Franz proposal: Repeal energy standards

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March 29, 2012

Franz proposal: Repeal energy standards

By PATRICK HOWARD Capital News Service The Record Eagle Thu Mar 29, 2012, 08:13 AM EDT

LANSING — Proponents of the state's alternative energy optimization standards are at odds with a suggestion to eliminate current standards.

The proposal by Rep. Ray Franz, R-Onekama, would repeal standards that require 10 percent of energy generated by utility companies to be renewable by 2015.

The standards were adopted in 2008 and include guidelines for utilities.

Jim Weeks, executive director of the Michigan Municipal Electric Association in Lansing, said the bill could address those guidelines which concern small companies.

"There are a lot of administrative costs and burden placed on the staff of smaller utilities," Weeks said. He said several companies don't have the money or resources to hire "energy specialists" and administrative positions that would accommodate current standards.

Weeks said those concerns were addressed to the Michigan Public Service Commission and his association was working on amending sections of the standards.

Bill Cook, general manager of the Zeeland Board of Public Works, expressed support for energy efficiency, but stressed problems with the mandated standard. His utility collects an energy optimization fee from customers, but without an extremely large customer base, it doesn't have enough revenue to cover higher administrative costs.

"What we'd like to be able to do is put money back in the consumers' pockets to incentivize investment in energy-efficient products," Cook said.

Ryan Werder, political director for the Michigan Leauge of Conservation Voters in Ann Arbor, said he isn't convinced these concerns are as widespread or as pressing as skeptics make them seem.

"The overwhelming response is that the state is on track and we can do this," Werder said.

Werder said the Michigan Energy, Michigan Jobs coalition in East Lansing is collecting signatures to make the increased standard an initiative to be voted on the November ballot.

Hugh McDiarmid Jr. of the Michigan Environmental Council also noted the current standards' success and said it would be a "big step backwards" to repeal a lauded program. He noted a Public Service Commission report released in February highlighting the program's success.

"They ultimately discovered it saves rate payers' money," McDiarmid said.

The MPSC said the renewable energy standard created more than $100 million in clean energy investments from 2008 to 2011. It also said renewable energy costs significantly less than coal, and that Michigan is on track to meeting the 10 percent requirement by 2015.

The Franz bill is before the House Energy and Technology Committee, and Clerk Cath Petroskey said Wednesday it's not yet been set for a hearing.

Patrick Howard writes for Capital News Service at Michigan State University's School of Journalism.