LANSING - The Michigan Senate on Nov. 10 adopted an update to the state's energy policy, approving a plan that passes muster with the state's building trades unions and their state-based utility partners.

The wide-ranging legislation, in the form of Senate Bills 437 and 438, would increase the state's renewable portfolio production standard from 10 percent to 15 percent by 2022, continue limited deregulation of utilities and energy choice for consumers seeking alternative suppliers, and guarantee a competitive bidding process for electricity generation.

Over the past two years, the Michigan Comprehensive Energy Plan has evolved and was shepherded through the Senate by Sen. Mike Nofs (R-Battle Creek) chair of the Senate Energy and Technology Committee. “We have crafted a policy that balances a broad and often widely disparate range of interests and addresses the key elements that will serve our state well for many years to come,” said Nofs.

Both Consumers Energy and DTE Energy are on board with the plan, with a DTE Energy spokesman saying that they don't mind the higher standard for renewable energy generation, created mostly by wind and solar power - because their company has been focusing on power generation in those areas anyway.

The two-bill package was adopted in a bipartisan manner, and now goes to the state House, where their future is unclear. The House gets the bills with only nine days left in the legislative session this year, and if the package isn't passed, a whole new crop of lawmakers will have to be brought up to speed next year.

The other potential hurdle for the plan was addressing a gnawing problem that the state's big utilities have had with energy choice: alternative energy suppliers are able to sell to electricity, often produced out of state, without having to pay the costs of generating it. "We're not building for people who don't pay us," said DTE Energy CEO Gerry Anderson to MIRS News Service.

The final Senate version of the legislation addressed their concerns: it adds a requirement that the alternative suppliers prove they have adequate resources to serve the needs of their customers. 

Keeping construction and maintenance work brought the Michigan Building and Construction Trades Council on board as supporters of energy legislation that allowed and encouraged utilities to continue to do business in our state. This plan does that.

"We cleared a high hurdle by getting this past the Senate, and it was done in a bipartisan manner, with a 26-11 vote," said Michigan Building and Construction Trades Council Legislative Director Patrick "Shorty" Gleason. "I think that sends a good message to the House. It's a good, comprehensive plan, and what it does is paramount: it will help keep Michigan-based utilities here in Michigan. That's important for the building trades, but it's also important for all the people they directly employ, and all the Michigan-based suppliers who do business with them."

A smaller group of lawmakers opposing the legislation is giving ear to the Michigan Manufacturers Association. "We believe several provisions in the package will effectively constrain choice opportunities over time, impose overly prescriptive responses to reliability situations that will increase costs and thus constrain manufacturers' ability to compete effectively in the global market," MMA's Mike Johnson wrote to lawmakers.

But the Michigan Chamber of Commerce supports the legislation, and presents a powerful backstop for lawmakers. "We support the bill because we're confident that it sustains choice," said Michigan Chamber President Rich Studley.