Michigan regulators would set pay rules for home grid services

The commission would set rules for programs that pay owners and aggregators for services to the electric grid. The rules would cover owners of eligible behind-the-meter generators and demand response resources, and aggregators that provide their grid services. Payments would be based on public estimates of hourly grid-service costs and cover the full value of services provided. Programs could pay for multiple different services but could not pay twice for the same service. Extra pay could be offered for harder-to-serve situations or certain customer groups. The rules would include consumer protections and aggregator registration, and would bar utilities from owning eligible home generators. The commission would start a proceeding within 30 days after the act takes effect and adopt requirements within one year.

Regulated electric providers would submit proposed programs for commission approval. This would apply to electric providers whose rates the Michigan commission regulates. The commission would approve each program, with or without changes, as part of the provider’s rate case. A provider could use a third party to run a program. It could set reasonable participation rules but could not require collateral from resource owners or aggregators. Providers would file their proposals within 90 days after the commission adopts program requirements.

The commission would review the program rules after a federal grid-market order is implemented and report to lawmakers. These review and reporting duties would apply to the Michigan commission. After the regional grid organization implements Federal Energy Regulatory Commission Order 2222, the commission would decide whether rule changes are needed to increase participation. Reports would cover the program rules and possible legislative steps to stabilize power, better use renewable energy, reduce peak demand, or lower customer costs. The first report would be due within one year after this section takes effect, with another report every two years.