Renewable Energy in Michigan

The Michigan Public Service Commission has issued a series of findings designed to provide guidance on changes electric utilities will be required to make in their renewable energy plans (REPs) so as to comply with the state's most recently enacted energy laws.

The commission noted that such plans are to reflect the utilities' 20-year forecasts approved in 2009 and must describe how each utility will meet the state's new goal of obtaining 35% of electric supply from renewable sources by 2021. The commission found that the 20-year plans should provide some insight into each utility's progress towards the 35% target.

However, in recognition of the fact that the law sets forth a 35% goal, not a mandate, the commission cautioned that it is yet to be determined what that 35% portion will be comprised of, but presumably it will be an optimal mix of power generated by renewable and energy waste reduction facilities. The commission observed that besides the 35% renewables goal, the new law also lists several other important objectives associated with electric generation, such as resource diversity; energy security (inclusive of reliance on in-state resources); incentives for private investment; and improved air quality and other environmental attributes.

The commission added that the REPs eventually will need to be coordinated with each utility's Integrated Resource Plan. It stated as well that in order to gain a fuller picture of the sources of renewable energy a provider intends to use for purposes of complying with the new law's renewable energy policies and goals, providers should include projections of the renewable energy credits they expect to receive from different kinds of programs, including Public Utility Regulatory Policies Act contracts, distributed generation, feed-in tariffs, community solar initiatives, and any other programs that provide such credits. (Case No. U-18409)