NCPA - National Center for Policy Analysis

Michigan Groups Aim for Green Energy Mandate in State Constitution

October 24, 2012

Michigan is pushing toward using more renewable energy and the latest proposition has many groups lining two sides of an argument.  Proposition 3 would limit utility rate increases to consumers to 1 percent per year, and allow for annual extensions of the 2025 deadline in order to prevent rate increases of more than 1 percent. It also requires the state legislature to pass additional laws that encourage the use of Michigan-made equipment and in-state workers, says Michael Bastasch of the Daily Caller.

The Michigan Environmental Council is leading the effort to pass the proposition.  It is part of Michigan Energy, Michigan Jobs -- a coalition that includes the Sierra Club, the American Wind Energy Association, the NAACP, the Natural Resources Defense Council, United Auto Workers and Michigan Democratic Senator Debbie Stabenow. 

The Michigan Environmental Council states:

  • Initially the residential utility rates will be close to 50 cents a month more and by 2030; residential utility rates will save over 80 cents a month.
  • The proposition will create 74,495 jobs and requires an investment of $10.3 billion in renewable energy.
  • Most of the increased energy generation is from wind power.

The coalition Clean Affordable Renewable Energy opposes the proposition and its members include the Michigan Chamber of Commerce, International Brotherhood of Electrical Workers local unions, Latin Americans for Social and Economic Development, DTE Energy and the American Coalition for Clean Coal Electricity. 

The Clean Affordable Renewable Energy coalition states:

  • Proposition 3 will put a $12 billion burden on both residential and commercial customers.
  • Almost as many jobs will be lost in the energy industry as gained from the new proposition.

The Energy Information Administration says that in 2010, wind power was 0.3 percent and renewables 3.7 percent of Michigan's energy generation. The Mackinac Center for Public policy says that by 2025 the proposition would cost the state of Michigan 10,540 jobs, cost the state $2.55 billion and increase average annual household electric costs by $180.

Source: Michael Bastasch, "Michigan Groups Aim for Green Energy Mandate in State Constitution," Daily Caller, October 16, 2012.


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