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State regulatory commission proposes penalizing DTE for outages
The Michigan Public Service Commission is seeking comments from the public and relevant stakeholders about a proposal that would fine utilities based onto the time it takes to restore power to homes.
(FOX 2) - For the second day in a row, a late-night round of legislating in the Michigan state House ended with the passage of major bills listed at the top of the Democratic Party's priority list after lawmakers approved its clean energy package.
The bills set a 2040 deadline for the state to generate 100% of its electricity with clean power sources, simplify the permitting process for clean energy projects, and increasing the cap on rooftop solar power.
It's a major win for Democrats for the governor, who pitched it during a summer address. But the vote fell along mostly party lines which Republicans warning the bills will make electricity more costly in the state and less reliable.
Conservatives also called the bills "extreme", predicted it would increase the likelihood of power blackouts, and argued the laws stripped local control over large-scale wind and solar projects. But progressive lawmakers countered the climate package is necessary for the state to ween off fossil fuels while also focusing on public health by mandating the commission that regulates power in the state to include climate change impacts when considering new rules.
"The clean energy goals we set out for Michigan are ambitious, and I believe we can achieve these goals in order for Michigan to push forward as the innovative pioneer that we have proven to be in the past. I am thrilled my colleagues and I in the House were able to deliver the Clean Energy and Jobs Act to help put those bold goals into action," said Rep. Abraham Aiyash (D-Hamtramck) who was the primary sponsor of the Clean Energy and Jobs Act.
The house bills also have similar legislation in the Michigan Senate, which is expected to pass it as well.
What's behind Michigan's frequent power outages?
What has driven Michigan's numerous outage events? Severe weather is a driver, but another is the state's approach to decarbonizing its power supply.
100% clean energy by 2040
Among the boldest portions of clean energy package is setting deadlines for utilities like DTE and Consumers Energy to generate electricity from renewable energy sources by certain years.
SB 271 lays out a roadmap for when utilities must generate energy from renewable sources, starting with at least 15% through 2029. From there, it requires 50% from 2030 to 2034, and 60% by 2035.
Electricity providers will also need a clean energy portfolio of 80% by 2035 through 2039. In 2040, they must generate 100% of their energy from clean sources by 2040.
The deadlines are earlier than what DTE has offered as its target date for being carbon neutral, which said it was aiming for 2050.
"This legislation makes Michigan a regional leader in clean, renewable energy, like wind and solar and will help our state address the dangerous pollution causing climate change," read a statement from 10 different advocacy groups.
"It holds big utilities accountable to move toward 100% clean energy by 2040, reduces our energy use through energy efficiency and conservation measures and puts more resources toward health and safety upgrades for low-income residents."
Republicans like Rochester Rep. Mark Tisdel said the mandate would drive up the costs of construction for new energy sources while drive down he reliability of the state's power grid.
"A rapid, forced transition to undependable power sources like wind and solar will bring on more blackouts throughout the state," he said.
Commission that regulates Michigan utilities proposes penalties for outages
The Michigan Public Service Commission regulates the state's utilities. It says 500,000 homes lost power after last week's storms.
Large energy projects
To account for clean energy requirements, House Bills 5120 and 5121 would transfer the authority for approving large-scale wind and solar projects to the Michigan Public Service Commission.
The MPSC would be charged with permitting for energy projects that would generate 100 MW or more of power. Currently, the permitting process goes through the local governing body where the project is planned.
Lawmakers argued that localities have blocked or restricted the development of new renewable energy projects. Those decisions, lawmakers argued, are best left to the state. Other Great Lakes states already have similar guidelines in place.
Affected governments and people would still be allowed to intervene in those cases. And if a local planning board wishes to pursue an energy project, they would be free to do so. The new law would spur economic activity, argued policy analysts.
"As the 2023 legislative session draws near a close, Michigan stands on the cusp of a historic opportunity to reinvigorate our economy," said Courtney Bourgoin, with the Evergreen Action. "With the House passage of the Clean Energy Future Plan and legislation that will modernize the process for siting new wind and solar projects, Michigan’s legislature is one step away from passing legislation that will be a catalyst for an economic boom in the state."
But some argue that stripping local zoning boards of their authority would hurt smaller cities, with critics calling it an "assault" on small communities.
"Over 87% of voters support local control, but today, legislators completely ignored the will of the people they promised to represent," said Our Home, Our Voice Inc., "Local communities' voices are being ignored and silenced."