MSEC UPDATE & NEWSLETTER #32

Michigan Sustainable Energy Coalition

Vol. 2. No. 32 December 5, 2008

Executive Director’s Update:

To: MSEC Members

From: Andy Such, Executive Director

Second Important Board Meeting

What’s Next?

The MSEC Board met on November 10 and discussed the future of the organization as Renewable Energy moves to the implementation stage. There a was a great deal of discussion and it was decided to schedule a Board meeting for December 8 to discuss further and take appropriate actions.

The future direction of the organization will be up to your MSEC Board of Directors and you, the members of MSEC.

There was a general consensus amongst Board members that our work is just beginning with the passage of the RPS legislation. There is the job of monitoring the activities of the MPSC regarding renewable energy and being involved in the implementation of the new laws.

We must exercise oversight there to make sure the things that were agreed to be actually implemented. We also need to keep legislators informed as to how the implementation of renewable energy is facilitated and suggest changes in the law when we feel they are needed.

Board Meeting, Monday, December 8 at Noon at MFB Offices

We will have a Board meeting on Monday December 8 at 12:00 noon at the Michigan Farm Bureau. If you have any questions please feel free to call.

Thanks. – Andy

Utilities Ordered To File Energy Plans
Electric and gas companies must file renewable energy and energy optimization plans with the Michigan Public Service Commission (MPSC) under a “temporary order” issued Thursday, December 4, 2008.

Under the new energy law, the MSPC is charged with ultimately approving whatever the utility companies turn in.

MPSC Chairman Orjiakor Isiogu called today’s action “the first step of many that will be taken by the MPSC and utilities to provide Michigan with a reliable, stable electric supply to meet our future needs.”

Electric companies must lay out plans to meet the new renewable portfolio standards, which require that a certain amount of generation come from renewable sources, like wind and solar energy. The idea is for energy companies to focus on ways to conserve energy consumption and stave off construction of new electric generation plants.

Electric utilities and alternative electric suppliers have 90 days to file their plans. Municipal-owned and member-regulated utilities have 120 days.

The MPSC staff will conduct two technical conferences to help the utilities with its plans.

The first conference will be held at 9 a.m., Jan. 5 at the MPSC’s Lansing office. The second conference will be Jan. 6 in the same location.

Wind Energy Resource Zone Board Members Named
As directed under the new energy law, the MPSC today created the Wind Energy Resource Zone Board and appointed 11 members to serve.

The appointees are:

- Trevor LAUER, DTE Energy vice president, retail marketing, representing the electric utility industry

- David WALTERS, Zeeland Board of Public Works general manager, representing the electric utility industry

- Robert IANNI, Department of Attorney General, Tobacco and Special Litigation Division chief, representing the Attorney General

- John MICELI, Wolverine Power Cooperative energy market analyst, representing alternative electric suppliers

- Steve BROCK, Farmington Hills city manager, representing cities and villages

- Gene JORISSEN, Charter Township of Pere Marquette supervisor, representing townships

- Roger KERSHNER, Renewable Energy Systems Americas, Inc., representing the renewable energy industry

- David WRIGHT, Michigan Environmental Council, representing a statewide environmental organization

- Thomas VITEZ, vice president, Transmission Planning, ITC Holdings Corp., representing independent transmission companies

- Mary TEMPLETON, senior vice president, North American OEM Group, R.L. Polk & Company, representing the public at large

- Julie BALDWIN, MPSC engineer, representing the Commission

The board is charged with studying how economically viable wind energy production is in various parts of the state and how much land is available in those areas where wind energy would work. A preliminary report is due by June 2, 2009.

The impacted local units of government have 63 days to look at the first draft and submit comments. The board has 45 days from then to issue a final report.

Electric companies will get 45 days to look at the results and let the board know where it feels wind energy makes sense economically. The board then has 45 days to wrap up its work, after which it is required to dissolve.

In Other MPSC Actions on Thursday, December 4…

Cloverland Electric Cooperative Rates To Increase
MPSC approval of Cloverland Electric Cooperative’s 2007 power supply costs and time interest earned ratio (TIER) ratemaking mechanism will result in customers paying more beginning the next full billing month.

The Commission found the company under-collected $994,494 for the 12-month period ended Dec. 31, 2007. That amount has been recovered in the company’s 2008 power supply cost recovery (PSCR) plan.

However, the Commission authorized the utility to increase its TIER that will increase rates by $956,904.

MPSC Hosts Nigerian Delegation
As participants in an exchange program, the Michigan Public Service Commission (MPSC) is hosting a delegation of officials from the Nigerian Electric Regulatory Commission.

Through the sponsorship of the United States Agency for International Development and the joint efforts of the National Association of Regulatory Utility Commissioners, the Nigerian Electric Regulatory Commission (NERC), and the Michigan Public Service Commission, the NERC and MPSC have entered into a partnership for the exchange of experience and information.

Last July, a delegation from the MPSC visited Abuja, Nigeria. This week, the Nigerian delegation is visiting Lansing.

MSEC Meetings

The MSEC Board of Directors will meet on Monday, December 8, 2008 at 12:00 noon at the Michigan Farm Bureau Offices at 7373 West Saginaw in Lansing.

Legislative Meetings

House Meetings Scheduled (Includes House and Joint Committees)
Appropriations: Joint Capital Outlay (12/9/2008) New
Conference Committee on HB 5282 (12/9/2008) New
Conference Committee on HB 5283 (12/9/2008) New
Judiciary (12/9/2008)
Judiciary (12/10/2008)

Senate Meetings Scheduled (Includes Senate and Joint Committees)
Commerce and Tourism (12/9/2008)
Commerce and Tourism (12/10/2008)
Conference Committee on Health Care Corporations (12/9/2008)
Conference Committee on Individual Health Benefit Plans (12/9/2008)
Education (12/10/2008)
Judiciary (12/10/2008)
Legislative Commission on Government Efficiency (12/8/2008)
Legislative Commission on Statutory Mandates (12/18/2008)
Natural Resources and Environmental Affairs (12/9/2008) Cancelled
Senate Fiscal Agency Board of Governors (12/10/2008)

MSEC Website

The MSEC website address is: www.michigancleanenergy.com Please take a look and tell your colleagues who are not members of MSEC that they can join on line.

If you have any information for the site, or would like to help, contact Andy Such at: ajsuch@comcast.net Thanks again to Rich Vander Veen and the folks at Mackinaw Power for their support of the MSEC website.

NOTE: Any comments, suggestions or questions on this newsletter should be directed to Andy Such, Executive Director at 517-202-1786 or ajsuch@comcast.net

For more information contact:

Michigan Sustainable Energy Coalition

124 West Allegan, Suite 1210

Lansing, MI 48933

517-202-1786


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