Document 1932933

A CMS Energy Company
General Offices:
One Energy Plaza
Jackson, MI 49201
*Washington Office:
1730 Rhode Island Ave. N.W.
Suite 1007
Washington, DC 20036
June 30, 2010
Tel:
Fax:
(517) 788-0550
(517) 768-3644
Tel:
(202) 778-3340
Fax:
(202) 778-3355
Writer’s Direct Dial Number: (517) 788-0677
Writer’s E-mail Address: [email protected]
LEGAL DEPARTMENT
JAMES E BRUNNER
Senior Vice President
and General Counsel
JON R ROBINSON
Vice President and
Deputy General Counsel
Utility Law and
Regulation
Shelley J Ruckman
Kimberly C Wilson
Michael G Wilson
Assistant General
Counsel
Ms. Mary Jo Kunkle
Executive Secretary
Michigan Public Service Commission
6545 Mercantile Way
P.O. Box 30221
Lansing, MI 48909
David E Barth
H Richard Chambers
John P Dickey
Deborah Ann Kile
M Bryan Little
Kathrine M Lorenz
Eric V Luoma
Raymond E McQuillan
Rhonda M Morris
Deborah A Moss*
Mirče Michael Nestor
Robert M Neustifter
Laura M Pintar
Vincent P Provenzano
Susan L Rasmussen
John C Shea
Scott J Sinkwitts
Charlotte A Walls
Attorney
Re: Cases No. U-15805/U-15889 - In the matter, on the Commission’s own motion,
regarding the regulatory reviews, revisions, determinations, and/or approvals
necessary for CONSUMERS ENERGY COMPANY to fully comply with Public Acts
286 and 295 of 2008: 2009 Renewable Energy Annual Report
Dear Ms. Kunkle:
Enclosed for filing please find “Consumers Energy Company’s 2009 Renewable Energy
Annual Report” filed in accordance with the Commission’s Order issued March 2, 2010
pursuant to Section 51 of 2008 PA 295. This is a paperless filing and is therefore being filed
only in a PDF format. I have enclosed a Proof of Service showing electronic service upon the
parties.
Sincerely,
Digitally signed by
Raymond E. McQuillan
Date: 2010.06.30
17:34:47 -04'00'
Raymond E. McQuillan
cc:
Hon. Sharon L. Feldman (ALJ)
Parties per Attachment 1 to Proof of Service
www.consumersenergy.com
CONSUMERS ENERGY COMPANY
Renewable Energy Plan Annual Report for 2009
MPSC Case No. U-15805
Consumers Energy Company (“Consumers Energy” or the “Company”) provides
this Renewable Energy Plan Annual Report for Calendar year 2009 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”, Section 51 (1-3) and the Commission’s
March 2, 2010 order in MPSC Case No. U-15805. The information contained
herein is provided in the format requested by MPSC Staff.
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 municipally-owned 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.
During 2009 the Company:
 maintained contracts in existence prior to enactment of Act 295 with
renewable energy suppliers;
 filed its initial Renewable Energy Plan with the Commission in MPSC
Case No. U-15805 which was subsequently approved by the Commission
in its May 26, 2009 order;
 acquired approximately 26,000 acres of land easements for the
development of its Lake Winds Energy Park and Cross Winds Energy
Park; increasing the company’s total land under easement for the
development of wind energy parks to approximately 58,000 acres as of
December 31, 2009
 continued development efforts for its Lake Winds Energy Park, located in
Mason County; including the completion of bat studies, avian studies,
wetland studies, cultural sensitivity surveys, archeological studies, 201 site
contamination studies, preliminary FAA/MAC/Local airport approvals and
preliminary noise studies
 continued development efforts for its Cross Winds Energy Park, located in
Tuscola and Huron counties;
Page 1 of 9
CONSUMERS ENERGY COMPANY
Renewable Energy Plan Report for 2009










issued its January 29, 2009 solicitation for nameplate capacity and
associated resource adequacy capacity, energy, and renewable energy
credits from small scale renewable energy systems;
awarded contracts to six suppliers as a result of the January 29, 2009
solicitation which were subsequently approved by the Commission in its
October 13, 2009 order in MPSC Case No. U-15805;
issued its May 7, 2009 solicitation for nameplate capacity and associated
resource adequacy capacity, energy, and renewable energy credits from
renewable energy systems;
received bids and initiated evaluation of bids received as a result of the
May 7, 2009 solicitation;
issued a tariff initiating a pilot program (“Experimental Advanced
Renewable Program” or “EARP”) to purchase up to 2 MW of nameplate
capacity and associated resource adequacy capacity, energy, and
renewable energy credits from small scale photovoltaic solar generation
renewable energy systems at standard offer prices;
accepted applications from eligible customers proposing to sell nameplate
capacity and associated resource adequacy capacity, energy, and
renewable energy credits under the EARP tariff;
accepted delivery of energy from one renewable energy system under the
EARP tariff;
completed the overhaul and upgrade of the Hardy Hydroelectric
Generating Station, Unit No.3 providing incremental capacity of
approximately 1.52 MW of renewable energy nameplate capacity;
initiated collection of the renewable energy surcharge authorized by the
Commission in its May 26, 2009 order in MPSC Case No. U-15805; and
initiated renewable energy credit certification and tracking activities.
(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.
The amount of renewable energy credits provided in the table below, and any
renewable energy credits discussed in this report, is estimated. The estimate
was developed using the renewable energy generated or acquired and used to
serve jurisdictional load that the Company expects to have reported to the
Michigan Renewable Energy Certification System (“MIRECS”) by Qualified
Reporting Entities (“QRE”). The exact number of renewable energy credits to be
Page 2 of 9
CONSUMERS ENERGY COMPANY
Renewable Energy Plan Report for 2009
certified will be dependent upon the actual information reported to MIRECS at
such time as MIRECS accepts the QRE reported information.
Electricity
Renewable Energy
Generated or Acquired
Including
Michigan Incentive RECs
RECs Sold,
Traded or
Otherwise
Transferred
MWh
RECs
RECs
1,596,354
1,559,941
01
(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
Advanced Cleaner
Energy Credits
Generated or Acquired
ACECs
Sold,
Traded or
Otherwise
Transferred
MWh
ACECs
ACECs
0
0
0
(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.
1
Renewable energy credits sold, traded, or otherwise transferred excludes any non-jurisdictional renewable
energy credits sold, traded or otherwise transferred by the Company. Additionally, Renewable Energy
credits acquired or sold, traded, or otherwise transferred excludes the Renewable Energy Credits or
Certificates) resulting from generation included in the Company’s Renewable Resource Program (“RRP”)
or Green Generation Program).
2
For the purposes of this report, the term “controlled” refers to renewable or advanced cleaner energy
systems providing, under contract, RECs or ACECs with or without nameplate capacity or energy.
Page 3 of 9
CONSUMERS ENERGY COMPANY
Renewable Energy Plan Report for 2009
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).
See Exhibit 1 for renewable energy systems owned by the Company.
See Exhibit 2 for renewable energy systems under contract to the Company.
The Company did not own, operate, or control, and did not receive electricity
from any advanced cleaner energy systems during the reporting period.
(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
During 2009 the Company:
 completed its overhaul and upgrade of the Hardy Hydroelectric Generation
Plant, Unit No 3;
 commenced acceptance of electric energy delivery from the Elk Rapids
Hydroelectric Power Plant; commenced acceptance of electric energy
delivery from the Scenic View Dairy – Freeport Anaerobic Digestion
Electric Generation Plant; commenced acceptance of electric energy
delivery from the Zeeland Farm Services Landfill Gas Electric Generation
Plant 2; and
 commenced acceptance of electric energy delivery from the Dow Corning
Photovoltaic Solar Electric Generation Facility as part of the EARP.
See Exhibit 3 for a summary of new renewable energy systems placed into
service or contracted during 2009.
The Company did not begin construction on, acquire, or place into operation any
advanced renewable energy systems during the reporting period.
(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.
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.
Page 4 of 9
CONSUMERS ENERGY COMPANY
Renewable Energy Plan Report for 2009
2009 Actual Expenditures
2010 Anticipated Expenditures
$2,220,000
$12,934,000
The Company estimates 2009 and 2010 Expenditures to be recovered as
Incremental Cost of Compliance as the amount of purchase contract costs in
excess of the portion to be recovered as PSCR, Fees, Return on Capital
Expenditures, and a portion of Capital Expenditures based on actual expenses
and the values included in the Company’s Renewable Energy Plan. Remaining
costs are expected to be recovered as part of the Company’s Power Supply Cost
Recovery process. The Company expects to recover $90,973 as PSCR expense
in 2009 and approximately $2.2 million in 2010.
(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 forecasted
retail sales average using 2009, 2010 and 2011.
The Company elected to utilized the 3 year average method for
establishing the retail sales upon which its renewable energy standard
would be based in its approved Renewable Energy Plan. Accordingly, the
Company provides the average of its 2009 actual sales, and forecasted
2010 and 2011 sales.
1. Retail Sales (MWh)
33,216,452
Page 5 of 9
CONSUMERS ENERGY COMPANY
Renewable Energy Plan Report for 2009
2. Provide the total available RECs for the electric provider. Include
available banked RECs from previous periods, Michigan Incentive
RECs and RECs generated/acquired during the reporting period.
2. Total Available RECs
1,559,941
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
4.70%
The Company looks forward to continuing its implementation of the Renewable
Energy Plan in 2010.
Page 6 of 9
CONSUMERS ENERGY COMPANY
RENEWABLE ENERGY PLAN ANNUAL REPORT
2009
EXHIBIT 1
ELECTRIC PROVIDER OWNED RENEWABLE ENERGY SYSTEMS SUMMARY
(a)
Project Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Calkins Bridge Hydro
Alcona Hydro
Cooke Hydro
Croton Hydro
Five Channels Hydro
Foote Hydro
Hardy Hydro
Hodenpyl Hydro
Loud Hydro
Mio Hydro
Rogers Hydro
Tippy Hydro
Webber Hydro
Ludington Pumped Storage
TOTAL
(b)
Generation
Technology
Hydroelectric
Hydroelectric
Hydroelectric
Hydroelectric
Hydroelectric
Hydroelectric
Hydroelectric
Hydroelectric
Hydroelectric
Hydroelectric
Hydroelectric
Hydroelectric
Hydroelectric
Pumped Storage
(c)
Nameplate
Capacity
(d)
Will Capacity
Count Toward
Capacity
Portfolio?
MW
Y of N
N
N
N
N
N
N
N
N
N
N
N
N
N
N
2.550
8.000
9.000
8.850
6.000
9.000
31.520
17.000
4.000
4.960
6.760
20.010
3.300
1020.000
1150.950
Page 7 of 9
(e)
Total Annual
Electricity
Generated
MWh
11,974
27,227
26,967
43,085
24,797
30,946
113,171
50,306
18,745
14,240
27,837
62,872
14,206
1,053,356
1,519,727
(f)
Percent of Total
Generated from
Renewable
Energy
Resources
%
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
42.2
60.0
(g)
Total RECs
Generated
RECs
13,273
29,818
29,969
46,171
28,403
34,163
126,626
55,008
20,658
15,660
29,768
69,690
16,068
88,968
604,243
(h)
Jurisdictional
RECs
Generated
RECs
13,140
29,517
29,667
45,708
28,117
33,819
125,363
54,455
20,450
15,502
29,469
68,990
15,905
88,078
598,180
CONSUMERS ENERGY COMPANY
RENEWABLE ENERGY PLAN ANNUAL REPORT
2009
EXHIBIT 2
CONTRACTED RENEWABLE ENERGY SYSTEMS SUMMARY
(a)
Project Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
Adrian Energy Associates - Adrian
Alverno Hydro Plant - 2 x 450 kw units
Cadillac Renewable Energy, LLC - Unit 2
Beaverton Hydro
Irving Hydro
LaBarge Hydro
Middleville Hydro
EARP
Elk Rapids Hydro (Energy Only)
Elk Rapids Hydro (REPA)
C&C Electric 1 Plant (Gas Recovery Systems, LLC)
Genesee Power Station - CONS.GENESEE
Granger - Grand Blanc
Granger - Ottawa
Granger - Seymour
Granger - Byron Center (Landfill No. 2 Plant)
Granger - Pinconning (Landfill No. 1 Plant)
Grayling Generating Station - CONS.GRAYLING
Belding Hydro
Hillman Generating Plant
Hubbardston Hydro
Kent County Plant - Mass Burn Incinerator Plant
Michiana Hydro
Peoples Generating Station - Peoples Generating
SVD-Frpt - Scenic View Dairy -Freeport
Cascade Dam
Fallasburg Dam
Morrow Dam
T.E.S. Filer City Station - CONS.FILERCITY
Ada Dam
Viking Energy of Lincoln - Lincoln Power Station
Viking Energy of McBain - McBain Power Station
White's Bridge Hydro - Whites Bridge Hydro
WM Renewable Energy, LLC (Venice Park Plant)
Zeeland Farm Services - ZFS Plant 2
TOTAL
(b)
Generation
Technology
Landfill Gas
Hydroelectric
Biomass
Hydroelectric
Hydroelectric
Hydroelectric
Hydroelectric
Solar
Hydroelectric
Hydroelectric
Landfill Gas
Biomass
Landfill Gas
Landfill Gas
Landfill Gas
Landfill Gas
Landfill Gas
Biomass
Hydroelectric
Biomass
Hydroelectric
Municipal Solid Waste
Hydroelectric
Landfill Gas
Anerobic Digester
Hydroelectric
Hydroelectric
Hydroelectric
Biomass
Hydroelectric
Biomass
Biomass
Hydroelectric
Landfill Gas
Landfill Gas
(c)
Nameplate
Capacity
(d)
Will Capacity
Count Toward
Capacity
Portfolio?
MW
Y of N
N
N
N
N
N
N
N
Y
N
Y
N
N
N
N
N
N
N
N
N
N
N
N
N
N
Y
N
N
N
N
N
N
N
N
N
Y
2.40
1.00
34.00
0.50
0.60
0.70
0.35
0.03
0.70
0.70
2.75
35.00
3.81
4.57
0.75
3.79
3.42
36.17
0.30
18.00
0.22
18.00
0.08
3.20
1.60
1.40
0.90
0.80
50.00
1.40
16.30
16.30
0.75
1.50
1.60
263.59
Page 8 of 9
(e)
Total Annual
Electricity
Generated
MWh
15,494
3,308
145,168
2,490
2,263
3,838
881
0
2,335
290
16,353
104,252
33,099
38,989
6,373
30,654
22,021
180,858
1,926
143,324
597
100,148
225
16,687
0
8,140
6,164
4,788
500,788
6,275
145,208
142,634
3,584
8,820
1,741
1,699,715
(f)
Percent of Total
Generated from
Renewable
Energy
Resources
%
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
95.4
100.0
90.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
4.0
100.0
82.3
74.7
100.0
100.0
100.0
66.8
(g)
Total RECs
Generated
RECs
14,944
3,052
128,845
2,232
1,864
3,408
760
12
2,259
559
2,304
92,432
16,722
34,240
596
25,841
19,085
154,642
1,748
112,330
576
87,448
194
12,289
43
7,476
5,188
4,244
17,701
5,776
104,589
93,984
3,240
7,983
2,973
971,579
(h)
Jurisdictional
RECs Generated
RECs
14,794
3,021
127,548
2,210
1,845
3,373
752
12
2,237
553
2,280
91,497
16,553
33,895
590
25,581
18,892
153,073
1,730
111,192
570
86,556
192
12,168
43
7,401
5,136
4,201
17,523
5,718
103,533
93,041
3,208
7,901
2,942
961,761
CONSUMERS ENERGY COMPANY
RENEWABLE ENERGY PLAN ANNUAL REPORT
2009
EXHIBIT 3
NEW RENEWABLE ENERGY SYSTEMS SUMMARY
(a)
Project Name
1
2
3
4
5
6
7
8
9
Dow Corning - EARP
Elk Rapids Hydro
Fremont Community Digester
North American Natural Resources - Lennon
Scenic View Dairy - Freeport
WM Renewables - Northern Oaks
Zeeland Farm Services - Plant 2
Hardy Hydro - Unit 3 Upgrade
TOTAL
(b)
Generation
Technology Type
Solar
Hydroelectric
Anerobic Digester
Landfill Gas
Anerobic Digester
Landfill Gas
Landfill Gas
Hydroelectric
(c)
Nameplate
Capacity
(d)
Will Capacity
Count Toward
Capacity
Portfolio?
MW
Y of N
Y
Y
Y
Y
Y
Y
Y
N
0.03
0.70
3.10
1.60
0.86
1.60
1.60
1.52
11.01
(e)
(f)
(g)
Commercial
Is Project Owned
Construction
Operation Date**
by Electric
Start Date Or
Acquisition Date* (May be forecast)
Provider?
(May be forecast)
Date
9/3/2009
10/13/2009
7/1/2010
4/1/2010
10/13/2009
7/1/2010
10/13/2009
5/5/2008
* In the case of projects not owned by the electric provider, this is the date the purchase agreement became effective
** In the case of projects not owned by the electric provider, this is the date that delivery of energy commenced
Page 9 of 9
Date
9/3/2009
10/13/2009
11/15/2011
12/31/2010
12/15/2009
11/1/2010
10/13/2009
3/3/2009
Y or N
N
N
N
N
N
N
N
Y
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 )
CONSUMERS ENERGY COMPANY to fully )
comply with Public Acts 286 and 295 of 2008: )
2009 Renewable Energy Annual Report
)
)
Case No. U-15805/15889
Christen M. Rutz, being first duly sworn, deposes and says that she is employed
in the Legal Department of Consumers Energy Company; that on June 30, 2010 she
served an electronic copy of “Consumers Energy Company’s 2009 Renewable Energy
Annual Report.” upon the persons listed in Attachment 1 hereto, at the e-mail addresses
listed therein.
Digitally signed by Christen
M. Rutz
Date: 2010.06.30 17:35:33
-04'00'
__________________________________________
Christen M. Rutz
Subscribed and sworn to before me this 30th day of June 2010.
Digitally signed by
Sharon K. Davis
Date: 2010.06.30
17:36:07 -04'00'
_________________________________________
Sharon K. Davis, Notary Public
State of Michigan, County of Jackson
My Commission Expires: 07/28/10
Acting in the County of Jackson
Attachment 1 to Cases No. U-15805 and U-15889 - E-Mail Service List
Party
Name
E-mail Address
Administrative Law Judge
Hon. Sharon L. Feldman
[email protected]
Counsel for the Michigan Public
Service Commission Staff
Counsel for Constellation
NewEnergy
Kristin M. Smith, Esq.
Pat Poli
John M. Dempsey, Esq.
Jennifer L. Copland, Esq.
[email protected]
[email protected]
[email protected]
[email protected]
Counsel for Energy Michigan
Eric J. Schneidewind, Esq.
[email protected]
Jennifer U. Heston, Esq.
[email protected]
David E. S. Marvin, Esq.
[email protected]
Robert B. Nelson, Esq.
[email protected]
Christopher M. Bzdok, Esq.
Bradley D. Klein, Esq.
Robert J. Kelter, Esq.
Rebecca Stanfield
David Wright
[email protected]
[email protected]
[email protected]
[email protected]
[email protected]
Rodger A. Kershner, Esq.
Jon D. Kreucher, Esq.
[email protected]
[email protected]
Roderick S. Coy, Esq.
Leland R. Rosier, Esq.
[email protected]
[email protected]
James T. Selecky
[email protected]
Donald E. Erickson, Esq.
[email protected]
Michael J. McGarry
Dan Salter
Donna Mullinax
Tracy Klaes
[email protected]
[email protected]
[email protected]
[email protected]
Richard J. Aaron, Esq.
Ross K. Bower II, Esq.
[email protected]
[email protected]
Don L. Keskey, Esq.
[email protected]
Counsel for Hemlock
Semiconductor Corporation
Counsel for the Michigan Cable
Telecommunications Association
Counsel for the Michigan
Sustainable Energy Coalition
Counsel for the Natural
Resources Defense Council,
Environmental Law & Policy
Center, Ecology Center, and
Michigan Environmental Council
(“MEC”)
Counsel for RES North America,
LLC, LS Power Associates, L.P.,
Lafarge Midwest, Inc., Michigan
Wholesale Power, and New
Covert Generating Company,
LLC
Counsel for the Association of
Businesses Advocating Tariff
Equity (“ABATE”)
Consultant for the Association of
Businesses Advocating Tariff
Equity (“ABATE”)
Counsel for Attorney General
Michael A. Cox
Consultants for Attorney General
Counsel for Midland
Cogeneration Venture Limited
Partnership (“MCV”)
Counsel for the Michigan
Community Action Agency
Association
e-mail (only) service list-parties