Dive Brief:
- Federal regulators have delayed approving large rate increases to keep We Energies' Presque Isle Power Plant operating, directing the regional grid operator to more broadly assess who benefits from the 431 MW coal-fired facility.
- FERC has asked the Midcontinent Independent System Operator to respond to six points addressing how the resource is paid for, after having been designated a System Support Resource for Michigan's Upper Peninsula, Midwest Energy News reports.
- Keeping the power plant running for 300,000 residents in the region could cost about $100 million, but FERC's decision to delay increases follows a protest by the Michigan Senate that found the cost allocations unfair.
Dive Insight:
When mine operator Cliffs Natural Resources switched power suppliers last year, the company took with it about 85% of Presque Isle's demand, as well as the economic incentive for Wisconsin Electric to continue operating the facility. But after MISO found the plant to be a necessary resource it proposed incentive payments to keep the plant running, and allocated the majority of the costs to Upper Peninsula residents.
FERC's order delays cost increases for consumers, ordering the regional grid operator to consider a broader range of entities who may benefit from keeping the facility open.
"To what extent did MISO consider whether the proposed revisions to the SSR cost allocation ... properly allocate SSR costs only to those [load serving entities] that require the operation of the SSR Unit for reliability purposes," FERC asked in a series of six points requesting additional information about the "deficient" rate proposal.
Midwest Energy News reported residents will get a three-month delay on the rate increases as cost allocations are considered.
