CMS Energy: RNG Cost Recovery Mechanism

Deck: 

Top Innovators

Fortnightly Magazine - October 2024
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CMS Energy won the Fortnightly Top Innovator 2024 award ''John Beggs Top Innovator in Energy Transition'' for its RNG Cost Recovery Mechanism.

 

PUF's Steve Mitnick: Describe the innovation and its positive impact.

Neal Dreisig: The team achieved the nation's first regulatory approval for a utility to own, operate, and maintain renewable natural gas (RNG) production assets apart from policy, mandate or legislation. The specific regulatory innovation is the cost recovery mechanism allowing the regulated utility to own, operate, and maintain RNG plants across Michigan and recover costs through both full-service voluntary customer subscriptions and open market sales.

All of this without placing the burden of full cost recovery on base rate customers. It took the better part of four years and included collaboration across many stakeholders.

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