the Ohio Valley Electric Corp. (OVEC) through an intercompany power agreement, under MPSC Code of Conduct rules governing transactions between affiliated companies. The Commission previously issued a warning under Section 7 of Public Act 304 that it would be unlikely to approve full costs of power supply from uneconomic contracts for electricity generated by the coal-fired OVEC plants.
The Commission also disallowed $10,149,232 in energy-only costs associated with the Rockport plant for generation that I&M receives through a unit power agreement with its affiliate, American Electric Power Generating Company Inc. The Commission found that the costs of energy generated by the Rockport plant were well above other long-term supply benchmarks, and given the affiliate nature of the facility, these costs should also be disallowed.
In addition, the MPSC disallowed $496,716 in costs for the company’s shortfall of nearly 10.4 million kilowatt hours of energy cost savings I&M would have avoided had the utility met its statutory 1% target in its energy waste reduction plan laid out in Case No. U-20867.
Attorney General Dana Nessel’s Office intervened in the case. MPSC Staff also participated.
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Categories: Michigan, Energy