Wrapped into a comprehensive energy package, the bill would give the utilities credit for purchasing renewable energy locally in their efforts to meet the proposed mandate. Known as a Renewable Portfolio Standard, it would require utilities to have at least 10 percent of their energy come from renewable sources by 2015.
The credits would vary. Wind energy, for example, would be worth an additional one-tenth of a purchased megawatt. In other words, if Consumers Energy were to purchase 10 megawatts of wind energy from a windmill manufactured in Michigan, it would be credited with 11 megawatts.
The bill's sponsor, Rep. Jeff Mayes, D-Bay City, said it would be a nice boost for the state's lagging economy.
But opponents say it would reduce the amount of renewable energy being created.
``We have fought to limit how many credits are available,'' said Ariel Shaw, energy program associate for the Michigan Environmental Council, which represents about 70 Michigan environmental groups. ``We do want the majority of it to be actual green energy going to the grid.''
Utilities, environmentalists and lawmakers are tasked with crafting a compromise package of bills as debate continues over the future of Michigan's growing energy needs.
Gov. Jennifer Granholm touted the benefits of the package in her State of the State address last month, including a $6 billion investment in Michigan by Detroit Edison and Jackson-based Consumers Energy.
What utilities want most from the energy package is a complete repeal or restructuring of Michigan's customer choice law passed in 2000. Without it, they say, they would be unable to secure financing for any new baseload generation plants.
Environmental groups and renewable energy companies want to see passage of the RPS.
But one can't happen without the other because the bills are tie-barred.
Dave Waymire, spokesman for the Customer Choice Coalition, said he wants to see more details on why it would cost the state's two major utilities $6 billion to reach the RPS goal by 2015.
``If they do, your electric bills go up 15 percent,'' he said.
Consumers Energy spokesman Dan Bishop said the utility has budgeted for the proposed RPS in its long-term strategic plan released last year.
``We anticipate making this investment and making rates competitive and affordable for customers,'' Bishop said. ``Maintaining affordable and reliable electricity is obviously critical for our company.''
Lawmakers, meanwhile, will have to decide what to do about credits.
Shaw said the nonprofit group wants to support Michigan businesses, but thinks a strong RPS would better accomplish that.
``We think it would lead to many more jobs in manufacturing in Michigan,'' she said.
Mayes said the credits are small enough to support both renewables and the state's economy.
``We think these incentives are very pro-environment,'' Mayes said.
Waymire said the credits provision needs some work.
``We find the whole credit system to be extremely complex and convoluted and only understandable by lawyers and only a handful of legislators,'' Waymire said.
The better idea, Waymire said, is to allow renewable-energy companies to come into the state, create green energy and sell it to utilities. The utility companies could also create renewable energy, but could only use it if their prices were the lowest in competition with other renewable producers.
``Let the market decide,'' Waymire said. ``There's no reason why they should be first in line.''
Mayes said he hopes the bill package will face a vote in the House by next month. It then would move to the Senate.
Source: mlive| by Chris Gautz
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