La Capra Associates was selected by the Consumers Energy Company, a Michigan investor-owned utility, to perform an independent evaluation of certain purchased power agreements between itself and a non-utility generator and to provide public commentary on the evaluation in the form of quarterly reports.

La Capra Independent Evaluation: Consumers Energy/MCV Cogeneration Agreements
During 2005, La Capra was retained by Consumers Energy – an investor-owned utility that provides electricity service to much of Michigan – as the Independent Evaluator of a set of agreements known collectively as the Resource Conservation Plan, or “RCP.”  The RCP provides for the economic dispatch of the 1,240 MW Midland Cogeneration Facility (“MCV”), a natural gas-fired combined cycle cogeneration facility that had previously been dispatched based on the coal-based pricing in its power sale agreement.  The agreements entail detailed hourly calculations to quantify the substantial savings created by the RCP and share them among Consumers, MCV, and retail electricity customers.

The Independent Evaluator is responsible for reviewing the calculations in depth, determining whether they are being implemented in accordance with the RCP procedures, and whether the results are reasonable.  The role was created to ensure that the complex, data-intensive RCP calculations would be reviewed by a qualified and objective entity, and to give stakeholders confidence that the RCP process actually provides savings to retail ratepayers.  In order to successfully perform the Independent Evaluator role, La Capra must utilize its knowledge of electricity market transactions and price drivers, commitment and dispatch of electric generating units, and power contracts.  The Independent Evaluator is responsible for issuing reports evaluating the quarterly RCP results; La Capra’s first report was issued in August 2005.

The full 1st Quarter Evaluation Report can also be downloaded HERE.