Energy-Intensive Industrial Rates Workgroup Update May 22, 2014.

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Presentation transcript:

Energy-Intensive Industrial Rates Workgroup Update May 22, 2014

2

3 Process: Establish a workgroup consisting of a manageable number of stakeholders selected through an open, transparent process that develops, analyzes, and reports various options. Objective: Develop non-legislative options that can reduce electric rates for energy intensive companies, abiding by existing policies and cost-of-service principals.

4 Deliverable – A Report to Inform Policy Makers: A final report of options that will be used to inform the Governor, legislative staff, MPSC, and stakeholders. This report will detail how various options will impact all ratepayers and their potential implementation methods and timelines.

5 5 Timeframe March 24 th – Announce workgroup process, solicit businesses to serve on workgroup March 31 st – Deadline for business customer nominations April 2 nd – Workgroup members announced April 7 th – First workgroup meeting, introduce participants, develop assignments April 21, May 5, May 19 th – Additional workgroup meetings May 30 th – Draft options finalized by workgroup June 9 th – Draft report available online for stakeholder/public comment June 20 th – Comment period closed June 27 th – Final report issued

6 MEDC & MPSC Steve Bakkal – MEDC Steve McLean - MPSC Dan Blair – MPSC Business Customers Mike Binion - Gerdau Special Steel North America David Stoner - United States Steel Corp George Andraos - Ford Motor Company Steve Brooks - Verso Paper Corp Keith Tyson Kenebrew - Dow Chemical Company Gerrit Reepmeyer - Severstal North America Jennifer Steiner - Burner - Marathon Petroleum Daniel Voss - General Motors Company Richard Nelson - Praxair, Inc. Rod Williamson - Dow Corning Corporation Utility Representatives Don Stanczak – DTE Stephen Stubleski – CMS Jim Ault - MEGA Kim Molitor - Wolverine Power Legislative Staff Greg Moore – Senate Dan Dundas - House Workgroup Members

Annual Electric Load Profile by Class JanFebMar AprMayJun JulAug Sep Oct NovDec 1/6 2/9 4/8 3/4 5/26 6/22 7/7 8/31 9/1 10/20 11/30 12/9 12CP is the average of the 12 monthly coincident peaks (dates noted above) 4CP is the average of the 4 summer monthly coincident peaks (6/22, 7/7, 8/31 and 9/1)

8 Implementation Options Two Options Utility company files rate case recommending new cost allocation or rate design method generated from workgroup MPSC initiates review of cost allocation and rate design methods (HB 5476). New rate established no later than Dec 1, Workgroup report used to inform MPSC.

9 Questions Steve Bakkal