2014 Plan Case

Wind TurbinesCARE was the only Intervenor that fully participated in this case. CARE issued three rounds of discovery and was the only party that filed testimony. In his testimony, Dr. Robert Loube focused on the way the company calculated its cost of energy associated with two of its wind facilities. The company estimated the entire revenue requirement associated with these facilities and included that revenue requirement of $53,696,171 in its power supply cost recovery (PSCR) calculation. Dr. Loube testified that such accounting treatment was improper in a PSCR proceeding. In fact, the only proper cost to include in a PSCR proceeding is the cost of fuel or energy, not capital construction costs. As Dr. Loube pointed out, the cost of wind is zero and therefore the $53,696,171 amount should be subtracted from its calculation supporting its PSCR factor. As a result of Dr. Loube’s testimony, the company agreed to remove this cost in a settlement agreement. The Michigan share of that cost was estimated at $4,346,453 by Dr. Loube. Thus residential ratepayers in that utility’s service area, saved over $4 million.