ABRAMS ENVIRONMENTAL LAW CLINIC
OF THE UNIVERSITY OF CHICAGO LAW SCHOOL
October 29, 2019
Via E-Filing Only
Ms. Lisa Felice
Michigan Public Service Commission
7109 W. Saginaw Hwy.
P. O. Box 30221
Lansing, MI 48917
RE: MPSC Case No. U-20471
Dear Ms. Felice:
Please find enclosed Initial Brief of Soulardarity in Case U-20471 and proof of service for
electronic filing in the above referenced matter. The confidential paragraphs of the brief were
filed separately under seal. An electronic copy of the brief, including confidential paragraphs
was served to those parties who have signed the Non-Disclosure Certificate in this case. An
accompanying proof of service has been included below. Please do not hesitate to contact my
office with any questions or comments.
Sincerely,
Mark N. Templeton, pro hac vice
6020 S. University Avenue
Chicago, IL 60637
Phone: (773) 702-9611
Email: [email protected]
xc: Parties to Case No. U-20471
STATE OF MICHIGAN
BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION
In the matter of the application of
DTE Electric Company for
approval of its integrated resource
plan pursuant to MCL 460.6t, and
for other relief.
Case No. U-20471
ALJ Sally L. Wallace
INITIAL BRIEF OF SOULARDARITY
Dated: October 29, 2019
Table of Contents*
I. INTRODUCTION [Outline I. INTRODUCTION] ............................................................. 1
II. FACTUAL BACKGROUND [Outline II. HISTORY OF PROCEEDINGS] ..................... 3
III. LEGAL AND REGULATORY FRAMEWORK [Outline IV. JURISDICTION AND
STANDARD OF REVIEW] ............................................................................................................. 5
IV. RENEWABLES ASSUMPTIONS AND MODELING [Outline VII.C.2. Wind and Solar
Inputs, Outline VII.C.7 Decentralized Power or Distributed Generation (DG), and Outline D.
Modeling Results]: DTE’s Renewable Analysis Was Not Reasonable or Prudent ........................ 8
V. STAKEHOLDER ENGAGEMENT AND PUBLIC OUTREACH PROCESS [Outline
VII.E. IRP Public and Stakeholder Engagement (open houses and technical workshops)]: DTE
did not meaningfully engage the public in its IRP process, particularly low-income customers . 19
VI. PLANNING PRINCIPLES [Outline VII. G. Risk Analysis (including Planning
Principles)]: DTE provided incomplete and inadequate definitions of the planning principles, did
not use them in the generation of potential pathways, and did not justify the proposed flexible
pathways with the planning principles sufficiently. ..................................................................... 24
VII. CONCLUSION AND REQUESTS FOR RELIEF........................................................... 43
* Each Section of Soulardarity’s brief corresponds with a section of DTE’s proposed brief
outline.
U-20471, Initial Brief of Soulardarity Page 1 of 47
I. INTRODUCTION [OUTLINE I. INTRODUCTION]
The 2019 Integrated Resource Plan (“IRP” or “Plan”) of DTE Electric Company (“DTE”
or the “Company”) is not “reasonable and prudent,” MCL 460.6t, and therefore the Commission
should reject it. The Company neglected to model a wide range of renewable and distributed
generation (“DG”) options that ratepayers demanded and that would have achieved the
objectives of the Company’s planning principles. DTE failed in its effort to engage ratepayers in
meaningful conversations about its IRP, hosting either overly technical workshops or simplistic
public open houses that did not discuss assumptions DTE was considering for the IRP, and DTE
did not act specifically on the input it received from the general public. DTE utilized planning
principles in its risk analysis for assessing the plans, but the definitions of the planning principles
were incomplete, and DTE did not used the planning principles to generate plans to be analyzed.
The Company gestured towards considering Community Impact and the Company’s emissions in
the planning principles, but DTE relegated both concerns to second class status. In sum, the
Commission should reject this IRP because DTE failed to engage its ratepayers meaningfully in
the IRP process, ignored the range of viable renewable energy and distributed generation
resources, and failed to create a transparent decision-making process that “appropriately
balanced” its planning principles. MCL 460.6t(8)(a).
DTE’s neglect for a comprehensive analysis of renewable energy and distributed
generation options led to an incomplete review of the “means of meeting energy and capacity
needs.” Id. Despite the modelling from a previous Commission proceeding, U-18418, indicating
a shift toward non-fossil fueled resources, the Company rejected this modeling as “inconsistent
with DTE’s experience and projections.” Mikulan Direct Testimony at 35. DTE’s neglect
became a self-fulfilling prophecy: At the outset it minimized renewable energy and then used the
U-20471, Initial Brief of Soulardarity Page 2 of 47
analysis in its IRP to support its prejudgment. Further, the DTE Voluntary Green Pricing
(“VGP”) program rests on poorly substantiated projections and excludes low-income and people-
of-color communities. If the expensive, poorly-designed VGP program does not meet the
Company’s targets, the Company should support the construction of more renewable resources
and should not build polluting natural gas plants, which will likely become stranded assets.
The Commission Order in U-15896 laid the framework for how Michigan utilities should
engage stakeholders in the IRP process. See generally, U-15896, In re on the Commission’s Own
Motion, to Implement the Provisions of Section 6s of 2016 PA 341, Ex. A. This included
transparent decision-making process, an opportunity for feedback, and robust and informed
dialogue. Id. As this brief will demonstrate, DTE failed to engage its ratepayers as required by
the Commission Order. Public open houses were not geographically dispersed, did not always
provide translation services or childcare, and did not inform attendees about the options the
Company was considering.
Finally, while DTE attempted to utilize planning principles throughout its decision-
making process, the principles DTE used suffered from incomplete definitions and were only
used in a qualitative analysis of the plans, when quantitative scrutiny would have been possible.
The planning principles were not used to generate plans at the outset, which may have helped to
remedy the absence of a diversity of renewable options in the modeling. Further, DTE did not
apply the planning principles evenhandedly, instead selecting Proposed Courses of Action
(“PCAs”) that disregarded its own stated factors.
For these reasons, the Commission should reject DTE’s IRP. The Company has not met
its burden to demonstrate it has complied with either the statutory requirements or those laid out
in the Commission Orders. After a brief factual background and review of the legal standards,
U-20471, Initial Brief of Soulardarity Page 3 of 47
this brief will detail DTE’s failure to analyze available renewable energy resources fully and
appropriately, the Company’s neglect for meaningful public participation, and the
inconsistencies and omissions in the planning principles analysis.
II. FACTUAL BACKGROUND [OUTLINE II. HISTORY OF PROCEEDINGS]
In 2011, DTE Energy repossessed more than 1,000 streetlights from Highland Park,
Michigan, a predominantly low-income and people-of-color city, after its municipal government
defaulted on its utility payments. Koeppel Direct Testimony at 2. A coalition of Highland Park
residents formed Soulardarity in 2012 to help alleviate the crisis by installing community-owned,
solar-powered streetlights in the city. Koeppel Direct Testimony at 3. Soulardarity’s mission has
subsequently broadened to include energy education, organizing for energy democracy,
advocacy for community solar, and promoting greater equity in Michigan’s energy generation
and delivery systems. Through activism and advocacy, Soulardarity seeks to emphasize the
particular needs, experiences, and perspectives of low-income communities and communities of
color.
It is critically important that the Commission consider these perspectives carefully during
this IRP proceeding as it makes decisions about Michigan’s energy future. The environmental
and public health costs of fossil-fuel generation sources have burdened and continue to burden
disproportionately low-income communities and communities of color. See Ex. SOU-10,
National Association for the Advancement of Colored People, Indigenous Environmental
Network & Little Village Environmental Justice Organization, Coal Blooded: Putting Profits
Before People (2016). In addition to bearing an inequitable share of the burdens of the energy
system, low-income communities within DTE’s service territory receive inferior service and thus
U-20471, Initial Brief of Soulardarity Page 4 of 47
reap fewer benefits. For instance, DTE’s hardening program has been inadequate in Highland
Park and other low-income communities, failing to put powerlines underground and leaving the
communities with dangerously outdated power lines and transmission infrastructure. Koeppel
Direct Testimony at 12.
DTE’s ratepayers have repeatedly demanded increased renewable-energy generation
sources in the IRP, both at the open houses DTE held for the public as well as at the public
hearing on DTE’s IRP hosted by the MPSC. See Ex. SOU-35 at 11-17, Pfeuffer, WP SGP-2,
First Public Open House Documents (2018) (comment cards); Ex. SOU-36 at 5-11, Pfeuffer, WP
SGP-2, Second Public Open House Documents (2018) (comment cards); Ex. SOU-37 at 14-37,
Pfeuffer, WP SGP-2, Third Public Open House Documents (2018) (comment cards); In re the
Application of DTE Electric Company for Approval of Its Integrated Resource Plan Pursuant to
MCL 460.6t, and for Other Relief, MPSC Public Hearing, June 20, 2019 (public comments).
DTE’s customers have also expressed a desire for increased opportunities for the public to give
input on the IRP; however, DTE’s public open house workshops were largely inaccessible in
particular for low-income customers due to the lack of childcare, limited translation services, and
limited public transportation options to the open house venues. Koeppel Direct Testimony at 38-
39.
Soulardarity has intervened in this case in order to request that the Commission takes into
consideration the perspectives of low-income communities and communities of color when
reviewing DTE’s IRP. By participating in this proceeding, Soulardarity aims to ensure that
environmental burdens on low-income and people-of-color communities are lessened, that the
members of these communities receive the services to which they are entitled as customers of
U-20471, Initial Brief of Soulardarity Page 5 of 47
DTE, and that they have equal access to the benefits of renewable energy and energy efficiency
programs.
III. LEGAL AND REGULATORY FRAMEWORK [OUTLINE IV. JURISDICTION AND
STANDARD OF REVIEW]
DTE bears the burden of showing that its IRP meets the requirements outlined in the
applicable statutes and regulations. In particular, DTE’s IRP must comport with the standards
articulated in MCL 460.6(t), the Integrated Resource Plan Filing Guidelines as outlined in Case
U-15896 (U-15896, In re on the Commission’s Own Motion, to Implement the Provisions of
Section 6s of 2016 PA 341, Dec. 30, 2017, at Ex. A), and the Commission’s Michigan Integrated
Resource Planning Parameters as set forth in Case No. U-18418 (U-18418, In re On the
Commission’s Own Motion to Implement the Provisions of Section 6t(1) of 2016 PA 341, Nov.
21, 2017, at Ex. A). DTE must meet its burden of proof by a preponderance of the evidence. See
Dillion v. Lapeer State Home and Training School, 364 Mich. 1, 8 (1961) . If DTE fails to meet
this burden, the Commission must reject the IRP.
MCL 460.6(t) outlines the statutory requirements that a utility must meet in order for the
Commission to approve its IRP. Under the statute, DTE must prove that its plan “represents the
most reasonable and prudent means of meeting the electricity utility’s energy and capacity
needs.” MCL 460.6(t)(8)(a). In determining if DTE has met this burden, the Commission looks
to the factors outlined in the statute, which include, but are not limited to: resource adequacy,
compliance with applicable state and federal environmental regulations, reliability, and diversity
of generation supply. Id.
U-20471, Initial Brief of Soulardarity Page 6 of 47
Section 3 of MCL 460.6(t) instructed the Commission to issue an order establishing filing
requirements for integrated resource plans, which it did in Case No. U-15896 in the Integrated
Resource Filing Guidelines. U-15896, In re on the Commission’s Own Motion, to Implement the
Provisions of Section 6s of 2016 PA 341, Dec. 30, 2017, at Ex. A. A utility company must show,
by a preponderance of the evidence, that it complied with the filing guidelines. See Dillion v.
Lapeer State Home and Training School, 364 Mich. 1, 8 (1961).
The Commission Order in U-15896 directs utilities to include a “Stakeholder
Engagement and Public Outreach Process” in order to
1) educate potential participants on utility plans; 2) utilize a transparent decision-
making process for resource planning; 3) create opportunity to provide feedback to
the utility on its resource plan; 4) encourage robust and informed dialogue on
resource decisions; and 5) reduce regulatory risk by building understanding and
support for utility resource decision.
U-15896, In re on the Commission’s Own Motion, to Implement the Provisions of Section 6s of
2016 PA 341, Dec. 30, 2017, Ex. A at 6. The Commission Order provides specific guidelines for
how the utility should conduct its public outreach meetings in order to ensure accessibility,
stating, “[th]e public meetings should be offered in the utility’s service territory in geographic
locations convenient to customers, with advanced notice provided to customers in the utility’s
service territory.” Id., Ex. A at 7. Additionally, in order to encourage attendance, the guidelines
state, “The utility is encouraged to consider holding public meetings after normal business
hours.” Id.
The Commission Order in U-15986 includes numerous guidelines with respect to
renewable energy resources. A utility must “[d]escribe how the electric provider will meet
existing renewable energy standards,” and in addition, “[i]f the level of renewable energy
purchased or produced is projected to drop over the planning periods, the utility must
U-20471, Initial Brief of Soulardarity Page 7 of 47
demonstrate why the reduction is in the best interest of ratepayers.” Id. at 14-15. The
Commission Order also directs a utility to “describe the options for customer-initiated renewable
energy that will be offered by the electric provider” and also to “describe how the electric
provider will meet the demand for customer initiated renewable energy.” Id.at 15. The filing
guidelines also require that DTE provides specific information—including operating,
maintenance, and capital costs—for distributed generation programs. Id. at 8.
In order to satisfy the requirements of the filing guidelines as specified in the
Commission Order, DTE must describe the process it used to select its Proposed Course of
Action, “including the planning principles used by the utility to judge the appropriate tradeoffs
between competing planning objectives….” Id. at 20-21. DTE must also include its justification
for how its Proposed Course of Action “[s]trikes an appropriate balance between the various
planning objectives specified.” Id. at 21.
DTE must also prove that its IRP is compliant with the Michigan Integrated Resource
Planning Parameters as set forth in Case No. U-18418. U-18418, In re On the Commission’s
Own Motion to Implement the Provisions of Section 6t(1) of 2016 PA 341, Nov. 21, 2017, at Ex.
A. To be in compliance with the parameters, DTE must include a minimum analysis period of
twenty years in its IRP, with reporting at years five, ten, and fifteen years. Id., Ex. A. at 6.
Additionally, the planning parameters mandate that utilities consider the environmental impact of
the Proposed Course of Action, stating, “Environmental benefits and risk must be considered in
the IRP analysis.” Id., Ex. A at 26.
DTE bears the burden of showing that its IRP meets the requirements of MCL 460.6(t),
Integrated Resource Plan Filing Guidelines, and Michigan Integrated Resource Planning
Parameters by a preponderance of the evidence. This standard means that DTE must prove the
U-20471, Initial Brief of Soulardarity Page 8 of 47
facts it asserts in its IRP; other parties do not bear the burden of proving the opposite facts. See
Dillion v. Lapeer State Home and Training School, 364 Mich. 1, 8 (1961). Additionally, the
Commission has quoted the Michigan Supreme Court stating that, under the preponderance of
the evidence standard, “[n]o essential issue may be left to surmise, guess, or conjecture, for an
administrative body cannot base an award or decision upon conjecture or speculation.” U-18224,
In re of the Application of Upper Michigan Energy Resources Corporation Approval of a
Certificate of Necessity, Oct. 25, 2017, at 14 (quoting Dillon v. Lapeer State Home & Training
School, 364 Mich. 1, 8 (1961)). As such, DTE’s IRP may not rely on unfounded assumptions,
but rather DTE must prove the facts underlying its justification for its IRP as well as proving that
it met the statutory and regulatory requirements.
IV. RENEWABLES ASSUMPTIONS AND MODELING [OUTLINE VII.C.2. WIND AND
SOLAR INPUTS, OUTLINE VII.C.7 DECENTRALIZED POWER OR DISTRIBUTED
GENERATION (DG), AND OUTLINE D. MODELING RESULTS]: DTE’s Renewable
Analysis Was Not Reasonable or Prudent.
Generally speaking, there are at least four ways in which renewable energy is supplied to
DTE’s customers. First, customers can provide power to themselves and sell excess power back
to the grid through customer-owned renewable-energy resources, e.g., distributed-generation
systems and community solar systems. Second, 2016 PA 342 requires DTE to meet a renewable
portfolio standard of 15% by 2021 and thereafter. 2016 PA 342 §28(c). Third, DTE has
committed to additional clean energy and carbon reduction goals, which include energy waste
reduction as well. See, e.g., Schroeder Direct Testimony Ex. A-18, at 1-2. And fourth, the
company manages a VGP program gives DTE customers the option to increase “the percentage
U-20471, Initial Brief of Soulardarity Page 9 of 47
of their energy usage that is attributed to specific renewable projects” in exchange for paying an
increased rate. Mikulan Direct Testimony Ex. A-3, at 86.
Unfortunately, and illegally, DTE has a limited and short-sighted view of renewable
energy in its IRP, leading to an analysis that is neither “the most reasonable [or] prudent means
of meeting the electric utility’s energy and capacity needs.” MCL 460.6t(8)(a). First, DTE failed
to model fully and fairly renewable energy generally and distributed generation—including
PURPA qualifying facilities, household solar, and community solar—more specifically. Second,
the Plan relies too heavily on a flawed VGP program that is expensive, inadequate and exclusive.
As a result, the Company has failed to analyze “all reasonable options available to meet
projected energy and capacity needs.” MCL 460.6t(5)(k). Soulardarity fears that these self-
induced failings will lead the Company down the path towards construction of a new natural gas
facility, which will lock in a significant source of pollution for decades to come and a stranded
asset whose costs ratepayers will be saddled with.
DTE’s approach to renewable energy restricts access and creates burdens to entry,
particularly for low-income and people-of-color communities. DTE has proposed an IRP that
answers the question of how to meet customer demand with an answer quite similar to business
as usual. DTE’s approaches to a shifting energy landscape, with impacts on its infrastructure,
should not ignore the data in favor of the status quo. Rather, the Company should embrace the
opportunities and the challenges and make renewables available to its customers on a wider scale
and more equitably. DTE has addressed equity issues related to renewable energy by restricting
access instead of following its own modeling and broadening access to renewable energy to all
ratepayers. The company has a history of funding community opposition to renewable energy on
the basis that renewable energy increases costs for low-income communities. See Ex. SOU-4,
U-20471, Initial Brief of Soulardarity Page 10 of 47
Matt Kasper, Utility Front Group ‘Michigan Energy Promise’ Emerges to Rally DTE Energy
Foundation Recipients to Target Solar, Energy and Policy Institute (Mar. 5, 2019). Rather than
fund misinformation campaigns, the company should focus on reducing barriers to entry for
renewable energy.
A. DTE did not perform a fair or full assessment of customer-owned renewable-energy
resources, skewing the IRP analysis and shifting it away from a more robust set of
renewable resources.
MCL 460.6t(8)(a) requires DTE’s proposed IRP to be “the most reasonable and prudent
means of meeting the electric utility’s energy and capacity needs” before the Commission
approves the proposed IRP. To determine if the IRP represents the most reasonable and prudent
means, the Commission must consider, among other variables, diversity of generation supply.
MCL 460.6t(8)(a)(vi). Additionally, the IRP must include “[a]n analysis of the cost, capacity
factor, and viability of all reasonable options available to meet projected energy and capacity
needs.” MCL 460.6t(5)(k). Despite these requirements, DTE’s IRP over emphasizes fossil-fuel
resources, preferences utility-scale renewable resources over smaller-scale renewable resources,
and neglects to give adequate consideration to customer-owned renewable-energy resources.
Therefore the IRP fails to meet the requirements set forth in MCL 460.6t.
1. DTE Wrongly Emphasizes Fossil-Fuel and Utility-Scale Renewable Resources.
DTE discounted the renewable energy modeling scenarios mandated by the Commission
in Case No. U-18418. In that case, the Commission required all electric utilities located in the
Michigan portion of MISO Zone 2 and MISO Zone 7 to utilize scenarios to “help evaluate a
U-20471, Initial Brief of Soulardarity Page 11 of 47
combination of supply-side and demand-side resources under different scenarios and
assumptions related to load growth, fuel prices, emissions, and other variables.” In re On the
Commission’s Own Motion to Implement the Provisions of Section 6t(1) of 2016 PA 341 Nov.
21, 2017 at 1. The three modeling scenarios that the Commission required DTE to employ were
“business as usual,” “emerging technology,” and “environmental policy.” Id. at 15. Each of these
scenarios required DTE to make specific assumptions that would impact the most reasonable and
prudent supply side resources in which the Company may invest.
While DTE noted that the “required scenarios tended to favor non-fossil fueled
resources,” it summarily dismissed these results as being “inconsistent with DTE’s experience
and projections.” Mikulan Direct Testimony at 35. By discounting the outcome of these
scenarios, and relying heavily on its own internal projections, DTE created a self-fulfilling
prophecy in which developing more renewable energy becomes infeasible for DTE due to the
Company’s reliance on fossil-fuel based generation sources—such as the Blue Water Energy
Center—which, in turn, is based on the projection that developing more renewable energy is
infeasible. Witness Pfeuffer’s direct testimony identified an expectation that DTE would add 525
MW of non-VGP solar between 2025 and 2030. Pfeuffer Direct Testimony at 18. However,
DTE’s potential additions of renewable energy are dwarfed by its decision to construct the Blue
Water Energy Center (“BWEC”), a fossil-fueled, 1,150 MW natural gas combined cycle plant.
See Pfeuffer Direct Testimony at 31.
Simply put, DTE fails to justify its belief that “the Company does not believe it is
realistic to assume that these [renewable] technologies will all experience immediate, significant,
and sustained cost reductions.” Mikulan Direct Testimony at 35. The Company inadequately
explains what experience guides its choice, or why it believes that renewable energy will not
U-20471, Initial Brief of Soulardarity Page 12 of 47
sustain significant cost reduction through technology change or policy shifts. The likely result is
a significant expansion of fossil-fueled resources.
With regard to the modeling of renewable-energy resources, DTE modeled utility-scale
solar exclusively when creating the IRP. Mikulan Direct Testimony at 50. DTE did not analyze
directly cost differences between utility-owned and small-scale, third-party owned sources. See
Schroeder Cross Examination at 5 TR 1445. Witness Mikulan justified the Company’s choice
based on “economics.” Mikulan Direct Testimony at 50. However, in deciding to exclusively
model utility scale solar, DTE failed to include locally-owned distributed generation resources,
such as household solar and community solar, in its IRP, and which offer significant benefits to
individual ratepayers and communities as a whole, even if module prices are higher for such
individuals when compared to module prices for utility-scale solar developers.
Additionally, DTE has stated that it did not consider contracting with any third parties
through power purchase agreements or PURPA qualifying facility purchases to meet any of its
renewable resource requirement. Lucas Cross Examination at 7 TR 126. In short, DTE did not
consider any renewable resources being developed and owned by any person other than DTE.
This is true despite DTE’s admission that DTE has not provided any analysis to show that DTE
ownership of renewable energy resources is demonstrably better or less expensive than power
purchase agreements for its customers. See Lucas Cross Examination at 7 TR 127.
DTE’s unjustified preference for utility-owned renewable resources is illustrated by a
comparison between the recent certificate of need (CON) proceedings in front of this body, and
the assumptions in its IRP. In the prior CON proceedings, DTE demonstrated a capacity need
based on the assumption that all power purchase agreements (PPAs) would not be renewed upon
expiration. U-18419, In re the Application of DTE Electric Company for Approval of Certificates
U-20471, Initial Brief of Soulardarity Page 13 of 47
of Necessity Pursuant to MCL 460.6s, as Amended, in Connection with the Addition of a Natural
Gas Combined Cycle Generating Facility to Its Generation Fleet and for Related Accounting
and Ratemaking Authorizations, Apr. 27, 2018, at 39. However, here DTE operates under the
assumption that all PPAs will be renewed upon expiration. Pfeuffer Direct Testimony at 11.
Thus, DTE used the assumption in the CON proceeding that demonstrated a capacity need, and it
makes the assumption that reduces capacity need. In each proceeding, DTE operated under the
assumption that was most beneficial to its view about renewable resources.
Despite it potentially being more beneficial for renewable energy resources to be owned
by a variety of non-utility stakeholders, including customers and qualifying facilities, DTE failed
to even consider such possibilities in its IRP. As such, DTE’s proposed courses of action, which
rely on DTE owning all additional renewable energy resources, is not reasonable and prudent.
2. DTE Wrongly Failed to Assess Distributed Generation and Community Solar
Fully and Fairly.
DTE failed to assess customer-owned renewable-energy resources sufficiently in this
IRP. DTE did not consider different levels of deployment of distributed generation in any of the
plans evaluated as part of the IRP process. Ex. SOU-60 at 3, SDE-1.13c. In addition, the IRP
“does not specify the timing, quantity or location of distributed energy resources.” Zhou Direct
Testimony at 18. DTE’s failure to plan adequately for DG resources makes it impossible to
evaluate the impacts of DG resources on the distribution grid. See id. While the Company can
point to customer-owned distributed generation resources being outside of its control, see
Mikulan Cross Examination at 3 TR 729, DTE fails to take responsibility for its own role in the
U-20471, Initial Brief of Soulardarity Page 14 of 47
growth of customer owned DG. DTE’s policies and practices will dictate the efficacy and
adoption rates of distributed generation.
DG resources offer several benefits. They afford system owners and local communities
economic benefits, such as reducing payments to utilities, generating revenue through the sale of
excess power, and creating local jobs. Koeppel Direct Testimony at 20. They are more beneficial
to the local economy than utility scale resources, and they empower local communities. See
generally Ex. SOU-12, John Farrell, Advantage Local – Why Local Energy Ownership Matters,
Institute for Local Self-Reliance (Sept. 2014). They improve reliability and reduce distribution
system and transmission line losses. See Ex. SOU-8, Emily Prehoda, Joshua M. Pearce, &
Chelsea Shelly, Policies to Overcome Barriers for Renewable Energy Distributed Generation: A
Case Study of Utility Structure and Regulatory Regimes in Michigan (2019) at 12.
Moreover, the revenues that low-income and people-of-color communities pay for energy
leave their communities. If DTE migrates towards a more equitable model that provides better
access to distributed generation and community energy, it will enable low-income and people-of-
color communities to keep those revenues and economic opportunities in their communities and
to share in the benefits of the energy system. DTE’s IRP must recognize the benefits of localized
energy production.
DTE ignored or minimized the benefits of DG in its proposed IRP. According to Witness
Mikulan, the DTE economic analysis of distributed generation did not consider reduced
transmission line losses due to distributed generation, lower transmission construction costs due
to distributed generation, or an increase in reliable performance by siting generation resources
closer to ratepayers. See Mikulan Cross Examination at 3 TR 726-27; contra Ex. SOU-14,
Gideon Weissman, Emma Searson & Rob Sargent, The True Value of Solar: Measuring the
U-20471, Initial Brief of Soulardarity Page 15 of 47
Benefits of Rooftop Solar, Environment America (July 2019) at 6-7. DTE made a categorical
assumption that utility-scale solar is always more cost-effective and desirable than DG.
However, for many Michigan residents and businesses, who have the potential to be both energy
producers and consumers, the incentives to develop small and mid-scale solar projects may be
strong. And, in considering its “Reliability” planning principle, DTE failed to consider the
reliability benefits of DG resources. Ex. SOU-58, SDE-1.11c at 3. This aligns with DTE’s
history of trying to discourage the development of DG resources in what appears to be DTE’s
goal of total control of energy generation.
By assuming that utility-scale solar is the only economically feasible option, DTE
essentially excluded distributed generation and other types of solar that may be owned by its
customers from its IRP, despite these other sources being potentially more cost-effective and
beneficial to DTE’s customers. Despite it potentially being more beneficial for renewable energy
resources to be owned by a variety of non-utility stakeholders, including customers and
qualifying facilities, DTE failed to consider such possibilities in its IRP. As such, DTE’s
proposed courses of action, which rely on DTE owning all additional renewable energy
resources, is not reasonable and prudent. Without meaningful analysis of distributed generation
and community solar, the IRP fails to provide for a diversity of generation supply and does not
provide enough evidence for the Commission to assess whether this IRP represents the most
reasonable and prudent means of meeting DTE’s needs.
An incomplete and flawed assessment of DG is one way in which DTE’s IRP has failed
to assess renewable energy reasonably and prudently. Minimizing the value of distributed
generation helps to support the Company’s plans for natural gas facilities in two of the pathways.
A more reasonable and prudent IRP would have accounted for DTE’s role in the growth in
U-20471, Initial Brief of Soulardarity Page 16 of 47
distributed generation and community solar, including a true accounting of both the costs and
benefits of those types of generation resources.
B. DTE’s VGP program is based on poor assumptions and excludes low-income and
people-of-color communities, and DTE may wrongly use problems with the
program to justify investments in natural gas resources.
DTE relies on its VGP program to meet some of its Proposed Courses of Action. In
Pathways A and B, VGP program renewables would account for 925 MW. Schroeder Direct
Testimony Ex. A-18, at 1-2. However, the reliance on the VGP program rests on uncertain
enrollment projections, and the program as currently constructed inhibits low-income
communities from taking part due to additional costs.
Soulardarity’s fundamental concern is that if the flawed VGP program fails to meet
DTE’s stated goals for it, the Company will use that shortcoming to justify building a natural gas
plant rather than proceeding down the more reasonable and prudent path of investing in other
renewable resources on its own or supporting investments by others in distributed generation and
community solar.
DTE’s own reports demonstrate that its VGP program disregards low-income and people-
of-color communities. In a report delivered pursuant to case U-18352, DTE noted that the VGP
program is highly concentrated in affluent communities and among individuals with high levels
of education and income. Ex. SOU-68 at 2. DTE identifies location, education, and household
income as being “key attributes of green customers.” Id. at 5. Moreover, DTE’s VGP program
marketing plan targets customers that are “Caucasian, Higher income, College graduate[s].” Ex.
SOU-58 at 28. DTE’s targeted marketing of the VGP program is ironic in light of the work of the
U-20471, Initial Brief of Soulardarity Page 17 of 47
lobbying group Michigan Energy First, to which DTE has close ties, which promotes the
message that solar energy raises costs for low-income and people-of-color communities. See Ex.
SOU-4.
In determining enrollment projections for its VGP programs, DTE relied on propensity
modeling to predict that between 60,000 and 75,000 households will join the residential VGP
program at some point in the future. Schroeder Direct Testimony at 15. The residential customers
that DTE predicts will join the VGP program in the future are predominantly affluent, well-
educated homeowners who have resided in their homes for a significant length of time. Id. at 5.
DTE predicts a VGP program disenrollment rate of 6%. This figure is comprised of 3.5%
attributed to customers leaving DTE’s service area and 2.5% of customers remaining in the
service area but ending participation in the program. SOU Ex. 69, SDE-1.4b. This figure is based
on past performance. Schroeder Cross Examination at 5 TR 1397.
DTE failed to assess how its VGP program enrollment projections would fluctuate
because of economic factors. Schroeder Cross Examination at 5 TR 1397. More specifically
DTE did not consider fluctuations in unemployment, interest rates, or its tax base in its analysis.
Id.
By not considering economic factors, the accuracy of DTE’s aforementioned projected
disenrollment figures become highly questionable. The inadequacy of DTE’s analysis raises
concern because a rate of customers ending participation higher than the predicted 2.5% could
negatively affect DTE’s estimates for the VGP program.
These negative effects would be amplified by any disenrollment from the large customer
VGP program. While DTE plans to add 465 MW of renewable energy to support the VGP
program between 2021 and 2024, this energy will be added for commercial and industrial
U-20471, Initial Brief of Soulardarity Page 18 of 47
customers rather than residential customers. Mikulan Direct Testimony Ex. A-3, at 87; Schroeder
Direct Testimony at 17; Ex. SOU-65 at 1. Rather than simply developing more renewable energy
for all of its customers, DTE has decided to develop renewable energy primarily for those
commercial and industrial customers willing to pay higher rates for renewable energy.
DTE missing its enrollment goals for its VGP program is not a justification to build a
natural gas facility. Rather than continue to invest in fossil-fuel generation, DTE should commit
to a more robust build out of non-VGP renewable energy. DTE’s decision to proceed down
Pathways A and B, which involve significant development of renewables, will depend on how
many customers are willing to pay the higher rates demanded by the VGP program. See Mikulan
Direct Testimony at 118. But if people elect not to pay a premium, the Company should not
reduce the amount of renewable energy it delivers in the future. The answer to lower than
anticipated demand for the VGP program should be an increase in DTE-owned renewable
projects and a promotion of customer-owned renewable resources. Rather than continuing to rely
significantly on fossil-fuel generation—and on its customers to pay a premium for renewable
energy through the VGP program—DTE should invest more in non-VGP renewables resources
that are accessible to all of its customers and encourage and facilitate development of renewable
resources by others, including distributed generation and community solar.
In conclusion, the IRP has a failed approach to renewables. First, the Company fails to
model customer-owned renewable generation fully or fairly. Second, without sufficient
justification or analysis, the Company relies on company-owned utility-scale renewable
resources to the exclusion of other forms of renewable resources. Third, two of its pathways rely
on a flawed VGP program that could well fall short of its goals. Rather than building a new
U-20471, Initial Brief of Soulardarity Page 19 of 47
natural gas plant to address failings of the VGP program, the company should instead build more
renewable resources and support the construction of renewable resources by others.
V. STAKEHOLDER ENGAGEMENT AND PUBLIC OUTREACH PROCESS [OUTLINE
VII.E. IRP PUBLIC AND STAKEHOLDER ENGAGEMENT (OPEN HOUSES AND
TECHNICAL WORKSHOPS)]: DTE Did Not Engage the Public Meaningfully in Its IRP
Process, Particularly Low-Income and People-of-Color Customers.
A. DTE Did Not Provide the General Public with Useful Information and Did Not Act
on the Input It Received.
Before issuing its IRP, DTE held three meeting for the general public, an additional
meeting regarding the Blue Water Energy Center, and two technical stakeholder workshops. See
Pfeuffer Direct Testimony at 37. The Commission Order in U-15896 directs utilities to include a
“Stakeholder Engagement and Public Outreach Process” in order to
1) educate potential participants on utility plans; 2) utilize a transparent decision-
making process for resource planning; 3) create opportunity to provide feedback to
the utility on its resource plan; 4) encourage robust and informed dialogue on
resource decisions; and 5) reduce regulatory risk by building understanding and
support for utility resource decision
U-15896, In re on the Commission’s Own Motion, to Implement the Provisions of Section 6s of
2016 PA 341, Dec. 30, 2017, Ex. A at 6. However, DTE’s three general sessions for the public
failed to meet those requirements.
The information distributed at those hearings was inadequate for educating the public
properly. None of the information which DTE provided discussed the 2019 IRP directly. None of
it included information about the assumptions that DTE was making in the IRP or the potential
plans or Proposed Courses of Action that the utility was reviewing. See Pfeuffer Cross
U-20471, Initial Brief of Soulardarity Page 20 of 47
Examination at 2 TR 218-224. The information amounted to little more than advertising about
existing programs and general educational information. See each of Exs. SOU-28 through and
including SOU-53 (DTE-provided materials at the public open houses). For instance, the only two
documents DTE distributed with respect to energy waste reduction or energy efficiency did not
mention the IRP, the IRP planning principles, or any information about DTE’s data assumptions
or modeling scenarios, according DTE’s own admission. See Pfeuffer Cross Examination at 2 TR
220; Ex. SOU-30, Pfeuffer, U-20471-SDE-1.23a-21-EWR C&I, July 5, 2019; Ex. SOU-31,
Pfeuffer, U-20471-SDE-1.23a-24-EWR Ambassador, July 5, 2019. With respect to renewable
energy, DTE distributed a document called “Why Wind Works for Michigan.” This document
describes how wind power works at a high-level but does not include any information about the
amount of wind energy DTE plans to include in the IRP or the assumptions it made for wind in
the IRP. See Ex. SOU-33, Pfeuffer, U-20471-SDE-1.23a-19-Why Wind Works, July 5, 2019.
Similarly, the only document DTE distributed about solar energy gives information about DTE’s
current solar installations and explains at a basic level how solar panels work. See Ex. SOU-34,
Pfeuffer, U-20471-SDE-1.23a-16-Solar, July 5, 2019. By DTE’s own admission, the document
does not include information about the amount of solar energy DTE is proposing in its PCA’s.
Pfeuffer Cross Examination at 2 TR 224. DTE thus failed to “educate potential participants on
utility plans,” to “create opportunity to provide feedback to the utility on its resource plan or to
“encourage robust and informed dialogue on resource decisions.” U-15896, In re on the
Commission’s Own Motion, to Implement the Provisions of Section 6s of 2016 PA 341, Dec. 30,
2017, Ex. A at 6.
Although DTE was required to solicit comment at its public hearings, Soulardarity is
concerned that the Company did not incorporate that input into its IRP. The largest number of
U-20471, Initial Brief of Soulardarity Page 21 of 47
comments from DTE customers were requests for a greater focus on renewable sources of energy,
reduction in carbon emissions, and a serious consideration of climate change. See Ex. SOU-35 at
11-17 (comment cards from the first public open house); Ex. SOU-36 at 5-11 (comment cards
from the second public open house); Ex. SOU-37 at 14-37 (comment cards from the third public
open house).
However, it appears that DTE did not take input from its ratepayers seriously. During cross-
examination, Witness Pfeuffer could not point to specific aspects of the Plan that DTE changed as
a result of ratepayer feedback. She could not point to specific assumptions that DTE modified or
different scenarios that DTE ran. Pfeuffer Cross Examination at 2 TR 229-232. This is problematic
because DTE made a number of assumptions about ratepayer preferences without gathering and
analyzing data to support those assumptions. For instance, DTE assumed a growth rate of 5% to
7% for distributed generation in all of its modeling scenarios, Mikulan Direct Testimony, Ex. A-
3, at 123, without assessing whether that this figure was consistent with the preferences and plans
of ratepayers in its territory.
Instead of incorporating public input into its analysis meaningfully, DTE folded concerns
expressed by the public into vagaries like the Community Impact and Clean planning principles.
Thus, DTE failed to “utilize a transparent decision-making process for resource planning” or to
“encourage robust and informed dialogue on resource decisions.” U-15896, In re on the
Commission’s Own Motion, to Implement the Provisions of Section 6s of 2016 PA 341, Dec. 30,
2017, Ex. A at 6.
U-20471, Initial Brief of Soulardarity Page 22 of 47
B. DTE’s Public Open House Were Inaccessible to Many Customers, Including
Low-Income and People-of-Color Customers.
DTE failed to make all of its meetings accessible to all individuals. There was no childcare
provided at the meetings, and translation services were non-existent at two meetings and
insufficient at the third. See Pfeuffer Cross Examination at 2 TR 231-232. For example, although
DTE provided Spanish translation services at one public open house, the meeting was only
advertised in English, which made it unlikely that a non-English speaker would attend the meeting
and utilize the translation service. See Koeppel Direct Testimony at 38-39; Pfeuffer Cross
Examination at 2 TR 232.
Furthermore, although DTE claims that it offered its hearings in geographically diverse
areas (Ex. SOU-56, L. M. Dunlap, S. G. Pfeuffer, U-20471, SDE-1.23d, July 5, 2019), Soulardarity
disagrees. DTE operates in twelve different counties, but the three hearings were held in Livonia,
Taylor, and Detroit, all of which are in Wayne County. While we commend DTE for holding the
hearings outside of working hours, DTE should have held the hearings in a wider range of
locations. Thus, DTE failed to meaningfully “create opportunit[ies] to provide feedback to the
utility on its resource plan.” U-15896, In re on the Commission’s Own Motion, to Implement the
Provisions of Section 6s of 2016 PA 341, Dec. 30, 2017, Ex. A at 6.
C. The Commission Should Require DTE to Provide Meaningful Opportunities for
Public Engagement, Particularly with Low-Income and People-of-Color Ratepayers,
and to Take Public Input Seriously.
Soluardarity seeks a more rigorous process that ensures that the voices of low-income and
people-of-color citizens are heard. Low-income and people-of-color communities have not been
U-20471, Initial Brief of Soulardarity Page 23 of 47
represented in the utility’s decision-making process, and the Commission has this opportunity to
require that DTE consider its most historically disadvantaged customers in this IRP and in future
plans.
The Commission should require that, in developing its IRP, DTE hold both public meetings
and meetings with members of and leaders from diverse communities, working to solicit and
consider customer needs, preferences, and concerns. The public meetings should be led not by
DTE officials who only represent DTE’s interests, but by community leaders who understand the
dynamics of communities and their members.
At the public meetings, DTE should also provide education to stakeholders to understand
how the IRP process works and as well as information about the IRP in a non-technical manner
that is understandable by the average customer. This information should include the assumptions
DTE is incorporating into its models, a straightforward explanation of its PCA(s), and the planning
principles DTE is using to choose between different plans.
DTE should make a targeted effort to engage the communities most impacted by the
decisions it makes in the IRP. DTE should design public meetings that have a specific focus on
demographics most vulnerable to energy decisions, including low-income and people-of-color
communities; rural communities harmed by resource extraction and energy poverty; and
communities that have relied on fossil-fuel for jobs and are transitioning into new employment.
All public meetings should prioritize accessibility. In order to reach working people, single
parents, and others with high demands on their time and capacity, DTE should provide multiple
venues, times, and formats for engagement. Locations should be easily accessible by public
transportation and be accessible for people with disabilities. Childcare and translation services for
multiple languages should be provided.
U-20471, Initial Brief of Soulardarity Page 24 of 47
The Commission should require that DTE incorporate public input in a more transparent
and meaningful way. DTE should explain to the public how the information collected from
comment cards and email submissions will be used to inform the IRP planning process. Rather
than providing the Commission with a vague explanation of how DTE considered public input
such as public demands for increased renewable energy, DTE should articulate exactly how the
input impacted the IRP through changes in model assumptions, sensitivities and scenarios.
VI. PLANNING PRINCIPLES [OUTLINE VII. G. RISK ANALYSIS (INCLUDING PLANNING
PRINCIPLES)]: DTE Provided Incomplete and Inadequate Definitions of the Planning
Principles, Did Not Use Them in the Generation of Potential Pathways, and Did Not
Justify the Proposed Flexible Pathways with the Planning Principles Sufficiently.
In order to satisfy the requirements of the filing guidelines as specified in the
Commission Order in U-15986, DTE must describe the process it used to select its Proposed
Courses of Action, “including the planning principles used by the utility to judge the appropriate
tradeoffs between competing planning objectives….” U-15896, In re on the Commission’s Own
Motion, to Implement the Provisions of Section 6s of 2016 PA 341, Ex. A at 20-21. DTE must
also include its justification for how its PCAs “[s]trikes an appropriate balance between the
various planning objectives specified.” Id. at 21.
DTE states that its planning principles provide the framework around which the IRP was
built and modeled. Mikulan Direct Testimony Ex. A-3, at 32. DTE claims that it insures the IRP
is “appropriately balanced” by considering seven planning principles: Community Impact, Clean,
Reliability, Flexible and Balanced, Affordability, Compliance, and Reasonable Risk. Id. DTE
asserts the planning principles provide the qualitative basis that guided the selection of the four
flexible pathways it has submitted for review to the Commission. Id. at 34. In DTE’s estimation,
U-20471, Initial Brief of Soulardarity Page 25 of 47
the four Proposed Courses of Action maximize the benefits of the five planning principles the
Company used to rank plans, namely Community Impact, Clean, Reliability, Flexible and
Balanced, and Reasonable Risk. Id. at 40.
However, the planning principle definitions DTE deployed are lacking some critical
components. For example, the definitions do not capture critical aspects of reliable performance
and the health impacts of the Company’s choices. Moreover, taking Community Impact seriously
would have helped to strengthen the components of the other planning principles. Instead,
getting Community Impact wrong has undermined the definitions and applications of the other
planning principles as well.
DTE seemingly failed to incorporate the planning principles in its generation of the kind
of plans or factors for the IRP process to analyze. This results in an analysis where distributed
generation and community solar are noticeably absent in the planning-principle process despite
their favorable rating under many of the planning principles.
In addition, DTE did not provide a coherent explanation for why it gave each plan the
rank it did for a particular planning principle. While DTE did provide some general rationale for
why it may have ranked certain kinds of plans over other plans on a particular principle, it did
not explain its decision in detail. Moreover, no quantitative analysis supported these rankings.
Instead of precise measures, DTE gestured towards factors under consideration without a clear
method for selecting one plan over another. The vague assignment of attributes of the planning
principles to various aspects of plans undermines the planning-principle process. The planning-
principle process remains opaque and does not provide the detail necessary to justify the PCAs.
DTE’s poor set of planning principle definitions, confusing application of those
principles in the risk analysis, and lack of robust public participation create an IRP process that
U-20471, Initial Brief of Soulardarity Page 26 of 47
was not accessible for ratepayers at large. For example, DTE failed to consider health concerns
in its Community Impact formulation and consumer reliability concerns in its Reliability
planning principle. This can only come from a failure to listen to its ratepayers as to what affects
them. DTE failed to use the planning principles to provide its ratepayers an easy to understand
metric for evaluating its chosen plans, which would have helped the utility comply with other
requirements of the MPSC Order U-15896 related to stakeholder engagement which provide that
the utility “educate potential participants on the utility plans; [and] utilize a transparent decision-
making process for resource planning.” U-15896, In re on the Commission’s Own Motion, to
Implement the Provisions of Section 6s of 2016 PA 341, Ex. A at 6.
Thus, DTE has failed to comply with the requirements of MPSC Order in U-15896 which
dictates that the utility shall “describe how its preferred resource plan…strike[s] an appropriate
balance between the various planning objectives specified.” Id. at 21. As a result, between
flawed definitions and a process that seemingly used the planning principles merely to endorse
DTE’s prior selection, DTE’s IRP does not represent “the most reasonable and prudent means of
meeting the electric utility’s energy and capacity needs.” MCL 460.6t(8)(a).
This section will describe the failure of DTE’s IRP regarding the planning principles. The
first subsection will discuss the flaws related to the definitions deployed in each of the planning
principles and DTE’s failure to consider its own planning principles in the generation of the
plans to be analyzed. The second subsection will discuss the problematic use of the planning
principles in selecting the four chosen pathways.
U-20471, Initial Brief of Soulardarity Page 27 of 47
A. DTE defined its planning principles inadequately and did not use the planning
principles in the generation of plans for consideration.
DTE’s IRP did not define or apply the planning principles rigorously or critically. DTE’s
planning principles are basic, incomplete, and lacking the level of specificity necessary for the
requisite analysis of potential plans. DTE’s definitions for the planning principles fail to
incorporate many concerns that low-income and community-of-color ratepayers have with
DTE’s performance and outlook for the future, most evidently in the definition of the
Community Impact planning principle but also throughout the other principles as well.
An IRP process that took care to contemplate the planning principles would have used the
principles to help generate plans for the IRP modeling to assess. Instead, many of the values the
planning principles represent are underrepresented in the plans analyzed. A stronger commitment
by DTE to using the planning principles to generate potential pathways should have led to a
more diverse, stronger set of plans that are more representative of ratepayers’ desires.
A more robust stakeholder engagement process could have led DTE to develop better
definitions, to use those definitions to generate potential plans to be analyzed, and to rank those
plans more effectively. If the Company had engaged with its stakeholders in a more transparent
fashion, the plans analyzed would have reflected far more of those concerns.
This section will review each planning principle, the definition DTE gave it, ways DTE
could have improved each definition, and the Company’s failure to consider the planning
principles when generating plans to be analyzed in its modeling. These oversights, and failure to
define the planning principles comprehensibly, demonstrates further that DTE’s IRP is not
reasonable and prudent.
U-20471, Initial Brief of Soulardarity Page 28 of 47
i. Community Impact
DTE defined the Community Impact planning principle to include “increased low income
customer programs, job creation, clean energy offerings and tax base.” Mikulan Direct
Testimony Ex. A-4, Appendix T, at 147. During cross-examination, DTE Witness Mikulan
confirmed these were the only factors DTE considered within the Community Impact planning
principle. Mikulan Cross Examination at 3 TR 696.
While Soulardarity supports the inclusion of Community Impact among the planning
principles, DTE’s definition is missing critical components of what its communities’ value and
what impacts them. The omissions in Community Impact call into question the other principles
and the IRP more generally.
DTE claims to have taken Community Impact into consideration while developing the
IRP, such as “increased options for customers to choose cleaner renewable energy.” Mikulan
Direct Testimony at 16. However, by “focus[ing] on all customers as a whole,” DTE ignores
how Community Impact may differ between affluent and white communities and low-income
and people-of-color communities. Ex. SOU-57 at 10, SDE-1.10j. As such, “increased options for
customers to choose cleaner renewable energy” may be infeasible or inaccessible options to
many customers, especially those who are low income. Mikulan Direct Testimony at 16.
DTE’s definition of Community Impact does not consider health impacts. Mikulan Cross
Examination at 3 TR 696. While health considerations impact all communities, low-income and
people-of-color communities are particularly affected by the impacts of traditional fossil-fuel
generation on the health of their communities. Fossil-fuel plants have been historically located
near low-income and people-of-color communities, which bear the brunt of the plant’s
environmental impacts through a myriad of health problems. A study performed by the NAACP
U-20471, Initial Brief of Soulardarity Page 29 of 47
found that approximately two million Americans live within three miles of one of the 12 worst
polluting power plants in the nation. The average per capita income of these nearby residents is
$14,626 (compared with the U.S. average of $21,587). Approximately seventy-six percent of
these nearby residents are people of color. Ex. SOU-10 at 29-30, National Association for the
Advancement of Colored People, Indigenous Environmental Network & Little Village
Environmental Justice Organization, Coal Blooded: Putting Profits Before People (2016). In
fact, DTE operates the seventh worst among these offenders, the River Rouge Plant, which
received an F grade from the NAACP in its study. The Trenton Channel and Monroe facilities
also received a similar F score, and the Company overall received an F on the NAACP’s
Corporate Environmental Justice Performance Score. Ex. SOU-10 at 64-67, 86-93. While the
River Rouge plant and the Trenton Channel plant are set to close in 2022, DTE plans to operate
the Monroe facility through 2030.
Omitting health consideration from the Community Impact planning principle disfavors
DTE ratepayers who suffer the consequences of fossil-fuel generation. Increased rates of asthma,
respiratory illnesses and cancer correlate to the proximity to these fossil fuel generation facilities,
and as mentioned above, low-income households are more likely to live closer to these facilities.
Ex. SOU-10 at 14-16. As part of its IRP, DTE must weigh the harms of its choices on
communities.
A nod to health impacts of various pollutants in the Clean planning principle is
insufficient to address the issue, because community health is but one of the many facets of
“environmental impacts” of the plan. See Mikulan Direct Testimony Ex. A-4, Appendix T, at
144. Moreover, DTE favored consideration of greenhouse gas emissions over localized
pollutants in its assessment of the Clean planning principle. See Mikulan Cross Examination at 3
U-20471, Initial Brief of Soulardarity Page 30 of 47
TR 699. While greenhouse gases and their effects could and should be considered, the impacts of
localized pollutants should not be downplayed.
By not assessing fully and fairly the growth of distributed and community renewable
energy, DTE has failed to assess the full extent of possible positive community impacts.
Community energy provides construction and maintenance jobs and has positive economic
impacts, especially in communities that are low-income and comprised predominantly of people
of color. In one study, community energy projects provided more jobs, in more locations, than
did utility projects. Ex. SOU-7, Dow Sustainability Masters Fellows at the University of
Michigan and Soulardarity, “Get Free: Understanding the Potential for Community Solar Power
in Highland Park,” (December 2017) at 16. Community energy projects can also sell energy
back to the grid, generating wealth for community members who own them and providing
reliability services. Community energy projects also increase engagement and ownership within
the communities they serve. See Ex. SOU-12. Another study stated that the economic benefit
from local ownership of renewable energy increased three to four times over utility owned
projects. Id. at 2. A third study that focused on the viability of solar in Highland Park, Michigan,
specifically found that 68% of rooftops are viable for solar and could produce 96% of the
community’s commercial and residential energy demands. When the possible production from
vacant lots is included, Highland Park could produce ten times its own energy demand in solar
power. Ex. SOU-7 at 7-9.
Low-income communities are seven times more likely to have their services shut off, and
an antidote to this problem would be the proliferation of distributed generation projects that bring
the source of energy production closer to the communities served. At the same time, distributed
generation saves money for all communities through reducing peak demand load. See Ex. SOU-
U-20471, Initial Brief of Soulardarity Page 31 of 47
27, Advanced Energy Economy Institute, Economic Potential for Peak Demand Reduction in
Michigan, (February 2017).
When DTE analyzed job creation for the Community Impact principle, it had already
wrongly excluded community-energy resources from its Plan. The Company assumed that large
generation builds were a positive for job creation. Mikulan Direct Testimony Ex. A-4, Appendix
T, at 147. While large generation builds may very well be positive for job creation, so too could
multiple smaller generation builds. But DTE did not consider them as part of its Plan. The lack
of analysis of community energy projects meant that DTE did not weigh the boost to jobs and the
local economy from distributed generation or community renewables, which would impact low-
income and person of color communities across the state and might do so more than large
generation builds. Ex. SOU-12 at 2. Low-income and people-of-color communities assume the
costs of their energy use without receiving any of the benefits. If energy production is localized,
even if it is slightly more expensive, low-income and people-of-color communities will receive
benefits in addition to the costs of energy consumption.
The Company’s analysis of job creation was simplistic. DTE did not consider the level of
income of the jobs created. Mikulan Cross Examination at 3 TR 696. Witness Mikluan claimed
that the Company considered long term versus short term employment of the various pathways
but only did so qualitatively. Mikluan Cross Examination at 3 TR 697. Such a qualitative
assessment pales in comparison to the quantification in the rest of the IRP.
A proper, fuller definition of the Community Impact principle would have led to a better
IRP. A more thoughtful and inclusive definition of Community Impact would have considered
the full costs of fossil-fuel generation, particularly on the health of ratepayers, as well as the
multitude of benefits of community energy. Instead, DTE’s lack of understanding as to the issues
U-20471, Initial Brief of Soulardarity Page 32 of 47
that affect its communities and ratepayers has led to an IRP and its four pathways that do not
reflect DTE’s ratepayers’ priorities. Had DTE followed through genuinely with a commitment to
hear from its constituents, DTE could have avoided some of the problems that plague the
Community Impact principle of the IRP.
ii. Reliability
The Commission shall approve the proposed IRP only if the IRP is the most reasonable
and prudent means of meeting electricity and capacity needs. MCL 460.6t(8). Among the
considerations the Commission must weigh is whether the utility has “appropriately balanced” a
range of concerns including “reliability.” MCL 460.6t(8)(a)(iv).
DTE assessed the planning principle of Reliability “based on which plans could best
satisfy load requirements, looking at areas such as potential loss of load and the ability to
dispatch resources when needed.” Mikulan Direct Testimony Ex. A-4, Appendix T, at 143. DTE
Witness Mikulan stated these were the only factors DTE considered in the reliability planning
principle. Mikulan Cross Examination at 3 TR 701.
While these concerns are valid, had DTE viewed Reliability through the lens of
Community Impact, it would have considered other reliability factors important to its ratepayers,
particularly low-income and people-of-color communities.
BEGIN CONFIDENTIAL SECTION
END CONFIDENTIAL SECTION
While DTE argues the IRP addresses issues of supply rather than of distribution,
reliability is ultimately determined by whether customers get power. Reliability as a planning
U-20471, Initial Brief of Soulardarity Page 33 of 47
principle must include how reliable the power is to those persons and entities who will ultimately
use it.
DTE is deploying a band-aid solution to Reliability in low-income and people-of-color
communities. The Company is neglecting to bring economically distressed areas like Highland
Park up to acceptable standards in its hardening program, leaving such communities with
dangerously outdated power lines and transmission infrastructure. Koppel Direct Testimony at
12. This leads to injuries and fatalities in vulnerable, underserved communities. For example,
during a five-year period from 2013 to 2018, Detroit suffered an equal number of downed wires
to the entirety of DTE’s territory outside of Detroit, despite Detroit hosting merely about 14% of
DTE’s mileage of wire. These downed wire incidents led to eight fatalities in Detroit. See Ex.
SOU-2, MPSC Staff Report, Case U-20169 (August 10, 2018).
DTE’s IRP would have benefitted from considering ratepayer reliability concerns in the
generation of its plans to be analyzed. Soulardarity does not believe that believe that DTE has
reasonably or prudently addressed reliability concerns in its IRP. The Company has failed to
address its customer’s dissatisfaction with an aging infrastructure and lack of responsiveness in
its Reliability planning principle. Soulardarity does not see these concerns reflected elsewhere in
the IRP. Instead, many concerns related to reliability are noticeably absent from the IRP
altogether. Soulardarity sees Reliability as a critical planning principle for all utility activity. Had
DTE taken constructive input from its affected ratepayers, the definition and metrics that the
Reliability principle were based on would incorporate additional factors that reflect ratepayers’
concerns.
U-20471, Initial Brief of Soulardarity Page 34 of 47
iii. Clean
DTE’s defines its planning principle of Clean as the “environmental impact of each plan,
with emphasis on low carbon emissions.” Mikluan Direct Testimony, Ex. A-4, Appendix T, page
144. DTE stated these were the only factors considered within the Clean planning principle.
Mikulan Cross Examination at 3 TR 697. In reviewing an IRP, among the considerations the
Commission must weigh is whether the utility has “appropriately balanced” a range of concerns
including “[c]ompliance with applicable state and federal environmental regulations.” MCL
460.6t(8)(a)(ii).
The Clean planning principle is another example of DTE’s failure to use the Community
Impact principle as a lens to inform its decision-making and subsequent selection of pathways.
While DTE stated that it considered health impacts in the Clean section, it did so in a qualitative
process, which lacked transparency. In the planning process, DTE did not consider the quantified
amounts of the pollutants under each plan. Mikulan Cross Examination at 3 TR 699. Further, as
Witness Marietta stated in his cross examination, the Company did not quantify its emissions in
dollars, a step that would have captured the impacts of DTE’s emissions. Marietta Cross
Examination at 5 TR 948-9.
Based on the information provided by Witness Marietta, the plans DTE analyzed do not
emit similar amounts of pollutants. Marietta Cross Examination at 5 TR 962-63. While natural
gas facilities may emit less carbon than a coal fired plant, they emit significantly more than a
renewable generation facility. So while DTE chose to incorporate health into the Clean planning
principle, it still managed to select two plans that include natural gas facilities, which are far
from “clean.”
U-20471, Initial Brief of Soulardarity Page 35 of 47
Had DTE used the Clean planning principle to guide its choice of plans, it is much less
likely that two of the resulting pathways would have included natural gas facilities. As is evident,
throughout the planning principles, DTE used broad, basic considerations in the planning
principles, in contrast to the rest of the IRP process which incorporated a variety of detailed
analysis and modeling. DTE failed to consider quantified amounts of emissions as part of the
planning principle assessment despite the availability of the data, raising doubts about DTE’s
application of the planning principles to the pathways. The Clean planning principle is just
another example of DTE creating an incomplete definition and then failing to use that definition
to analyze plans properly.
iv. Flexible and Balanced
The Commission shall approve the proposed IRP only if the IRP is the most reasonable
and prudent means of meeting the electricity and capacity needs. MCL 460.6t(8). Among the
considerations the Commission weighs is whether the utility has “appropriately balanced” a
range of concerns including the “diversity of generation supply.” MCL 460.6t(8)(a)(vi).
DTE defines the Flexible and Balanced planning principle as “how quickly can the
company change direction when unforeseen changes occur and the diversity of generation
portfolio.” Mikulan Direct Testimony, Ex. A-4, Appendix T, at145. DTE Witness Mikulan stated
that no other factors were considered in the Flexible and Balanced planning principle. Mikulan
Cross Examination at 3 TR 712.
The Flexible and Balanced planning principle should have led to consideration of
community-based energy projects, which DTE did not do. Community-based renewable projects
are more flexible and balanced than their large-scale counterparts. First of all, a geographically-
U-20471, Initial Brief of Soulardarity Page 36 of 47
dispersed portfolio of renewable projects ameliorates concerns about inconsistency of either
solar or wind inputs at a single location. While DTE has previously expressed concerns that the
sun and wind are not constant, see Ex. SOU-9, DTE Energy website,
https://empoweringmichigan.com/renewable-energy-improving-grid-reliability/, a good way to
mitigate that risk would be to pursue smaller-scale renewable generation projects throughout
DTE’s territory. Second, community-energy projects bring generation closer to customers, which
reduces the need for high voltage transmission and reduces the risk of outages. Third, community
based renewable projects spread the job creation benefits of DTE’s renewable program
throughout the service territory rather than concentrating them in one place.
Further, the Flexible and Balanced planning principle includes the “diversity of
generation portfolio” as components. Mikulan Cross Examination at 3 TR 713. However, DTE
limited its consideration of diversity to those resources that it would add under the plans, not
how diverse its generation portfolio is in total. Id. In other words, it appears that DTE looked at
marginal changes rather than considering its fleet holistically. This logic favors DTE’s current
reliance on fossil-fuel generation and ensures that this imbalance will persist in the future.
Critically, two of DTE’s Proposed Courses of Action include construction of a new
natural gas facility that has significant likelihood of becoming a stranded asset. This seems to
contradict directly the Flexible and Balanced planning principle which factors in “how quickly
the company can change direction when unforeseen changes occur.” Mikulan Direct Testimony,
Ex. A-4 Appendix T, at 145. DTE’s significant investment in a natural gas facility proposed in
2030 as the Monroe Plant goes offline could likely become a stranded asset. This could occur
either because of increased regulation on fossil-fuel emissions or continued dramatic decreases in
the costs of renewable technology. Once the facility is built, it is hard to see how DTE could
U-20471, Initial Brief of Soulardarity Page 37 of 47
quickly change direction. Moreover, building a single facility concentrates risk in a single
location. This inconsistency between planning principle and selected pathway raises questions
about DTE’s commitment to its own planning principles.
Soulardarity does not believe that believe that DTE has reasonably or prudently
addressed the diversity of generation supply concerns in its IRP. DTE’s lack of assessment of
smaller-scale renewables or community-energy projects, its approach to the diversity of
generation metric, and its emphasis on a single natural gas plant make it appear that DTE is
inappropriately favoring fossil generation. As mentioned above, DTE could have taken an
approach that at least assessed small scale renewable generation and sought diversity across the
entire DTE fleet, which would have been a more reasonable and prudent path to achieve
diversity of generation supply.
v. Reasonable Risk
The statute governing the IRP requires that DTE consider all reasonable and prudent
means for meeting energy and capacity needs, while appropriate balancing factors including
commodity price risks. MCL 460.6(t)(8)(a)(v). Further, the statute also requires the utility “meet
all applicable state and federal reliability and environmental regulations over the ensuing term of
the plan.” MCL 460.3.
While DTE defines the Reasonable Risk planning principle “based on execution,
customer behavior, regulatory and commodity price risk.” Mikulan Direct Testimony, Ex. A-4,
Appendix T at 146, DTE unreasonably omitted certain risks when assessing and selecting its
pathways. While DTE considered the possibility of carbon price and other government
U-20471, Initial Brief of Soulardarity Page 38 of 47
regulations of fossil fuels, Mikulan Cross Examination at 3 TR 716, DTE did not consider
potential subsidies or incentives for renewable energy that would decrease its long-term costs. Id.
DTE selected two plans that included construction of a new natural gas facility that
would be in serious jeopardy of becoming a stranded asset in the event certain “regulatory and
commodity price risk” events occurred in the future. This demonstrates a lack of “appropriate
balance” for “commodity price risks.” MCL 460.6(t)(8)(a)(v). The Company has failed to
evaluate the possibility of subsidies for renewable energy that could disrupt the natural gas
market.
As a result, DTE did not reasonably or prudently assess Reasonable Risk. Instead, the
Company has proposed at least two plans that pose substantial risk in the future. It leads
Soulardarity to question whether ratepayers will have to bear the burden of a stranded DTE
natural gas plant in the future. DTE could have avoided this concern by applying faithfully its
own planning principles to the pathways. As mentioned above, this raises serious questions about
DTE commitment to its own definitions for the planning principles and its failure to use those
planning principles in the consideration of its pathways.
B. DTE’s application of the planning principles across the plans is unclear at best and
illogical at worst and appears to validate the Company’s prior choices, thereby
undermining the credibility of the assessment.
An examination of the planning principles and their respective rankings does not
illuminate how DTE selected which four plans would serve as the Company’s flexible pathways.
One possibility could be that the best plans should have the best scores, which would mean that
the best plan has the lowest sum of scores if the scores across the planning principles were
U-20471, Initial Brief of Soulardarity Page 39 of 47
summed. In other words, a plan that has all 1st rankings would have a total score of 5; a plan that
has all 2nd ranks would have a total score of 10 and would not be as good as a plan with a score
less than 10.
DTE did not choose the four best plans, meaning the four plans with the lowest sum of
rankings. In fact, it passed over a plan that ranked first in both Community Impact and Clean
planning principles (Plan 5) for an equally ranked plan (Plan 10, or PCA D). Also DTE passed
over a plan with a lower cumulative score (Plan 11) in favor of a higher scoring plan (Plan 10, or
PCA D).
DTE partially explains its ranking in its testimony, but its two justifications are not
sufficient. Its first justification for its ranking was that both plans 7 and 8 scored a seven or better
across all planning principles. Mikulan Direct Testimony at 133. This justification ignores Plan
11 which also scores 7 or better in all categories.
Second, the Company noted how many top three scores its chosen plans had received.
Plans 8 and 9 each received three top three scores, while plans 7 and 10 each received one.
Mikulan Direct Testimony at 133. While these facts may be true, DTE omits the fact that that
Plan 1 and Plan 5 both received two top-three scores also and that these two plans rank higher in
the Community Impact and Clean planning principles than any of DTE’s chosen pathways.
Moreover, Plan 5 scores equally to Plan 10 (PCA D), in terms of the sum of its rankings.
Any construction of the rankings and the principles leave more questions than answers. If
the plans were scored cumulatively, DTE did not pick the four lowest. If the plans were valued
for consistently being ranked seven or better, another plan was passed over. If the plans were
favored for their number of scores in the top three, DTE downplayed the two plans that scored
U-20471, Initial Brief of Soulardarity Page 40 of 47
highest for Clean and Community Impact. Without further explanation from DTE, it is hard to
decipher how it chose these pathways and for what reasons.
Figure 1
Plan # /
PCA Reliability Clean
Flexible
and
Balanced
Reasonable
Risk
Community
Impact Total
1 12 3 12 12 2 41
2 6 8 9 9 5 37
3 5 11 7 3 11 37
4 4 12 7 6 12 41
5 11 1 11 11 1 35
6 7 4 10 10 4 35
7 , A 7 5 6 3 7 28
8 , B 2 7 1 1 3 14
9 , C 3 10 2 2 9 26
10, D 10 5 2 8 10 35
11 7 1 5 7 6 26
12 1 9 4 5 8 27
Moreover, DTE provided no quantified measurements supporting the way that it ranked
the plans. Rather, DTE explained that it had conducted its evaluation of each of the factors listed
under the principle by way of assumptions made on the positivity or negativity of particular
plans’ effects on those factors. Mikulan Direct Testimony Ex. A-4. Appendix T, at 147; Ex.
SOU-57 at 2-7.
The risk analysis provided by the planning principles should be the most accessible point
of entry for a typical ratepayer to evaluate the IRP. But DTE’s approach is overly simplistic and
does not give ratepayers enough insight to understand the Company’s rankings or to challenge
the Company’s results.
Moreover, as opposed to having an open process in which the public could participate in
the ranking process, only three DTE employees participated in the discussion that determined the
U-20471, Initial Brief of Soulardarity Page 41 of 47
individual rankings. Ex. SOU-63 at 1, 2. “Specific records were not maintained regarding which
planning principle was discussed at each particular meeting.” Id. at 7. This fits in with DTE’s
failure to engage its stakeholders in the IRP process. Just as the public participation opportunities
were either too technical or too simplistic, the planning principle rankings, which could be
readily accessible, are opaque and closed to public participation and scrutiny.
Perhaps this confusion arises because DTE ranked its plans after it had already chosen the
four flexible pathways it selected for IRP consideration, raising significant doubts about the
objectivity of the planning-principle process. DTE seemingly used the planning principles to
anoint its preferred plans after all consideration was complete. When Witness Mikulan was asked
about the considerations for the rankings, she responded that DTE “performed this risk
assessment after the pathways were chosen.” Mikulan Cross Examination at 3 TR 718.
Soulardarity fails to understand the purpose of ranking the principles at all after deliberation was
complete and laments the fact that the planning principles did not play a more central role in the
process, even with their flawed definitions.
When it came to sacrificing one of its planning principles in favor of others, Community
Impact was the first to go. The final plans chosen by DTE represented the 3rd, 7th, 9th, and 10th
highest rated Community Impact plans out of twelve. Mikulan Direct Testimony, Figure 8 at
132. These rankings demonstrate DTE’s view of the importance of Community Impact in the
selection of its plan. The ranking of Community Impact across the four pathways chosen
averages out at 7.25, the lowest of any of the five planning principles. The other four ranked
principles in descending order from worst rank to best were: Clean at 6.75, Reliability at 5.5,
Reasonable Risk at 3.5, and Flexible and Balanced at 2.5. In other words, DTE prioritized the
Flexible and Balanced planning principle and Reasonable Risk planning principle over the other
U-20471, Initial Brief of Soulardarity Page 42 of 47
planning principles. In the end, the two principles which could be used to constrain DTE’s
choices based on its ratepayer’s health were the least valued in DTE’s final consideration.
Figure 2
Plan #,
PCA Reliability Clean
Flexible
and
Balanced
Reasonable
Risk
Community
Impact
7, A 7 5 6 3 7
8, B 2 7 1 1 3
9, C 3 10 2 2 9
10, D 10 5 2 8 10
Average
Score 5.5 6.75 2.75 3.5 7.25
If DTE effectively collected public input, or reached outside its organization to create a
more complete definition of Community Impact, it is likely the rest of the principles would have
fallen into place. Instead, DTE proceeded with an inadequate definition of Community Impact,
then elected not to consider it effectively in choosing a plan.
DTE used a poor set of definitions after deliberation on the plans in a way that misleads
ratepayers. The ranking of planning principles is the most accessible to the public of DTE’s
analyses related to the IRP, and they are presented in a way that indicates they contribute to the
final outcome. Instead, DTE confirmed that all deliberation was complete by the time the plans
were ranked. Mikulan Cross Examination at 3 TR 718. DTE could have alleviated this confusion
by striving for transparency and clarity in its selection of its pathways on the basis of the
planning principles. The Commission Order in U-15896 requires DTE to “utilize a transparent
decision-making process for resource planning.” In re on the Commission’s Own Motion, to
Implement the Provisions of Section 6s of 2016 PA 341, Ex. A at 6. DTE bears the burden of
proving its process was transparent, and the formulation of the planning principle risk analysis
U-20471, Initial Brief of Soulardarity Page 43 of 47
was not transparent. In fact, the Company had chosen its pathways prior to the risk analysis,
essentially relegating the planning principle risk analysis to a formality.
Thus it appears that the planning principles are mere window dressing. DTE has not
fulfilled its statutory obligations to conduct “appropriately balancing” through the planning
principles. In re on the Commission’s Own Motion, to Implement the Provisions of Section 6s of
2016 PA 341, Ex. A at 20-21. The pathways chosen are not the most reasonable and prudent
options to meet DTE’s demand.
VII. CONCLUSION AND REQUESTS FOR RELIEF
DTE’s IRP unreasonably excludes viable means of meeting capacity needs by insisting
on utility-owned and utility-scale renewable generation sources. DTE’s IRP rejects renewable
resources owned by others—including PURPA qualifying facilities, household solar, and
community solar—without a sufficient basis for doing so. Additionally, the IRP relies too
heavily on a Voluntary Green Pricing program that is expensive, inadequate and exclusive.
Soulardarity is concerned that if the flawed VGP program fails to meet DTE’s stated goals for it,
the Company will use that shortcoming to justify building a natural gas plant rather than
proceeding down the more reasonable and prudent path of investing in other renewable resources
on its own or supporting investments by others in distributed generation and community solar.
Rather than expanding access to renewable energy for communities that have historically been
left behind by the energy system, DTE restricts access and creates barriers to entry.
DTE failed to meet its statutory obligations with respect to its stakeholder engagement
and public outreach process. The information it distributed at the public open house meetings
was devoid of content related to the 2019 IRP, thus failing to “educate potential participants on
U-20471, Initial Brief of Soulardarity Page 44 of 47
utility plans.” U-15896, In re on the Commission’s Own Motion, to Implement the Provisions of
Section 6s of 2016 PA 341, Dec. 30, 2017, Ex. A at 6. As such, DTE’s public outreach process
did not “encourage robust and informed dialogue on resource decisions.” Id. Though DTE did
receive public comments and states that it incorporated public input into its IRP, it did not do so
in a transparent nor meaningful manner, failing to “utilize a transparent decision-making process
for resource planning.” Id. Because DTE’s stakeholder engagement process was fundamentally
inadequate, its IRP is not a carefully considered reflection of the public’s needs or demands for
energy generation. DTE did not “reduce regulatory risk by building understanding and support
for utility resource decisions,” and instead supplanted community input with its own assumptions
and interests. Id.
Moreover, the definitions DTE used for its planning principles are woefully inadequate.
For example, its definition of Community Impact should include all forms of pollution and the
negative impacts on the health of ratepayers, particularly low-income and people-of-color
communities. The Community Impact planning principle should also include the many benefits
of community energy.
DTE’s other definition similarly failed to reflect the concerns of DTE’s ratepayers. For
example, DTE’s definition for Reliability did not address customer’s dissatisfaction with an
aging infrastructure and lack of responsiveness in its reliability planning principle. Although
DTE included Clean as a planning principle, it failed to incorporate quantified amounts of
emissions as part of the planning principle assessment despite the availability of the data, raising
doubts about DTE’s application of the Clean planning principle to the pathways.
In addition to relying on inadequate definitions for its planning principles, it used the
principles in an inconsistent and unclear way. Instead of incorporating data on its planning
U-20471, Initial Brief of Soulardarity Page 45 of 47
principles in a quantitative manner, DTE conducted a subjective qualitative ranking process.
Moreover, this ranking process yielded results which cannot be squared with DTE’s own
espoused methodology. Because DTE’s risk analysis was lacking in transparency or consistency,
it is impossible to determine if DTE’s plan represents the most reasonable and prudent means of
meeting energy needs, and as stated above, there is significant evidence that it is not.
In sum, DTE did not prove by a preponderance of the evidence that its IRP is the “most
reasonable and prudent means of meeting the electricity utility’s energy and capacity needs.”
MCL 460.6(t). Nor did DTE meet its obligations under the Integrated Resource Plan Filing
Guidelines or the Michigan Integrated Resource Planning Parameters. Accordingly,
Soulardarity requests that the Commission reject DTE’s IRP.
Alternatively, Soulardarity asks that the Commission require
1) DTE to amend its IRP to include a more thorough analysis of potential methods of
meeting generation capacity, including distributed generation;
2) DTE to include in its amended IRP more robust definitions for DTE’s planning
principles and apply those principles in a more robust, logical, and transparent
manner.
3) DTE to conduct a more meaningful and transparent public outreach process in
accordance with Soulardarity’s recommendations in Section V.C. above.
4) All utilities to conduct more accessible and rigorous public outreach processes in
future IRP proceedings.
U-20471, Initial Brief of Soulardarity Page 46 of 47
Soulardarity reserves the right to request additional and/or different relief in reply to the
positions expressed in the briefs of other parties
Date: October 29, 2019
/s/Mark N. Templeton
UNIVERSITY OF CHICAGO LAW SCHOOL
ABRAMS ENVIRONMENTAL LAW CLINIC
Mark N. Templeton (pro hac vice)
Robert A. Weinstock (pro hac vice)
Rebecca J. Boyd (pro hac vice)
Daniel Abrams (law student)
Megan Delurey (law student)
Emma Sperry (law student)
University of Chicago Law School
Abrams Environmental Law Clinic
6020 S. University Avenue
Chicago, IL 60637
Phone: (773) 702-9611
Email: [email protected];
GREAT LAKES ENVIRONMENTAL LAW CENTER
Nicholas Leonard
Great Lakes Environmental Law Center
4444 2nd Avenue
Detroit, MI 48201
Phone: 313-782-3372
Email: [email protected]
U-20471, Initial Brief of Soulardarity Page 47 of 47
ENVIRONMENTAL LAW CLINIC
UNIVERSITY OF DETROIT MERCY
SCHOOL OF LAW
Nicholas J. Schroek
University of Detroit Mercy School of Law
George J. Asher Law Clinic Center
651 East Jefferson Avenue
Detroit, MI 48226-4386
Phone: 313-596-0200
Email: [email protected]
1
STATE OF MICHIGAN
BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION
In the matter of the Application of DTE
ELECTRIC COMPANY for approval of its
Integrated Resource Plan pursuant to MCL
460.6t, and for other relief.
Case No. U-20471
ALJ Sally L. Wallace
CERTIFICATE OF SERVICE
I, Mark Templeton, certify that an electronic copy of INITIAL BRIEF OF
SOULARDARITY IN U-20471, excluding confidential paragraphs, was served electronically
on the following on October 29, 2019:
ADMINISTRATIVE LAW JUDGE
Hon. Sally L. Wallace
Michigan Public Service Commission
7109 West Saginaw Highway
Lansing, MI 48917
ASSOCIATION OF BUSINESSES
ADVOCATING TARIFF EQUITY Bryan A. Brandenburg
Michael J. Pattwell
Clark Hill PLC
212 East César E. Chávez Avenue
Lansing, MI 48906
CONVERGEN ENERGY, LLC Laura Chappelle
Tim Lundgren
The Victor Center, Suite 910
201 N. Washington Square
Lansing, MI 48933
CYPRESS CREEK RENEWABLES,
LLC Jennifer Utter Heston
Angie Babbitt
Fraser Trebilcock Davis & Dunlap, P.C.
124 W. Allegan, Ste. 1000
Lansing, MI 48933
DTE ELECTRIC COMPANY Estella R. Branson
Lauren D. Donofrio
Martin L. Heiser
Kevin L. O’Neill
One Energy Plaza, 1635 WCB
Detroit Michigan, MI 48226-1279
2
ENERGY MICHIGAN Laura Chappelle
Justin K. Ooms
Timothy J. Lundgren
Varnum LLP
201 N. Washington Square, Suite 910
Lansing, MI 48933
ENVIRONMENTAL LAW & POLICY
CENTER, THE ECOLOGY CENTER,
THE SOLAR ENERGY INDUSTRIES
ASSOCIATION, THE UNION OF
CONCERNED SCIENTISTS, VOTE
SOLAR Margrethe Kearney 1514 Wealthy Street, SE, Suite 256
Grand Rapids, MI 49506
ENVIRONMENTAL LAW & POLICY
CENTER Adrienne Dunham
Jean-Luc Kreitner
35 E. Wacker Drive, Suite 1600 Chicago, IL
60601
CITY OF ANN ARBOR; GERONIMO
ENERGY Laura Chappelle
Timothy J. Lundgren
Justin K. Ooms
Varnum LP
201 N. Washington Square, Suite 910
Lansing, I 48933
Missy Stults
GREAT LAKES RENEWABLE
ENERGY ASSOCIATION Don L. Keskey
Brian W. Coyer
University Office Place
333 Albert Avenue, Suite 425
East Lansing, MI 48823
HEELSTONE DEVELOPMENT, LLC;
MIDLAND COGENERATION VENTURE, LP
Jason T. Hanselman
John Janiszewski
Dykema Gossett PLLC
201 Townsend St. Suite 900
Lansing, Michigan 48933
Charles E. Dunn
Vice President, Chief Legal Officer and
Corporate Secretary
Midland Cogeneration Venture LP
100 East Progress Place
Midland, Michigan 48640
3
INTERNATIONAL TRANSMISSION
COMPANY D/B/A ITC
TRANSMISSION Richard J. Aaron
Courtney F. Kissel
Dykema Gossett PLLC
201 Townsend St., Suite 900
Lansing, Michigan 48933
MICHIGAN ATTORNEY GENERAL
Joel King Assistant Attorney General
ENRA Division
525 W. Ottawa Street, 6th Floor
P.O. Box 30755
Lansing, Michigan 48909
Michael Deupree
MICHIGAN ENERGY INNOVATION
BUSINESS COUNCIL AND THE
INSTITUTE FOR ENERGY
INNOVATION Laura A. Chappelle
The Victor Center
201 N. Washington Square, Ste. 910
Lansing, MI 48933
MICHIGAN ENVIRONMENTAL
COUNCIL; NATURAL RESOURCES
DEFENSE COUNCIL; SIERRA CLUB Christopher M. Bzdok
Tracy Jane Andrews
Kimberly Flynn, Legal Assistant
Karla Gerds, Legal Assistant
Breanna Thomas, Legal Assistant
Olson, Bzdok & Howard, P.C.
420 East Front Street
Traverse City, MI 49686
MICHIGAN PUBLIC POWER
AGENCY Peter H. Ellsworth
Nolan J. Moody
215 S. Washington Square, Suite 200
Lansing, MI 48933
Toni L. Newell
333 Bridge St. NW Grand Rapids, MI 49504
4
MPSC STAFF
Heather M.S. Durian
Benjamin J. Holwerda
Amit T. Singh
Daniel E. Sonneveldt
Sarah Mullkoff
7109 West Saginaw Hwy, 3rd Floor
Lansing, I 48917
October 29, 2019
UNIVERSITY OF CHICAGO LAW
SCHOOL, ABRAMS ENVIRONMENTAL
LAW CLINIC
Counsel for Soulardarity
By: /s/ Mark N. Templeton
Mark N. Templeton, pro hac vice
6020 S. University Ave.
Chicago, IL 60637
Phone: (773) 702-9611
Email: [email protected]
1
STATE OF MICHIGAN
BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION
In the matter of the Application of DTE
ELECTRIC COMPANY for approval of its
Integrated Resource Plan pursuant to MCL
460.6t, and for other relief.
Case No. U-20471
ALJ Sally L. Wallace
CERTIFICATE OF SERVICE
I, Mark Templeton, certify that an electronic copy of INITIAL BRIEF OF
SOULARDARITY IN U-20471, including confidential paragraphs, was served electronically
on the following on October 29, 2019:
ADMINISTRATIVE LAW JUDGE
Hon. Sally L. Wallace
Michigan Public Service Commission 7109
West Saginaw Highway Lansing, MI 48917
ASSOCIATION OF BUSINESSES
ADVOCATING TARIFF EQUITY Bryan A. Brandenburg
Michael J. Pattwell
Clark Hill PLC
212 East César E. Chávez Avenue Lansing,
MI 48906
DTE ELECTRIC COMPANY
Lauren D. Donofrio
Martin L. Heiser One Energy Plaza, 1635 WCB
Detroit Michigan, MI 48226-1279
ENVIRONMENTAL LAW & POLICY
CENTER, THE ECOLOGY CENTER,
THE SOLAR ENERGY INDUSTRIES
ASSOCIATION, THE UNION OF
CONCERNED SCIENTISTS, VOTE
SOLAR Margrethe Kearney 1514 Wealthy Street, SE, Suite 256
Grand Rapids, MI 49506
ENVIRONMENTAL LAW & POLICY
CENTER
Jean-Luc Kreitner
35 E. Wacker Drive, Suite 1600 Chicago,
IL 60601
ENERGY ASSOCIATION
Don L. Keskey
University Office Place
333 Albert Avenue, Suite 425
East Lansing, MI 48823
2
MICHIGAN ATTORNEY GENERAL
Joel King Assistant Attorney General ENRA
Division
525 W. Ottawa Street, 6th Floor
P.O. Box 30755
Lansing, Michigan 48909
MICHIGAN PUBLIC POWER
AGENCY Peter H. Ellsworth
Nolan J. Moody
215 S. Washington Square, Suite 200
Lansing, MI 48933
MPSC STAFF
Heather M.S. Durian
Benjamin J. Holwerda
Amit T. Singh
Daniel E. Sonneveldt
7109 West Saginaw Hwy, 3rd Floor
Lansing, MI 48917
October 29, 2019
MICHIGAN ENVIRONMENTAL
COUNCIL;
NATURAL RESOURCES DEFENSE
COUNCIL; SIERRA CLUB
Christopher M. Bzdok
Tracy Jane Andrews
Kimberly Flynn, Legal Assistant
Karla Gerds, Legal Assistant Olson,
Bzdok & Howard, P.C.
420 East Front Street
Traverse City, MI 49686
UNIVERSITY OF CHICAGO LAW
SCHOOL, ABRAMS
ENVIRONMENTAL LAW CLINIC
Counsel for Soulardarity
By: /s/ Mark N. Templeton
Mark N. Templeton, pro hac vice
6020 S. University Ave.
Chicago, IL 60637
Phone: (773) 702-9611
Email: [email protected]