1/22/2011
by Bruce Goodman, Energy Lawyer
One of the real opportunities for energy security and emission reductions is distributed energy. That hundreds, even thousands of smaller electric generating projects (solar, geothermal, wind, combined heat and power, cogeneration) could supply a large portion of the nation’s energy needs is no longer a pipedream. Although it may cut against a myriad of vested interests, having electricity produced locally (as local as a factory rooftop, a parking lot, or a farm-based biomass unit) would provide many benefits. Yet every week I deal with valid, real projects that are stymied by Michigan’s inadequate net metering program, unreasonably expensive utility standby rates, and lack of self service wheeling rights. The MPSC (and where necessary the legislature) needs to be aggressive in getting this situation corrected so that Michigan can partake in the many benefits of distributed energy. We need to get past the paradigm that taking load off the grid is bad and should be penalized. Unleash Michigan’s creativity and innovation. Let the wild rumpus begin
Tags:
alternative energy,
backup capacity,
distributed energy,
energy policy,
Michigan alternative energy,
Michigan energy,
Michigan Public Service Commission,
net metering,
PURPA,
self service wheeling,
standby rates
Watt's New? Michigan Energy News |
Bruce Goodman |
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8/27/2009
by Bruce Goodman
For many who have been in the energy practice since the PURPA days it seems like history is repeating itself. The Public Utilities Policy Act of 1978 had as its laudable goal the encouragement of renewable energy and energy efficiency. Small power production (renewable) projects and cogeneration (energy efficiency) projects were intended to make the nation more energy efficient and self sufficient. Just as now, ratepayers saw renewable energy and dispersed power as a way to save money while contributing to energy independence. However, progress was impeded by Michigan utilities who challenged the meaning of “avoided cost” and who imposed stifling standby rates. Today the utilities are again impeding the development of alternative energy and again are using purchase power rates and standby rates as two of their weapons. [Setting standby rates at a level that assumes all independent power on the grid will go down at the same time is not appropriate. Notwithstanding a good start on the standby issue in the new net metering rules, except for very small projects standby remains a hurtle and an impediment.] Unless the legislature aggressively addresses competitive pricing and standby rates, it may be déjà vu again in Michigan.
