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Ass'n of Businesses Advocating Tariff Equity v. Michigan Public Service Commission

ELR Citation: 48 ELR 20120
Nos. 340600 and 340607, (Mich. Ct. App., 07/12/2018)

A Michigan appellate court reversed an order by the Michigan Public Service Commission requiring alternative energy suppliers in the Lower Peninsula to secure in-state generating capacity to ensure reliable electric service. An industry group argued that the Commission exceeded its authority under the state Customer Choice and Electricity Reliability Act in imposing a local clearing requirement upon individual alternative electric suppliers. The court agreed, concluding that the Act contains no provision that clearly and unmistakably authorizes the Commission to impose the local clearing requirement. Moreover, the Act requires the Commission to impose a local clearing requirement in a manner consistent with the Midcontinent Independent System Operator (MISO), and the requirement that the Commission imposed is inconsistent with MISO. The court therefore reversed the order and remanded the case.