S T A T E O F M I C H I G A N BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION * * * * *

Transcription

1 S T A T E O F M I C H I G A N BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION * * * * * In the matter, on the Commission s own motion, ) to consider changes in the rates of all the Michigan ) rate-regulated electric, steam and natural gas utilities ) to reflect the effects of the federal Tax Cuts and Jobs ) Case No. U Act of 2017: DETROIT THERMAL, LLC, files an ) application for determination of inapplicability of ) Credit A and Credit B as described in order U ) ) At the May 30, 2018 meeting of the Michigan Public Service Commission in Lansing, Michigan. PRESENT: Hon. Sally A. Talberg, Chairman Hon. Norman J. Saari, Commissioner Hon. Rachael A. Eubanks, Commissioner ORDER APROVING SETTLEMENT AGREEMENT On March 30, 2018, Detroit Thermal, LLC (Detroit Thermal) filed an application, with supporting testimony and exhibits, requesting a Commission determination that Credit A and Credit B, as described in the February 22, 2018 order in Case No. U-18494, are not applicable to Detroit Thermal. A prehearing conference was held on April 18, 2018, before Administrative Law Judge Sharon L. Feldman. Detroit Thermal and the Commission Staff participated in the proceeding. Subsequently, the parties filed a settlement agreement resolving all issues in the case. The Commission has reviewed the settlement agreement and finds that the public interest is adequately represented by the parties who entered into the settlement agreement. The Commission

2 further finds that the settlement agreement is in the public interest, represents a fair and reasonable resolution of the proceeding, and should be approved. THEREFORE, IT IS ORDERED that: A. The settlement agreement, attached as Exhibit A, is approved. B. Neither Credit A nor Credit B are applicable to Detroit Thermal, LLC, because the revenue requirement approved in the October 4, 2016 order in Case No. U is below the company s projected expenses, which results in no recovery of any income tax expense. C. Calculation C is not applicable to Detroit Thermal, LLC, because there are no other impacts of the Tax Cuts and Jobs Act of 2017 on the company, including excess deferred taxes or bonus depreciation. Page 2 U-20104

3 The Commission reserves jurisdiction and may issue further orders as necessary. Any party desiring to appeal this order must do so in the appropriate court within 30 days after issuance and notice of this order, pursuant to MCL To comply with the Michigan Rules of Court s requirement to notify the Commission of an appeal, appellants shall send required notices to both the Commission s Executive Secretary and to the Commission s Legal Counsel. Electronic notifications should be sent to the Executive Secretary at mpscedockets@michigan.gov and to the Michigan Department of the Attorney General - Public Service Division at pungp1@michigan.gov. In lieu of electronic submissions, paper copies of such notifications may be sent to the Executive Secretary and the Attorney General - Public Service Division at 7109 W. Saginaw Hwy., Lansing, MI MICHIGAN PUBLIC SERVICE COMMISSION Sally A. Talberg, Chairman Norman J. Saari, Commissioner By its action of May 30, Rachael A. Eubanks, Commissioner Kavita Kale, Executive Secretary Page 3 U-20104

4 EXHIBIT A STATE OF MICHIGAN BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION In the matter on the Commission s own ) motion, to consider changes in the rates ) of all the Michigan rate-regulated ) electric, steam and natural gas utilities ) Case No. U to reflect the effects of the federal Tax ) Cuts and Jobs Act of 2017: ) Detroit Thermal, LLC files an application ) for determination of inapplicability of Credit ) A and Credit B as described in Order U ) ) SETTLEMENT AGREEMENT As provided in Section 78 of the Administrative Procedures Act of 1969 ( APA ), as amended, MCL , and Rule 333 of the Michigan Public Service Commission s ( Commission ) Rules of Practice and Procedure, 2000 AC, R , and supported by the Commission s own policy towards settlement of contested issues, Detroit Thermal, LLC ( Detroit Thermal ) and the Michigan Public Service Commission Staff ( Staff ) (hereafter collectively referred to as the Parties ) have resolved through settlement discussions the issues before the Commission regarding Detroit Thermal s Application for determination of the inapplicability of Credit A and Credit B as described in Order U and agree as follows: 1. On February 22, 2018, Detroit Thermal filed the testimony of its witness Josef M. Haak in support of its Application requesting the Commission determine that, with respect to Detroit Thermal, no Credit A or Credit B as described in the Commission s Order dated February 22, 2018 in MPSC Case No. U is applicable.

5 2. On April 18, 2018, a prehearing conference was held before Administrative Law Judge ( ALJ ) Sharon Feldman. Detroit Thermal electronically submitted the requisite proofs of service prior to the conference. 3. The Commission Staff participated in the proceedings. 4. Staff has reviewed Case No U by its application, testimony, and exhibits. 5. Subsequent to the prehearing, Detroit Thermal and Staff engaged in settlement discussions and have agreed as follows: a. Neither Credit A nor Credit B are due because the revenue requirement agreed to in the settlement agreement in U is set below Detroit Thermal s projected expenses, which results in no recovery of any income tax expense. b. All issues relating to MPSC Case No. U are resolved by this Settlement Agreement without prejudicing any party s rights in regard to any subsequent reconciliation proceedings. c. Calculation C is not applicable to Detroit Thermal as there are no other impacts of the tax law change on Detroit Thermal, including but not limited to excess deferred taxes or bonus deprecation. 6. Detroit Thermal and Staff believe that this Settlement Agreement will promote the public interest and will aid in the expeditious conclusion of this case. 7. This Settlement Agreement is entered into for the sole and express purpose of reaching a compromise among the parties. All offers of settlement and discussions relating to this settlement are considered privileged under MRE This Settlement Agreement is based on the facts and circumstances of this case and is intended as the final disposition of Case No. U If the Commission approves this - 2 -

6 Settlement Agreement without modification, the undersigned parties agree not to appeal, challenge, or otherwise contest the Commission Order approving this Settlement Agreement. Except as otherwise stated in this Agreement, the parties agree and understand that this Settlement Agreement does not limit any party s right to take new or different positions on similar issues in other administrative proceedings or appeals. 9. This Settlement Agreement is not severable. Each provision of this Settlement Agreement is dependent upon all other provisions of this Settlement Agreement. Failure to comply with any provision of this Settlement Agreement constitutes failure to comply with the entire Settlement Agreement. If the Commission rejects or modifies this Settlement Agreement or any provision of this Settlement Agreement, this Settlement Agreement shall be deemed to be withdrawn, shall not constitute any part of the record in this proceeding or be used for any other purpose, and shall not operate to prejudice the pre-negotiation positions of any party. 10. Staff agrees that this Settlement Agreement is reasonable and in the public interest. 11. The parties agree to waive Section 81 of the APA, MCL , if the Commission approves this Settlement Agreement without modification. WHEREFORE, the undersigned parties respectfully request that the Commission approve this Settlement Agreement without modification, and make it effective in accordance with its terms, by final order

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8 P R O O F O F S E R V I C E STATE OF MICHIGAN ) Case No. U County of Ingham ) Lisa Felice being duly sworn, deposes and says that on May 30, 2018 A.D. she electronically notified the attached list of this Commission Order via transmission, to the persons as shown on the attached service list (Listserv Distribution List). Subscribed and sworn to before me this 30th day of May 2018 Lisa Felice Angela P. Sanderson Notary Public, Shiawassee County, Michigan As acting in Eaton County My Commission Expires: May 21, 2024

9 Service List for Case: U Name Arthur J. LeVasseur Detroit Thermal, LLC Matthew M. Peck Michael J. Orris Sharon Feldman Address

10 GEMOTION DISTRIBUTION SERVICE LIST ITC Energy Michigan Energy Michigan Mid American Xcel Energy Cloverland Cloverland Village of Baraga Linda Brauker Village of Clinton Tri-County Electric Co-Op Tri-County Electric Co-Op Tri-County Electric Co-Op Aurora Gas Company Citizens Gas Fuel Company Consumers Energy Company SEMCO Energy Gas Company Superior Energy Company Upper Peninsula Power Company WEC Energy Group Upper Peninsula Power Company Midwest Energy Coop Midwest Energy Coop Alger Delta Cooperative Cherryland Electric Cooperative Great Lakes Energy Cooperative Great Lakes Energy Cooperative Great Lake Energy Cooperative Liberty Power Delaware (Holdings) Stephson Utilities Department Ontonagon County Rural Elec Presque Isle Electric & Gas Cooperative, INC Thumb Electric Bishop Energy AEP Energy CMS Energy Just Energy Solutions Constellation Energy Constellation Energy Constellation New Energy DTE Energy First Energy MidAmerican Energy My Choice Energy Updated

11 GEMOTION DISTRIBUTION SERVICE LIST Calpine Energy Solutions Santana Energy Spartan Renewable Energy, Inc. (Wolverine Power Marketing Corp) Xcel Energy City of Escanaba City of Crystal Falls Lisa Felice Michigan Gas & Electric City of Gladstone Integrys Group Lisa Gustafson Tim Hoffman Interstate Gas Supply Inc Thomas Krichel Bay City Electric Light & Power Lansing Board of Water and Light Lansing Board of Water and Light Marquette Board of Light & Power Premier Energy Marketing LLC City of Marshall Doug Motley Dan Blair Marc Pauley City of Portland Alpena Power Liberty Power Wabash Valley Power Wolverine Power Lowell S. Integrys Energy Service, Inc WPSES Realgy Energy Services Volunteer Energy Services First Energy Solutions Hillsdale Board of Public Utilities Michigan Gas Utilities/Upper Penn Power/Wisconsin Michigan Gas Utilities/Qwest Zeeland Board of Public Works Direct Energy Direct Energy Direct Energy Direct Energy Realgy Corp. Jim Weeks Indiana Michigan Power Company Updated

12 GEMOTION DISTRIBUTION SERVICE LIST Santana Energy MEGA ITC Holdings Dickinson Wright Xcel Energy Xcel Energy Matthew Peck Updated