IM updated avoided cost calculation: PURPA

On August 3, the Michigan PSC issued a Proposal for Decision, establishing a method and avoided cost calculation for Indiana Michigan Power Company to comply with PURPA. Exceptions must be filed with the Commission on or before September 8, 2017. PURPA requires electric utilities to purchase the energy offered by Qualifying Facilities (QFs) at rates that are “just and reasonable” and that do not “discriminate against qualifying cogeneration and small power production facilities.” As part of the proposal, the PSC agreed to update the terms of the standard offer for QFs; allowing for terms of 5, 10, 15, and 20 years, available to projects up to 5 MW of nameplate capacity.