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MEGA Electric Utility Tariff Measures For Large Industrial Customers James A. Ault, President Michigan Electric & Gas Association 110 W. Michigan Avenue,

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Presentation on theme: "MEGA Electric Utility Tariff Measures For Large Industrial Customers James A. Ault, President Michigan Electric & Gas Association 110 W. Michigan Avenue,"— Presentation transcript:

1 MEGA Electric Utility Tariff Measures For Large Industrial Customers James A. Ault, President Michigan Electric & Gas Association 110 W. Michigan Avenue, Suite 375 Lansing, MI

2 MEGA Board of Directors

3

4 Basic Industrial Tariff Offerings Time of Use / Peak – Off Peak Interruptible Service (Curtailment) Capacity Buyback / Demand Response Market Pricing Options Economic Development Rider Load Retention Contract Special Contracts

5 Industrial Tariff Business Issues Utility in position of offering favorable options to certain customers vs others Industrial processes limit ability of customer to use interruptible rates Customer concern with impact of interruptions on work in progress Legal and regulatory limits on cross subsidies (e.g. Michigan cost of service law – 2008)

6 Alpena Power Company Large Industrial Service tariff Alternate Energy Manufacturing Service Facility closed 6 or more months Hemlock variety targeted special contract Special Power Contracts Allowed per Tariff MPSC approval required

7 Indiana Michigan Power (AEP) Contract Service Interruptible Power CS-IRP No MI customers Buy through option at market prices Demand Response Service DRS – Indiana DRS-1 PJM emergencies DRS-2 curtailment at market price DRS-3 ancillary markets – few takers Economic Development Rider EDR Customer who qualifies given reduced billing demand 10 new jobs demonstrated (Indiana) Not presently effective in Michigan (cross subsidy issues)

8 Xcel Energy (NSP – Wisconsin) Large Industrial Service MI-1 Peak Controlled Time of Day MPC- 1 Experimental Market-Based and Real Time Pricing CMP-1; RTP-1 (Wisconsin)

9 Wisconsin Public Service Cp-1M Large Industrial Service Cp-I2M Interruptible Rider (emergency or economic) Cp-ND Next Day 1 year term Pricing for critical (5 days/yr), peak (100), mid-economy (100) and economy (200)pe OPE Online Power Exchange Customer load reduction offers RTMP Real Time Market Pricing (Wisconsin) Non-firm LMP + MISO + $10 mWh

10 We Energies General Primary – Time of Use Cp-1 General Primary – Interruptible Cp-2 General Primary – Curtailable Cp-3 Experimental Dollars for Power DFP Credits for load reduction Experimental Power Market Incentives PMI Market prices for curtailment

11 Upper Peninsula Power Company Large Industrial Rate Cp-U Capacity Buyback Rider Cp-1B Interruptible Rider Cp-I Real Time Market Pricing RTMP

12 Wisconsin Contract Service Tariff CST Wis. Stat Requires a market compensation option for interruptions Also contract market pricing options Allow customers to gain market benefits subject to market risks PSCW must determine there is no harm to either utility shareholders or other customers


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