HB
5476, which would replace the E1 rate currently provided to Hemlock
Semiconductor with a new rate-setting system for high-use, steady demand
industrial customers, received a hearing before the House Energy and Technology
Committee this week. House Majority Floor Leader Jim Stamas (R-Midland), the
bill’s sponsor, said the bill also sets deadlines for various steps in the
process to ensure the new rate is in place when Hemlock’s current rate expires
on December 1, 2015. RepresentativeStamas went on to say that the new system
could lower rates for all customers by efficiently allocating costs by class.
Governor Snyder’s energy advisor, Valerie
Brader, said it was likely the Public Service Commission currently has the
authority to consider the points in the legislation, but the bill would ensure
there are no legal challenges. Ms. Brader said the change will be particularly
important due to the coming federal emissions regulations that could cause some
of the state’s baseload power plants to be retired in 2016.
Andy Coulouris of Hemlock Semiconductor said
the company is expecting to pay more after the E1 rate expires, but he said the
tax credit the company could claim erases half of that increase. The new rate
developed under the bill is hoped to offset an additional portion of that
increase, he said.