By Amanda Durish Cook
The Michigan Senate last week approved legislation that would increase the renewable portfolio standard while maintaining the 10% cap on retail choice and increasing requirements on alternative suppliers.
Senate Bill 438 requires utilities to meet progressive benchmarks of 12.5% renewable energy in 2019 and 15% by 2021, up from the current 10%. The language also includes a non-mandated goal of 35% renewable power and energy efficiency by 2025. Earlier versions of the legislation did not include renewable mandates, but Senate Democrats pushed for the measure.
Senate Bill 437 leaves Michigan’s 10% retail choice cap unchanged while requiring alternative suppliers to pay a capacity charge to utilities if they don’t produce their own power or have contracts with other producers. The state’s two major utilities, DTE Energy and Consumers Energy, say they plan on expanding their capacity, but only enough to serve their existing customers.
After more than two-thirds support in the Senate, the package now heads to Michigan’s House of Representatives.
“All Michigan ratepayers were thrown under the bus today by Senate leadership, forcing a vote on a bill that will increase costs on all ratepayers,” Wayne Kuipers, executive director of Energy Choice Now, a coalition of businesses, trade associations and others seeking to increase competition, said in a statement.
The legislation also requires Consumers and DTE to file integrated resource plans as they retire coal facilities and look to make new generation investments. Consumers and DTE have said that they support the legislation.
Republican Sen. Patrick Colbeck voted against SB437 after his amendment to expand competition failed. “In this case, after all the work that was put into this legislation, there is simply still not enough here to protect ratepayers,” he said. “The bills that we have voted on today not only keep the utility monopolies that are already in place but strengthen their grip on the ratepayers of this state.”
Michigan’s energy policy has not undergone major change since the 10% RPS standard was enacted in 2008. The Nov. 10 votes came after more than two years of work.
“This legislation is not about what’s best for a few companies, organizations, or individuals — it’s about what’s best for the entire state of Michigan,” said Republican Sen. Mike Nofs, chair of the Senate Energy and Technology Committee.
Gov. Rick Snyder (R) issued a statement after the passage, praising the bills. He said energy policy is a “major priority” this term and said he hoped to complete work on the policy before year-end. “These policies have the potential to save Michiganders billions of dollars and make our state’s energy future much brighter,” Snyder tweeted.
