S T A T E O F M I C H I G A N BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION * * * * *

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1 S T A T E O F M I C H I G A N BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION * * * * * In the matter of the application of ) CLOVERLAND ELECTRIC COOPERATIVE ) for authority to implement its power supply cost ) Case No. U recovery plan for the 12-month period ending ) December 31, ) ) At the May 14, 2015 meeting of the Michigan Public Service Commission in Lansing, Michigan. PRESENT: Hon. John D. Quackenbush, Chairman Hon. Greg R. White, Commissioner Hon. Sally A. Talberg, Commissioner ORDER APPROVING SETTLEMENT AGREEMENT On September 30, 2014, Cloverland Electric Cooperative (Cloverland) filed an application, with supporting testimony and exhibits, seeking authority to implement a power supply cost recovery (PSCR) plan for its Cloverland and Edison Sault legacy service territories for the 12-month period ending December 31, A prehearing conference was held on December 2, 2014, before Administrative Law Judge Suzanne D. Sonneborn. Cloverland, the City of Mackinac Island, and the Commission Staff (Staff) participated in the proceedings. Subsequently, the parties submitted a settlement agreement resolving all issues in the case. According to the terms of the settlement agreement, attached as Exhibit A, the parties agree to a PSCR factor of up to 4.50 mills per kilowatt-hour (kwh), or $ per kwh, and a contingent

2 PSCR factor of up to mills per kwh, or $ per kwh, for each month of the plan year based on a mills per kwh PSCR basing point. The contingent factor will be effective if Cloverland is billed for System Support Resource (SSR) payments from Midcontinent Independent System Operator, Inc. (MISO), related to the Presque Isle Power Plant. Prior to implementing the contingent factor, Cloverland will provide the Staff with a copy of the MISO SSR payment invoices. The Commission finds that the settlement agreement is reasonable and in the public interest, and should be approved. THEREFORE, IT IS ORDERED that: A. The settlement agreement, attached as Exhibit A, is approved. B. Cloverland Electric Cooperative is authorized to implement a power supply cost recovery factor of up to 4.50 mills per kilowatt-hour, or $ per kilowatt-hour, and a contingent power supply cost recovery factor of up to mills per kilowatt-hour, or $ per kilowatt-hour, in its monthly bills to its retail electric customers during the 2015 plan year based on a mills per kilowatt-hour power supply cost recovery basing point. C. Within 30 days, Cloverland Electric Cooperative shall file with the Commission tariff sheets essentially the same as those attached to the settlement agreement. D. Capacity charges associated with power purchased for periods in excess of six months included in Cloverland Electric Cooperative s 2015 power supply cost recovery plan are specifically approved. E. If Cloverland Electric Cooperative desires to apply lesser power supply cost recovery factors than those approved by this order, it shall notify the Commission ten days prior to the use Page 2 U-17675

3 of the lesser factors and shall file during that billing month tariff sheets showing the lesser factors applied. The Commission reserves jurisdiction and may issue further orders as necessary. Any party desiring to appeal this order must do so by the filing of a claim of appeal in the Michigan Court of Appeals within 30 days of the issuance of this order, under MCL To comply with the Michigan Rules of Court s requirement to notify the Commission of an appeal, appellants shall send required notices to both the Commission s Executive Secretary and to the Commission s Legal Counsel. Electronic notifications should be sent to the Executive Secretary at and to the Michigan Department of the Attorney General - Public Service Division at In lieu of electronic submissions, paper copies of such notifications may be sent to the Executive Secretary and the Attorney General - Public Service Division at 7109 West Saginaw Hwy, Lansing, MI MICHIGAN PUBLIC SERVICE COMMISSION John D. Quackenbush, Chairman By its action of May 14, Greg R. White, Commissioner Sally Wallace, Acting Executive Secretary Sally A. Talberg, Commissioner Page 3 U-17675

4 EXHIBIT A STATE OF MICHIGAN BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION * * * * * In the matter of the application of CLOVERLAND ) ELECTRIC COOPERATIVE for authority to ) implement its power supply cost recovery plan for ) Case No. U the 12 month period ending December 31, ) ) SETTLEMENT AGREEMENT On September 30, 2014, Cloverland Electric Cooperative (Cloverland) filed an application, with supporting testimony and exhibits, seeking approval to implement its power supply cost recovery (PSCR) plan for the 12-months ending December 31, 2015 for its combined Cloverland and Edison Sault legacy service territories. On October 29, 2014, the Michigan Public Service Commission (Commission) issued its Notice of Hearing commencing a PSCR proceeding and establishing a procedural schedule for the matter. On December 2, 2014, the prehearing conference was held pursuant to the Commission s Notice of Hearing, with Administrative Law Judge Suzzane D. Sonneborn presiding. The Commission Staff, Cloverland and intervenor City of Mackinac Island (CMI) participated in the proceedings. At the prehearing conference, Cloverland presented proof of service of the Notice of Hearing on all cities, incorporated villages, townships and counties in its service area, and also presented an affidavit evidencing the requisite publication of notice. CMI s intervention was granted. The prehearing conference was conducted as a contested case matter pursuant to the Administrative Procedures Act of 1969, 1969 PA 306, as amended, MCL et seq. 1 LAN01\ ID\RJAA \0006

5 The parties have agreed to enter into this Settlement Agreement recommending approval of a PSCR factor of up to 4.50 mills per kwh, or $ per kwh, based on a mills per kwh, or $ per kwh allowance for power supply included in base rates and a contingent PSCR factor of up to mills per kwh, or $ per kwh. Cloverland would implement up to or equal to the contingent factor if Cloverland is billed for System Support Resource (SSR) payments from MISO related to the Presque Isle Power Plant. In view of the foregoing, and pursuant to Section 78 of the Administrative Procedures Act of 1969, as amended (1969 PA 306, 78; MCL ), Cloverland and Staff hereby agree as follows: A. For its combined service territories, Cloverland should be authorized to implement a PSCR factor of up to 4.50 mills per kwh, or $ per kwh based on a mills per kwh, or $ per kwh, allowance for power supply included in base rates. B. If Cloverland is billed for SSR payments related to the Presque Isle Power Plant for any time after February 1, 2015, then Cloverland should be authorized to implement a contingent PSCR factor of up to mills per kwh, or $ per kwh, based on a mills per kwh, or $ per kwh, allowance for power supply included in base rates. In order to implement the contingent factor described in this paragraph, Cloverland will provide to Staff, a copy of the MISO SSR payment invoices before charging the contingent factor. C. Proposed tariff sheets are attached as Attachment 1. 2 LAN01\ ID\RJAA \0006

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8 M.P.S.C. No. 9 Cloverland Electric Cooperative (reporting for the former Edison Sault Revised Sheet No. D Electric Company service area) Cancels Revised Sheet No. D POWER SUPPLY COST RECOVERY (continued from Sheet No. D-30.00) The following Power Supply Cost Recovery factors have been applied pursuant to 1982 PA 304. ` Year Month Maximum Authorized 2015 PSCR Factor (per kwh) Contingent PSCR factor Actual Factor Billed (per kwh) 2015 January $ $ February $ $ March $ $ April $ $ May $ $ June $ $ July $ $ August $ $ September $ $ October $ $ November $ $ December $ $ Issued Effective for bills rendered for the 2015 by Dan Dasho PSCR Plan Year General Manager Dafter, Michigan Issued under authority of the Michigan Public Service Commission dated in Case No. U-17675

9 M.P.S.C. No. 5 Electric Revised Sheet No. D-1.01 Cloverland Electric Cooperative Cancels Revised Sheet No. D-1.01 Power Supply Cost Recovery Clause (Continued from Sheet No. D-1.00) The following factors are to be applied pursuant to 1982 PA 304 in the months ending December 2015: ` Year Month Maximum Authorized 2015 PSCR Factor (per kwh) Contingent PSCR factor Actual Factor Billed (per kwh) 2015 January $ $ February $ $ March $ $ April $ $ May $ $ June $ $ July $ $ August $ $ September $ $ October $ $ November $ $ December $ $ (Continued on Sheet No. D-1.02) Issued: Effective for bills rendered for the 2015 By Dan Dasho PSCR Plan Year General Manager Dafter, Michigan Issued under authority of the Michigan Public Service Commission dated in Case No. U-17675

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