August 31, 2011 Ms. Mary Jo Kunkle Executive Secretary

The Detroit Edison Company
One Energy Plaza, Detroit, MI 48226-1279
Jon P. Christinidis
(313) 235-7706
[email protected]
August 31, 2011
Ms. Mary Jo Kunkle
Executive Secretary
Michigan Public Service Commission
6545 Mercantile Way
Lansing, Michigan 48909
Re:
In the matter, on the Commission’s own motion, regarding the regulatory reviews,
revisions, determinations, and/or approvals necessary for The Detroit Edison
Company to fully comply with Public Acts 286 and 295 of 2008
MPSC Case No. U-15806-RPS (Paperless e-file)
Dear Ms. Kunkle:
Attached for electronic filing in the above-captioned matter is The Detroit Edison
Company Renewable Energy Plan Annual Report for 2010. Also attached is a Proof of Service.
Very truly yours,
Jon P.
Christinidis
Digitally signed by Jon P. Christinidis
DN: cn=Jon P. Christinidis, o=DTE
Energy, ou=Legal-Regulatory Affairs,
[email protected],
c=US
Date: 2011.08.31 16:51:27 -04'00'
Jon P. Christinidis
JPC/kbt
Attachment
cc:
Service list
The Detroit Edison Company
Renewable Energy Plan Annual Report for 2010
MPSC Case No. U-15806
The Detroit Edison Company (“Detroit Edison” or the “Company”) provides
this Renewable Energy Plan Annual Report for Calendar year 2010 to the
Michigan Public Service Commission (“MPSC” or the “Commission”) in
compliance with Public Act 295 of 2008 (“Act 295”), also known as the “clean,
renewable, and efficient energy act”, MCL 460.1051 (1)-(3) and the
Commission’s March 2, 2010 order in MPSC Case No. U-15806. The information
contained herein is provided in the format requested by MPSC Staff.
Detroit Edison’s Renewable Energy Plan: Detroit Edison will be expanding its
renewable energy sources over the next decade to address the goals set forth in
the Clean, Renewable and Efficient Energy Act of 2008, PA 295. Detroit Edison
plans to invest approximately $2 billion in renewable energy projects – primarily
wind (Michigan’s most abundant and economic renewable energy resource) and
solar energy projects, as well as landfill gas and biomass projects -- through
2029. The year 2010 marks the achievement of reaching over 3.5% of the 10%
renewable energy portfolio target.
SECTION 1: PA 295 SECTION 51 SUBSECTIONS 1-3 REQUIREMENTS
Section 51. (1) By a time determined by the commission, each electric
provider shall submit to the commission an annual report that provides
information relating to the actions taken by the electric provider to comply
with the renewable energy standards. By that same time, a municipallyowned electric utility shall submit a copy of the report to the governing
body of the municipally-owned electric utility, and a cooperative electric
utility shall submit a copy of the report to its board of directors.
Executive Summary
•
On October 6, 2008, 2008 PA 295 was signed into law. This Act, the
Clean, Renewable and Efficient Energy Act, established a Renewable
Energy Credit Standard and a Renewable Energy Capacity Standard for
the State of Michigan.
•
Detroit Edison’s Commission-approved 2008 PA 295 Renewable Energy
Plan was filed with the Michigan Public Service Commission (MPSC) on
March 4, 2009 and approved by the MPSC in its June 2 and August 25,
2009 Orders.
•
Detroit Edison’s Commission-approved 2008 PA 295 Renewable Energy
Plan includes actions the Company will take to address the renewable
energy credit and capacity standards. These include facilitating the
development of 1,200 MW of new Renewable Energy Systems. Detroit
The Detroit Edison Company Renewable Energy Plan Annual Report for 2010
Page 1 of 10
Edison-owned Renewable Energy Systems will include wind, solar and cofiring. New Renewable Energy contracts from 3rd parties include wind and
other Renewable Energy Resources.
•
The Company’s overall pace of investment is driven by annual targets,
cost caps in the legislation and economic factors. Capital spending for
renewable energy investments is projected to be approximately $2.2
billion, a figure that was proposed and approved under Detroit Edison’s
Commission-approved 2008 PA 295 Renewable Energy Plan.
Overview
Following is an overview of the major renewable energy progress Detroit Edison
has achieved in the year 2010:
Detroit Edison’s Wind Farm development progress:
•
September 30, 2010: Detroit Edison acquired land rights to 2,000 acres
near Minden City in Sanilac County (the County located immediately
southeast of Huron County) for future wind development from Orion
Energy, a wholly owned entity of BP. This project included an approved
interconnection to the electric grid, a Meteorological tower and various
other developmental data for the land rights acquired. This purchase
expands the footprint for the development of large-scale wind farms
across two counties in the Thumb.
•
November 2, 2010: Voters in 14 Huron County townships approved (by a
59-41 percent margin) the creation of two "wind overlay districts"
necessary for wind projects in Bloomfield, Rubicon, Sigel and McKinley
townships.
Solicitation for Wind Turbine supplier:
•
July 27, 2010: Detroit Edison issued an open pre-qualification process to
pre-qualify and shortlist wind turbine generator manufacturers, in order to
procure wind turbines for one or more wind farms within Michigan with a
total generating capacity of 100-200 MW by 2014.
REC only contract:
•
April 27, 2010: The Michigan Public Service Commission approved a
seven-year agreement with Boyce Hydro Power LLC to supply Detroit
Edison with RECs from hydroelectric facilities in the Village of Sanford,
Tobacco Township, Hay Township and Secord Township. This was the
Company’s third REC only contract and it will provide Detroit Edison with
The Detroit Edison Company Renewable Energy Plan Annual Report for 2010
Page 2 of 10
210,000 RECs from 2009 to 2015, with an opportunity for an additional
112,000 RECs based on energy production at the four hydroelectric
facilities.
Renewable Energy Contracts executed and submitted for approval in 2010 1:
•
August 10, 2010: The Commission approved two 20-year renewable
energy contracts totaling 20 megawatts (MW) of renewable energy
capacity – or enough to power nearly 14,000 homes. The contracts were
with WM Renewable Energy LLC and L'Anse Warden Electric Co. and will
supply renewable energy generated from landfill gas and wood waste
biomass, respectively.
•
September 14, 2010: The MPSC approved a renewable energy contract
between Detroit Edison and Invenergy to purchase approximately 200 MW
of renewable energy at a 30,000 acre wind farm in Gratiot County. This
renewable energy contract included an option to transfer ownership of
roughly half of this project to Detroit Edison upon completion of the build,
making this the first wind farm which will be owned by Detroit Edison and
the largest in Michigan to-date. The contract is valued at approximately
$1 billion.
•
September 24, 2010: Detroit Edison submitted an application to the
Commission for approval of a renewable energy contract between Detroit
Edison and Blue Water Renewables, Inc to purchase approximately 3.2
MW of renewable energy. The facility will generate renewable energy
from landfill gas and is believed to be the first commercial scale septage
injection landfill gas source in the United States.
Solar Projects
1
•
March 2, 2010: The MPSC approved a contract between Detroit Edison
and Nova Consultants, Inc, under which Nova Consultants will Engineer,
Procure, and Construct Detroit Edison Owned solar facilities. This
contract was later amended and approved on December 21, 2010 to allow
the construction of up to 3 MW through the end of 2011. The contract is
valued at a maximum of $18.5 million.
•
Four easement contracts for Detroit Edison owned solar projects were
executed in 2010: Contracts executed to allow the Company to construct
and own solar facilities at the following customer sites: Blue Cross Blue
Shield of Michigan, Monroe County Community College, Ford Motor
Company and General Motors.
All submitted contracts were ultimately approved by the MPSC
The Detroit Edison Company Renewable Energy Plan Annual Report for 2010
Page 3 of 10
•
August 31, 2010: 120 of the retired solar panels from the pre-existing Scio
Township site were donated to six community organizations. These solar
panels were originally installed as part of a DOE grant in 1996.
•
November 17, 2010: 60 kW Scio Township site was connected to the grid
and is the first (post PA 295) solar installation on Detroit Edison property.
•
December 31, 2010: The customer-owned portion of the Commissionapproved SolarCurrents pilot program nearly doubled its 2010 goal with
1,387 kW enrolled.
2009 Renewable Cost Reconciliation
•
August 31, 2010: Detroit Edison submitted its 2009 Renewable Cost
Reconciliation Application under Case No. U-16356, which is pending
Commission approval.
Request For Proposals:
•
November 18, 2010: Detroit Edison issued a Renewable Energy Contract
RFP seeking long-term agreements for the purchase of capacity, energy
and RECs from qualifying Michigan-based renewable energy resources
such as wind, solar, landfill gas, hydro and biomass. Detroit Edison expects
this effort to result in Commission approved 20-year long power purchase
agreements.
The Detroit Edison Company Renewable Energy Plan Annual Report for 2010
Page 4 of 10
(2) An annual report under subsection (1) shall include all of the following
information:
(a) The amount of electricity and renewable energy credits that the electric
provider generated or acquired from renewable energy systems during the
reporting period and the amount of renewable energy credits that the
electric provider acquired, sold, traded, or otherwise transferred during the
reporting period.
Electricity and Electricity Generated included in the tables throughout this report
are defined as the total generation from the project for the reporting period similar
to how it is reported in MIRECS and may not be equivalent to the RECs
associated with the renewable energy project for the reporting period.
Electricity
MWh
3,030,917
Total RECs (RECs + IRECs):
RECs Generated or
Acquired
RECs
884,222
1,002,052
IRECs Generated
or Acquired
117,830
RECs Sold,
Traded or
Otherwise
Transferred
RECs
0
(b) The amount of electricity that the electric provider generated or
acquired from advanced cleaner energy systems pursuant to this act
during the reporting period.
Electricity
MWh
3,533,259
Advanced Cleaner
Energy Credits
Generated or
Acquired
ACECs
117,159
ACECs Sold,
Traded or
Otherwise
Transferred
ACECs
0
The Detroit Edison Company Renewable Energy Plan Annual Report for 2010
Page 5 of 10
(c) The capacity of each renewable energy system and advanced cleaner
energy system owned, operated, or controlled 2 by the electric provider, the
total amount of electricity generated by each renewable energy system or
advanced cleaner energy system during the reporting period, and the
percentage of that total amount of electricity from each renewable energy
system that was generated directly from renewable energy.
For reporting purposes, the Project Names used in this report should
match the Project Name used for reporting data to MIRECS (Michigan
Renewable Energy Certification System).
RECs Generated in the table below are defined as Renewable Energy
Credits (RECs) and Incentive Renewable Energy Credits (IRECs)
generated by the associated project for the reporting period.
For PURPA projects, the table reflects 100% of the Electricity Generated
by the projects flowing through Detroit Edison’s PSCR process since The
Detroit Edison Company purchases 100% of the project output under
approvals predating the enactment of 2008 PA 295 while the RECs
Generated reflect only 80% of the actual RECs Generated by the projects
based on Section 35 of 2008 PA 295.
Renewable Energy Systems Owned by Electric Provider
Project Name
System Technology
Type
Greenwood 1
Ludington
Total
Multi-Fuel (Tall Oil)
Pump Storage
Solar
Will Capacity
Count Toward
Capacity
Nameplate
Portfolio
Capacity
MW
Y or N
785
N
917
N
2,639
Y
Total
Electricity
Generated
MWh
486,931
1,615,927
2,102,858
Percentage
Generated
from
Renewable
Energy
%
0.02%
11.30%
200.000%
Total RECs
Generated
(RECs + IRECs)
RECs
127
36,509
36,636
2
For the purposes of this report, the term “controlled” refers to renewable or advanced cleaner energy
systems providing, under contract, REC or ACEC with or without nameplate capacity or energy.
The Detroit Edison Company Renewable Energy Plan Annual Report for 2010
Page 6 of 10
PURPA/PA2 Generators
Nameplate
Project Name
System Technology Type Capacity
MW
BFI - Arbor Hills
Landfill Gas
17.3
BFI-APLP Lyon Electric
Landfill Gas
6.5
Barton Dam Facility
HYDRO
0.9
Charter Township of Ypsilanti
HYDRO
1.2
Gtr. Detroit Resource Recovery
Refuse Derived Fuel
70.0
Pine Tree Acres Landfill Facility
Landfill Gas
8.6
Riverview Energy Systems 1
Landfill Gas
5.4
STS Hydro Power Ltd
HYDRO
1.8
Sumpter Energy Assoc. - GS1/City Sand
Landfill Gas
11.8
Superior Dam Facility
HYDRO
0.6
Wayne Energy Recovery
Landfill Gas
1.2
Total
Solar
125
Total
Electricity
Generated
MWh
112,324
9,050
4,811
7,971
164,933
55,074
43,791
7,289
95,798
1,538
5,599
508,176
Total RECs
Generated
(RECs + IRECs)
RECs
97,048
7,852
4,159
6,902
142,636
47,594
37,814
6,305
82,809
1,331
4,836
439,286
Renewable Energy Systems Under Contract
Will Capacity
Percentage
Count Toward
Generated from Total RECs
Total
Capacity
Renewable
Electricity
Generated
Nameplate
Portfolio Generated*
Energy
(RECs + IRECs)
Project Name
System Technology Type Capacity
MW
Y or N
MWh
%
RECs
Heritage Stoney Corners Wind Farm
Wind
24.4
Y
37,050
100%
40,755
Solar - Detroit Edison Owned
Solar
0.06
Y
2.96
100%
10
Solar - Customer Owned
Solar
1.67
Y
457.78
100%
49,079
L'Anse Warden Electric Company, LLC
Biomass (wood)
17.0
Y
44,072
100%
97,986
Boyce Hydro LLC
HYDRO
13.1
N
28,300
NA
28,300
UPPCO
HYDRO
33.8
N
60,000
NA
60,000
Sterling Planet, Inc.
Various Sources
NA
N
250,000
NA
250,000
Total
Solar
90
Y
419,883
200.000%
526,130
Is This a RECOnly Contract
Y or N
N
N
N
N
Y
Y
Y
*Total Electricity Generated not available for REC-Only contracts.
Advanced Cleaner Energy Systems Owned by Electric Provider
Project Name
River Rouge 2
River Rouge 3
Percentage
Generated
Total
Electricity from Advanced ACECs
Generated Cleaner Energy Generated
System Technology Type
MWh
%
ACECs
Multi-Fuel (Coke Oven Gas)
1,932,504
4.40%
85,058
Multi-Fuel (Coke Oven Gas)
1,600,755
2.01%
32,101
1.699%
117,159
Total 3,533,259
The Detroit Edison Company Renewable Energy Plan Annual Report for 2010
Page 7 of 10
Advanced Cleaner Energy Systems/
ACEC Purchased Under Contract
Project
Name
Source
Electricity
Generated
Percentage
Generated from
Advanced
Cleaner Energy
ACEC
Generated
Is This an
ACEC-Only
Contract?
MWh
%
ACEC
Y or N
Total
For ACEC-only contracts, provide Project Name, Source, Electricity Generated, and Percentage
Generated from Advanced Cleaner Energy data if available.
(d) Whether, during the reporting period, the electric provider began
construction on, acquired, or placed into operation a renewable energy
system or advanced cleaner energy system. 3
Renewable Energy Systems
Project Name
System Technology
Type
Heritage - Stoney Corners Wind Farm
L'Anse Warden Electric Company, LLC
WM Renewable Energy, LLC
Gratiot County Wind Farm*
Blue Water Renewables
SolarCurrents - DECo Owned
SolarCurrents - Customer Owned
Wind
Biomass (wood)
Landfill Gas
Wind
Landfill Gas
Solar
Solar
Constructio
n Start Date
Or
Will Capacity
Commercial Is Project
Count Toward Acquisition Operation Owned by
Date (May Date (May be Electric
Capacity
Nameplate
Provider
Portfolio be forecast)
forecast)
Capacity
MW
Y or N
Y or N
10.4
Y
Sept. 2009
Feb. 2011
N
17.0
Y
July 2010
NA
N
3.2
Y
Oct. 2010
Aug. 2011
N
212.8
Y
Nov. 2010
Dec. 2011
N
3.2
Y
Jan. 2011
Nov. 2011
N
0.06
Y
various
various
Y
1.61
Y
various
various
N
*As approved in mid-2010, the Gratiot Wind Farm was a 200 MW renewable
energy contract with an ownership option. The ownership option was
exercised in late 2010 and the overall project was expanded in early 2011,
resulting in a 212.8 MW project, of which 102.4 MW will be owned by Detroit
Edison and 110.4 will be owned by Invenergy with the output sold to Detroit
Edison under a PPA.
3
Report information for projects owned by the electric provider and projects where the provider is
purchasing renewable or advanced cleaner energy credits with or without energy or capacity.
The Detroit Edison Company Renewable Energy Plan Annual Report for 2010
Page 8 of 10
Advanced Cleaner Energy Systems
Project Name
Commerci
al
Construction
Start Date Or Operation
Acquisition Date (May
Is Project
be
Owned by
Nameplate Date (May be
forecast) Electric Provider
forecast)
System Technology Type Capacity
MW
Y or N
(e) Expenditures made in the past year and anticipated future expenditures
to comply with this subpart.
Include all expenditures to be recovered via the revenue recovery mechanism (renewable
energy surcharge). Electric providers without a renewable energy surcharge may leave
this table blank. The figures below should include only the incremental costs of
compliance and not transfer price data.
2010 Actual Expenditures
$8,698,714
2011 Anticipated
Expenditures
$39,332,956
The above Incremental Cost of Compliance numbers only include those costs to
be recovered via the Renewable Energy Plan Surcharge (REPS) (a/k/a Revenue
Recovery Mechanism surcharge). The remaining costs associated with the
Renewable Energy Program are to be recovered as part of the Company’s
Power Supply Cost Recovery process (PSCR). The Company expects to
recover $4,650,789 as PSCR expense for 2010 and approximately, $10,699,833
for 2011.
(f) Any other information that the commission determines necessary.
1. Provide the electric provider’s retail sales in MWh. Determine the retail
sales number using the method (a) or (b) below that corresponds with the
method approved by the Commission in the investor-owned electric
utility’s renewable energy plan:
a. The number of weather-normalized megawatt hours of electricity
sold by the electric provider during the previous year to retail
customers in this state. For purposes of this calculation,
electric providers using this option are directed to provide a
forecasted retail sales estimate for 2011.
b. The average number of megawatt hours of electricity sold by the
electric provider annually during the previous 3 years to retail
customers in this state. For purposes of this calculation, electric
providers using this option are directed to provide a
The Detroit Edison Company Renewable Energy Plan Annual Report for 2010
Page 9 of 10
forecasted retail sales average using actual 2009 and 2010
data and forecasted 2011 data.
1. Retail Sales (MWh)*
41,684,855
* 2011 Forecasted Retail Sales from Detroit Edison’s Renewable Energy
Plan Amendment, Case No. U-16582.
2. Provide the total available RECs, at yearend, for the electric
provider. Include available banked REC from previous periods, Michigan
Incentive RECs and RECs generated/acquired during the reporting period.
2. Total Available RECs, IRECs, and ACECs
2,223,870
3. Calculate the electric provider’s estimated available renewable energy
percentage for the reporting period by dividing the total available RECs
(Item number 2 above) by the retail sales (Item number 1 above) and
multiplying by 100.
3. Estimated Available Renewable Energy
% for Reporting Period*
5.33%
*Calculation uses the 2011 Forecasted Retail Sales from Detroit Edison’s
Renewable Energy Plan Amendment, Case No. U-16582.
Conclusion
Detroit Edison made substantial progress in 2010 toward the targets set forth in
2008 PA295. The overall RECs estimated to be available more than doubled in
2010. Detroit Edison expanded its renewable energy portfolio considerably in
2010, including what will be the largest wind farm in the state upon completion.
Detroit Edison continues to strive to be a renewable energy leader in Michigan
consistent with the targets in 2008 PA295.
The Detroit Edison Company Renewable Energy Plan Annual Report for 2010
Page 10 of 10
STATE OF MICHIGAN
BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION
In the matter, on the Commission's own
motion, regarding the regulatory reviews,
revisions, determinations, and/or approvals
necessary for The Detroit Edison Company
to fully comply with Public Acts 286 and
295 of 2008.
)
)
)
)
)
)
)
Case No. U-15806-RPS
(Paperless e-file)
PROOF OF SERVICE
STATE OF MICHIGAN
COUNTY OF WAYNE
)
) ss.
)
Estella R. Branson, being duly sworn, deposes and says that on the 31st day of August,
2011, a copy of The Detroit Edison Company Renewable Energy Plan Annual Report for 2010 in
the above captioned matter was served upon the persons on the attached service list via e-mail.
Estella R. Branson
Estella R. Branson
Subscribed and sworn to before
me this 31st day of August, 2011.
Karyn B.
Kazyaka
Digitally signed by Karyn B. Kazyaka
DN: cn=Karyn B. Kazyaka, o=DTE Energy,
ou=Legal - Regulatory Affairs,
[email protected], c=US
Date: 2011.08.31 16:52:08 -04'00'
Karyn B. Kazyaka, Notary Public
Macomb County, Michigan
My Commission Expires: 7-21-2017
Acting in Wayne County
Digitally signed by Estella R. Branson
DN: cn=Estella R. Branson, o=DTE - Regulatory
Affairs, ou=DTE - Regulatory Affairs,
[email protected], c=US
Date: 2011.08.31 16:47:32 -04'00'
MPSC Case No. U-15806
August 2011
SERVICE LIST
ABATE
Robert A.W. Strong
Clark Hill PLC
151 South Old Woodward Avenue
Suite 200
Birmingham MI 48009-6179
[email protected]
CONSTELLATION NEWENERGY
John M. Dempsey
Dickinson Wright, PLLC
215 Washington Square, Suite 200
Lansing, MI 48933
[email protected]
[email protected]
Jennifer L. Copeland
Dickinson Wright PLLC
301 E. Liberty, Suite 500
Ann Arbor, MI 48104
[email protected]
ENERGY MICHIGAN
Eric J. Schneidewind, Esq.
Varnum, Riddering & Schmidt
201 N. Washington Square, Suite 810
Lansing, MI 48933
[email protected]
MPSC STAFF
Patricia S. Barone
Assistant Attorney General
6545 Mercantile Way, #15
Lansing, MI 48911
[email protected]
MICHIGAN ATTORNEY
GENERAL
Donald E. Erickson
Assistant Attorney General
Environmental, Natural Resources and
Agriculture Division
525 West Ottawa Street, 6th Floor
P.O. Box 30755
Lansing, Michigan 48909
[email protected]
MICHIGAN COMMUNITY ACTION
AGENCY ASSOCIATION
Don L. Keskey
Public Law Resource Center PLLC
505 N. Capitol Avenue
Lansing, MI 48933-1209
[email protected]
MICHIGAN SUSTAINABLE ENERGY
COALITION
Robert B. Nelson
Jeremy J. Burchman
Fraser, Trebilcock Davis & Dunlap, PC
124 W. Allegan, Suite 1000
Lansing, MI 48933
[email protected]
NATURAL RESOURCES DEFENSE
COUNCIL, MICHIGAN
ENVIRONMENTAL COUNCIL,
ENVIRONMENTAL LAW & POLICY,
ECOLOGY CENTER
Christopher M. Bzdok
Olson, Bzdok& Howard
420 East Front Street
Traverse City, MI 49686
[email protected]
Robert Kelter
Bradley Klein
Meleah Geertsman
ENVIRONMENTAL LAW & POLICY
35 E. Wacker Drive, Suite 1300
Chicago, Il 60601
[email protected]
[email protected]
[email protected]
NEXTERA ENERGY RESOURCES, LLC
Bruce Goodman
333 Bridge St NW
P.O. Box 352
Grand Rapids, MI 49501
[email protected]
RES NORTH AMERICA, LLC; NEW
COVERT GENERATING COMPANY, LLC;
LAFARGE MIDWEST, INC; MICHIGAN
WHOLESALE POWER ASSOCIATION;
AND LS POWER ASSOCIATES, LP
Jon D. Kreucher
Rodger A. Kershner
Howard & Howard, PC
450 W 4th St
Royal Oak, MI 48067
[email protected]
[email protected]
THE DETROIT EDISON COMPANY
Jon P. Christinidis
Bruce R. Maters
Michael J. Solo
One Energy Plaza, 688 WCB
Detroit, MI 48226
[email protected]
[email protected]
[email protected]
2