Direct Testimony of PSE’s Dr. Boris Lukanov to the State of Michigan Public Service Commission

Witness Hotaling discussed the CEO view of the DTE PCA, the 9 changes made in the CEO preferred plans, the CEO modeling process, and the CEO 10 modeling results, including the CEO preferred plan. [...] 7 The goals of decarbonization, equity, and democratization of the energy system are 8 in the public interest and should inform the Commission's evaluation of whether the 9 proposed plan balances the seven factors in the “most reasonable and prudent” fashion. [...] CEO Witness James Gignac 13 provides additional discussion and analysis of the requirement to incorporate energy and 14 environmental justice into the planning process itself and into the Commission’s evaluation 15 of whether the Plan is the most reasonable and prudent means of meeting customers’ 16 energy and capacity needs throughout the term of the plan. [...] The difference between the NPVRR of CEO Alternative Plan with and without the Energy Equity Package is $671.8 million, although the NPV of the gross cost of the Energy Equity Package is $883.3 million. [...] 9 Q: How does the inclusion of a $500/kilowatt incentive in the CEO’s Alternative Plan 10 comport with the statutory requirements of an IRP? 11 A: MCL 460.6t requires the Commission to approve the “most reasonable and prudent” plan 12 to meet the Company’s energy and capacity needs through the plan horizon.