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May 18, 1998 Michigan Open Access Update

May 18, 1998-
Open Access Implementation Plans Being Finalized. The draft open access implementation plans of Detroit Edison and Consumers Energy have been the focus of written comments by supplier and customer representatives, as well as public meetings held on May 1st and 8th to discuss them. To date, the utilities have expressed little interest in fundamentally changing their plans in response to the concerns expressed by the suppliers and customers. On May 15th, however, the Michigan Public Service Commission ("MPSC") Staff issued a report that addressed many of the same concerns and made recommendations as to how the utilities' implementation plans should be modified. Particularly encouraging was the MPSC Staff's focus on issues relating to the utilities' exercise of undue market power as open access is phased-in. The utilities will be filing their final implementation plans with the MPSC on May 29th, and the MPSC is expected to modify and/or approve them sometime in June or July. As of this time, the date of August 28th for submission of the bids for the first block of capacity appears to be holding. Therefore, there will be much work to be done during July and August by customers in the selection of power suppliers and the preparation of capacity bids.

Open Access May Be Available For Detroit Edison Customers Through Pilot Wheeling Program. In 1995, the MPSC approved an earlier version of Open Access, known as the Pilot Wheeling Program. It provided that 90 MW of Detroit Edison's load could be supplied by independent power producers when Detroit Edison found it necessary to secure new capacity. Because of Detroit Edison's admitted capacity shortage problem this summer (which could result in some industrial customers being interrupted) some supplier and customer representatives believe that the MPSC will require the Pilot Wheeling Program to be put into immediate effect by Detroit Edison. One application has already been filed with the MPSC for service under this Pilot Wheeling Program, and others may be filed soon. This program does not require bidding for capacity or the payment of transition costs. We recommend that Detroit Edison customers with loads between 2 MW and 10 MW at the subtransmission or transmission voltage levels seriously consider applying to participate in this program in lieu of or in addition to bidding under the Open Access Program.

Questions? If you have any questions, feel free to call Bob Strong at (248) 642-9692, or e-mail rstrong@clarkhill.com.