LANSING – The surprising announcement some two weeks ago that Consumers Energy would end an agreement to by electric power from the Palisades nuclear plan has led the Public Service Commission on Tuesday to call on the utility to provide additional information on its decision.

In its call for more information, the PSC has also told Consumers to file a revised five-year forecast on its 2017 power supply cost recovery plan that is pending before the commission.

A spokesperson for Consumers said in a brief email that the utility would comply with the PSC’s order and answer all its questions.

The announcement on December 8 that Consumers was terminating early its agreement to buy electricity from the nuclear plant it had developed and once owned – and which is now owned by Entergy – caused a shock as it came during the height of discussions in the Legislature during the lame-duck session on new energy legislation.

Legislators and others who supported a proposal to allow greater competition questioned whether the announcement was a stunt to push new energy policy, which did end up passing the final day of the session.

The PSC had approved a purchased power agreement between Consumers and Entergy in 2007, calling for Consumers to purchase virtually all the electricity generated by Palisades. The agreement was to last until 2022.

Under the announcement earlier in December, Consumers says it will purchase power only until May 31, 2018, from Palisades and then reach a new agreement with Entergy that will allow the plan to run until October 1, 2018. After that point, Entergy said it will permanently shutter the nuclear plant.

The Michigan House approved a resolution, HR 410, calling for more information on the decision and in its announcement the PSC said it had guidance from the House on the issue through the resolution.

Among the issues the PSC has called on Consumers to provide information on are:

  • The alternatives it considered before making the decision;
  • Information on the impact the decision could have on customers, which would include Consumers’ plans to replace the electric energy now provided by Palisades;
  • Whether the Midcontinent Independent System Operator has enough replacement capability to make sure there is a reliable electric energy supply to the state;
  • Information on all cost recovery and financing options and how those compare to ratepayer benefits; and
  • Information on whether there are adequate funds to decommission the plant and to ensure there is sufficient monitoring of the site for the decades to come to ensure public safety.

The PSC did not put a time frame on when Consumers has to provide the information. However, it did put a 30-day deadline on the revised five-year forecast.

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