Electricity Sales to Consumers Energy

 

Sales of electricity to Consumers Energy from eligible renewable energy systems are made through an Energy Purchase Agreement.

The customer may:

  • Sell all of the output to Consumers Energy, or
  • Sell only the excess electricity available after meeting the customer's own electricity needs

Metering of the electricity sold to Consumers Energy will be determined by the customer's choice of sale arrangements. Any costs associated with such metering will be the responsibility of the customer.

To learn more, please choose a topic from the list below:

Eligibility
Generator Interconnection Requirements
Energy Purchase Agreement
Compensation for Energy Delivered
Historical Rate Information
Termination

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Frequently Asked Questions 
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Eligibility 

Consumers Energy purchases electricity under an Energy Purchase Agreement in conjunction with the Public Utility Regulatory Policies Act of 1978 (PURPA).

PURPA was intended to encourage energy conservation and efficiency. To be eligible to sell electricity from a renewable energy system to Consumers Energy under an Energy Purchase Agreement, a customer’s electric generating facility must meet the definition of a Qualifying Facility as defined by PURPA.

In general, a Qualifying Facility is a facility that produces electricity via solar energy, wind, biomass or hydro resources.

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Generator Interconnection Requirements 

Customers must be approved in advance for an interconnection with the utility distribution system in order to sell electricity from a renewable energy system to Consumers Energy.

View the generator interconnection requirements .

Energy Purchase Agreement 

Customers who want to sell their excess electricity from a renewable energy system to Consumers Energy must execute an energy purchase agreement . View the energy purchase agreement.

Compensation for Energy Delivered 

Energy Charge
Consumers Energy pays for all electricity delivered from renewable energy systems at the hourly real-time Locational Marginal Price (LMP) of Consumers Energy's load node as determined by the Midcontinent Independent System Operator (MISO).

MISO manages one of the world’s largest energy markets using highly sophisticated computer programs. These programs use a mathematical representation of the generators and transmission and distribution systems owned by those entities that participate in the MISO energy market and/or who provide transmission services for participants in the MISO energy market. Generating plants and the loads of each load serving entity (e.g., utilities like Consumers Energy that provide electricity to their customers) are represented as nodes in these computer programs. The node that represents Consumers Energy's load is designated as "CONS.CETR".

The payment amount for each month is the sum of the hourly amounts for such month determined as follows:

Hourly Payment Amount = Amount of electricity delivered by customer in megawatts (MW) x (MISO LMP for CONS.CETR - $5/MWh)

Occasionally, the hourly LMP is a negative value. When the LMP is negative for an hour, the customer effectively pays Consumers Energy at the contract price for each such hour and the total monthly payment to the customer is reduced as a result of such hours.

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Administrative Charge
During each billing month, an administrative charge of one-tenth of a cent (0.1 cent) per kilowatt-hour will be paid by the customer to Consumers Energy (which is offset against any amounts owed by Consumers Energy).

Historical Rate Information 

To see the historical hourly LMP price for Consumers Energy's load node, click on one of the following links:

2013
2012
2011
2010
2009
  
2008 
2007

Termination

Consumers Energy or the customer may terminate the Energy Purchase Agreement upon an interval of time agreed to by the parties. The standard agreement currently provides for a one-month's prior written notice.

Consumers Energy also may terminate the Energy Purchase Agreement if the customer fails to maintain its Qualifying Facility status with the Federal Energy Regulatory Commission.

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