LANSING – The Michigan House of Representatives today passed a forward-looking strategy crafted by State Representative Kathy Angerer (D-Dundee) to provide incentives for utilities to map out energy efficiency programs for customers. Increasing energy efficiency is the best way to help keep electricity affordable for everyone in our state, and will create thousands of jobs for workers employed at businesses that sell and install energy efficiency products or run energy efficiency programs.
"Michigan's working families face difficult economic times, and the rising costs of oil, natural gas and coal puts even more pressure on the pocketbooks of our consumers," Angerer said. "The surest way we can help keep electricity affordable for everyone in Michigan is to boost energy efficiency."
Angerer's plan:
- Requires utilities to establish programs that help residents and businesses use electricity and gas more efficiently, a move that is vital to reducing the need for Michigan to generate more power. Angerer's energy efficiency measures have the potential to eliminate the need for up to two power plants.
- Requires utilities to submit their plans to the Michigan Public Service Commission. Under the legislation, utilities could either choose to operate their own energy efficiency program or contribute to an independent energy-efficiency program. The Public Service Commission would impose regulatory sanctions if it determines that a utility failed to reach performance standards due to a lack of good-faith efforts.
- Includes incentives to ensure that utilities are invested in the programs' success and have the flexibility they need to execute their strategy.
The bipartisan plan will help transform Michigan into a model state for programs that boost energy efficiency.
"I have worked so hard on getting bipartisan support for this plan because improving our energy efficiency is the fastest and most cost-effective way to move toward energy independence and reduce consumer costs," Angerer said. "By providing incentives for utility companies to map out energy efficiency plans, we are securing our energy future."
Angerer – who over the past year has served as a lead negotiator in other key economic-stimulus plans that will jumpstart Michigan's economy and create jobs now for our workers – received high praise on Thursday for her vision and leadership in creating this bipartisan energy efficiency plan.
Dr. Martin Kushler, a national energy expert who has assisted Michigan and many other states in developing energy policies, noted the long-term impact and importance of Angerer's legislation.
"This energy efficiency legislation represents a tremendous achievement for Michigan," said Kushler, who serves as Director of the Utilities Program for the American Council for an Energy Efficient Economy (ACEEE). "The energy efficiency programs that would be required under this bill will help consumers and businesses fight back against high energy costs, and should help Michigan utility ratepayers literally save several billion dollars over the next decade. Representative Kathy Angerer deserves special credit for her leadership in developing this legislation, doing so in a bipartisan way, and getting it passed through the House."
Kushler, who cited a November 2007 ACEEE report that showed this type of energy efficiency plan would create about
3,400 jobs in the first year and about 8,100 jobs by the fifth year, encouraged the Michigan Senate to act quickly to
pass Angerer's plan and get it to the Governor's desk.
Tony Earley, DTE Energy Chairman and CEO, described Angerer's policy as balanced and far-sighted.
"The package of energy bills passed by the House represents the kind of far-sighted policy that will secure energy supplies and jobs in Michigan for decades to come," Earley said. "I appreciate the hard work of Representative Kathy Angerer, who led the energy efficiency work-group in developing that crucial part of the package."
Angerer's plan is part of a groundbreaking, long-term energy plan that passed the House with a bipartisan margin of 81 to 18 on Thursday. The package will create thousands of jobs for Michigan workers, keep electricity and gas affordable for consumers and businesses, and ensure that our state has the safe, reliable power supply necessary to achieve major economic growth. One bill in the package adds Michigan to the more than two dozen states with a renewable energy standard, which will attract thousands of "green-collar" jobs to our local communities.
"For the future of our state, it's vital that we work together to reach shared goals of reducing energy consumption," Angerer said. "My plan will help Michigan achieve its economic potential and be a key player in the global economy."