Michigan PSC to Explore Reducing Peak Demand

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January 12, 2011

The Michigan PSC has issued a report on reducing peak demand under which the Commission finds that, "now is the time to explore, pilot, and demonstrate new load management concepts and technologies in advance of a turn-around in electric supply and demand, and a softening of the current economic recession."

"Thus, the Commission intends to begin the following exploratory initiatives pertaining to load control and peak reduction.  Until the conclusion of these exploratory initiatives, the Commission is not in a position to make recommendations regarding legislative changes."

Commission Staff will commence discussions with utilities regarding their pursuit of commercial and industrial (C&I) direct load control pilots.  "In the Commission's view, utility sponsored C&I direct load control programs are lacking or nonexistent.  This situation contrasts markedly with that of third-party demand response aggregators who are particularly active on the east coast in the PJM footprint."

Of course, the Commission previously suspended the participation of commercial and industrial customers in the RTO markets, such as through curtailment service providers.

The PSC will also investigate improving power factors to reduce generation load.  "The Commission is of the opinion that [energy optimization] incentives to increase power factor, would also reduce generation requirements and thus contribute to deferring construction of new electric generation facilities in Michigan."

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