U-18232 Necessary for DTE Electric Company ) to Fully Comply with Public Act 295 of 2008 )
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STATE OF MICHIGAN BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION In the matter, on the Commission's own ) motion, regarding the regulatory reviews, ) revisions, determinations, and/or approvals ) Case No. U-18232 necessary for DTE Electric Company ) to fully comply with Public Act 295 OF 2008 ) QUALIFICATIONS AND DIRECT TESTIMONY OF TERRI L. SCHROEDER DTE ELECTRIC COMPANY QUALIFICATIONS OF TERRI L. SCHROEDER Line No. 1 Q. Please state your full name, title, and business address. 2 A. Terri Schroeder, Manager of Business Development in Renewable Energy. My 3 business address is One Energy Plaza, Detroit, Michigan 48226. 4 5 Q. On whose behalf are you testifying? 6 A. I am testifying on behalf of DTE Electric Company (DTE Electric or Company). 7 8 Q. What is your educational background? 9 A. I graduated from DePaul University in 2002 with a Bachelor of Science Degree in 10 Business. In 2008, I received a Master of Business Administration from the 11 University of Michigan Ross School of Business and a Master of Science from the 12 University of Michigan School of Natural Resources and Environment. 13 14 Q. Please describe your work experience? 15 A. I began my career in the marketing department at Jenner & Block, an Am Law 100 16 law firm based in Chicago. In 2004-2005, I served one year with AmeriCorps at City 17 Year Detroit. During graduate school, I had internships at Ford Motor Company and 18 Environmental Law and Policy Center. After graduate school, I worked at two 19 different consulting firms: first at Shepherd Advisors (2008-2012) and later at Public 20 Sector Consultants (2012-2014), where I focused on energy policy, energy 21 marketing, and program management. 22 23 My employment with DTE Electric began in 2014 when I joined the Renewable 24 Energy team as a Senior Strategist in Business Development. In this role, I executed 25 on our approved plans to meet the requirements of 2008 PA 295, administering RFPs TLS - 1 T. L. SCHROEDER Line U-18232 No. 1 for our renewable energy projects, filing contract approval applications with the 2 Michigan Public Service Commission (MPSC), supporting development of the 3 Company’s renewable energy plan and reconciliation cases, and maintaining our 4 Renewable Energy Credit (REC) compliance records. In 2017, I assumed my current 5 role as Manager of Business Development in Renewable Energy. 6 7 Q. What is your current position and what are your current responsibilities? 8 A. Currently, I am Manager of Business Development in DTE Electric’s Renewable 9 Energy. I am a member of the Company’s Renewable Energy Management team and 10 responsible for planning and executing renewable energy activities for the Company. 11 12 Q. Have you previously sponsored testimony before the Michigan Public Service 13 Commission? 14 A. Yes. I sponsored testimony in the following cases: 15 U-18242 Reconciliation of the DTE Electric 2016 REP Program 16 U-18352 Section 61 of 2016 PA 342 17 U-18419 DTE Electric 2017 Certificate of Necessity TLS - 2 DTE ELECTRIC COMPANY DIRECT TESTIMONY OF TERRI L. SCHROEDER Line No. 1 Q. What is the purpose of your testimony? 2 A. The purpose of my direct testimony is to: 3 1) Provide an overview of the statutory framework under 2008 PA 295, as amended 4 by 2016 PA 342 (hereinafter “the Act” or “2016 PA 342”) and address specific 5 policy issues; 6 2) Provide an overview of and rationale for the Company’s proposal to amend its 7 currently approved Renewable Energy Plan (REP); 8 3) Support and explain how the Company’s amended REP is reasonable, prudent, 9 and consistent with the requirements of the Act; and 10 4) Introduce the other Company witnesses in this proceeding and preview their 11 testimony. 12 13 My testimony will explain the major components and assumptions associated with the 14 Company’s proposal to amend its currently approved REP. My testimony refers to 15 relevant information and data that may be supported by other witnesses in this 16 proceeding. 17 18 Q. Who will present evidence in support of the Company’s REP in this case? 19 A. The Company will present its case through six witnesses, in addition to myself, as 20 follows: 21 Mr. Marcus J. Rivard, Principal Market Engineer, Generation Optimization - 22 Tactical Merchant Analytics, will present the Company’s Transfer Price schedules 23 for the Company’s 2016 PA 342 Renewable Energy Contracts and Company-owned 24 Renewable Energy Systems and provide the projected expenses for 2016 through TLS - 3 T. L. SCHROEDER Line U-18232 No. 1 August 2029 which will be transferred for recovery through DTE Electric’s Power 2 Supply Cost Recovery (PSCR) mechanism. 3 Mr. Patrick D. Kauffman, Principal Supervisor – Renewable Energy Program, will 4 summarize DTE Electric’s projected Renewable Energy capital, operation and 5 maintenance (O&M) and other expenses associated with implementing DTE 6 Electric’s Amended 2016 PA 342 REP. In addition, he will outline key accounting 7 practices related to the Company’s amended REP including: (1) the removal of REP 8 financial impacts from the Company’s traditional base rate accounting, and (2) the 9 accounting for and calculation of production tax credits. 10 Mr. Thomas W. Lacey, Principal Financial Analyst, Regulatory Affairs, will present 11 the incremental cost of compliance calculation based on the costs and Renewable 12 Energy Plan Surcharge (a/k/a Revenue Recovery Mechanism surcharge) revenues 13 associated with the Company’s 2018 amended REP that were supplied to him and 14 are supported in this application by Witnesses Rivard, Kauffman, Sherri Wisniewski, 15 and myself. He will also be supporting the pre-tax cost of capital that he uses to 16 calculate the return on rate base, and the calculation of interest on regulatory 17 liabilities. 18 Mr. Philip W. Dennis, Manager, Regulatory Economics, will explain and support: 19 (1) the forecast of meter counts used to calculate the forecast metered REPS revenue; 20 and (2) a proposed mechanism to refund overcollections associated with a renewable 21 energy surcharge originally approved in Case No. U-13808. 22 Mr. Markus B. Leuker, Manager, Corporate Energy Forecasting, is supporting the 23 sales forecast and customer count projection for the period 2018-2029. TLS - 4 T. L. SCHROEDER Line U-18232 No. 1 Ms. Sherri Wisniewski, Director, Taxation, is supporting the reasonableness of 2 deferred taxes, investment tax credits and property tax expense in the Company’s 3 REP. 4 5 Q. Are you sponsoring any exhibits? 6 A. Yes. I am sponsoring the following exhibits: 7 Exhibit Description 8 A-1 Renewable Energy Plan Overview 9 A-2 Renewable Energy Plan Summary 10 A-3 DTE Electric Owned Renewable Energy Facilities Generation 11 A-4 RECs/ACECs and Associated Expense for the Years 2016-2029 12 A-5 NREL – ATB Installed Cost Projections 13 14 Q. Were these exhibits prepared by you or under your direction? 15 A. Yes, they were. 16 17 Q. How is your testimony organized? 18 A. My testimony consists of the following five (5) parts: 19 Part I Statutory Framework 20 Part II The Company’s Amended Renewable Energy Plan 21 Part III Policy Assumptions and Other Requests 22 Part IV Addressing Renewable Energy Plan Requirements 23 Part V Summary and Conclusions 24 TLS - 5 T. L. SCHROEDER Line U-18232 No. 1 Part I: Statutory Framework 2 Q. Why is the Company filing this Renewable Energy Plan amendment? 3 A. Section 22(3) of the Act states “Within 1 year after the effective date of the 2016 4 amendatory act that added this section, the commission shall review each electric 5 provider’s plan pursuant to a filing schedule established by the commission.” The 6 purpose of this filing is to amend the Company’s currently approved REP to meet the 7 new renewable energy requirements of the Act, and to provide the Commission with 8 the information necessary for the review noted in Section 22(3) of the Act. 9 10 Q. In general, what does the Act provide with respect to REC standards? 11 A. In general, the Company is directed to meet a compliance requirement equal to that 12 required under former section 27 in 2016-2018, 12.5% in 2019 and 2020 and 15% by 13 2021 and thereafter. A summary reflecting achievement of the renewable energy 14 targets is provided in Exhibit A-2, lines 12-21. 15 16 Q. What is the number of RECs the Company will need to achieve the portfolio 17 targets? 18 A. Based on the Company’s forecasted prior year annual retail sales provided by 19 Witness Leuker, I have calculated the quantity of RECs the Company must obtain to 20 comply with the REC requirements of the Act and included the results on Exhibit A- 21 2 line 10. 22 TLS - 6 T. L. SCHROEDER Line U-18232 No. 1 Part II: The Company’s Amended Renewable Energy Plan 2 Overview & Key Assumptions 3 PLAN OVERVIEW 4 Q. Why is the Company proposing to amend its currently approved REP? 5 A. Pursuant to the Act, the Company proposes the amendments included in this filing to 6 meet the updated renewable energy targets of 12.5% in 2019 and 2020, and 15% by 7 2021 through the remainder of the Plan. 8 9 The Company’s currently approved REP was based on the Company’s best 10 knowledge and information about renewable energy markets and project operations 11 as of early 2016, and this Amended Plan filing will update assumptions included in 12 the REP.