State utility regulators have given Consumers Energy a "prospective warning" about an energy-saving technology it's not taking advantage of right now.
It's called a Virtual Power Plant, or VPP.
A VPP is technology that can aggregate thousands of small sources of electricity to reduce stress on the electric grid. If enough of these sources are tapped, a VPP could potentially reduce the need to build a new gas power plant.
For example, a VPP can transfer excess energy from thousands of individual home batteries and electric car batteries to the grid when more power is needed, or raise thousands of home smart thermostats a few degrees when electricity demand is high on hot summer days.
John Albers is with Advanced Energy United, a clean energy advocacy group. He said Consumers Energy has been claiming that VPP technology isn't standardized enough to implement, but "utilities in other states are already doing this, and they're doing it very well."
Albers said VPPs are clean sources of electricity, and they can reduce electricity costs for residents.
"These programs compensate customers for participating so they can see savings or direct payments on their electric bills," Albers said. "So everyone wins."
Albers says the cost of a VPP compared to the cost of building a new gas plant is so low, it may even cost a utility less to provide customers subsidies to buy EVs and home batteries, to increase the supply of electricity sources for the VPP. And he says VPPs can be implemented very quickly, compared to the several years it can take to build a traditional power plant.
The Michigan Public Service Commission said Consumers needs to start modeling the use of VPPs in its plans — or risk having some rate increases denied.
Consumers Energy said it already has a VPP Smart Thermostat program in place and is "modeling opportunities for Virtual Power Plants which will be reflected in our IRP (long-range plan) in June."
Consumers Energy is among Michigan Public's corporate sponsors.
