LANSING – Legislation pending in the Michigan House Energy and Technology Committee will tell renewable and conventional energy entrepreneurs that Michigan is closed for business, Customer Choice Coalition supporters said at a news conference Monday.

“Competition, choice and free markets are better solutions to

Michigan’s energy policies than monopolies, increased regulation and

restrictions on entrepreneurs,” said Sen. Wayne Kuipers, R-Holland, sponsor

of SB 427, which would call for all energy providers to compete to meet

future electricity needs. “When many companies are vying to enter

Michigan’s electric market, as is happening today, customers should be

allowed to benefit from the competition that will hold rates down and

ensure more reliable — and renewable — energy to meet the state’s future

needs.”

The House bills would hand complete control of Michigan’s electric

needs to DTE and Consumers Energy while tying the hands of the Michigan

Public Service Commission (MPSC). The bills would mandate renewable

purchases but would allow the utilities to exclude energy entrepreneurs to

build and operate new coal fired, wind, landfill gas, anaerobic digester

and other sources of electricity. After eliminating these sources of

competitive energy and remonopolizing the electric system, the bills would

restrict the ability of the MPSC to control rates by allowing file-and-use

rates that could automatically go into effect.

“These bills will force cuts in school classrooms around the state,”

said David Zuhlke, governmental and legislative liaison for the Middle

Cities School Association, which has organized the Michigan School Energy

Cooperative. “Schools have saved $22 million through electric choice since

2001. Universities are saving millions more. We are compelled by state law

and sound practices to seek bids on virtually every item we purchase — but

now some in the state seem to think we should not be allowed to

competitively bid electricity.”

Mary Dechow, director, government and regulatory affairs for Spartan

Stores, said the ability to shop for electricity is saving money for

families who shop for groceries. “We save more than a half-million dollars

annually thanks to electric competition and choice,” she said. “We have to

sell a lot of cans of corn to make up that amount of money.”

Former MPSC Chairman Eric Schneidewind told reporters of a renewable

energy company operating in Michigan that developed an anaerobic digester

electricity generator. The company was forced to go to the MPSC to get

Consumers Energy to allow the farm operation to provide power – and now is

paying far less for this renewable green power than it is paying for other

sources of power.

“Michigan electric customers deserve a bidding process that will let

the lowest-cost provider of electricity of any kind be the source of

Michigan’s power. Only Michigan’s utilities are standing in the way of this

plan,” Schneidewind said.

Rodger Kershner, an attorney representing a number of independent power

generation companies, said policymakers are being misled by the two

utilities when they say new plants can be built only by monopolies.

“Consumers and DTE are wrong when they say PA 141 has to be revoked in

order for a new plant to be built in Michigan, there are better

alternatives,” he said. “Already a major national developer of power plants

is laying the ground work now for investment in a new power plant in

Midland and a second non-utility plant is being developed in Rogers City.

By pushing to have PA 141 repealed, the monopoly utilities are asking the

state to send mixed messages to job providers and entrepreneurs, who want

to help power Michigan’s economic recovery.

Since passage of choice legislation, Michigan electric rates have

increased slower than the rest of the Midwest states. Meanwhile, Wisconsin,

which has a similar regulatory scheme as proposed by the utilities and now

backed by the governor, has seen the highest electric rates in the Midwest,

hurting manufacturing jobs.

The Customer Choice Coalition is the only group that brings together

large and small energy users and private electric providers to support

increased choice and competition in Michigan’s electric system.

For more information, click on StopTheMonopoly.Com

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