michigan electric transmission requests recovery in its transmission formula rate for up to $15 m for ev charging pilot
On November 16, 2020, in ER21-424, Michigan Electric Company (MET) applied to FERC for authorization to recover in electric transmission rates: (1) up to $15 million in costs associated with the construction of new transmission facilities and the deployment of advanced technology to support the development of new electric vehicle (EV) infrastructure in the State of Michigan (EV Infrastructure Pilot Project or Pilot Project); and (2) recovery of 100 percent of abandoned plant costs in the event the EV Infrastructure Pilot Project is abandoned for reasons beyond MET’s control. MET’s EV Infrastructure Pilot Project will facilitate the development and deployment of publicly accessible Direct Current Fast-Charging (DCFC) EV stations to serve long-haul medium- and heavy-duty commercial vehicles, trucks, and buses, and will provide data and information needed to assess how electrification trends and the deployment of EV infrastructure may impact the operation and reliability of the interstate transmission grid regulated by FERC. METC can already recover the costs of the Pilot Project through its existing formula rate. However, the 2009 Smart Grid Policy Statement allows applicants like METC to submit a section 205 filing to provide “the assurance of cost recovery” and to mitigate against the risk of “future review and challenge.”
Dr. Paul Dumais
CEO of Dumais Consulting with expertise in FERC regulatory matters, including transmission formula rates, reactive power and more.