LANSING – The Midcontinent
Independent System Operation, which oversees transmission of electric power to
some 15 states including Michigan, has released survey results indicating there
may not be an electric shortage crisis soon as some utilities have suggested
and that has interests on both sides of the energy debate talking.
The 2015 survey conducted by MISO
and the Organization of MISO States actually shows a 1.7 gigawatt regional
surplus for 2016 primarily due to an increase in resources committed to serving
MISO electric load combined with a decrease in load forecasts.
That’s a stark difference from the
2014 survey that had projected the region faced a 2.3 GW shortfall beginning in
2016.
Although there does appear to be
some zonal deficits at times, the organization said those areas will be able to
import needed capacity from neighboring zones to meet needs due to their
membership in the regional transmission organization.
The first potential regional
shortfall, according to MISO’s report, appears in 2020 instead of 2016, though
it cautions that additional actions are needed to ensure sufficient resources
beyond 2019.
The results are significant to
Michigan, especially as it considers revamping its energy law by the end of the
year. So far, the House has held numerous committee hearings on legislation it
proposed, but the Senate has yet to introduce their proposals.
Mike Nofs (R-Battle Creek), chair of the Senate Energy and Technology
Committee, has said he was waiting for completion of the budget process while
also balancing an appropriate time to begin discussions in light of
yet-to-be-released emissions standards from the U.S. Environmental Protection
Agency expected to mean some power plant closures.
It was not immediately clear how the
new results from MISO might change the discussion about Michigan’s energy
policy, if at all.
Nofs did not return calls seeking
comment.
One of the biggest debates related
to the state’s energy law is whether to keep a so-called “energy
choice” policy that allows for 10 percent of the market to be run by
alternative electric suppliers. Utilities argue that system has been a failure
to some degree, but choice supporters used the MISO report to call on utilities
to back down on their “scare tactics.”
“Today’s startling new numbers
should put the final nail in the coffin of the utilities’ push to eliminate
electric choice here in Michigan,” Wayne Kuipers, executive director of
Energy Choice Now, said. “DTE and Consumers Energy owe lawmakers and
ratepayers the truth, not more high priced scare tactics and dishonest
television ads.
“MISO released the hard data
today – there is no projected shortfall. Legislation to abandon competition
will only force Michiganders to pay billions in higher electric rates while two
giant companies rake in the profits,” he said.
But Kelly Rossman, speaking for
Citizens for Michigan’s Energy Future, which is urging limits to choice, said
the MISO report actually backs up some of its concerns about the need for more
electric generation in Michigan.
“The recently released MISO
capacity survey results support the fact that Michigan (Zone 7) is the most
stressed region in the Midwest for electricity and if left unaddressed, growing
capacity shortfalls may lead to unpredictable price spikes,” Rossman said
in an e-mail. “Nine critical coal-fired plants in Michigan will be
shutting down next year – plants that generate enough power to serve one
million people.
“We can do nothing and face the
prospect of electric shortfalls and let the federal government takeover
Michigan’s energy policy – or we can take control of Michigan’s energy future
by creating a new energy plan that puts our state first,” she continued.
“Reforming Michigan’s electric market regulation will ensure
affordability, reliability and long-term stability for Michigan families and
businesses.”
This story was published by Gongwer
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