New Requirements on Competing Utilities Under Nofs Energy Plan

Senate Bill 437 and SB 438, introduced by Senators Nofs (R-Battle Creek) and Proos (R-St.Joseph), would set aside ten percent of the electricity market for alternative suppliers; however, these alternative electric suppliers would face new regulations and requirements. A noticeable absence in the proposed legislation is an increase in the renewable energy standard. The lack of language to increase the amount of power generated by renewable sources from its current ten percent drew criticism from many environmentalists.

Alternative electric suppliers would be required to annually show the Public Service Commission that they have the ability to supply energy at peak customer demand, as well as supply a projection of growth in their total peak demand and show their reserve margin requirements. These requirements would be necessary for either the length of their contract or three years whichever was longer.

Under the energy plan clean energy would include the use of fossil fuels in a process that captures at least 85 percent of the carbon dioxide emissions. These emissions are either stored permanently or used for another purpose; however, in both cases the emissions are never released into the atmosphere.

The plan drew criticism from various environmental groups such as the Michigan League of Conservation Voters and the Sierra Club Michigan Chapter. These groups argued that the new energy plan is a step backward from the energy progress Michigan was making and will lead to higher utility bills and more pollution.

posted by PAA Online , Thursday, July 2, 2015 12:09 PM
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