The Michigan Public Service Commission (PSC) has warned Consumers Power Co., an electric utility, that the utility may only take more power from its affiliated Midland Cogeneration Venture (a qualifying cogeneration facility) through a competitively bid capacity solicitation. The utility was authorized in 1993 to recover the costs of 915 megawatts (Mw) of Midland power from ratepayers and had recently proposed to add 260 of the remaining 325 Mw of Midland power to its system capacity.
While striking testimony concerning the Midland proposal from the utility's latest rate case, the PSC found that the utility might be trying to circumvent a 1992 decision allowing the 915-Mw block of Midland power but requiring competitive bidding for the rest. It said that Consumers had promised a competitive bid as far back as 1990, but had since mounted several attempts to add Midland additional power to rates in power-supply cost recovery and general rate cases. Re Consumers Pwr. Co., Case No.
U-10685, May 9, 1995 (Mi.P.S.C.).
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