Detroit Edison says it’s prepared to meet summer peak demand loads

DETROIT (PRNewswire) Detroit Edison has assured the Michigan Public Service Commission (MPSC) that it is prepared to meet customer demand for electricity in the hot summer months this year.

In a filing today with the MPSC, Detroit Edison said it will have an adequate supply of electric capacity to meet customers’ needs from the operation of its own power plants and by purchasing power from other suppliers. In addition, the necessary electric transmission channels are available so that power can be can be imported into the state as needed to meet customer demand and to foster growth of a robust competitive electricity market.

“As a summer peaking utility, we look to generate power or purchase power at the most economic price for our customers,” said Michael Champley, senior vice president, Energy Marketing and Trading. “We look to supplement our own generation from outside sources on those few hottest days of the year, and through careful planning, we’ll have enough power to meet our customers’ energy needs.”

Detroit Edison has forecasted a peak demand of 11,996 megawatts (MW) in Southeastern Michigan. The actual peak load to be served by Detroit Edison could be more than 1,000 MW lower because of customers who sign with other suppliers under Michigan’s Electric Choice program. Detroit Edison’s plan calls for a total of 12,645 MW of supply resources to be available this summer, including a 15 percent reserve margin to cover unexpected power supply limitations. More than 11,000 MW will be generated by Detroit Edison power plants.

The implementation of Michigan’s Electric Choice program has created some uncertainty related to potential electricity demand this summer. All Detroit Edison customers have the ability to purchase power from other electricity suppliers.

As stated in the MPSC’s Feb. 1, 2002, report, “Status of Electric Competition in Michigan,” 970 MW of new capacity in Michigan has been added since Jan. 1, 2001, and more than 2,400 MW of additional capacity in Michigan is expected to be in operation by June. Other electricity suppliers may acquire their power from out-of-state sources as well.

“One of the big differences this year is the advent of Customer Choice,” Champley said. “We don’t have to supply power for customers choosing an alternative supplier, although we will supply those customers on a ‘best- effort’ basis should those alternative suppliers fail to serve their customers.”


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