U-21227

Key events and submissions in this proceeding (Michigan Public Service Commission Case No. U-21227) include:

- August 23, 2022 and February 23, 2023: Commission orders requiring all rate-regulated utilities to provide biannual updates on efforts to obtain funding under the Infrastructure Investment and Jobs Act (IIJA), with reports due December 31 and June 30 each year 1, 1, 1.
- December 2022: Consumers Energy submitted a concept paper for a grid resilience grant (40101(c)); DOE encouraged full application based on this submission 2, 2.
- April 6, 2023: Consumers Energy submitted a formal application for $100 million in grid resilience grant funding 2, 2.
- June 22, 2023: Commission approved Consumers Energy’s application for regulatory accounting treatment for the grid resilience project in Case No. U-21416 2, 2.
- Second half of 2023: DOE announced funding awards for several Xcel Energy applications; companies began funding negotiations and project planning 1, 1.
- October 17, 2023: Consumers Energy notified it was selected for the 40101(c) grid resilience grant; negotiations with DOE began 2, 2.
- November 17, 2023: Consumers Energy submitted an application for the 40101(d) state-level grant (total project cost $8.1 million, with $4.05 million in grant funding requested) 2, 2.
- Early 2024: Xcel Energy focused on funding negotiations with DOE and continued participation in evaluation/selection processes 1, 1.
- March 2024: Consumers Energy selected by Michigan EGLE for 40101(d) funding, subject to DOE approval 2, 2.
- April 30, 2024: Consumers Energy began regular meetings with DOE for ongoing project negotiations 2, 2.
- May 5, 2023: Consumers Energy applied for regulatory accounting treatment for the 40101(d) project in Case No. U-21774; approved September 5, 2024 2, 2.
- February 6, 2025: NSP-W/Xcel completed award negotiations with Michigan EGLE for the Michigan GRIP project; contract effective and construction underway with anticipated completion September 30, 2025 1, 1.
- June 18, 2025: Joint Targeted Interconnection Queue (JTIQ) subrecipient agreement effective, authorizing project work 1.
- June 30, 2025: Latest required biannual report submitted by utilities in compliance with Commission orders 1, 1, 1.

These events reflect major application, selection, negotiation, and reporting milestones for federal infrastructure funding as part of the ongoing Commission proceeding.

The docket identifies the following main areas of growth for regulated utility infrastructure in Michigan:

- Grid flexibility, reliability, resilience, and accessibility in rural and remote areas
- Renewable energy investment and deployment, including hydrogen and battery storage projects
- Electric transmission investments

Key considerations for each area include:

Grid flexibility, reliability, resilience, and accessibility:
- Focus on projects that improve the reliability and resiliency of the grid, such as removal of dead and dangerous trees to prevent outages, and smart charge management for electric vehicles to provide grid flexibility.
- Projects often require cost-sharing (up to 50% of project cost), and utilities are expected to follow established regulatory processes for cost recovery related to matching funds and ongoing project costs.
- Funding comes with significant requirements: reporting, milestone obligations, and administrative burdens that must be balanced against customer benefits 1, 1.

Renewable energy investment and deployment (hydrogen, battery storage):
- Prioritized for funding and collaboration, with projects including hydrogen production using nuclear steam, long-duration energy storage demonstration, and hydrogen hub initiatives.
- Utilities must address safety, regulatory, and market development challenges, often by partnering with national labs, universities, and technology vendors.
- Many projects rely on leveraging federal tax credits (such as ITC and PTC) to further reduce costs 2, 2.

Electric transmission investments:
- Projects include building new high-voltage transmission lines and substation upgrades to improve regional connectivity and grid integration.
- These are large-scale, multi-state efforts often requiring coordination with state energy offices, regional transmission organizations, and other utilities.
- Federal funding is contingent on rigorous DOE review for financial soundness, national security interests, and alignment with policy goals 2, 2.

Across all areas, the application process is complex and competitive, requiring significant resources. Utilities are encouraged to pursue projects that maximize customer benefits while minimizing costs, and to remain responsive to evolving federal policies and funding requirements 1, 3.

The provided excerpts do not contain a comprehensive list of all stakeholders in the docket, nor do they provide explicit positions (for or against) of specific stakeholders regarding particular proposals. However, based on the information available, the following stakeholders are mentioned or implied as being involved in the docket or in related collaboration efforts:

- Michigan Public Service Commission (MPSC): The regulator requiring updates and overseeing grant applications and implementation.
- Utilities such as Northern States Power Company – Wisconsin (NSP-W), Xcel Energy, Indiana Michigan Power Company (I&M), and Consumers Energy: These companies are applicants and recipients of funding, and are engaged in project development and execution.
- Michigan Department of Environment, Great Lakes, and Energy (EGLE): Administers certain grants and awards, such as the Grid Resilience Grant Program.
- U.S. Department of Energy (DOE): Provides funding, sets grant requirements, and evaluates applications.
- Project partners and relevant stakeholders: This includes technology vendors, host communities, state energy offices, state transportation and rail offices, regional transmission organizations (such as MISO and FERC), workforce entities, and other public and private entities.
- Edison Electric Institute: Represented utility interests during legislative development.
- Electric Power Research Institute (EPRI): Collaborated with I&M on certain proposals.
- Local units of government, nonprofit organizations, and businesses: Eligible for and sometimes recipients of grant funding.

The excerpts describe collaboration and engagement among these entities but do not specify which stakeholders support or oppose specific proposals. Instead, they emphasize coordination and joint efforts to secure and implement funding. There is no direct evidence in the provided excerpts of any stakeholder explicitly being "for" or "against" a particular proposal 1, 1, 1.

The docket discusses the following financial and timeline risks and concerns:

Financial Risks:
- The Department of Energy (DOE) is conducting focused reviews of financial assistance awards, including grants, to identify potential waste, fraud, and abuse. This new policy aims to ensure that award recipients and projects are financially sound, economically viable, aligned with national security interests, and consistent with federal law and policy goals. This heightened scrutiny could delay funding or lead to rescission of awards if criteria are not met 1.
- Some projects are contingent on favorable final regulatory or tax credit approvals (such as the 45V hydrogen production tax credit), securing additional partners, or evolving compliance requirements, which introduce uncertainty regarding final funding and project viability 1.
- There is mention of conditional commitments (such as a $5.2 billion DOE loan guarantee) being subject to completion of due diligence, multiple federal agency approvals, and evolving compliance requirements; given uncertainty around timing, availability of funds, and compliance costs, project pursuit can be paused or delayed, risking expiration of commitments and loss of funding 2.

Timeline Risks:
- Several projects are awaiting critical DOE approvals to advance to next phases (for example, the Form Energy long duration energy storage project is awaiting DOE authorization to move from design/development to construction; DOE has indicated review may resume as early as Q3 2025, but this remains uncertain) 1.
- Construction and planning timelines are dependent on completion of regulatory design, data requests, and compliance with new DOE secretarial policies. Delays in these steps can push project completion further out or jeopardize successful execution within grant windows 1.
- Projects such as the Bessemer feeder rebuild have defined completion targets (e.g., September 30, 2025), but are subject to on-schedule design and construction, which could be impacted by permitting, supply chain, or regulatory delays 1.

In summary, the key risks are regulatory and financial review delays, dependence on federal agency approvals and evolving compliance requirements, risk of rescinded or lapsed awards, and possible delays in construction or project milestones due to these uncertainties 1, 2.

This docket, Michigan Public Service Commission Case No. U-21227, involves biannual reporting by all rate-regulated electric, steam, and natural gas utilities in Michigan on their efforts to obtain funding and assistance under the federal Infrastructure Investment and Jobs Act (IIJA) of 2021 and the Inflation Reduction Act (IRA) of 2022. Utilities are required to:

- Provide narrative summaries of federal grant opportunities applied for, approved, awarded, or still in process.
- Describe collaboration efforts to secure IIJA and IRA funding, particularly for energy efficiency.
- Report on actions taken relevant to obtaining funding or assistance opportunities under IIJA and IRA.
- File these updates every June 30 and December 31 until further notice or until all funding windows close.

Key highlights from recent reports include:

- Multiple Michigan utilities (e.g., Consumers Energy, Indiana Michigan Power, Northern States Power–Wisconsin, DTE, Upper Michigan Energy Resources) have been active in seeking IIJA/IRA grants, especially for grid resilience, reliability, renewable energy, and infrastructure improvements.
- Significant funding levels have been awarded or are pending, including millions for grid resilience projects (e.g., Consumers Energy, Indiana Michigan Power) and support for renewable energy and hydrogen initiatives.
- In 2025, a federal executive order has paused IIJA/IRA fund disbursement pending a 90-day review, affecting timing of new awards and project implementation.
- Utilities have also described cost-sharing requirements, regulatory asset treatment for matching funds, and ongoing negotiations with the Department of Energy and state agencies for finalizing awards.
- Collaborative efforts with state agencies, other utilities, and research institutions are ongoing, with several projects supported through letters or partnerships, even where direct grant applications were not submitted.

The docket serves as a central repository for tracking utility progress, challenges, and outcomes related to accessing federal infrastructure and clean energy funding in Michigan 1, 2, 3, 3, 4.