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Consumer advocate defends hiring out-of-state consultant for utility rate work, says in‑state expertise is scarce
Summary
Donald Kreece, the state consumer advocate, told the Fiscal Committee that he selected a Michigan consulting firm for rate-case work because in‑state firms with the necessary technical capacity were not available and because the chosen firm offered prior experience, thoroughness and a competitive price. The committee approved the contract; Representative Leishman recorded a negative vote.
Donald Kreece, the state's consumer advocate, explained the office's decision to hire an out-of-state consulting firm for work on utility rate cases after Representative Leishman questioned the RFP process.
Kreece said the RFP separated two broad categories of services, including return-on-equity (ROE) analysis and detailed examination of operating-cost datasets. After the PUC's recent handling of an ROE matter,…
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