Energy Law

Michigan Legislators Consider State RPS, Rolling Back Electric Choice

By Tracy Davis

The Michigan Legislature currently is considering legislation that would enact a renewable portfolio standard (RPS) and that would limit electric choice in the state.  At issue are three bills that have been passed by the state's House of Representatives and are now under Senate consideration. 

House Bills 5548 and 5549 would require the state's utilities to obtain at least 10% of their power from renewable energy resources by 2015.  These bills, however, do not currently propose to allow competitive bidding for renewable resources.  Senate Republicans have indicated they will seek to amend the legislation to require competitive bidding when the Senate takes up the measures. 

H.B. 5524 proposes to impose a 10% hard cap on participation in electric choice programs.  Opponents of the measure say it would effectively end electric choice in the state.  The state's largest utilities, Detroit Edison and Consumers Energy, have supported the bill, asserting that electric choice has limited their ability to secure financing for new power plants and to implement energy efficiency and renewable energy programs.

The Senate Energy Policy and Public Utilities Committee passed all three bills last week, by identical votes of 5-3.  The bills will now come before the full Senate, although it is unclear when they are slated to do so.

Full post as published by Energy Legal Blog on June 23, 2008 (boomark / email).