STATE OF MICHIGAN BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION ***** In the matter of the application of THE DETROIT EDISON COMPANY seeking the Commission’s approval of a temporary waiver of components of Rule 460.3613. ) ) ) ) ) Case No. U-16287 At the December 2, 2010 meeting of the Michigan Public Service Commission in Lansing, Michigan. PRESENT: Hon. Orjiakor N. Isiogu, Chairman Hon. Monica Martinez, Commissioner Hon. Greg R. White, Commissioner OPINION AND ORDER On May 21, 2010, The Detroit Edison Company (Detroit Edison) filed an application requesting the approval of a temporary waiver of portions of R 460.3613. More specifically, Detroit Edison seeks a temporary waiver of the requirements contained in R 460.3613(2)(b)(IX), including the requirement to a) draw annual samples of the meters as identified in R 460.3613(2)(b)(IX) and b) to test the sample lots for meter accuracy as indentified in R 460.3613(2)(b), the associated elements of its Commission approved quality control plan. In its application, Detroit Edison indicated that it requests a temporary waiver because the company is in the process of replacing current residential metering devices with advanced metering technology. Detroit Edison plans to install 600,000 1 new electric meters with advanced metering technology by December 2012. The meters subject to removal were inspected and tested in the meter shop and/or manufacturer’s certification was accepted as identified in R 460.3602, and these meters were included in the annual samples since the time of installation. Detroit Edison’s sample meter testing has not resulted in the rejection of any sample lot and consistently yields results above 99%. Detroit Edison also states that this waiver will increase the company’s ability to install advanced metering technology and that it will continue to honor customer request for meter test during the waiver period, if approved. Detroit Edison explained that after the installation of the advanced metering, Detroit Edison will continue with meter testing consistent with the requirements of the technical standards for electric service. Detroit Edison, however, expects that modification of the technical standards will be warranted to address the utilization of this new technology. The Commission has reviewed Detroit Edison’s request and has determined that granting its request is reasonable and in the public interest and will not result in any harm or negative effect to its customers, nor will it have any effect on customer rates. The waiver will expire on December 31, 2012. The Commission further finds that approving this waiver does not result in any change in the rates or cost of service to customers. Thus, the approval of this waiver will not alter any existing electric rates paid by Detroit Edison’s customers and, therefore can be authorized by the Commission without notice or hearing as provided by MCL 460.6a. 1 The Commission has yet to approve full deployment of Detroit Edison’s plan for smart grid, including advanced metering infrastructure, and thus the company assumes the risk for recovery of any costs associated with advanced metering technology not approved. Page 2 U-16287 THEREFORE IT IS ORDERED that The Detroit Edison Company’s requested temporary waiver of portions of R 460.3613 is granted.. The Commission reserves jurisdiction and may issue further orders as necessary. Any party desiring to appeal this order must do so in the appropriate court within 30 days after issuance and notice of this order, pursuant to MCL 462.26. MICHIGAN PUBLIC SERVICE COMMISSION ________________________________________ Orjiakor N. Isiogu, Chairman ________________________________________ Monica Martinez, Commissioner ________________________________________ Greg R. White, Commissioner By its action of December 2, 2010. ________________________________ Mary Jo Kunkle, Executive Secretary Page 3 U-16287