Indiana Michigan Power Company 2021 Fuel Reconciliation Docket

Michigan Department of the Attorney General
Project completed.

Synapse provided expert testimony and analysis to support the Michigan Attorney General in reviewing Indiana Michigan Power Company’s (I&M) Power Supply Cost Recovery (PSCR) reconciliation application for the 2021 calendar year in Michigan Public Service Commission Docket U-20805. Synapse's testimony focused on evaluating the reasonableness of purchased power costs paid to (1) the Ohio Valley Electric Corporation (OVEC) for power from the Clifty Creek and Kyger Creek plant; (2) American Electric Power Generation (AEG) for power from the share of Rockport owned by AEG.

We found that I&M purchases power from OVEC, an affiliate company, at above market prices and passes the unnecessary costs on to ratepayer. I&M does the same with power purchased from AEG. We recommend that the Commission disallow $2.0 million, Michigan’s share of the total $14.2 million in excess costs that I&M paid for OVEC service (relative to the market value of the service). Further, we recommended that in all future reconciliation dockets, the Commission disallow recovery of all costs paid to OVEC above the market equivalent cost for those products and market services as determined by the value of energy, ancillary services, and market prices for capacity as delivered at OVEC’s zone.