S T A T E OF M I C H I G A N BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION * * * *

Transcription

1 S T A T E OF M I C H I G A N BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION * * * * In the matter of the application of ) UPPER PENINSULA POWER COMPANY ) Case No. U- 666 for authority to increase its retail electric rates. ) ) QUALIFICATIONS AND DIRECT TESTIMONY OF JULIE K. BALDWIN MICHIGAN PUBLIC SERVICE COMMISSION December, 00

2 QUALIFICATIONS OF JULIE BALDWIN CASE NUMBER U-666 PART I Q. Please state your full name, business address and occupation. A. My name is Julie K. Baldwin, and my business address is 6545 Mercantile Way, Lansing, Michigan I am employed by the Michigan Public Service Commission (MPSC) as a Public Utilities Engineer in the Renewable Energy Section of the Electric Reliability Division. Q. Describe your educational and professional background. A. I graduated from Michigan State University in June, 987 with a Bachelor of Science Degree in Chemical Engineering. I was employed by TRC Environmental Consultants in Los Angeles, California from February 988 to June 989 and was involved in various air quality consulting projects. In July, 989, I began employment with the Michigan Public Service Commission as a Public Utilities Engineer working in the areas of Act 9 natural gas contract pricing issues, natural gas and petroleum products pipeline certificates of public convenience and necessity, and monthly natural gas production reporting. I began working on electric and natural gas tariff administration in December 00 and in October 00 was transferred to the Rates and Tariff Section. My tariff administration responsibilities included reviewing all electric and natural gas tariff filings to determine if they met the requirements of the Commission, reviewing Commission Orders to determine whether tariff filings were necessary, determining whether rate books met the requirements of U-600 (Administrative Regulations Prescribing the Filing Procedures for Rate Schedules, Rules and Regulations, Standard Forms and Contracts by Electric, Water, Steam and Gas Utilities), and serving as case

3 QUALIFICATIONS OF JULIE BALDWIN CASE NUMBER U-666 PART I coordinator for various ex parte electric and natural gas tariff-related cases filed with the Commission. In June 005, I attended a course titled Introduction to Cost of Service Concepts and Techniques for Electric Utilities. During the time period from October 005 to May 006, I was temporarily assigned as Executive Assistant to former Commission Chairman J. Peter Lark. In May 006, I was assigned to what is now the Renewable Energy Section of the Electric Reliability Division. I am the lead engineer for matters pertaining to electric interconnections and net metering. My work responsibilities include developing and implementing rules for the 008 PA 95 net metering program and electric utility interconnection, serving as case coordinator for net metering and electric utility interconnection formal complaint cases, resolving informal net metering and electric utility interconnection complaints and inquiries, and public education and outreach. Additional responsibilities include reviewing rates impacting distributed generation in utility rate cases, green pricing programs, and renewable energy contracts filed for approval with the Commission. During 008 and 009, I served as the Commission s representative and Secretary on the Wind Energy Resource Zone Board established by the Commission pursuant to 008 PA 95. Q. Have you previously filed testimony in proceedings before the Commission? A. Yes. During my work at the MPSC, I have filed testimony in Case No. U-0546 (Act 9 natural gas contract pricing case), various pipeline cases, Case No. U-

4 QUALIFICATIONS OF JULIE BALDWIN CASE NUMBER U-666 PART I 447 (Consumers Energy Electric Rate Case), Case No. U-544 (Detroit Edison Rate Case), Case No. U-69 (Consumers Energy Electric Rate Case) and Case No. U-680 (Indiana and Michigan Power Rate Case).

5 DIRECT TESTIMONY OF JULIE BALDWIN CASE NUMBER U-666 PART II Q. What is the purpose of your testimony in this proceeding? A. The purpose of my testimony is to propose a tariff called Parallel Generation Tariff - Purchase by UPPCO and make a recommendation regarding UPPCO s Naturewise tariff, on behalf of the Commission Staff (Staff). Q. Are you proposing any exhibits in this proceeding? A. Yes. I am proposing Exhibit S-6, Schedule F., Parallel Generation Tariff Purchase by UPPCO. Q. Please describe the Parallel Generation Tariff-Purchase by UPPCO tariff. A. This tariff provides customers with on-site generation an opportunity to sell power to the Company. Customers with eligible on-site generation already have the option to participate in UPPCO s net metering (PG-M) and modified net metering (PG- & PG-) programs. The Parallel Generation Tariff Purchase by UPPCO provides an opportunity for customers with generators who want to sell power to the Company or have generators that are not eligible for net metering or modified net metering program participation. Under this tariff, customers will continue to be billed for deliveries from UPPCO according to applicable base rate schedules. Due to the extra metering requirements, the proposed tariff includes an additional monthly or daily customer charge based on the size of the generator. UPPCO will pay customers for power deliveries based on the Midwest Independent System Operator s on- peak and off-peak Day Ahead Locational Marginal Prices. 4

6 DIRECT TESTIMONY OF JULIE BALDWIN CASE NUMBER U-666 PART II Q. Do you recommend that the Commission approve UPPCO s request to increase the Naturewise rate shown on Schedule F5 of Exhibit A-6, page 64 of 66, for a 00 kwh renewable energy block from $.40 to $.75? A. Staff supports UPPCO s proposed Naturewise rate increase based on the data and calculations shown on Schedule F of Exhibit A-6 and based upon the reasons set forth by UPPCO Witness Beyer on pages 0 through of his prefiled direct testimony. Q. Does this conclude your testimony at this time? A. Yes. 5

7 Case No.: U-666 Exhibit No.: S-6 (JKB-) Schedule No.: F. Witness: Julie Baldwin Page No.: of UPPER PENINSULA POWER COMPANY MPSC Vol No 8-ELECTRIC Original Sheet No. D-7.70 D. Parallel Generation Purchase by UPPCO PG-4 EFFECTIVE IN All territory served. AVAILABILITY To customers contracting for electric service who satisfy the requirements of "qualifying facility" status under Part 9 of the Federal Energy Regulatory Commission's regulations under the Public Utility Regulatory Policies Act of 978, generating electrical energy with total customer owned generating capacity of,000 KW or less, and desiring to sell electrical energy to the Company. Customers with generation capacity of 50 KW or less have the option of selling energy to the Company under this Pg- tariff or the Pg-M tariff for customers with generator ratings that do not exceed 0 KW. Customers may take service under PG- if the requirements are met for methane digesters. MONTHLY RATES Customer Charge: For total customer owned generating capacity of under 00 KW: Standard applicable rate schedule Customer Charge. For total customer owned generating capacity of 00 KW and greater: Secondary Primary Transmission Monthly: $50.00 $5.00 $ Daily: $8.9 $ $ Charges for Deliveries from Company Deliveries from the Company to the customer shall be billed in accordance with the standard applicable rate schedules of the Company. Energy Credit Deliveries to Company On-peak Energy Charge: For 0 rates, the on-peak energy charge shall equal the average of the on-peak Day Ahead Locational Marginal Prices ( DA LMP )at the UPPC.INTEGRATD load zone node for calendar year 00. The rates shall be reset annually on January of each year based on the hourly average on-peak DA LMP at the UPPC.INTEGRATD load zone node of the most recently completed November to October period. The on-peak energy charge for 0 is $ /kWh. Off-peak Energy Charge: For 0 rates, the off-peak energy charge shall equal the average of the off-peak DA LMP at the UPPC.INTEGRATD load zone node for calendar year 00. The rates shall be reset annually on January of each year based on the hourly average off-peak DA LMP at the UPPC.INTEGRATD load zone node of the most recently completed November to October period. The off-peak energy charge for 0 is $0.090/kWh. Continued to Sheet No. D-7.7 Issued: By J F Schott VP Regulatory Affairs Green Bay, Wisconsin Effective for Service On and After: Issued Under Auth. of Mich Public Serv Comm Dated: In Case No:

8 Case No.: U-666 Exhibit No.: S-6 (JKB-) Schedule No.: F. Witness: Julie Baldwin Page No.: of UPPER PENINSULA POWER COMPANY MPSC Vol No 8-ELECTRIC Original Sheet No. D-7.7 D. Parallel Generation Purchase by UPPCO PG-4 Continued from Sheet No. D-7.70 Capacity Payment: Should the Midwest Independent Transmission System Operator ( MISO ) implement a capacity market, a capacity credit shall be implemented reflecting the MISO capacity market methodology. Once the MISO capacity market is operational, Customers with Interruptible Service will not receive any additional capacity charge credit. Renewable Premium: At the Company's sole discretion, a premium to be paid on a per kwh basis may be applied to generators that generate a renewable credit that is transferred to the Company. Customers retain the right to refuse a renewable premium and keep the renewable credits or tags. Premiums are to be set when the contract is signed and will not change during the contract period. Distribution Loss Factors: The following factors shall be applied to the onpeak and off-peak energy factors and capacity payments to reflect system losses: Customers metered at a transmission voltage of 50,000 volts or higher:.050 Customers metered at a primary voltage of 4,60 volts - 50,000 volts: l.0550 Customers metered at a secondary voltage of less than 4,60 volts:.0 ON-PEAK HOURS Winter (calendar months of October through May): through Friday (except holidays). 7:00 AM to 0:00 PM; Monday Summer (calendar months of June through September): 7:00 AM to :00 PM; Monday through Friday (except holidays). OFF-PEAK HOURS All hours not listed as on-peak hours. HOLIDAYS The days of the year which are considered holidays are: New Year's Day, Memorial Day, Fourth of July, Labor Day, Thanksgiving Day, Christmas Day. MINIMUM CHARGE The monthly minimum charge shall be the customer charge. PRO-RATION OF DEMAND COST FOR AUTHORIZED MAINTENANCE For customers billed on rates with demand charges, the demand charges other than "Customer Demand" shall be prorated if the maintenance schedule of the customer owned generation facility has been approved in advance in writing by the Company. Said pro-ration shall be based on the number of authorized days of scheduled maintenance. The customer shall pay the demand rate for the higher than normal demands due to the generation outage only for the days of authorized maintenance. Continued to Sheet No. D-7.7 Issued: By J F Schott VP Regulatory Affairs Green Bay, Wisconsin Effective for Service On and After: Issued Under Auth. of Mich Public Serv Comm Dated: In Case No:

9 Case No.: U-666 Exhibit No.: S-6 (JKB-) Schedule No.: F. Witness: Julie Baldwin Page No.: of UPPER PENINSULA POWER COMPANY MPSC Vol No 8-ELECTRIC Original Sheet No. D-7.7 D. Parallel Generation Purchase by UPPCO PG-4 Continued from Sheet No. D-7.7 SPECIAL RULES. The Company shall install appropriate metering facilities to record all flows of energy necessary to bill the customer in accordance with the charges and credits of this rate schedule.. The customer shall furnish, install, and wire the necessary service entrance equipment, meter sockets, meter enclosure cabinets, or meter connection cabinets that may be required by the Company to properly meter usage and sales to the Company.. The requirements for interconnecting a generator with the Company s facilities are contained in the Michigan Public Service Commission s Electric Interconnection Standards Rules (R ) and the Company s Michigan Utility Generator Interconnection Requirements, copies of which will be provided to customers upon request. All requirements must be met prior to commencing service. Issued: By J F Schott VP Regulatory Affairs Green Bay, Wisconsin Effective for Service On and After: Issued Under Auth. of Mich Public Serv Comm Dated: In Case No:

10 S T A T E O F M I C H I G A N BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION * * * * * In the matter of the application of ) UPPER PENINSULA POWER COMPANY ) Case No. U- 666 for authority to increase its retail electric rates. ) ) PROOF OF SERVICE April Stow, being duly sworn, deposes and says that on December, 00, A.D. she served a copy of the attached Testimony, via , to the persons as shown on the attached service list. Subscribed to before me this nd day of December, A.D., 00 April Stow Sharron A. Allen Notary Public, Ingham County, Michigan My Commission expires August 6, 0

11 Joseph J. Baumann Dykema Gossett PLLC Capitol View 0 Townsend St., Suite 900 Lansing MI 489 Michael J. Brown Carlin Edwards Brown & Howe PLLC 607 West St. Joseph Highway Suite 0 Lansing MI 4897 Michael J. Orris Michigan Dept. of Attorney General Public Service Division 6545 Mercantile Way, Suite 5 Lansing MI 489 Upper Peninsula Power Company Mr. Dennis Derricks 500 N. Washington Street Ishpeming MI Ronald W. Bloomberg Miller, Canfield, Paddock & Stone, P.L.C. One Michigan Avenue, Suite 900 Lansing MI 489 Daniel E. Nickerson, Jr. Michigan Public Service Commission 6545 Mercantile Way Suite 4 Lansing MI 489 Kristin M. Smith Michigan Dept. of Attorney General Public Service Division 6545 Mercantile Way, Suite 5 Lansing MI 489 Sherri A. Wellman Miller Canfield Paddock & Stone One Michigan Avenue, Suite 900 Lansing MI 489