Michigan Office of Administrative Hearings and Rules  
MOAHR-Rules@michigan.gov  
AGENCY REPORT TO THE  
JOINT COMMITEE ON ADMNINISTRATIVE RULES (JCAR)  
1. Agency Information  
Agency name:  
Licensing and Regulatory Affairs  
Division/Bureau/Office:  
Public Service Commission  
Name of person completing this form:  
Lisa Gold  
Phone number of person completing this form:  
517-420-2291  
E-mail of person completing this form:  
goldl@michigan.gov  
Name of Department Regulatory Affairs Officer reviewing this form:  
Elizabeth Arasim  
2. Rule Set Information  
MOAHR assigned rule set number:  
2020-96 LR  
Title of proposed rule set:  
Interconnection and Distributed Generation Standards  
3. Purpose for the proposed rules and background:  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 2  
Section 173 of Public Act 295 of 2008, MCL 460.1173(1) (Act 295), authorized the Commission to  
promulgate administrative rules governing net metering standards. In 2009, the Commission  
formally adopted administrative rules governing electric interconnection and net metering. See, Mich  
Admin Code, R 460.601a-460.656. Those rules focused primarily on small electric generators by  
dividing them into five categories; the first four categories apply to projects up to 2 megawatts  
(MWs) and the fifth category applies to projects greater than 2 MWs. In the December 20, 2012  
order in Case No. U-15919, the Commission adopted procedures for interconnection of smaller  
projects (Categories 1 and 2), but has not yet adopted procedures governing the interconnection of  
larger projects (Categories 3 through 5). Those net metering rules are now outdated and need to be  
rescinded. A separate RFR has been submitted for that.  
There have been significant changes in Michigan’s energy landscape driven by rapidly advancing  
renewable energy technology, including solar, wind, and battery storage. There have also been  
changes in Michigan’s energy laws with the passage of Public Acts 341 and 342 of 2016, which,  
among other things, amended Act 295. MCL 460.1173(1) now authorizes the Commission to  
promulgate rules governing distributed generation (DG). See also, MCL 460.1173(6)(b). Likewise,  
the Institute of Electrical and Electronics Engineers (IEEE) recently updated its technical standards  
for interconnection, the IEEE Standard for Interconnection and Interoperability of Distributed Energy  
Resources with Associated Electric Power Systems Interfaces (IEEE 1547-2018), which has  
prompted other states to revise their own interconnection rules and standards. Moreover, the Federal  
Energy Regulatory Commission (FERC) has recently addressed the integration of energy storage  
facilities in its Order 841 issued on February 15, 2018, which directs regional transmission  
organizations and independent system operators to establish market rules for energy storage facilities  
to participate in wholesale energy, capacity, and ancillary services markets. Order 841, 162 FERC ¶  
61, 127; 18 CFR 35.28 (2018).  
Finally, in the October 27, 2015 order in Case No. U-17973, the Commission determined that it  
needed to update the standards applicable to utilities and qualifying facilities (QF) operating pursuant  
to the Public Utility Regulatory Policies Act of 1978, 16 USC 2601 et seq., 16 USC 824a-3  
(PURPA). PURPA was enacted by Congress in 1978 to increase energy conservation and energy  
efficiency by allowing for renewable resources to interconnect with and sell their generation to  
utilities. PURPA is largely carried out by the states. 16 USC 2621(b)(2); 16 USC 824a-3(f). For  
example, the rates paid to QFs are set by the Commission. 16 USC 824a-3; MCL 460.6j(13)(b).  
Thus, both PURPA and the new DG law (as well as the legacy net metering law) concern the topic of  
interconnection with the energy grid. Industry standards for interconnection have been updated since  
the 2009. The Commission’s current rules are outdated and need to be replaced. The Commission  
expects that the new rules will decrease the time required to interconnect a distributed energy project  
into the electric distribution system. Larger generators tend to be interconnecting with the utility  
under PURPA requirements. In this rulemaking, the Commission will promulgate new rules  
addressing interconnection requirements for generators of all sizes, DG standards, and legacy net  
metering, to address the concerns described herein. Simultaneously, the Commission is rescinding  
the 2009 interconnection and net metering rules.  
This proposed ruleset was previously included in 2019-087, which was voided on March 10, 2020.  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 3  
4. Summary of proposed rules:  
The Interconnection and Distributed Generation Standards are rules that detail how projects owned by  
customers, developers, and in some situations, the utility, connect to the utility distribution system.  
These rules provide a standardized process and schedule so that interconnections can be  
accommodated in an orderly and timely manner. The rules also ensure that interconnections are done  
reliably and safely, in order to protect workers, utility and third-party owned equipment, and the  
public. The Interconnection and Distributed Generation Standards are an update to the Electric  
Interconnection and Net Metering Standards necessitated by advances in distributed energy resource  
technology and an increase in distributed generation penetration on the distribution systems in  
Michigan. The Interconnection and Distributed Generation Standards are promulgated pursuant to the  
same authority as, and replace, the Electric Interconnection and Net Metering Standards, which will  
be rescinded concurrently with the approval of these rules.  
5. List names of newspapers in which the notice of public hearing was published and  
publication dates:  
Two public hearings were held in this matter.  
The Oakland Press October 6, 2021  
The Mining Journal October 6, 2021  
The Grand Rapids Press October 6, 2021  
The Oakland Press June 11, 2022  
The Mining Journal June 11, 2022  
The Grand Rapids Press June 12, 2022  
6. Date of publication of rules and notice of public hearing in Michigan Register:  
6/15/2022  
7. Date, time, and location of public hearing:  
6/22/2022 09:00 AM at Lake Michigan Hearing Room , 7109 W. Saginaw Hwy., Lansing MI 48917  
8. Provide the link the agency used to post the regulatory impact statement and cost-benefit  
analysis on its website:  
https://ARS.apps.lara.state.mi.us/Transaction/RFRTransaction?TransactionID=1222  
9. List of the name and title of agency representative(s) who attended the public hearing:  
Benjamin Holwerda, Assistant Attorney General, on behalf of Michigan Public Service Commission  
(MPSC or Commission) Staff, and Julie Baldwin, Division Director at the MPSC, on October 20,  
2021.  
Monica Stephens, Assistant Attorney General, on behalf of the MPSC Staff, and Julie Baldwin,  
Division Director at the MPSC, on June 22, 2022.  
10. Persons submitting comments of support:  
No one testified at the first public hearing. All written comments suggested revisions.  
Matthew Paul testified at the second public hearing on behalf of DTE Energy and suggested  
revisions. All written comments suggested revisions.  
11. Persons submitting comments of opposition:  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 4  
No one testified at the first public hearing. All written comments suggested revisions.  
Matthew Paul testified at the second public hearing on behalf of DTE Energy and suggested  
revisions. All written comments suggested revisions.  
12. Persons submitting other comments:  
All written comments suggested revisions. Written comments were submitted by Adam Schaller,  
Marco Menzes, Michigan Energy Innovation Business Council (MEIBC), Association of Businesses  
Advocating Tariff Equity (ABATE), Michigan Electric and Gas Association (MEGA), DTE Electric  
Company (DTE Electric), Michigan Biomass, Consumers Energy Company (Consumers), Ford  
Motor Company (FMC), Coalition of Community Solar Access (CCSA), Sunrun, Inc., IBEW Local  
17, Michigan Electric Cooperative Association, and Vote Solar, the Ecology Center, and the  
Environmental Law and Policy Center (together the Clean Energy Organizations or CEOs). Some  
commenters submitted redlined versions of the rules with their comments, but most did not.  
13. Identify any changes made to the proposed rules based on comments received during the  
public comment period:  
Name &  
Organization public hearing  
Comments made at Written  
Agency Rationale Rule number  
for Rule Change & citation  
and Description changed  
of Change(s)  
Comments  
Made  
1
ABATE  
Clarify whether PSC agrees that  
the cost rule should show  
460.970  
allocation info in that O&M costs  
Rule 970 applies are also  
to both  
considered in cost  
allocation.  
installation and  
operations and  
maintenance  
(O&M) costs.  
2
CCSA  
Concerned with PSC agrees that  
460.956,  
only having one the batch process 460.954  
batch per year  
is unnecessary and  
removed it.  
Only put  
applications that  
fail an electrical  
independence test  
in batch  
Levels should be  
larger.  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 5  
3
Consumers  
Concerns w/rule PSC agrees that  
964 which limits days should be  
the clarified as  
interconnection calendar days.  
costs to 110% of PSC agrees that  
460.920,  
460.1001,  
460.990,  
460.964,  
460.988,  
460.1006.  
the estimate.  
actual  
They also point interconnection  
out the rule does (IX) costs and  
not have a  
timeline should be  
timeline for the clarified.  
applicant to  
respond.  
PSC agrees that  
procurement of the  
right-of-way by  
Rule 988 should the applicant  
be changed to should be made  
make the utility clear.  
responsible for  
providing  
PSC agrees that  
distributed  
easements or  
right of way  
generation (DG)  
program and IX  
program  
Recommends that applications  
the should be  
interconnection reviewed in  
submittal and  
sequential order,  
review process be not in parallel.  
incorporated into  
the material  
modification  
request  
Proposes that DG  
program review  
happen after the  
interconnection  
application  
review instead of  
in parallel.  
Clarify “days’ vs  
“business days”  
throughout  
ruleset.  
4
DTE Electric  
Rules will result PSC agrees that  
460.901a,  
460.920,  
460.991,  
in confusion,  
errors,  
utility holidays  
should be  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 6  
misunderstanding excluded from the 460.902,  
s, and business day. PSC 460.911,  
disagreement and agrees that 460.928,  
definitions should 460.930,  
impose  
unnecessarily  
complex and  
prescriptive  
processes  
be updated to  
reflect latest  
version of UL  
1741. PSC agrees 460.942,  
that concerns 460.964,  
about retroactive 460.966,  
460.934,  
460.944,  
460.946,  
Fee caps could  
result in a taking application should 460.984,  
be addressed. PSC 460.1001,  
Utility holidays agrees to modify 460.1004,  
should be  
excluded from  
the business day. preapplication  
Definitions  
should be  
the fees. PSC  
agrees that the  
460.1020,  
460.914,  
460.916,  
460.918.  
form should  
ascertain whether  
updated to reflect the distributed  
latest version of energy resource  
UL 1741.  
(DER) is certified.  
Concerns about PSC agrees that  
retroactive  
application  
should be  
addressed. The  
preapplication  
form should  
the site owner’s  
contact  
information is  
important. PSC  
agrees that some  
of the proposed  
ascertain whether tracks are  
the distributed  
unnecessary and  
energy resource deletes them. PSC  
(DER) is  
agrees that 10  
certified. The site business days  
owner’s contact should be changed  
information  
should be  
to 20 business  
days and agrees to  
included. Some other  
of the proposed clarifications.  
tracks are  
PSC agrees that  
unnecessary. 10 applicant should  
business days  
should be  
changed to 20  
business days.  
proceed only  
pursuant to an  
executed IX  
agreement. PSC  
Applicant should agrees that legacy  
proceed only net metering  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 7  
pursuant to an  
executed IX  
agreement.  
customers have a  
certain time  
period.  
Legacy net  
metering  
customers have  
only a certain  
time period.  
Some rules  
should be deleted  
because they  
appear to have  
retroactive  
application which  
is unlawful.  
5
FMC  
Develop a fast  
track process for level 1 and 2  
EVs seeking  
PSC agrees that  
should be  
460.940,  
460.944  
Level 1 or 2. Use processed through  
simplified  
the fast track.  
process if  
additional study  
is needed.  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 8  
6
MEGA  
Due to smaller  
staffs, want 30  
PSC agrees to  
delete the rule on 460.911,  
460.908,  
instead of 10 days experts. PSC  
460.926,  
to for  
agrees to address 460.928,  
applications and potential  
inspections or in retroactive  
460.956,  
460.901b,  
the alternative,  
application of the 460.964,  
provide flexibility rules. PSC agrees 460.966,  
in rules  
to fee changes.  
PSC agrees to  
460.920,  
460.986,  
Some members remove the batch 460.908,  
use a progressive process. PSC  
460.918,  
460.952,  
460.960.  
3-level  
agrees to clarify  
modifications.  
review/study  
process instead of PSC agrees to  
what is proposed increase the  
in the rules  
inspection time for  
certain projects.  
PSC agrees to  
Timelines are  
very aggressive modify insurance  
for smaller  
utilities  
requirements for  
certain levels.  
PSC agrees to  
Also includes a create a longer  
list of concerns timeline for the  
with many rules, smaller utilities.  
including rule on  
experts is  
unnecessary, rules  
should not be  
retroactive, fees  
should be  
modified, batch  
process is  
unnecessary,  
modification  
definition is  
unclear, insurance  
reqts are  
overstated.  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 9  
7
Sunrun  
Need rules to  
PSC agrees to add 460.901a,  
address energy  
storage systems ESS, including  
(ESS).  
rules addressing  
460.901b,  
460.980,  
460.946,  
460.1001.  
several new  
definitions,  
Incorporate use because ESS has  
of certified power become essential.  
control systems PSC agrees to  
to limit export  
update certain  
definitions to  
reflect the latest  
version of  
Incorporate  
inverter power  
control functions referenced  
to enable  
materials. PSC  
customer savings agrees that utility  
on  
interconnection 100% of  
costs applicable loading  
and only the  
shall consider  
UL 1741 Edition proposed DER  
3 was released on export capacity.  
9/28/2021  
UL 1741 SA  
inverters can be  
set with a  
constant lagging  
power factor to  
limit voltage rise  
and upgrades  
Consider adding  
definitions to  
address ESS.  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 10  
Informal PSC finds that all 460.904,  
8
MEIBC second  
round  
mediation should of these  
include a 10 day suggestions are  
timeline. A party reasonable  
460.926,  
460.938,  
460.906.  
should not be  
required to  
participate in  
informal  
because they will  
improve the rules  
and agrees to all of  
the following:  
mediation in  
order to begin  
Informal  
formal mediation. mediation should  
include a 10 day  
It should be clear timeline. A party  
that DG  
should not be  
applicants don’t required to  
need to pay more participate in  
than $50 total.  
informal  
mediation in order  
It should be made to begin formal  
clear why the  
public  
mediation.  
interconnection It should be clear  
list has not been that DG applicants  
updated.  
don’t need to pay  
more than $50  
total.  
It should be made  
clear why the  
public  
interconnection  
list has not been  
updated.  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 11  
9
Consumers  
Certain  
PSC agrees that  
460.942,  
second round  
unnecessary  
the noted language 460.950  
language should is unnecessary and  
be deleted from deletes it and  
the non-export  
agrees that the rule  
track review and should include a  
the rule should  
include a  
description of  
what happens  
when an  
description of  
what happens  
when an  
application needs  
further study.  
application needs  
further study.  
The PSC agrees  
that additional  
Additional review review screens  
screens should be should be allowed  
allowed.  
to give the utilities  
more flexibility.  
10  
MEIBC  
Rules must spell PSC agrees that  
out how storage material  
460.901b,  
460.982,  
460.911,  
460.920,  
460.926,  
460.928,  
will be treated  
and evaluated  
during the  
modification  
should be  
clarified. PSC  
interconnection agrees to clarify  
screening and  
study process.  
the path forward 460.932,  
for DG customers. 460.936,  
PSC agrees that  
the ability to  
460.938,  
460.946,  
Power-limited  
export should be participate in the 460.950,  
available and  
pointed out that proceedings  
FERC Order 845 should be  
addresses this  
issue.  
IX procedure  
460.954,  
460.956,  
460.958,  
460.964,  
clarified. PSC  
agrees that the fee 460.980,  
caps should be  
No required re- clarified. PSC  
application for agrees that the  
legacy NM/DG preapplication  
program processing time  
460.988,  
460.1001  
460.1008  
460.918  
460.952,  
customers to add should be reduced. 460.960  
storage.  
PSC agrees that  
the IX list should  
be made public  
Speed up batch  
processing time. and agrees to other  
clarifications. PSC  
Clarify definition agrees that certain  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 12  
of material  
modification  
additional screens  
should not be  
allowed. PSC  
Don’t limit the  
ability of the  
applicant to  
reduce the  
agrees to the  
removal of certain  
tracks and the  
batch process.  
PSC agrees that  
capacity of the  
DER to only 20% the rules should  
address energy  
Concerns about storage systems  
stakeholder  
(ESS). PSC  
engagement and agrees that  
commission  
approval for  
ambiguous terms  
should be deleted.  
interconnection Same right of way  
procedures phase issue as above.  
Concerns about  
fee amounts and  
waivers from fee  
caps  
Would like to  
shorten time  
period for pre-  
app report from  
25 business days  
to 15 business  
days  
Clarify easements  
and right of way  
rule  
DG program  
requirement that  
an energy storage  
device does not  
export to the grid  
should be  
removed.  
Ambiguous terms  
should be deleted  
from Rule 982  
regarding  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 13  
modification of  
IX applications.  
11  
DTE second  
round  
Utility should not PSC finds that all 460.901a,  
have to apply to of these suggested 460.901b,  
interconnect a  
substation energy reasonable  
revisions are  
460.920,  
460.930,  
storage backup  
device. The  
definitions of  
‘aggregate  
capacity’,  
because they will 460.942,  
improve the rules 460.944,  
and agrees to all of 460.946,  
the following:  
460.950,  
460.960,  
‘generating  
capacity’, and  
‘ongoing  
Utility should not 460.962,  
have to apply to  
interconnect a  
460.964,  
460.966,  
operating  
substation energy 460.968,  
capacity’ are not storage backup  
460.980,  
460.988  
460.1026  
needed. The  
definition of  
device. The  
definitions of  
‘certified’ should ‘aggregate  
be updated. The capacity’,  
definition of  
‘generating  
‘commissioning capacity’, and  
test’ should be  
clarified. The  
definition of  
‘inadvertent  
‘ongoing operating  
capacity’ are not  
needed. The  
definition of  
export’ should be ‘certified’ should  
updated. The  
definition of  
be updated. The  
definition of  
‘interconnection ‘commissioning  
agreement’ needs test’ should be  
timelines as  
clarified. The  
definition of  
‘inadvertent  
export’ should be  
updated. The  
estimates and  
needs controls,  
settings and  
amendments.  
The definition of definition of  
‘material  
modification’  
should be  
‘interconnection  
agreement’ needs  
timelines as  
clarified. The  
following  
comments all  
refer to  
definitions:  
‘Nameplate  
estimates and  
needs controls,  
settings and  
amendments. The  
definition of  
‘material  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 14  
capacity’ is not  
needed and  
modification’  
should be  
‘nameplate rating clarified. The  
should be following  
updated. ‘Power comments all refer  
control system’ to definitions:  
should be  
updated.  
‘Reasonable  
efforts’ is not  
needed.  
‘Nameplate  
capacity’ is not  
needed and  
‘nameplate rating  
should be updated.  
‘Power control  
system’ should be  
updated.  
The number of  
days for filing  
interconnection ‘Reasonable  
procedures  
should be  
extended.  
efforts’ is not  
needed.  
Projects that want The number of  
to interconnect  
with the 4.8kV  
system should  
understand the  
technical  
days for filing  
interconnection  
procedures should  
be extended.  
Projects that want  
to interconnect  
with the 4.8kV  
limitations.  
Direct current kW system should  
and information understand the  
about the inverter technical  
system design  
should be added  
to the pre-  
limitations.  
Direct current kW  
application report and information  
form.  
about the inverter  
system design  
It should be clear should be added to  
that DERs that  
will not inject  
energy can be  
the pre-application  
report form.  
evaluated under It should be clear  
the non-export that DERs that  
track. It should will not inject  
be clear that energy can be  
utilities need only evaluated under  
provide  
the non-export  
reasonable  
track. It should be  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 15  
assistance.  
clear that utilities  
need only provide  
reasonable  
The fast track  
where  
assistance.  
interconnecting to  
the 4.8kV system The fast track  
should be limited where  
to 1 MWac. The interconnecting to  
energy storage  
the 4.8kV system  
device criteria for should be limited  
fast track should to 1 MWac. The  
be modified.  
energy storage  
device criteria for  
fast track should  
Utilities should  
be allowed to add be modified.  
additional  
screens.  
Applicable  
Utilities should be  
allowed to add  
loading should be additional screens.  
dealt with in  
more detail.  
Applicable loading  
should be dealt  
with in more  
Applicants should detail.  
be required to  
provide  
Applicants should  
reasonably  
requested data.  
be required to  
provide reasonably  
requested data.  
The utility should  
be able to put the The utility should  
impact study on be able to put the  
hold.  
impact study on  
hold.  
The facilities  
study agreement The facilities  
should be study agreement  
provided within should be  
10 days.  
provided within 10  
days.  
Paper mail should  
be allowed for the Paper mail should  
IX agreement.  
be allowed for the  
IX agreement.  
Construction  
milestones and  
costs should be  
Construction  
milestones and  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 16  
allowed to be  
estimated. The  
time for  
costs should be  
allowed to be  
estimated. The  
providing a level time for providing  
4 and 5 IX a level 4 and 5 IX  
agreement to the agreement to the  
applicant should applicant should  
be extended and be extended and  
timelines should timelines should  
be estimated.  
Language  
be estimated.  
Language  
addressing rights addressing rights  
and obligations is and obligations is  
not necessary.  
not necessary.  
The timeframe  
The timeframe for  
for inspection and inspection and  
testing should be testing should be  
mutually agreed mutually agreed  
and certain  
activities should activities should  
be contingent be contingent  
upon resolution upon resolution of  
and certain  
of preceding  
steps.  
preceding steps.  
Prior to parallel  
Prior to parallel operation the  
operation the applicant should  
applicant should execute the IX  
execute the IX  
agreement.  
agreement.  
Utilities should be  
allowed to propose  
alternatives to the  
inadvertent export  
Utilities should  
be allowed to  
propose  
alternatives to the provisions of the  
inadvertent DERs rule in their  
export provisions IX procedures.  
of the DERs rule  
in their IX  
The utilities  
procedures.  
should not be  
required to acquire  
easements at the  
request of a  
The utilities  
should not be  
required to  
acquire  
private entity.  
MCL 24.242 and 24.245  
Agency Report to JCAR-Page 17  
easements at the  
request of a  
private entity.  
Timeframe in  
Rule 920 should  
be 120 days.  
“Standard”  
should be deleted  
from level 1-3 IX  
agreements.  
14.Date report completed:  
1/12/2023  
MCL 24.242 and 24.245  
;