With
the 2008 energy law being revamped in the Legislature, the question of energy
choice has become a topic of conversation.
Last
week, the Michigan Chamber supported a substitute version of SB
437 that includes an increased renewable energy standard of 15 percent by
2021. Electric choice advocates are not as supportive, speculating whether the
bills sustain choice. Electric choice in the 2008 energy law limits 10 percent
of the electric market for alternative electric suppliers or those not
considered to be traditional utilities like DTE Energy and Consumers Energy.
Major utilities argue alternative electric suppliers are not paying their fair
share for the electric grid.
Senator
Peter MacGregor (R-Rockford) intends to propose an amendment that may alleviate
the tension and secure choice sustainability. The amendment will provide
ratepayer protections and set up a process for the Public Service Commission (PSC)
to ensure ratepayers receive the best value when new electric generation is
being brought online. It additionally eliminates the language of a proposed
capacity tax. The capacity tax refers to the tariff the PSC could charge under
a proposed deal between the state and the Midcontinent Independent System
Operator on AESs to purchase power if no contracts have been reached by other
suppliers.
Senator
MacGregor’s amendment has yet to be proposed. It is likely the Senate will take
up the energy issues following the election.
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