Historic Michigan Energy Plan Approved – Can prove costly for Choice Customers

LANSING, MI – In December, Michigan legislators approved a plan to change state energy policy. This policy reflects an agreement supported by Gov. Rick Snyder in the final hours of the legislative session.

Michigan Gov. Rick Snyder signed into law what his office called a series of “historic energy reforms,” quickly finalizing a 234-page plan approved last week by state legislators.

The new energy policy establishes a new long-term planning process for traditional utilities as they continue to retire coal-fired power plants and consider replacements, increases renewable energy requirements, lifts a cap on efficiency incentives and largely retains the state’s limited “electric choice” program.

The Energy Plan gives the Michigan Public Service Commission (MPSC) the ability to impose large Capacity charges to Alternative Energy Suppliers (AES) that don’t produce their own electricity in the state or are an out-of-state energy marketer. This may, inequitably, impose high charges to customer taking supply from an AES.

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