Michigan’s interconnection rules were issued in September 2003 in the form of an order from the Michigan Public Service Commission (PSC) in Case U-13745, which addresses the interconnection of independent power projects. Regulated utilities were required by the PSC order to file interconnection procedures that are in compliance with the Commission's own interconnection standards. The PSC's rules cover definitions, utility interconnection procedures, technical criteria, project applications, filing fees, interconnection deadlines, additional services provided by electric utilities, pre-certified equipment and waivers.

Interconnection Standards

The Indiana Utility Regulatory Commission's (IURC) Distributed Resources Workgroup is in the process of developing interconnection rules for small-scale renewables. The IURC developed net-metering rules that took effect October 2004, and it will proceed in 2005 with the development of interconnection standards. More information regarding Indiana's net metering and interconnection rulemaking process is available at the
IURC Distrubuted Resources Workgroup web site.

Specifically, the order includes the following provisions:  

• Utility interconnection standards must specify technical, engineering and operational requirements that are suitable for the utility’s distribution system. Filings must include requirements for the following capacity classifications:
  • less than 30 kW
  • 30 kW or more, but less than 150 kW
  • 150 kW or more, but less than 750 kW
  • 750 kW or more, but less than 2 MW
  • 2 MW or more
    
• Utilities must devise an application process and set a "reasonable deadline" to make an initial response to the application.  
  
• Project developers must pay the relevant utility a filing fee of $0.50 per kW of project capacity, with a minimum fee of $100 and a maximum fee of $500. Utilities may not charge additional fees.  
  
• Utilities must allow the interconnection of eligible projects within a specified amount of time following the approval of an application. Time limits range from two weeks to 18 weeks, depending on capacity.  
  
• Utilities must state the conditions in which an engineering study, or physical construction or modification of the utility’s distribution system is required to facilitate or complete an interconnection. Charges for engineering studies are possible, depending on system type and capacity.
  
• Utilities must include an up-to-date list of pre-certified types, makes and models of manufactured generating equipment.
  

Xcel, AEP and a coalition of other utilities operating in Michigan filed interconnection rules with the PSC in March 2004. The PSC approved each of these filings in August 2004.

There are no federal or state grants or tax credits for wind energy systems currently available to homeowners in Michigan. The following paragraphs detail tax incentives aimed at businesses that file a single business tax return.

Michigan’s “NextEnergy” is a comprehensive economic development plan to make Michigan a world leader in the research, development, commercialization and manufacture of alternative energy technologies. The plan includes a combination of tax credits and exemptions, administered by a state authority known as the Michigan Next Energy Authority. Because the principal focus of NextEnergy is to foster renewable energy business development, much of the policy is aimed at businesses that research, develop, and manufacture new technology. However, the legislation also includes policies relevant to businesses that own renewable energy property.

Under Michigan’s NextEnergy program, alternative energy property (including wind energy systems) can be exempt from business and personal property taxes. In addition, businesses can claim a credit against their Single Business Tax liability.   Property must be certified as eligible by the NextEnergy Authority. This exemption applies to taxes levied after December 31, 2002 and before January 1, 2013.  An Alternative Energy Guidebook is available to help businesses in interpreting the requirements for certification.

Note: Opt-Out Provision for the Local School or Taxing Unit. Within 60 days after receiving notification of certification of Alternative Energy Personal Property, the local school district or local tax collecting unit may adopt a resolution to not exempt the property from certain taxes. Specifically, the board of a school district in which certified property is located can, with the district superintendent’s consent, adopt a resolution to not exempt property from taxes levied in the district under the Revised School Code for a sinking fund to acquire, construct or repair buildings or sites, or to retire outstanding bonded indebtedness.

The governing body of a local tax-collecting unit can adopt an opt-out resolution that any taxes collected in the unit, other than those levied under the Revised School Code and described above, or those levied by the state under the State Education Tax Act can be excluded from exemption.

For additional information, view the Michigan Economic Development Corporation website

Contact:
Vince Nystrom
Michigan Economic Development Corporation
300 N. Washington Square
Lansing, MI 48913
(517) 241-5898

We are unaware of any utility-specific incentives for wind energy development.

AWS Truewind has developed wind energy resource maps for the Michigan Energy Office and the National Renewable Energy Laboratory with financial support from the U.S. Department of Energy. Wind speed maps show the predicted mean wind speed in Michigan at heights of 30 meters, 50 meters, 70 meters, and 100 meters above the effective ground level. Additionally, a 50-meter wind power density map shows the predicted mean wind power density (amount of wind energy) at a 50-meter height in the National Renewable Energy Laboratory's (NREL) standard wind resource classes. The mean speed and power density describe different aspects of the wind resource. The mean speed is the easiest for most people to understand. Some experts regard the mean wind power, which depends on the air density and the cube of the wind speed, as a more accurate indicator of the wind resource when assessing wind project sites. All of these maps can be found and downloaded here.

The US Department of Energy has produced wind resource maps for each state. The map for Michigan can be found here. You may also find the definitions of Wind Power Classes for the maps helpful. Another resource is the National Renewable Energy Laboratory (NREL) web site, which contains extensive information about wind resources in the United States.

There is additional information in the Wind Energy Atlas of the United States, where you can review maps for other locations in the US or get more information about how the maps were created.

The Michigan Energy Office has developed draft wind energy system siting guidelines. The guidelines include information specific to small wind energy installations defined as 300kW or less.

An electronic copy of the U.S. Department of Energy's 23-page Consumer’s Guide to Small Wind Electric Systems is available at the Wind Powering America web site.

The Database of State Incentives for Renewable Energy (DSIRE) is a comprehensive source of information on state, local, utility, and selected federal incentives that promote renewable energy. Another item of interest is the Interstate Renewable Energy Council’s web site on wind energy projects and wind energy events/news occurring through out the country.

Utility Contacts

Contact your local utility to request additional information on their interconnection policies. Contact information for all of Michigan’s electric utility companies (public and investor-owned) can be downloaded here or through the Department of Energy’s Energy Information Administration.

Alpena Power Company
310 North Second Avenue
Alpena, MI 49707
(517) 356-2293 x0153

Edison Sault Electric Company
P.O. Box 359
725 East Portage Avenue
Sault Ste. Marie, MI 49783
(906) 632-5170

Upper Peninsula Power Company
P.O. Box 130
600 Lakeshore Drive
Houghton, MI 49931
(906) 483-4512

Wisconsin Public Service Corporation
P.O. Box 19001
700 North Adams Street
Green Bay, WI 54307
(920) 433-1453

Wisconsin Electric Power Company
231 West Michigan
Milwaukee, WI 53203
(414) 221-2977

Northern States Power Company
P.O. Box 8
1414 West Hamilton Ave
Eau Claire, WI 54701
(715) 839-2477

Consumers Energy Company
212 West Michigan Avenue
Jackson, MI 49201
(517) 788-0135

The Detroit Edison Company
2000 Second Avenue
Detroit, MI 48226
(313) 235-8559

Indiana Michigan Power Company
1 Riverside Plaza, 26 th Floor
Columbus, OH 43215

Government Contacts

Michigan Public Service Commission
Tom Stanton
Competitive Energy Division
P.O. Box 30221
Lansing, MI 48909
Phone: (517) 241-6086
Fax: (517) 373-3113
E-Mail: tstanton@michigan.gov

Michigan Energy Office
John Sarver
611 W Ottawa 
P.O. Box 30221
Lansing, MI   48909
Phone: (517) 241-6280
Fax: (517) 241-6229
E-Mail: jhsarve@michigan.gov

Michigan Economic Development Corporation
Vince Nystrom,
300 N. Washington Sq.,
Lansing, MI 48913
(517) 241-5898
Web site: http://www.medc.michigan.org/

Local Organizations Interested in Renewable Energy Issues

Great Lakes Renewable Energy Associationis a non-profit organization that educates, advocates, promotes, and publicly demonstrates renewable energy technologies.

Repowering the Midwest is the Environmental Law and Policy Center’s clean energy development plan for the Midwest. Their website is a great source of clean energy information for the region.

NextEnergy isa non-profit corporation founded to advance the alternative energy technology industry in the State of Michigan.

The Michigan Wind Working Group works to promote wind energy development by identifying barriers and opportunities, providing a forum to exchange of information, and increasing consumer awareness.

The Midwest Renewable Energy Association is a nonprofit network for sharing ideas, resources, and information with individuals, businesses, and communities to promote a sustainable future through renewable energy and energy efficiency.

Michigan Interfaith Power and Light works to involve communities of faith in promotion and implementation of energy efficiency, renewable energy and related sustainable practices.

Michigan State University Extension works with Michigan landowners and farmers to explore wind energy options including small wind systems.

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