LANSING – The House Energy and Technology Committee today approved a bipartisan plan proposed by State Representative Kathy Angerer (D-Dundee) to provide incentives for utility companies to create energy-efficiency plans, while also protecting their freedom to design their own strategy. The bipartisan plan will help transform Michigan into a model state for programs that boost energy efficiency.
"We need to achieve energy security for residents of our state – and that starts with rewarding energy efficiency," Angerer said. "There is an ever-increasing demand for energy around the world, and energy efficiency is the single most effective way to hold down energy costs for Michigan consumers over the long-term. When California experienced severely disruptive blackouts in the summer of 2001, our nation saw the extreme havoc that a spike in energy demand can have. By securing our energy future, my plan will move Michigan forward and protect our state's potential as a key player in the 21st century global economy."
The legislation would require utilities to create energy-efficiency programs that detail how they will meet target energy savings and then 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 chronically failed to reach performance standards due to a lack of good-faith efforts.
According to one estimate, an energy-efficiency program could save Michigan $3 billion in electricity costs over the next 20 years. Angerer noted that providing incentives for energy-efficiency programs allows Michigan to postpone the need to build more costly pollution-generating power plants that deplete natural resources.
"Flexibility is one of the foundations of my plan," Angerer said. "This plan provides incentives for energy efficiency while protecting the freedom utilities have in designing the strategy that is most effective for their customers. Working together to reach shared goals of reducing energy consumption is the right thing to do for the future of our state."
Angerer's plan that passed out of committee Wednesday was part of a bipartisan-backed package to reduce our state's dependence on foreign oil and establish Michigan as a 21st century powerhouse of renewable energy production. One bill in the package establishes a Renewable Portfolio Standard (RPS), which builds a strong, stable market that attracts international companies, creating jobs in this rapidly growing industry. That plan stipulates that 10 percent of annual electricity sales come from renewable energy sources – such as solar, wind, hydroelectric, geothermal, and biomass-based power – by 2015 and establishes an interim benchmark of 4 percent by 2012 for electricity providers