Reliability, Rate Stability, and Robust Load Growth: MPSC Meeting Takeaways

研报英文原文证据摘录

Reliability, Rate Stability, and Robust Load Growth: MPSC Meeting Takeaways

temporaneous

cost recovery/credit metrics. With ROEs heavily scrutinized in recent proceedings and given the 10bps

reduction in recent gas cases for CMS/DTE, we view equity layer as potentially the more likely element

under consideration, although we expect the Commission to maintain their evidence based approach

while balancing near-term and long-term implications. On cost recovery, the Commission did highlight

their approval of CMS' storm cost deferral last year as demonstrating their understanding of the issue,

though the current recovery request by CMS in their electric rate case prevented further discussion. We

look to the outcome of that rate case component as a potential read through for how the MPSC

may address cost recovery in future proceedings, particularly on the issue of timing. As additional

context, CMS requested recovery of $52mm storm-related expenses over three years, but provided

overviews of one and five-year recovery scenarios as well.

Despite the active election year, the commissioners reiterated their view that the state remains

supportive of economic growth, and that while the two remaining gubernatorial candidates have

been pubically affordability-conscious, the rhetoric has remained measured overall. Unlike other

election affected states where politicians have called for rate freezes or more draconian changes to the

regulatory compact, the leading Michigan Democratic and Republican candidates appear more cognizant

of the role that financially stable utilities play in supporting broader economic development within the

state. However, we acknowledge that political positioning remains ongoing into the election, and we