To blithely add to the cost of electricity by mandating that every electric supplier include renewable energy as part of its power supply mix, without regard for cost, is unreasonable.

Last month, I attended a strategic planning meeting of the board and management team for one of our electric cooperatives. As with most well-run organizations, your cooperative’s board of directors periodically takes a close and critical look at it’s operations and meets with the manager and staff to discuss issues affecting the cooperative and its members. This is always a good time to discuss issues that may affect how the cooperative provides service, such as legislation or state agency rules, tax policy, or environmental regulations that are being debated at the state or national level.

At this particular meeting, the issue of renewable energy was on the agenda. Michigan, like many other states, is actively discussing energy policy and the role renewable energy will play in meeting our growing demand for electricity. Earlier this year, Gov. Granholm directed the chairman of the Michigan Public Service Commission (MPSC), Peter Lark, to develop a 21st Century Energy Plan. Chairman Lark tapped MPSC Division Director George Stojic to lead the workgroup that is expected to issue its report by the end of this year.

Granholm, as part of the directive, referenced the need to study the appropriate use and application of energy efficiency, alternative energy technology, and renewable energy technologies that are consistent with the goal of assuring reliable, safe, clean and affordable energy. The governor also stated that the plan should establish targets for the share of Michigan’s energy consumption that should be supplied by renewable energy sources. This is typically called a “renewable portfolio standard,” or RPS.

The Legislature has looked at renewable energy mandates over the last several years. Last year, a subcommittee led by Rep. David Palsrok, R-Manistee, of the House Energy and Technology Committee, held a series of hearings on renewable energy and reviewed current green energy programs in Michigan and the potential for adding renewable energy to Michigan’s power supply picture.

As the board discussed the issue of renewable energy, one director, Richard Sandbrook, said he was not necessarily opposed to renewable energy, but he was concerned about the cost. He saw significantly more benefit to the cooperative and its members in promoting energy conservation and energy efficiency. In the end he said, “I would say I am ‘light green.’ Renewable energy can be good, but it has to be at a reasonable cost. I don’t like government mandates that don’t take into account the cost to consumers.”

At both the state and national levels, some organizations have been more aggressive in promoting renewable energy. At times it appears that their mantra is “green at any cost.” These groups ask for unreasonable mandates on the percentage of renewable energy to be included in a utility’s power supply mix without regard to cost. They have promoted aggressive net metering programs that encourage the development of renewables, but force other customers to cover the costs. They have aggressively moved to block the development of new clean coal generation projects in areas where power is needed, in turn blocking the jobs that would come from building a large power plant.

Don’t get me wrong. The co-ops are not opposed to renewable energy, energy efficiency and conservation measures. In practically every issue of Country Lines magazine you will find something about these subjects (and we promise to do even more). But, we are also concerned that any policies pursued at the state and national levels make sense for all of Michigan’s energy consumers. Michigan’s economy continues to lag behind the rest of the nation and the Midwest in general. Michigan’s energy costs are at or above the national averages. To blithely add to the cost of electricity by mandating that every electric supplier include renewable energy as part of its power supply mix, without regard for cost, is unreasonable. In my mind this is a “dark green” approach.

Back to Mr. Sandbrook’s observations regarding ‘light green.’ I believe ‘light green’ is a good option for Michigan. Where renewable energy options can be implemented at a reasonable cost compared to fossil fuel-based generation, we should do what we can, within reason, to incorporate it into the power supply mix. On the demand side, we would all do well to improve on the efficient use of power and to conserve where possible. As a state we need to consider our building codes and energy efficiency requirements for appliances. Are we doing what we can to use energy wisely?

As the Michigan Public Service Commission and the state Legislature continue to consider policy issues affecting power supply for years to come, they would do well to consider ‘light green’ as the prudent approach.