Consumers Energy’s Environmental Justice Resiliency Plan Accepted in Rate Case

FOR IMMEDIATE RELEASE

March 21, 2025

Contact: Karsten Neumeister, 224-659-0898, kneumeister@elpc.org

Estrella Lozano, 956-832-7653, elozano@votesolar.org

Lansing, MI – Today, the Michigan Public Service Commission (MPSC) released its decision in Consumer Energy’s electric rate case. In addition to approving a limited rate increase, the Commission accepted Consumers Energy’s newly developed “EJ Resiliency Plan,” which aligns with Clean Energy Organization’s (CEOs) recommendations and directs strategic investments in EJ communities to improve reliability.

The ruling also expands Consumers Energy’s equity metrics beyond reliability – including energy burden, affordability, residential disconnections, and utility-run program enrollment. The Commission also affirmed that Consumers should conduct regression analysis in future rate cases to extend the scope, pace, and impact of its analyses.

Although the CEOs advocated for the implementation of both virtual power plants (VPPs) and non-wires solutions (NWS) in Consumers’ next distribution grid planning process, the Commission took an interim step by encouraging Consumers to initiate a workgroup to develop more pilots and consider both solutions in its upcoming grid plans. VPPs and NWS can offset the need for large-scale investments and alleviate grid strain, ultimately helping Consumers improve its reliability and lower costs to consumers.

The CEO appreciated the Commission’s approval of enhancements to the company’s EV infrastructure programs but was disappointed that a better resolution was not reached on proposed rebates for battery-integrated fast chargers, which could help expand access in areas with limited grid resources. While the Commission invited the company to revisit the proposal, the decision may delay cost-saving solutions for improving fast charging access in underserved areas.

The Clean Energy Organizations (CEOs) consist of Vote Solar, the Union of Concerned Scientists, and the Ecology Center and are represented by the Environmental Law & Policy Center.

“We commend the Commission for continuing to push Consumers Energy to identify and address reliability disparities in Environmental Justice communities, including their endorsement of expanding regression analysis for future rate cases” said Will Kenworthy, Senior Regulatory Director, Midwest for Vote Solar. “We also appreciate Consumers for working with stakeholders to develop the EJ Resiliency Plan, which takes important steps toward a more equitable grid. With the Commission’s approval of this plan, we look forward to continued collaboration to ensure all customers receive reliable service.”

“We appreciate the Commission acknowledging the value of virtual power plants and non-wires solutions and directing Consumers to explore these innovative approaches in the future”, said Lee Shaver, Senior Energy Analyst for the Union of Concerned Scientists. “However, we are disappointed that the Commission did not issue a formal order directing the development of a framework for VPPs and NWS. These are cost-effective pathways to address grid reliability and reduce customer costs, and stronger action is needed to ensure they are meaningfully considered in near term planning and decisions. We remain committed to advancing these tools in collaboration with Consumers Energy and other stakeholders.”

“While we appreciate that the Commission approved enhancements to the company’s EV infrastructure programs, we are disappointed that the Commission could not find a way to support a potential solution for plugging gaps in DCFC fast charging access for areas of the state with inadequate grid infrastructure,” said Charles Griffith, Climate and Energy Program Director at the Ecology Center. “Rejecting the proposed increase in rebates for battery-integrated chargers will delay implementation of a lower cost alternative to expensive grid upgrades and slow availability of fast chargers to customers who need them.”

“With growing demand on Michigan’s grid, it’s more important than ever to integrate distributed energy resources (DERs) and leverage tools to manage that growth effectively,” said Daniel Abrams, Senior Associate Attorney for ELPC. “These technologies offer a cost-effective way to enhance reliability, reduce strain on the grid, and keep costs low. We look forward to working with Consumers on these issues in future rate cases.”

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