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July 10, 1998 Michigan Open Access Update
July 10, 1998-Consumers and Edison File Implementation Plans. On June 30th, Consumers Energy and Detroit Edison filed with the Michigan Public Service Commission ("MPSC") their new Implementation Plans for their Retail Open Access ("ROA") Programs. They contain a number of changes from the plans filed in February which were in response to issues raised by customers, suppliers and the MPSC Staff, and the two plans are now more consistent with one another. Before becoming effective, they must be approved by the MPSC and the accompanying tariffs must be approved by the MPSC and, in the case of Consumers, the Federal Energy Regulatory Commission ("FERC"). Both Consumers and Edison have omitted some items in their analyses of the cost of participation but, even when these costs are added, it appears that during the next three years commercial and industrial customers will be able to save money by participating in the programs.
FERC to Decide Jurisdictional Issues. Next week the FERC is expected to decide the issue of what constitutes transmission facilities subject to FERC jurisdiction and what constitutes distribution facilities subject to MPSC jurisdiction. This decision could affect both the rates and the time table for Open Access.
New Phase-In Schedule Proposed. Under the Implementation Proposed Plans, the phase-in schedule for the first three blocks of capacity for each utility (150 megawatts [MW] for Consumers and 225 MW for Edison) would be as follows:
| Bid Block | Bid Submission Date | Bid Award Date |
| lst Bid | 10/13/98 | 10/23/98 |
| 2nd Bid | 11/30/98 | 12/10/98 |
| 3rd Bid | 1/29/99 | 2/9/99 |
Service under successful bids would occur once the power supplier obtains a franchise to do business in the municipality where the customer is located as well as a Certificate of Public Convenience and Necessity from the MPSC the power supplier has 180 days after the bid award to accomplish these tasks.
Questions? If you have any questions, feel free to call Bob Strong at (248) 642-9692, or e-mail rstrong@clarkhill.com.
