June 6, 2018 VIA ELECTRONIC CASE FILING

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Clark Hill PLC

212 East César E. Chávez Avenue Lansing, Michigan 48906

Sean P. Gallagher T 517.318.3100

T 517.318.3060 F 517.318.3099

F 517.318.3085

Email: [email protected] clarkhill.com

June 6, 2018

VIA ELECTRONIC CASE FILING

Ms. Kavita Kale Executive Secretary

Michigan Public Service Commission 7109 W. Saginaw Highway

Lansing, Michigan 48917

Re: MPSC Case No. U-20069: In the matter of the application of DTE Electric Company for reconciliation of power supply cost recovery plan (Case No. U-18143) for the 12-month period ended December 31, 2017.

Dear Ms. Kale:

Enclosed for filing is the Petition to Intervene of the Association of Businesses

Advocating Tariff Equity along with a Proof of Service.

Respectfully,

CLARK HILL PLC

Sean P. Gallagher SPG/jmj

cc w/enc.: Parties of Record

ALJ Sharon L. Feldman

Digitally signed by: Sean P. Gallagher DN: CN = Sean P. Gallagher C = US O = Clark Hill PLC Date: 2018.06.06 16:22:26 -05'00' Sean P. Gallagh er

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STATE OF MICHIGAN

BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION * * * * *

In the matter of the application of

DTE ELECTRIC COMPANY for

reconciliation of power supply cost recovery plan (Case No. U-18143) for the 12-month period ended December 31, 2017. ) ) ) ) )

Case No. U-20069 ALJ Sharon L. Feldman

PETITION TO INTERVENE OF THE

ASSOCIATION OF BUSINESSES ADVOCATING TARIFF EQUITY

Pursuant to Rule 410 of the Rules of Practice and Procedure before the Michigan Public Service Commission (the “Commission”), the Association of Businesses Advocating Tariff Equity (“ABATE”), by its attorneys, Clark Hill PLC, hereby petitions the Commission for leave to intervene in and become a party to the above-entitled proceedings initiated by DTE Electric Company (“DTE Electric” or “Company”), and in connection therewith, represents that the rights and interests of this petitioner, the grounds of the proposed intervention and petitioner’s position in the proceedings are as follows:

I.

1. ABATE is a voluntary association of large industrial companies which are located

in and doing business in the State of Michigan. The purposes of ABATE are to appear before the Commission, the Federal Energy Regulatory Commission (the “FERC”), and other regulatory bodies having jurisdiction over public utilities and natural gas pipelines, to advocate the adoption of utility and energy rates, terms and conditions of service, and other tariffs or

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is true competition. ABATE has been formed for the express purpose of participating in regulatory proceedings to protect the interests of businesses in connection with energy and utility matters. Members of ABATE consume substantial quantities of electricity and natural gas and in Michigan alone their combined gas and electric bills exceed $1.2 billion annually. In addition, ABATE members are also transportation service only customers relating to energy. ABATE members are customers of DTE Electric, whose power supply cost recovery reconciliation is at issue in this proceeding.

2. As large electricity and natural gas transportation service customers, ABATE

members maintain vital interests in achieving increased economic efficiencies for gas and electric utilities and new utility sourcing options that allow ABATE members to more effectively compete in the worldwide economy. ABATE members are also interested in assuring that surcharges, rates, terms, and conditions of service are adopted in conformance with law and in a fair and reasonable manner.

3. The current members of ABATE are: AK Steel Corporation; Cargill; The Dow

Chemical Company; DW-National Standard-Niles LLC, Eastman Chemical Company, Eaton Corporation; Edward C. Levy Co.; Enbridge Energy, Limited Partnership; FCA US LLC; General Motors, LLC; Gerdau MacSteel; Graphic Packaging International, Inc.; Hemlock Semiconductor Operations LLC; J. Rettenmaier USA LP; Marathon Petroleum Corporation; Martin Marietta Magnesia Specialties, LLC; Metal Technologies, Inc.; MPI Research; Occidental Chemical Corporation; Ox Engineered Products; Pfizer – Kalamazoo; Praxair, Inc.; United States Gypsum Company; U.S. Steel Corporation; WestRock California, Inc.; White Pigeon Paper; and Zoetis, LLC.

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4. ABATE members are directly impacted by the issues raised in this proceeding because ABATE members purchase large amounts of electricity and other services from DTE Electric under various tariff provisions.

5. ABATE members are directly impacted by these proceedings and have a

substantial interest therein because ABATE members are concerned about costs arising from DTE Electric’s 2017 Power Supply Cost Recovery (“PSCR”) plan and factors for which DTE Electric seeks reconciliation in this proceeding (the “Application”). The determination made in these proceedings will affect the rates paid by ABATE members.

6. ABATE has regularly participated in electric and natural gas proceedings before

the Commission for over 25 years.

7. In deciding petitions for leave to intervene, this Commission has repeatedly

applied the two-prong test for standing set forth in Association of Data Processing Service Organizations, Inc. v Camp, 397 US 150; 90 S Ct 827; 250 L Ed 184 (1970). As set forth in Association of Data Processing, the two-prong test consists of a showing that: (1) the petitioner would likely suffer injury in fact (i.e., its interests are endangered or at issue); and (2) the petitioner’s interests that are allegedly endangered are within the zone of interests to be protected or regulated by the statute under consideration. ABATE meets the standing test because it has a direct, substantial interest in the rates, terms and conditions of electricity service for customers of DTE Electric, which these proceedings will directly impact, and this interest is within the zone of interests to be protected by the Commission’s consideration of the issues to be addressed in this proceeding.

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determinations on the significant policy issues involved, and thereby also meets the test for permissive intervention.

9. The interests of ABATE and its members are not adequately represented by the

present parties and, therefore, it would be detrimental to the public interest to deny this Petition to Intervene.

10. ABATE will take the position that DTE Electric’s Application, including, but not

limited to, the proposed PSCR plan reconciliation, factors, and components, should be carefully scrutinized and any unjustified, unsubstantiated, imprudent, unreasonable, or unlawful deficiencies, costs, or mechanisms should be disallowed.

11. ABATE will thoroughly explore and analyze the following in this matter: (i) the

underlying cause, reasonableness, and prudence of the Company’s requested $16.7 million under-recovery for 2017; (ii) the underlying cause and reasonableness of any other major drivers of the 2017 PSCR factor recovery; (iii) DTE Electric’s 2017 ‘45-day report’ filings made with the Commission pursuant to MCL 460.6j(11) for DTE Electric’s 2017 PSCR plan year.

12. ABATE will seek an order in this proceeding approving only those rates, terms,

and conditions of service that are just, reasonable, and lawful.

13. ABATE reserves the right to take other positions and/or seek other relief based on

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II.

WHEREFORE, ABATE requests that the Commission grant ABATE’s Petition to

Intervene in and be treated as a full party hereto. ABATE further requests that the parties serve copies of all pleadings and correspondence in these proceedings to the offices of its counsel listed below and to its consultant(s):

James Dauphinais Amanda Alderson

Brubaker & Associates, Inc.

16690 Swingley Ridge Road, Suite 140 Chesterfield, Missouri 63017

MAILING: P.O. Box 412000

St. Louis, Missouri 63141-2000 EMAIL: [email protected] [email protected] Dated: June 6, 2018 Respectfully submitted, CLARK HILL PLC By: Sean P. Gallagher (P73108) Stephen A. Campbell (P76684)

Attorneys for Association of Businesses Advocating Tariff Equity

Clark Hill PLC

212 East César E. Chavez Avenue Lansing, Michigan 48906

(517) 318-3100

[email protected] [email protected]

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STATE OF MICHIGAN

BEFORE THE MICHIGAN PUBLIC SERVICE COMMISSION * * * * *

In the matter of the application of

DTE ELECTRIC COMPANY for

reconciliation of power supply cost recovery plan (Case No. U-18143) for the 12-month period ended December 31, 2017. ) ) ) ) )

Case No. U-20069 ALJ Sharon L. Feldman

PROOF OF SERVICE

STATE OF MICHIGAN )

) ss

COUNTY OF INGHAM )

Sean P. Gallagher, being first duly sworn, deposes and says that on June 6, 2018, he did cause to be served the Petition to Intervene of the Association of Businesses Advocating Tariff

Equity, as well as this Proof of Service, in the above docket, via electronic mail, to the persons

identified on the attached service list.

____________________________________ Sean P. Gallagher

Subscribed and sworn to before me this 6thday of June, 2018.

______________________________________ Jennifer M. Johnson, Notary Public

Eaton County, Michigan

My Commission Expires: March 9, 2020 Acting in Ingham County

Digitally signed by: Jennifer M. Johnson DN: CN = Jennifer M. Johnson C = US O = Clark Hill PLC Date: 2018.06.06 16:23:11 -05'00' Jennifer M. Johnson

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SERVICE LIST MPSC Case No. U-20069 Administrative Law Judge

Hon. Sharon L. Feldman Administrative Law Judge

Michigan Public Service Commission 7109 W. Saginaw Hwy., 3rd Floor Lansing, Michigan 48917

Email: [email protected]

Counsel for DTE Electric Company

Jon P. Christinidis David S. Maquera

Email: [email protected] [email protected] [email protected]

Counsel for Michigan Environmental Center (MEC)

Christopher M. Bzdok Lydia Barbash-Riley

Olson, Bzdok & Howard, P.C. Email: [email protected]

[email protected] [email protected] [email protected] [email protected]

Counsel for MPSC Staff

Monica M. Stephens Heather M.S. Durian

Email: [email protected] [email protected]

Counsel for ABATE

Sean P. Gallagher Stephen A. Campbell Clark Hill PLC

Consultants for ABATE

James Dauphinais Amanda Alderson

Brubaker & Associates, Inc.