Michigan Public Service Commission Approves Settlement Agreement for Alpena Power Company's Renewable Energy Plan

Strategic Insights -

The Michigan Public Service Commission has approved a settlement agreement for Alpena Power Company's amended renewable energy plan, which will see the company increase its renewable energy credits to 15% by 2029, 50% by 2034, and 60% by 2035 and beyond. The agreement was reached after a prehearing conference on March 12, 2025, and was approved by the Commission on August 7, 2025. The plan includes the purchase of additional renewable energy credits, with associated energy and capacity, procured through a competitive bidding process. The agreement also includes a revenue recovery mechanism to permit the recovery of incremental costs of compliance.

Key Takeaways:

  • The Michigan Public Service Commission has approved a settlement agreement for Alpena Power Company's amended renewable energy plan.
  • The plan requires Alpena Power Company to increase its renewable energy credits to 15% by 2029, 50% by 2034, and 60% by 2035 and beyond.
  • The plan includes the purchase of additional renewable energy credits, with associated energy and capacity, procured through a competitive bidding process.
  • The agreement was reached after a prehearing conference on March 12, 2025, and was approved by the Commission on August 7, 2025.
  • The plan includes a revenue recovery mechanism to permit the recovery of incremental costs of compliance.
  • The parties involved in the agreement include Alpena Power Company, the Michigan Public Service Commission Staff, the Michigan Attorney General, and the Citizens Utility Board of Michigan.
  • The agreement is intended to promote administrative efficiency and is without prejudice to the rights of the parties to take new or different positions in other proceedings.

Statistics:

  • 15% renewable energy credits by 2029
  • 50% renewable energy credits by 2034
  • 60% renewable energy credits by 2035 and beyond
  • 20-year period of incremental cost of compliance
  • 300 days for the Commission to issue a final order in amended REP proceedings
  • 3-year average of megawatt hours of electricity sold to full-service retail customers in the state
  • 2045 as the target year for renewable energy compliance

Sources:

  • Order Approving Settlement Agreement, Michigan Public Service Commission, Case No. U-21846 (August 7, 2025)
  • Settlement Agreement, Michigan Public Service Commission, Case No. U-21846 (July 3, 2025)
  • Prehearing Conference Order, Michigan Public Service Commission, Case No. U-21846 (March 12, 2025)