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