January 16, 2006—The Michigan Public Service Commission (MPSC) staff issued its report on Michigan’s future electric capacity needs, indicating that Michigan’s existing generation resources are adequate to meet the state’s demand, but by 2009, growing demand will require that certain measures be undertaken to ensure that Michigans electric grid keeps the power flowing.
The MPSC on Oct. 14, 2004 issued an order directing the MPSC staff to begin a Capacity Need Forum (CNF) with a two-fold goal: to determine whether Michigans electric generating capacity will be adequate to meet the growing demand for electricity, especially given the likely retirement of some of the states older generating units, and assuming additional resources are needed, what types of resources would be best for Michigan; and to provide guidance to the MPSC on rate-making policies and methodologies to allow recovery of utility investment in electric generation resource additions.
Over 160 individuals from 60 organizations participated in the forum. It is the first electric energy planning effort coordinated by a State of Michigan agency since 1985.
According to the report, peak electric power demand is projected to increase at an annual rate of about 2.1 percent. By 2009, unless enhancements to existing supplies are undertaken, growing demand will cause existing electric generation and transmission capacity in the Lower Peninsula to be insufficient to maintain reliability standards, according to the report.
Resource enhancements available could include a wide variety of near-term options, including additional demand-side options (energy efficiency improvements, load management, and demand-response programs) and generally faster-to-complete supply-side options such as transmission improvements, natural gas combustion turbines or combined cycle generators, renewable energy, and combined heat and power systems.
New base load power plant construction may need to be undertaken, depending on Michigans overall economic activity and the number of short-term enhancements made, by 2011, or shortly thereafter.
For more information, see the Web site of the Michigan Public Service Commission.
