Under proposal, 10% of Michigan's electricity by 2015 would come from renewable sources.
LANSING -- Within eight years, 10 percent of the electricity sold to Michigan consumers would have to come from renewable energy sources such as wind under bipartisan legislation passed Wednesday by a state House committee.
The standard would nearly triple by 2015 the amount of renewable energy being sold by utilities and other power producers in the state.
Because renewable energy can be more expensive to produce, the higher standard could cost residential customers an extra $36 a year, commercial customers an extra $199 and industrial customers an extra $2,250.
"This isn't a finished product," said Rep. Jeff Mayes, D-Bay City, who helped craft the bipartisan compromise. "We consider this a work in progress."
More than 25 other states already have renewable energy standards for energy companies, but the issue is far from settled in Michigan.
Although some House Republicans back the proposal, Senate Republicans say it's an unacceptable government mandate.
They favor giving tax credits to people who renewable green energy and making only state government -- not the utilities -- purchase a certain amount of clean power.
Senate Democrats and environmental groups want to go even further than the House legislation, proposing that 20 percent of all electricity come from renewable energy by 2020. There are even some who back a 25 percent renewable energy requirement by 2020.
Despite the haggling, supporters say setting a requirement would boost jobs, reduce pollution and dependence on coal, and protect against potential emissions regulations that could make coal more expensive to use.
The legislation includes limitations on how much more consumers could be asked to pay for renewable energy, which could cost more to produce than coal-generated electricity, at least until more limits on greenhouse gases are put in place.
Rep. David Palsrok, R-Manistee, said residents could have faced an extra $125 a year in costs over eight years. But lawmakers agreed to spread out the expense, lowering residents' potential tab to $3 a month, or $36 per year, over 20 years.
Another bill would create a program with incentives dedicated to improving energy efficiency. Energy-efficient light bulbs cost a few extra dollars but can save customers at least $30 in electricity over the bulb's lifetime.
Utilities could recoup costs of the program by charging customers more.
Friday, January 25, 2008
David Eggert / Associated Press
