As the state looks to develop a new energy policy, Gongwer News Service Editor Zach Gorchow wrote recently that "a path to minimal change is visible."
On the Gongwer Blog, Gorchow said it seemed likely that the current 10-percent renewable portfolio standard would remain place as well as a 10-percent cap on competition in the electricity market.
The Chairman of the House Energy Policy Committee, Lawton Republican Aric Nesbitt proposed keeping the current renewable standard. But he also proposed a completely regulated market, with Consumers Energy and DTE Energy providing power to all of the customers in their service areas. But Gorchow says that's not likely to fly with Governor Rick Snyder or the Chairman of the Senate Energy Committee, Mike Nofs of Battle Creek.
Currently only 10-percent of the market in the state is open to competition. Gorchow says companies that want to enter the Michigan market want expanded competition. He says more competition is also favored by libertarians and free market conservatives. Gorchow says the state's large utilities such as Consumers Energy and DTE Energy would prefer a fully-regulated system.
Environmentalists and Democrats would like to see an increase in the state's Renewable Portfolio Standard. But Gorchow says the utilities and their allies argue that federal regulations are going to create a need for more renewable energy without additonal action from the state.
Gorchow says minimal change is the most likely outcome. He says Governor Snyder and Senator Mike Nofs seem to favor keeping a 10-percent cap on competition in the marketplace. Gorchow says one possible change to the calculation is that Nofs has mentioned a possible new "clean energy standard." But Gorchow says the Battle Creek Senator has yet to forward a firm proposal.
