Dive Brief:
- Republicans in Michigan want to eliminate the state's energy choice law, taking the state back to a fully-regulated energy market in an effort to address a potential energy shortfall.
- Lawmakers have introduced an extensive package of energy bills, saying a "holistic" approach to the state's energy issues is required to give ratepayers the best value.
Dive Insight:
Republican lawmakers in both Michigan's House and Senate have introduced a series of energy bills aimed at fixing the state's energy market.
“Michigan needs to ensure we have a reliable energy supply, creating new generation for the best value to ratepayers,” said Rep. Aric Nesbitt (R). “We can no longer have a piecemeal system of picking winners and losers."
Nesbitt has proposed eliminating the state's energy choice law, which allows customers to purchase up to 10% of a utility's capacity from markets outside the state. Opponents of the state's choice law say it is responsible for a possible energy shortfall. Michigan's lower peninsula will dip below reserve margins by about 3,000 MW in 2016, according to the Midwest ISO.
"The best approach to provide stable, affordable energy for Michigan families is to embrace an ‘all of the above,’ holistic approach that factors in all aspects of the energy process in order for our state to grow and prosper," Nesbitt said.
While Nebitt has also proposed keeping the state's existing renewable portfolio standard, Democrats last week proposed guidelines to raise RPS goals to 20% by 2022, boosting the current target of 10%. Efficiency standards would rise to 2%.
Mlive.com reports the Michigan Freedom Fund (MFF) said the move to eliminate electric choice in the state was a mistake. "Eliminating electric choice means abandoning free market principles and sticking Michiganders with hundreds of million in higher rates on their electricity," said MFF President Greg McNeilly.
