Granholm pushes for energy mandate to interest Japanese firms
LANSING – Gov. Jennifer Granholm is preparing to leave Monday for a five-day trade mission to Japan, amid concerns that lawmakers haven’t yet finished a deal that would require Michigan’s electric utilities to shift at least 10% of their power to such renewable energy sources as windmills by 2015.
Granholm told reporters a renewable energy standard is needed to convince Japanese renewable energy firms to build plants in Michigan. She said she will meet with a number of those companies, along with Japanese automakers and their suppliers in an effort to lure more of their operations and new jobs to Michigan.
To prod lawmakers to an agreement, Granholm has asked the Michigan Public Service Commission to impose a mandate requiring utilities to obtain at least 25% of their energy from renewable sources such as wind power by 2025.
The PSC had scheduled a meeting this afternoon while lawmakers continue negotiating a wholesale rewrite of the state’s electric utility regulation. But it has canceled the meeting, perhaps a signal that a legislative deal is at hand.
Lawmakers reportedly were close to a deal in closed-door negotiations that have been going on for weeks. Granholm said she expects an agreement – if not final action by the House and Senate – that she can take with her to Japan.
Granholm said it’s more difficult to convince wind turbine manufacturers and other renewable energy firms to Michigan without a state blueprint that mandates a partial conversion to renewable energy by 2015.
“For those doing wind manufacturing, they want to know Michigan has made a make a commitment that a percentage of our energy will come from renewable sources,” Granholm said.
She said a legislative agreement will require DTE and Consumers Energy to shift at least 10% of their power from renewable sources such as wind power. She said Michigan stands to create as many as 60,000 jobs in renewable energy industries, but that the state needs a mandate for renewable energy.
A state standard for renewable energy is linked to a major electric regulation bill that would give Michigan’s two largest utilities – DTE and Consumers Energy – a state-imposed virtual monopoly, with only 10% of the state’s power supply coming from smaller competitors. DTE and Consumers say the cap on competition is needed for them to finance new power plants.
The legislation would gradually increase electric bills for households by 12%, shifting the cost from commercial and industrial customers who for years have effectively subsidized homeowners’ energy costs.
Part of the overall energy legislation would also impose a $3 monthly surcharge on customers to help the utilities pay for converting some of their power to renewable sources like wind.
The energy deal also would require steps by the utilities to increase energy efficiency, with incentives for consumers to make their homes more energy efficient.
By Chris Christoff
Free Press Lansing Bureau
11 September 2008
Tags: Wind power, Wind energy
Some possibly related stories:
- Costs, other concerns spark debate over requiring green power
- Senate passes bill to require state buildings to go green
- Sen. Brown: Renewable energy mandate job estimates inflated, pocketbooks about to be raided
- Electric rates to see big increase; Legislature OKs energy changes
- Gov. Granholm blown away by wind possibilities
- Granholm touts green energy while others are skeptical
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