Address Standby Rates Now (Or Greatly Expand True Net Metering)
New forms of distributed energy are one of the promises of renewable energy. There can be many smaller, even very small, electric generating stations dispersed throughout Michigan producing energy from local resources. It is the energy equivalent of buying local, and does not require transmission grid upgrades. But utility-imposed standby rates stand as an impediment. Ostensibly designed to compensate a utility for providing backup power to self generation, standby charges are too often structured to discourage distributed generation. These charges take away the economic incentive to build small energy centers. It is time to take the gloves off and either have reasonable standby rates or institute net metering for sources up to 5 MW. The MPSC can do the former; the Legislature must do the latter. Michigan’s energy future depends on it.
Tags: alternative energy, biomass, Michigan alternative energy, Michigan energy, Michigan Public Service Commission, renewable energy, standby
Energy | Bruce Goodman | 26 January 2010 |
