LANSING -- The impact of a possible new state standards for renewable energy use is stirring debate over how it will impact employment in northern Michigan.
The proposal would set new standards for renewable energy use and energy efficiency. While supporters said it would boost Michigan's economy, opponents argue it would decrease competition among electrical utilities and increase costs for consumers.
"It will create jobs throughout the state of Michigan, including northern Michigan," said Megan Brown, press secretary for Gov. Jennifer Granholm. "We need to create the demand for companies to come here. That's why we need to pass this renewable portfolio standard quickly."
But Norm Saari, chief of staff for Sen. Jason Allen, R-Traverse City, said the plan's passage in Lansing, which could be coming soon, would create only a limited number of jobs. Even so, the legislation is important to show how the state will use renewable resources in the future, he said.
Negotiations on the legislation between the House and Senate are under way.
"Passage of the bills definitely has the potential (to help the region's economy) because of the resources available in northern Michigan, both in terms of the wind resources, and in terms of forest resources," Saari said.
One significant change would be shifting the cost of electricity.
In Michigan, businesses now subsidize residential energy costs, a Michigan Chamber of Commerce executive said.
The proposed energy plan would require residential customers to pay their costs in full, decreasing electrical costs for businesses, said Doug Roberts Jr., the chamber's director of environmental and energy policy.
That change would thus make the state more competitive in attracting businesses, he said.
"Competitive electric rates will be one of the factors that will help to hopefully keep Michigan businesses here or help other to locate here," Roberts said. "And certainly if you were to build power plants, you have the jobs that are associated with those."
But the plan would eliminate about 90 percent of state residents' ability to choose alternative electrical suppliers, said Barry Cargill, executive director of Lansing-based Customer Choice Coalition. It includes schools, groceries stores, service stations and manufacturers who support current electric laws.
"We support competition as the best way to keep price for energy low," he said. "What we don't support is trading all that to monopolize."
Nico Rubello writes for Michigan State University's Capital News Service
