Tag Archives: DTE Energy

Could DTE Proposal Kill Rooftop Solar In Michigan? Advocates Say Yes

By Frank Andorka, Senior Correspondent

Just when you think Michigan is finally getting its solar act together, utilities like DTE Energy hatch plans to destroy rooftop solar in the state, at least according to the advocates that talked to our friends at Inside Climate News.

Becky Standfield, the Midwest director for Vote Solar, isn’t one for hyperbole. She’s one of the most level-headed solar activists I’ve known. So to see her say this to ICC was both startling and arresting:

“It is very clear that DTE is trying to put a dagger in the heart of rooftop solar in Michigan.”

Whoa. And that’s not even the strongest comparison advocates are making.

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A little background on this fight is necessary here. Traditionally, net metering is done at a the retail rate – a one-to-one exchange. But under current Michigan law, there is no set level of compensation set, meaning utilities can pay solar consumers at whatever rate the Public Utilities Commission will allow.

Right now, DTE Energy has a proposal before the PUC that will allow them to compensate solar consumers at the wholesale rate, which would be approximately 75% under retail rate.

How can they justify this highway robbery? Well, it’s the zombie lie of the “cost shift” again raising its ugly head. In case you’re not familiar with this well-worn piece of nonsense (and utilities across the country cling to it like a drowning man to a life preserver), the “cost shift” argument holds that solar customers don’t pay their fair share of grid upkeep. Therefore, the “costs” of their energy self-production are then passed on to non-solar consumers.

And as I’m sick of writing, it’s complete bunk. The cost shift doesn’t happen until a state gets at least 10% of its electricity from solar power (which only occurs in five states now, and Michigan is not one of them). Once the cost shift happens, it’s only fractions of a penny per kilowatt-hour – so even at its worst it’s a marginal cost at best.

A 75% cut in compensation for electricity exports would essentially kill rooftop solar in Michigan, mirroring, says Inside Climate News, the screeching halt a similar proposal in Nevada visited up on that state’s solar industry.

That was so bad that it took two years before the solar industry was even a shell of its former self, and three years later the rooftop solar industry is still recovering.

Michigan should learn from Nevada’s example. It’s PUC should reject DTE Energy’s ridiculous request.

More:

High-Stakes Fight Over Rooftop Solar Spreads to Michigan

The Energy Show: Gigawatt Scale Solar Installations

We often talk about smaller solar power systems on homes or commercial buildings. On this week’s Energy Show we are discussing gigawatt scale solar installations. The logic is simple: solar panels are getting cheaper and installation costs are declining. At the same time, utility electric prices keep increasing. When prices go up and costs go down profits can skyrocket – so it’s no surprise that there is a big market for large-scale solar installations.

When I started doing PV installations in 2001 the biggest projects were about 5 MW. Now there are several 500 MW installations proceeding in the U.S., and several 1,000+ MW (a gigawatt) installations are under way in India and China. Solar power plants in the gigawatt range are now being planned in the U.S. To put a gigawatt solar power plant in perspective, it is twice the capacity of most natural gas plants, covers about ten square miles, uses over three million solar panels, and employees thousands of people during construction.

To fill us in on the details of projects of this size, my special guests are Mark Cox and Shola Ashiru with the New Energy Fund II. Mark and Shola have been financing solar companies and projects for almost 20 years. They are currently working on a 1.2 gigawatt project which would be one of the largest systems in the world and the biggest in the U.S.

MPSC Issues Most Unsurprising Ruling Ever (And Approves $1 Billion DTE Energy Plant)

By Frank Andorka, Senior Correspondent

What Happened:The Michigan Public Service Commission (MPSC), in a decision that surprised no one, awarded DTE Energy the right to build its $1 billion boondoggle natural gas plant.

  • The commission appears to have ignored, you know, the evidence that showed renewable energy – specifically solar – would provide a much better bang for ratepayers’ bucks than this natural gas plant.
  • The action comes as a blow to solar advocates across the country, who were watching this case to see if the aggressive tactics would stop the plant.
  • Proposed natural gas plants are increasingly being denied in various states as unnecessary, particularly in solar-friendly states like California and Arizona. But the DTE Energy plant is a victory utilities desperately needed to keep putting these monstrous proposals forward.
    • MPSC

    Proof that, given the choice, public utilities commissions will protecct the utilities’ right to do whatever they want, even in the light of evidence.

    SolarWakeup’s View:  That was as predictable a 4-win season for the Cleveland Browns, wasn’t it? Despite strong, well-reasoned and evidence-supported opposition, the Michigan Public Service Commission (MPSC) decided to cave to DTE Energy’s desire to build a $1 billion natural gas plant instead of investing in renewable energy technologies, which evidence from critics of the plant prove would have been a better investment for everyone involved.

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    This is the second crushing blow to the state’s solar industry within a week after the MPSC replaced net metering – the most effective pro-solar policy ever invented – with an inflow/outflow system that penalizes solar users and eliminates retail net metering.

    In particular, Vote Solar, which had led the opposition to the plant in a striking departure from their usual strategies of intervening solely in solar cases, expressed disappointment in the decision.

    “This is a rotten deal for customers and terrible precedent for utility planning in Michigan,” said Becky Stanfield, senior director of Western States for Vote Solar. Stanfield oversaw the Michigan fight for the group. “Everyone in this case knows that there is a better way for DTE customers than this expensive, inflexible and polluting plant. The record was solid against approval.”

    The Solar Energy Industries Association (SEIA) also weighed in – and they weren’t happy, either.

    “We are extremely disappointed with the Michigan Public Service Commission’s decision in this case,” said Sean Gallagher, vice president of state affairs for SEIA. “Despite the overwhelming evidence that DTE failed to adequately consider alternatives, including a portfolio of renewable energy solutions that would lead to greater savings, more jobs, reduced risk, and environmental benefits, the Commission authorized a $1 billion plant that would not pass muster with Michigan’s laws if it were proposed today.”

    I gotta throw in with Becky and Sean. This decision doesn’t make any sense on any level and deals a significant blow to chances of building a robust solar industry in the state. Meanwhile, Illinois and Minnesota get to keep their lead in Midwest solar development. It’s perplexing, though it’s not surprising.

    As more consumers are finding as these battles play out across the country, most public utilities commissions are naturally inclined to support utilities over consumers and, although that is changing, it’s not changing fast enough, as today’s decision in Michigan shows.

    More:

    Michigan Utility Under Fire For Alleged PURPA Violations

    Decision On Fate Of $1 Billion DTE Natural Gas Plant Looms

    Coalition Delivers 10,000 Michigander Letters Calling on DTE to Drop Its Gas Plan and Choose Clean Energy (Vote Solar)

    Power Up Michigan

    Michigan Public Service Commission

    Bonus:

    “I’m shocked, SHOCKED…..”

    Michigan Utility Under Fire For Alleged PURPA Violations

    By Frank Andorka, Senior Correspondent

    What Happened:DTE Energy is in the news again, and it is yet again not for a good reason. Greenwood Solar has filed a complaint against the utility alleging that it is not negotiating to buy their electricity in good faith as is required under the Public Utility Regulatory Policies Act of 1978.

  • Under PURPA, utilities are legally required to buy power from independent power producers (IPP) if it is below their cost of generation from other sources, also known as “avoided costs”.
  • Congress passed PURPA at the height of the 1978-1979 oil crisis, when Western nations like the United States tried to wean themselves off fossil fuels to counter a move by the Organization of the Petroleum Exporting Countries (OPEC) to raise oil prices significantly.
  • The Michigan utility has until May 29 to respond to last week’s complaint. The first prehearing will be held on June 5.
    • Michigan utility

    Is the image of the sun setting on a utility pole too heavy handed? I worry it’s a little heavy handed.

    SolarWakeup’s View: As I was doing research for my story on DTE’s $1 billion natural-gas plant boondoggle, I happened across an interesting note on the Michigan Public Service Commission’s website: The Michigan utility has had a complaint filed against it by a solar company saying DTE is not negotiating in good faith under the Public Utility Regulatory Policies Act of 1978, or PURPA.

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    Under PURPA, utilities are legally required to buy power from independent power producers (IPP) if it is below their cost of generation from other sources, also known as “avoided costs”. Congress passed PURPA at the height of the 1978-1979 oil crisis, when Western nations like the United States tried to wean themselves off fossil fuels to counter a move by the Organization of the Petroleum Exporting Countries (OPEC) to raise oil prices significantly.

    In its complaint, Greenwood Solar alleges that:

  • DTE’s refusal to enter substantive negotiations of an agreement for purchase of capacity and energy violates Greenwood Solar’s rights under PURPA.
  • DTE can’t unilaterally refuse to purchase capacity offered by Greenwood Solar.
  • DTE’s failure to engage in substantive negotiations of an agreement for purchase of capacity and energy violates Greenwood Solar’s rights Under DTE’s Rider No. 6.

    • “DTE is aggressively blocking solar development at every scale in order to justify its proposal to build a giant gas plant in St. Clair County,” Becky Stanfield, senior director of Western States for solar advocacy group Vote Solar, told SolarWakeup. “We don’t think what they’re doing is consistent with the law, and we’re very much hoping the Commission doesn’t let the company get away with it.”

    The Michigan utility has until May 29 to respond to Greenwood’s complaint, and the first hearing on the matter will take place June 5.

    Read the whole complaint here:

    U-20156 Complaint of Greenwood Solar Against DTE

    More:

    Decision On Fate Of $1 Billion DTE Natural Gas Plant Looms

    Coalition Delivers 10,000 Michigander Letters Calling on DTE to Drop Its Gas Plan and Choose Clean Energy (Vote Solar)

    Power Up Michigan

    Michigan Public Service Commission