Filer City Station 6 LP, Viking Energy of Lincoln Inc., Viking Energy of Mcbain Inc
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99 1 STATE OF MICHIGAN 2 BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION 3 In the matter, on the Commission's Own Motion regarding the regulatory reviews, Case No. U-18231 4 revisions, determinations, and/or approvals necessary for Consumers Energy 5 Company to fully comply with Public Volume 4 Act 295 of 2008. 6 __________________________________________/ 7 CROSS-EXAMINATION 8 Proceedings held in the above-entitled matter 9 before Jonathan F. Thoits, Administrative Law Judge 10 with MAHS, at the Michigan Public Service Commission, 11 7109 West Saginaw, Lake Michigan Room, Lansing, Michigan, 12 on Thursday, May 31, 2018, at 9:02 a.m. 13 APPEARANCES : 14 ANNE M. UITVLUGT, ESQ. Consumers Energy Company 15 One Energy Plaza, Room EP11-223 Jackson, Michigan 49201 16 On behalf of Consumers Energy Company 17 JENNIFER UTTER HESTON, ESQ. 18 Fraser Trebilcock Davis & Dunlap, P.C. 124 West Allegan, Suite 1000 19 Lansing, Michigan 48933 20 On behalf of Cypress Creek Renewables LLC 21 TIMOTHY J. LUNDGREN, ESQ. Varnum LLP 22 201 N. Washington Square, Suite 810 Lansing, Michigan 48933 23 On behalf of Independent Power Producers Coalition 24 of Michigan and Geronimo Energy 25 (Continued) Metro Court Reporters, Inc. 248.360.8865 100 1 APPEARANCES Continued : 2 THOMAS J. WATERS, ESQ. Fraser Trebilcock Davis & Dunlap, P.C. 3 124 West Allegan, Suite 1000 Lansing, Michigan 48933 4 On behalf of Cadillac Renewable Energy LLC, Genesee 5 Power Station LP, Grayling Generating Station LP, Hillman Power Company LLC, TES Filer City Station 6 LP, Viking Energy of Lincoln Inc., Viking Energy of McBain Inc. 7 DON L. KESKEY, J.D. 8 Public Law Resource Center, PLLC 333 Albert Avenue, Suite 425 9 East Lansing, Michigan 48823 10 On behalf of Great Lakes Renewable Energy Association 11 SPENCER A. SATTLER, 12 Assistant Attorney General 7109 West Saginaw Highway, Floor 3 13 Lansing, Michigan 48917 14 On behalf of Michigan Public Service Commission Staff 15 16 17 18 - - - 19 20 21 22 REPORTED BY: Lori Anne Penn, CSR-1315 23 24 25 Metro Court Reporters, Inc. 248.360.8865 101 1 I N D E X 2 WITNESS : PAGE 3 MARC R. BLECKMAN 4 Testimony Bound In 111 5 EUGENE M.J.A. BREURING 6 Testimony Bound In 138 7 TERESA E. HATCHER 8 Testimony Bound In 144 9 YONG F. KEYES 10 Testimony Bound In 179 11 MARGARET J. LOWE 12 Testimony Bound In 195 13 HEATHER L. RAYL 14 Testimony Bound In 215 15 KEITH G. TROYER 16 Testimony Bound In 225 17 TERI L. VanSUMEREN 18 Testimony Bound In 252 19 MERIDETH A. HADALA 20 Testimony Bound In 267 21 KATIE TRACHSEL 22 Testimony Bound In 274 23 WILLIAM F. STOCKHAUSEN 24 Testimony Bound In 280 25 Metro Court Reporters, Inc. 248.360.8865 102 1 I N D E X 2 WITNESS : PAGE 3 CASEY JAMES MAY 4 Testimony Bound In 291 5 BETSY ENGELKING 6 Testimony Bound In 306 7 GEOFFREY C. CRANDALL 8 Testimony Bound In 319 9 THOMAS V. VINE 10 Testimony Bound In 332 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Metro Court Reporters, Inc. 248.360.8865 103 1 E X H I B I T S 2 NUMBER DESCRIPTION MRKD OFRD RECD 3 A-1 (MRB-1) Calculation of Incremental 107 110 110 Costs of Compliance 4 A-2 (MRB-2) Regulatory Liability Balance 107 110 110 5 A-3 (EMB-1) Electric Retail Sales 107 137 137 6 Forecast 7 A-4 (EMB-2) Forecasted Customer Count & 107 137 137 Number of Lights Used For Renewable 8 Portfolio Surcharge Development 9 A-5 (TEH-1) Renewable Energy Plan 107 143 143 Summary 10 A-6 (YFK-1) Calculation of Renewable 107 178 178 11 Energy Credit Portfolio Targets for 2012 - 2029 12 A-7 (YFK-2) Quantity of RECs to be 107 178 178 13 Received in 2025 toward the 35% goal 14 A-8 (YFK-3) REVISED New Renewable Energy 107 178 178 Historical and Projected Renewable 15 Energy Credit Production 16 A-9 (YFK-4) REVISED Renewable Energy 107 178 178 Credit Portfolio for Sales to 17 Jurisdictional and Non-Jurisdictional Customers 18 A-10 (YFK-5) REVISED Renewable Energy 107 178 178 19 Credit Portfolio for Jurisdictional Compliance 20 A-11 (YFK-6) REVISED Renewable Energy 107 178 178 21 Plan Renewable Energy Credit Inventory Costs 22 A-12 (YFK-7) REVISED Renewable Energy 107 178 178 23 Credits Forecast by Technology Mix and Program Type 24 25 Metro Court Reporters, Inc. 248.360.8865 104 1 E X H I B I T S 2 NUMBER DESCRIPTION MRKD OFRD RECD 3 A-13 (MJL-1) REVISED Renewable Energy 107 194 194 Capacity by Technology at Year 4 Beginning 5 A-14 (MJL-2) REVISED New Renewable Energy 107 194 194 Capacity – Purchase Power and 6 Programs and Owned 7 A-15 (MJL-3) REVISED Historical and 107 194 194 Projected New Renewable Resource 8 Adequacy Capacity 9 A-16 (MJL-4) REVISED New Renewable 107 194 194 Historical and Projected Electric 10 Production 11 A-17 (MJL-5) Renewable Energy Plan 107 194 194 Historical and Projected Transfer 12 Cost 13 A-18 (MJL-6) Renewable Energy Plan 107 194 194 Transfer Price Calculation 14 A-19 (HLR-1) Calculation of the Revised 107 214 214 15 Renewable Energy Plan Rate Design Target ($000) 16 A-20 (HLR-2) Revised Tariff Sheet 107 214 214 17 A-031.00-Technical Terms and Abbreviations 18 A-21 (HLR-3) Revised Tariff Sheet 107 214 214 19 C-44.00-Rule C10 Renewable Energy Plan (REP) 20 A-22 (HLR-4) Revised Tariff Sheet 107 214 214 21 C-48.62-Rule C10.5 Pilot Solar Program 22 A-23 (TLV-1) Get a Glimpse into your 107 251 251 23 Solar Gardens Experience 24 A-24 (MRB-3) Calculation of Incremental 107 110 110 Costs of Compliance 25 Metro Court Reporters, Inc. 248.360.8865 105 1 E X H I B I T S 2 NUMBER DESCRIPTION MRKD OFRD RECD 3 A-25 (MRB-4) Regulatory Liability Balance 107 110 110 4 A-26 (TEH-2) Renewable Energy Plan 107 143 143 Summary 5 A-27 (MJL-7) Renewable Energy Plan 107 194 194 6 Historical and Projected Transfer Cost 7 A-28 (MJL-8) Renewable Energy Plan 107 194 194 8 Transfer Price Calculation 9 A-29 (HLR-5) Calculation of the Revised 107 214 214 Renewable Energy Plan Rate Design 10 Target ($000) 11 A-30 (TEH-3) Existing QF REC Forecast 107 143 143 without RE Plan -- Build 12 A-31 (TEH-4) Existing QF REC Forecast 107 143 143 13 with RE Plan Build 14 - - - 15 IPP-1 Discovery Response CCR-CE-54 107 279 279 16 - - - 17 CCR-1 Discovery Response 18231-CCR-CE-52 107 290 290 18 CCR-2 Discovery Response 18231-CCR-CE-53 107 290 290 19 CCR-3 Discovery Response 18231-CCR-CE-54 107 290 290 20 CCR-4 Discovery Response 18231-CCR-CE-56 107 290 290 21 CCR-5 Discovery Response 18231-CCR-CE-57 107 290 290 22 CCR-6 Discovery Response 18231-CCR-CE-58 107 290 290 23 CCR-7 Renewable Energy Projects 107 290 290 24 CCR-8 Discovery Response 18231-CCR-CE-60 107 290 290 25 - - - Metro Court Reporters, Inc. 248.360.8865 106 1 E X H I B I T S 2 NUMBER DESCRIPTION MRKD OFRD RECD 3 GER-1 Discovery Response CCR-CE-54 107 305 305 4 - - - 5 GLR-1 Resume of Geoffrey C. Crandall 107 318 318 6 - - - 7 BMP-1 2017 Consumers Energy Annual Report 107 331 331 8 BMP-2 2016 Consumers Energy Annual Report 107 331 331 9 BMP-3 2015 Consumers Energy Annual Report 107 331 331 10 BMP-4 Discovery Response 107 331 331 18231-BMPs-GLREA82(i) 11 BMP-5 Excel spreadsheet calculating the 107 331 331 12 respective costs of solar and biomass energy based upon the data in 13 Attachment 1 to the MPSC's November 21, 2017 Order in U-18090, as modified by 14 the MPSC in its February 22, 2017 Order to reflect a change in ICE 15 BMP-6 Selected data from the United States 107 331 331 16 Energy Information Administration’s EIA-923 Report 17 BMP-7 Attachment to Discovery Response 107 331 331 18 18231-BMP-CE-61 19 BMP-8 Discovery Response 18231-BMP-CE-62 107 331 331 20 - - - 21 22 23 24 25 Metro Court Reporters, Inc. 248.360.8865 107 1 Lansing, Michigan 2 Thursday, May 31, 2018 3 At 9:02 a.m. 4 - - - 5 (Hearing resumes following adjournment of Tuesday, 6 March 13, 2018.) 7 (Documents marked for identification by the Court 8 Reporter as Exhibit Nos. A-1 through A-7, A-8 9 REVISED through A-16 REVISED, A-17 through A-31; 10 IPP-1; CCR-1 through CCR-8; GER-1; GLR-1; BMP-1 11 through BMP-8.) 12 JUDGE THOITS: Let's go on the record. 13 Good morning, everyone. This is a hearing scheduled in 14 Case No. U-18231, titled In the matter, on the 15 Commission's own motion, regarding the regulatory 16 reviews, revisions, determinations, and/or approvals 17 necessary for Consumers Energy Company to fully comply 18 with Public Act 295. 19 My name is John Thoits, I am the 20 administrative law judge assigned to this case pursuant 21 to an order of reassignment dated May 22, 2018.