Michigan Laws 460.1045 – Charges for electric provider’s tariffs that permit recovery of incremental costs of compliance; calculation
Current as of: 2023 | Check for updates
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Terms Used In Michigan Laws 460.1045
- Commission: means the Michigan public service commission. See Michigan Laws 460.1003
- Customer meter: means an electric meter of a provider's retail customer. See Michigan Laws 460.1003
- Electric provider: means any of the following:
(i) Any person or entity that is regulated by the commission for the purpose of selling electricity to retail customers in this state. See Michigan Laws 460.1005Incremental costs of compliance: means the net revenue required by an electric provider to comply with the renewable energy standard, calculated as provided under section 47. See Michigan Laws 460.1007 month: means a calendar month; the word "year" a calendar year; and the word "year" alone shall be equivalent to the words "year of our Lord". See Michigan Laws 8.3j plan: means a plan approved under section 22 or former section 21 or 23 or found to comply with this act under former section 25, with any amendments adopted under this act. See Michigan Laws 460.1011 Provider: means an electric provider or a natural gas provider. See Michigan Laws 460.1009 Renewable energy: means electricity or steam generated using a renewable energy system. See Michigan Laws 460.1011
(1) For an electric provider whose rates are regulated by the commission, the commission shall determine the appropriate charges for the electric provider‘s tariffs that permit recovery of the incremental cost of compliance subject to the retail rate impact limits set forth in subsection (2).
(2) An electric provider shall recover the incremental cost of compliance with the renewable energy standards. An electric provider shall not comply with the renewable energy standards to the extent that, as determined by the commission, recovery of the incremental cost of compliance will have a retail rate impact that exceeds any of the following:
(a) $3.00 per month per residential customer meter.
(b) $16.58 per month per commercial secondary customer meter.
(c) $187.50 per month per commercial primary or industrial customer meter.
(3) The retail rate impact limits of subsection (2) apply only to the incremental costs of compliance and do not apply to costs approved for recovery by the commission other than as provided in this act.
(4) The incremental cost of compliance shall be calculated for a 20-year period beginning with approval of the renewable energy plan and shall be recovered on a levelized basis.