wolverine power supply cooperative, inc.’s

Dykema Gossett PLLCCapitol View201 Townsend Street, Suite 900Lansing, MI 48933

WWW.DYKEMA.COM

Tel: (517) 374-9100Fax: (517) 374-9191

Richard J. Aaron

Direct Dial: (517) 374-9198Direct Fax: (855) 230-2517Email: [email protected]

Cal i forn ia | I l l ino is | Michigan | Minnesota | Texas | Washington , D.C .

4837-1831-6592.1ID\AARON, RICHARD

April 21, 2016

Mary Jo KunkleExecutive SecretaryMichigan Public Service CommissionPO Box 30221Lansing, MI 48909

Re: Case No. U-17992

Dear Ms. Kunkle:

Enclosed for electronic filing, please find Wolverine Power Supply Cooperative, Inc.’sAssessment of Ability for Meeting 2016 Through 2020 Electric Requirements of Its Members, inthe above-referenced matter.

If you have any questions, please contact me.

Sincerely,

DYKEMA GOSSETT PLLC

Richard J. Aaron

Enclosure

STATE OF MICHIGAN

BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION

* * * * *

In the matter of the investigation, on the )

Commission’s own motion, into the electric )

supply reliability plans of Michigan’s ) Case No. U-17992

electric utilities for the year 2016 through 2020 )

__________________________________________)

WOLVERINE POWER SUPPLY COOPERATIVE, INC.’S

ASSESSEMENT OF ABILITY FOR MEETING

2016 THROUGH 2020 ELECTRIC REQUIREMENTS

OF ITS MEMBERS

Wolverine Power Supply Cooperative, Inc. (Wolverine), for itself and on behalf of

its seven members1, Cherryland, Great Lakes, HomeWorks, Midwest , Presque Isle,

Wolverine Power Marketing Cooperative, Inc. (WPMC) and Spartan Renewable Energy,

Inc. (Spartan), voluntarily submits this filing, including the completed uniform template,

in response to the Michigan Public Service Commission (Commission) December 22, 2015

order (Order), in this docket.

Background

In 1998, the Commission began investigating the adequacy and reliability of the

electric generation capacity for meeting customer requirements for the Consumers Energy

Company (Consumers), DTE Electric Company (DTE Electric), and Indiana Michigan

Power Company (I&M) service territories. The Commission has since expanded the scope

of the investigations to include, among other things, the availability of transmission

capability, the effects of the companies’ retail open access programs, affiliate dealings, the

1 Five of Wolverine’s members, Cherryland Electric Cooperative (Cherryland), Great Lakes Energy

Cooperative (Great Lakes), HomeWorks Tri-County Electric Cooperative (HomeWorks), Midwest Energy

Cooperative (Midwest), and Presque Isle Electric & Gas Co-op (Presque Isle) have elected to be member-

regulated as permitted under 2008 Public Act 167.

2

Customer Choice and Electric Reliability Act, MCL 460.10, et seq., expected changes in

the wholesale market for electricity in the Midwest region, and the interconnection of

merchant generating plants. In Case No. U-14087, the Commission again expanded its

investigation to include all Michigan-regulated electric utilities, including member-

regulated cooperatives. In its December 19, 2013 order in Case No. U-17523, the

Commission conducted its investigation spanning the three-year period for 2014 through

2016 due to the expected retirement of older generating units in the state as a result of

pending new air quality requirements. In the December 4, 2014 order in Case No. U-

17751, the Commission extended the horizon to a five-year period in light of expected

capacity shortfalls in Michigan as early as 2016 and the time necessary to plan and arrange

for new capacity supplies, including new generation and demand-side options.

As in prior years, the Commission continued its investigation this year to cover the

five-year period from 2016 through 2020. Michigan electric utilities and their affiliates,

all licensed alternative energy suppliers, and Wolverine were also directed to file an

assessment of their ability to meet customers’ expected electric requirements in 2016

through 2020 by April 21, 2016. Each assessment will use the uniformly formatted table

developed in Case No. U-17751.

The Midcontinent Independent System Operator, Inc. (MISO), PJM

Interconnection, American Transmission Company, LLC, Michigan Electric Transmission

Company and the International Transmission Company are also invited to submit

comments on the issues that they believe are relevant to the Commission’s investigation.

Description of Wolverine

Wolverine is a not-for-profit generation and transmission electric cooperative

providing wholesale service to its seven members and is subject to Federal Energy

Regulatory Commission jurisdiction under the Federal Power Act. Wolverine has five

3

traditional distribution cooperative member-owners2 that purchase power from Wolverine

and resell that power at retail to approximately 268,000 member-owners located in

Michigan, Ohio and Indiana. Wolverine’s other two members, WPMC and Spartan, are

Commission-licensed alternative electric suppliers in Michigan.

Wolverine obtains capacity and energy from its own units and/or long-term power

supply contracts and balances its power supply portfolio with short-term purchases from,

and sales into, MISO. Wolverine is a MISO Transmission Owner with a transmission

system consisting of approximately 1,600 miles of 69 kV and 138 kV looped transmission

lines and associated facilities. These transmission facilities are included in the Michigan

Joint Zone under MISO’s Open Access Transmission, Energy and Operating Reserve

Markets Tariff (“MISO Tariff”), as are 69 kV radial lines and associated facilities whose

use by third parties is priced separately under Commission-approved wholesale distribution

service agreements entered into pursuant to Schedule 11 of the MISO Tariff.

Assessment of Wolverine’s 2016 through 2020 Electric Requirements and

Transmission Reliability

In response to the Commission’s Order, Wolverine staff performed an assessment

of Wolverine’s projected loads for each year within the 2016 to 2020 timeframe. This

assessment addresses what Wolverine considers to be three separate resource portfolios.

The first portfolio assessment focused on the expected needs of Wolverine’s five traditional

poles and wires distribution cooperative members: Cherryland, Great Lakes, HomeWorks,

Midwest, and Presque Isle. This assessment relied upon past usage data and any known

changes going forward, combined with historical trends for annual rates of growth. The

2 Cherryland, Great Lakes, HomeWorks, Midwest, and Presque Isle.

4

calculation was then adjusted for the known and expected effects of weather and

temperature.

The second portfolio assessment focused on Wolverine’s sixth member, WPMC.

WPMC serves industrial and commercial members under Michigan’s Customer Choice

and Electric Reliability Act as provided for under Public Act 141 of 2000, as amended by

Public Act 286 of 2008. As with the first calculation, this assessment relied upon past

usage data and any known changes going forward. No adjustments have been made for

historical rates of growth and since the loads served by WPMC are far less affected by

differences in weather, no adjustments for weather effects were made.

The final portfolio assessment focused on Wolverine’s seventh member, Spartan.

Spartan is primarily focused on the sale of renewable energy to industrial and commercial

customers under Michigan’s Customer Choice and Electric Reliability Act as provided for

under Public Act 141 of 2000, as amended by Public Act 286 of 2008. As with the previous

calculations, this assessment relied upon past usage data and any known changes going

forward. Similar to the WPMC assessment, no adjustments have been made for historical

rates of growth or weather effects.

Wolverine staff also analyzed Wolverine’s available supply portfolio for each year

during the 2016 to 2020 timeframe established by the Commission for the assessment,

including all owned generation and various capacity contracts. Additionally, as indicated

by the Commission’s Order, Wolverine compared the results of its demand forecasts with

its available supply resources. The results of the above portfolio analyses are contained in

the assessment summary in Exhibit A and the uniform template in Exhibit B.

Conclusion

Wolverine recognizes the Commission’s concern and supports its desire for

ensuring the continuing availability of adequate generation and power supply resources to

5

reliably serve the energy and capacity needs of Michigan’s industrial, commercial, and

residential customers. The Commission correctly understands that a secure power supply

as well as an adequate and reliable transmission system is necessary to maintain a reliable

level of service to all customers. In that spirit, Wolverine is pleased to submit Exhibit A

and Exhibit B containing its assessment of Wolverine’s 2016 through 2020 expected

electric requirements and available resources for serving its members.

Respectfully submitted,

WOLVERINE POWER SUPPLY

COOPERATIVE, INC.

Dated: April 21, 2016 ____________________________

By: Kimberly B. Molitor

Its: Vice President –

External Affairs

s/Kimberly B. Molitor

Exhibit A

Wolverine Power Supply Cooperative, Inc.

Assessment of Ability for Meeting Customers’ Electric Requirements

for the Period 2016 through 2020

On December 22, 2015, the Michigan Public Service Commission (Commission), in its order

in Case U-17992 (Order), directed utilities and other affected companies, including Wolverine

Power Supply Cooperative, Inc. (Wolverine), to file with the Commission “an assessment of

the ability to meet customers’ expected electric requirements for 2016 through 2020.” This

assessment is in response to the Commission’s Order.

Overview

This assessment addresses what Wolverine considers to be three separate resource portfolios:

Wolverine’s traditional poles and wires distribution cooperative member-owners (called the

“Transmission Members”)3, Wolverine Power Marketing Cooperative, Inc. (WPMC), and

Spartan Renewable Energy, Inc. (Spartan).

MISO Peak Demand Forecast for Wolverine’s Resource Portfolios

Wolverine’s coincident peak demand for its Distribution Members, WPMC, and Spartan is

inclusive of the Midcontinent Independent System Operator, Inc. (MISO) and PJM load.

Wolverine will have sufficient capacity to meet its members’ requirements during all seasons

from 2016 through 2020.

MISO and PJM Capacity Resources to Meet the Needs of its Members

1) Native Generation

Wolverine’s portfolio for its Distribution Members, WPMC, and Spartan includes

1,017 MW of summer generation capacity owned and operated by Wolverine,

including Wolverine’s new natural gas-fired generation plant in Gaylord, Michigan

that will be operational on June 1, 2016.

2) MISO Capacity Purchase

Wolverine has purchased MISO Zone 7 capacity from other entities to meet its

additional requirements for its Distribution Members, WPMC, and Spartan for 2016.

This purchased capacity has been included in the MISO Module E Capacity Tracking

(MECT) application to verify that no units were oversubscribed.

3) PJM Capacity Purchase

Wolverine has purchased capacity through an all requirements contract to serve its

obligations in PJM through 2017. After 2017, Wolverine expects to purchase its

capacity requirements from the PJM forward capacity market.

3 Cherryland Electric Cooperative, Great Lakes Energy Cooperative, Presque Isle Electric & Gas Co-

op, HomeWorks Tri-County Electric Cooperative, and Midwest Energy Cooperative.

7

4) PJM Capacity Sale Wolverine has sold its 6.65% ownership interest in two Ohio Valley Electric

Corporation (OVEC) generating facilities in the PJM forward capacity market.

Summary

Through its owned generation and additional capacity contracts, Wolverine will have sufficient

reserves in place to meet the forecasted demands during the summer peak seasons of 2016

through 2020, to meet the portfolio load requirements and reserve margins of its Distribution

Members, WPMC, and Spartan. Wolverine remains committed to delivering reliable and

competitively-priced power supply to its members.

December 22, 2015

Pursuant to the Order in Commission Case No.

U‐17992Entities are encouraged to use this form to submit a self‐assessment

of their ability to meet their customer's expected electric

requirements during the five‐year period of 2016 ‐ 2020

As directed by the Commission in the December 22, 2015 Order in Case No. U‐17992, Staff offers the attached exhibits as a tool to assist electric utilities, alternative electric suppliers, utility affiliates, and power supply cooperatives and associations in their self‐assessment submittals. As noted in the aforementioned order, companies are encouraged to submit a written narrative, which will support the data provided in these tables. Submittal of this form does not necessarily ensure complete compliance with the requirements outlined in the Order; each company should be certain that their filing meet the full extent of the Order.

Notes1. In addition to those requirements outlined by the Order, all filings should include:

a. Discussion of any observed risks associated with mid‐planning year retirement of generation assets.

b. Discussion of the plan to meet any identified capacity shortfall.c. Discussion supporting the data provided in the attached tables.

2. Definitions of key line items are included as comments on the individual cell.

3. Please report all data in the units specified by the corresponding row/column.

4. Exhibits 1, 2, and 3 provide sample calculations, including formulae, used to derive the final result.a. Any deviation from the intended formulae should be noted and justified in the narrative of the filing.

5. Each company should file either Exhibit 1 or Exhibit 2. Exhibit 1 is designed for reporting bundled service utility peak demand. Exhibit 2 is designed for alternativeenergy supplier peak demand.

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Exhibit B

Wolverine Power Supply Cooperative, Inc.

Case No:

Utility:

Date:

Exhibit 1:

Utility Bundled Service Peak Demand for the Lower Peninsula of Michigan

( a ) ( b ) ( c ) ( d ) ( e ) ( f ) ( g ) ( h ) ( i ) ( j )

Line Sample Calc. PY 2013‐14 PY 2014‐15 PY 2015‐16 PY 2016‐17 PY 2017‐18 PY 2018‐19 PY 2019‐20 PY 2020‐21

Actual Actual Actual Forecast Forecast Forecast Forecast Forecast

Peak Demand (MW)

1 Service Territory, Coincident to Bundled 0 661 549 603 628 633 638 644 650

2 Choice, Coincident to Bundled 0 0 0 0 0 0 0 0 0

3 Bundled (line 1 ‐ line 2) 0 661 549 603 628 633 638 644 650

Coincident to MISO Sys.Peak Demand (MW)

4 Service Territory 0 653 536 601 615 620 625 631 637

5 Choice 0 0 0 0 0 0 0 0 0

6 Bundled (line 4 ‐ line 5) 0 653 536 601 615 620 625 631 637

* Totals carry to Sheet 3.

* Provide actual values where available.

* Assume current proportions of Bundled service and Choice service throughout the forecast period unless there is a known change in electric service provider.

* Do not adjust for Load Modifying Resources or Demand Response Programs. Those adjustments will be accounted for in Exhibit 3.

Utility Bundled Service Peak Demand for the Upper Peninsula of Michigan

( a ) ( b ) ( c ) ( d ) ( e ) ( f ) ( g ) ( h ) ( i ) ( j )



Peak Demand (MW)

7 Service Territory, Coincident to Bundled 0

8 Choice, Coincident to Bundled 0

9 Bundled (line 7 ‐ line 8) 0

Coincident to MISO Sys.Peak Demand (MW)

10 Service Territory 0

11 Choice 0

12 Bundled (line 10 ‐ line 11) 0



* Assume current proportions of Bundled service and Choice service throughout the forecast period unless there is a known change in electric service provider.


Actual and Forecast including Transmission Losses (MW)


U‐17992

_________________

_________________

Peak Demand Bundled Service

Wolverine Power Marketing Cooperative (WPMC)

Case No:

Utility:

Date:

Exhibit 2:

( a ) ( b ) ( c ) ( d ) ( e ) ( f ) ( g ) ( h ) ( i ) ( j )



Peak Demand (MW)

1 LSE Peak Demand w/o Transmission Losses 0 131 127 130 180 180 180 180 180

2 Load Diversity Factor 0.98 0.98 0.98 0.98 0.98 0.98 0.98 0.98 0.98

3 Coincident Peak Demand (line 1 x line 2) 0 128 124 127 176 176 176 176 176




( a ) ( b ) ( c ) ( d ) ( e ) ( f ) ( g ) ( h ) ( i ) ( j )



Peak Demand (MW)








177992___________

____

_______________

Peak Demand AES

AES Peak Demand for the Lower Peninsula of Michigan


AES Peak Demand for the Upper Peninsula of Michigan

Spartan Renewable Energy, Inc. (Spartan)

Case No:

Utility:

Date:

Exhibit 2:

( a ) ( b ) ( c ) ( d ) ( e ) ( f ) ( g ) ( h ) ( i ) ( j )



Peak Demand (MW)







U‐17992

_______________

_______________

Peak Demand AES

AES Peak Demand for the Lower Peninsula of Michigan


Wolverine

WPMC

Spartan

Case No:

Utility:

Date:

Exhibit 3:

( a ) ( b ) ( c ) ( d ) ( e ) ( f )

Line Sample Calc. PY 2016‐2017 PY 2017‐2018 PY 2018‐2019 PY 2019‐2020 PY 2020‐2021

1 Forecasted Bundled Plus AES Non‐Coincident Peak Demand, MW (from Ex. 1, Ex. 2a and Ex. 2b) 0 826 831 836 842 848

2 Internal Demand Response Programs that are applied as an adjustment to the Peak forecast, MW 0 0 0 0 0 0

3 Adjusted Forecasted Bundled and AES Non‐Coincident Peak Demand, MW (line 1 ‐ line 2) 0 826 831 836 842 848

4 Load Diversity Factor coincident to MISO Factor, %. 98.00% 98.00% 98.00% 98.00% 98.00% 98.00%

5 Adjusted Total Peak Demand, MW (line 3 x line 4) 0 809 814 819 825 831

6 Transmission Losses, % 2.80% 2.80% 2.80% 2.80% 2.80% 2.80%

7 Adjusted Total Peak Demand, MW (line 5 ‐(line 5 x line 6)) 0 787 792 796 802 808

8 Applied Transmission Losses, MW (line 5 x line 6) 0 23 23 23 23 23

9 Adjusted Forecasted Bundled and AES Coincident Peak Demand, MW (same as line 5) 0 809 814 819 825 831

10 Planning Reserve Margin % UCAP Basis 7.10% 7.10% 7.10% 7.20% 7.10% 7.10%

11 Total Planning Reserve Margin (expected reserves), UCAP MW ((line 8 + line 9) x (1 + line 10)) 0 891 897 903 908 915

12 Company Owned, In‐State, Non‐Intermittent, MW 0 960 960 960 960 960

13 Company Owned, Out‐of‐State, Non‐Intermittent, MW 0 121 121 121 121 121

14 Company Owned, In‐State, Intermittent, MW 0 0 0 0 0 0

15 Company Owned, Out‐of‐State, Intermittent, MW 0 0 0 0 0 0

16 Total Company Owned Generation, MW (line 12 + line 13 + line 14 + line 15) 0 1,081 1,081 1,081 1,081 1,081

17 Load Modifying Resources, Treated as Capacity, MW 0 0 0 0 0 0

18 Applied Transmission Losses, MW (line 17 x line 6) 0 0 0 0 0 0

19 Total Qualified Demand Response Resources including PRMUCAP, MW ((line 17 + line 18) x (1 + line 10)) 0 0

20 PPA, In‐State Intermittent Resource, MW 0 6.0 42 42 42 42

21 PPA, Out‐of‐State Intermittent Resource, MW 0 0

22 PPA, PURPA (BTMG), MW 0

23 PPA, Intermittent (BTMG), MW 0

24 Other Forward Capacity Contract, MW ‐ In‐State 0 250 50 0 0 0

25 Other Forward Capacity Contract, MW ‐ Out‐of‐State 0 145 145 0 0 0

26 Total PPA, MW (line 20 + line 21 + line 22 + line 23 + line 24 + line 25) 0 401 237 42 42 42

27 Total Planning Resources, MW (line 16 + line 19 + line 26) 0 1,482 1,318 1,123 1,123 1,123

28 UCAP Surplus/(Shortfall), MW (line 27 ‐ line 11) 0 591 421 220 215 208

Planning Reserve Margin Requirements and Planning Resources to be Acquired (UCAP MW)

U‐17992

_______________

_______________

Planning Resources

Wolverine

Case No:

Utility:

Date:

Exhibit 4:

( a ) ( b ) ( c ) ( d ) ( e )

Demand Response Program Name Demand Response Program (MW) Credit Transmission Losses and PRM UCAP(MW) Total MW per Program Name

PY 2016‐UCAP

Total Demand Response ‐ Capacity Resources PY 2015‐2016 (MW) 0

PY 2017‐UCAP


PY 2018‐UCAP


PY 2019‐UCAP


PY 2020‐UCAP


* Expand each planning year section as necessary to accommodate all DR programs that are used as capacity resources.

U‐17992

_______________

_______________

DR Program Resources

Demand Response ‐ Capacity Resources

Wolverine

Case No:

Utility:

Date:

Exhibit 5:

( a ) ( b ) ( c ) ( d ) ( e ) ( f ) ( g ) ( h ) ( i ) ( j ) ( k ) ( l ) ( m ) ( n ) ( o ) ( p )

Fuel or Specify: Located in If outside of MI, Contracted P.A. 295

Line Electric Generation Unit Name Renewable Type LRZ 2, LRZ 7, I&M, Other Michigan (Y/N) Trans Service (Y/N) Resource (Y/N) 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

1 JUDD Unit #1 Nat Gas LRZ 7 Y N 85 85 85 85 85 79 79 79 79 79




5 Gaylord Unit #1 Nat Gas LRZ 7 Y N 25 25 25 25 25 21 21 21 21 21



8 Burnips Unit #6 Nat Gas LRZ 7 Y N 23 23 23 23 23 20 20 20 20 20

9 Burnips Unit #8 Nat Gas LRZ 7 Y N 25 25 25 25 25 22 22 22 22 22

10 Hersey Unit #9 Nat Gas LRZ 7 Y N 27 27 27 27 27 22 22 22 22 22

11 Hersey Unit #10 Nat Gas LRZ 7 Y N 27 27 27 27 27 20 20 20 20 20

12 Tower Unit #4 Fuel Oil LRZ 7 Y N 22 22 22 22 22 22 22 22 22 22

13 Vestaburg Unit #8 Nat Gas LRZ 7 Y N 23 23 23 23 23 21 21 21 21 21

14 Alpine #1 Nat Gas LRZ 7 Y N 199 199 199 199 199 188 188 188 188 188

15 Alpine #2 Nat Gas LRZ 7 Y N 199 199 199 199 199 188 188 188 188 188

16 OVEC Coal Other N N 150 150 150 150 150 121 121 121 121 121

17

18

19

20

21

22

23

24

25

26

* Add rows to accommodate all generating units as necessary.

* Please use UCAP data for ICAP columns for run‐of‐river hydroelectric power, wind power and solor power resources.

UCAP (MW)

Company Owned Electric Generation Resources

U‐17992

_______________

_______________

Generation Resource List

ICAP (MW)

Wolverine

Case No:

Utility:

Date:

Exhibit 6:

( a ) ( b ) ( c ) ( d ) ( e ) ( f ) ( g ) ( h ) ( i ) ( j ) ( k ) ( l ) ( m ) ( n ) ( p ) ( q ) ( r ) ( s )

Fuel or Specify: Located in PA 295 PA 295 BTMG PURPA Other Bilateral

Line Electric Generator Name Renewable Type LRZ 2, LRZ 7, I&M, Other Michigan Y/N Y/N Y/N Y/N PPA Y/N 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020

1 Campbell III Coal LRZ7 Y N N 15 15 15 15 15 15 15 15 15 15

2 Harvest Wind Farm Wind LRZ7 Y Y N 53 53 53 53 53 6 6 6 6 6

3 Deerfield Wind Farm Wind LRZ7 Y Y N 149 149 149 149 18 18 18 18

4 Michigan Wind 3 Wind LRZ7 Y Y N 153 153 153 153 18 18 18 18

5 Confidential Contract Confidential LRZ7 Y N Y 75 50 75 50

6 Confidential Contract Confidential LRZ7 Y N Y 50 50

7 Confidential Contract Confidential LRZ7 Y N Y 125 125

8

9 Wabash Valley Full Requirements Contract Mix I&M NA N Y 145 145 145 145

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

* Add rows to accommodate all generating units as necessary.

* Please use UCAP data for ICAP columns for run‐of‐river hydroelectric power, wind power and solor power resources.

ICAP MW Contracted

U‐17992

_______________

_______________

PPA Resource List

UCAP MW Contracted

Generation Resources Under PPA or Other Capacity Contract

wolverine power supply cooperative, inc.’s

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