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Combined Heat and Power Partnership

Michigan Alternative Energy Portfolio Standard

Date Last Updated11/20/2012
Policy TypePortfolio Standard
Policy Administrator/Contact OfficeMichigan Public Service Commission
Policy Initiation Date10/6/2008
Policy SummaryMichigan's Alternative Portfolio Standard (APS) includes waste heat to power as an eligible resource. The APS applies to the State's investor-owned utilities, alternative retail suppliers, electric cooperatives, and municipal electric utilities. The standard allows utilities to use energy optimization and advanced cleaner energy systems to meet a limited portion of the requirement. CHP is eligible as an advanced cleaner energy system. Advanced cleaner energy facilities include "gasification, industrial cogeneration, and coal-fired facilities that capture and sequester 85% of carbon dioxide emission."

Under the APS, all utilities must generate 10% of their retail electricity sales from renewable energy resources by 2015. In addition, Consumers Energy must meet a renewable energy capacity standard of 200 MW by December 31, 2013, and 500 MW by December 31, 2015. Detroit Edison must meet a renewable energy capacity standard of 300 MW by December 31, 2013, and 600 MW by December 31, 2015.

There are three credit types that utilities can use to meet the APS: renewable energy credits (RECs), energy optimization credits (EOCs), and advanced cleaner energy credits (ACECs). One credit of any type is equal to 1 MWh. Utilities may use EOCs or ACECs instead of RECs with approval of the PSC and no more than 10% of a utility's obligation may be met using a combination of EOCs and ACECs.
CHP Eligibility RequirementsRenewably-fueled CHP systems can qualify for RECs and waste heat to power systems can qualify for ACECs as long as they were installed on or after October 6, 2008. Waste heat-to-power systems qualify under the following definition: Industrial cogeneration facility, "a facility that generates electricity using industrial thermal energy or industrial waste energy." Traditional fossil-fueled CHP systems may qualify for ACECs with approval by the PSC.
Eligible Project Size (MW)Does Not Specify
Minimum Efficiency Required/
Other Performance Requirements
Does Not Specify
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