At the end of the day, decisions to build or not to build renewable energy generation, or any generation resource for that matter, must be done because it makes economic sense for Michigan.

The Michigan Legislature ended the year with a full plate of issues to tackle when it returns this month. At the top of the list is energy policy. For most of 2007 the Michigan House Energy and Technology Committee has been working on legislation that would adopt an aggressive renewable portfolio standard (RPS), a mandate that utilities, including your cooperative, include at least 10 percent renewable energy in the power supply mix. Legislation also would require greater utility investment in measures to improve customers’ efficient use of electricity. These measures are part of a broader energy policy initiative to address our state’s need for new electric generating capacity over the next 10 years and beyond.

As I have stated in past issues of Country Lines magazine, your cooperative continues to support the development of renewable energy in Michigan. In addition to enabling the state’s first wind farm, Michigan electric cooperatives have been buying power from hydro-electric facilities in the Upper Peninsula for many years. Cooperatives also buy power from methane digesters, landfill gas generation systems, and wood-burning plants—all renewable energy resources. But what we won’t support is renewable energy at any cost. This simply results in a transfer of wealth from your pocket to a renewable energy developer’s pocket.

For a real world example, look at what happened over a year ago when a public institution, using public and utility money, installed a series of wind turbines on their property. They were sold equipment with a promise of great savings and the ability to sell back excess power to their local utility. After a year of operation, using their numbers for availability and generation, a conservative estimate is that the electricity generated from this site cost over 50 cents per kwh. Compare that to about 10 cents per kwh charged by the local utility. That’s not a good return on investment for the public institution, but it’s a great return to the developer that sold the equipment.

The state’s first utility-size wind project, Harvest Wind Farm, located in the Thumb, is now operational. This project was a joint effort by John Deere Wind Energy and Wolverine Power Cooperative, the state’s cooperatively-owned wholesale power supplier to several electric distribution co-ops. Unlike the example above, the Harvest Wind Farm will generate electricity at prices that are much closer to what it costs to buy energy from conventional sources. It won’t be cheaper, but it also won’t significantly drive up costs to retail customers. The Harvest Wind farm was built without a government mandate. It was built because it made economic sense to do so.

Many have pushed for a mandate for renewable energy, arguing that it would attract thousands of new jobs to the state. I have heard various projections for the number of jobs that would be created, but they all hinge on the same logic: If we fail to adopt an RPS, Michigan will lose the opportunity to attract the alternative energy industry to Michigan.

I tend to think that manufacturers will come to Michigan because of our manufacturing history, under-utilized work force, and manufacturing capacity. They will not necessarily come because Michigan adopts an overly aggressive RPS. Take Arkansas as an example. Earlier this year, LM Glasfiber, one of the world’s leading suppliers of blades for wind turbines, announced plans to open a new manufacturing facility in Little Rock. The plant is scheduled to begin operations early this year and will employ over 1,000 people within five years. Arkansas does not have a state-mandated renewable portfolio standard.

At the end of the day, decisions to build or not to build renewable energy generation, or any generation resource for that matter, must be done because it makes economic sense for Michigan. Manufacturers of alternative energy equipment will not necessarily locate in Michigan because we adopt a mandate on renewable energy, but will do so because of our state’s workforce, manufacturing capacity, and educational opportunities. Policymakers need to focus on what makes Michigan a great place to live, work, and raise a family. Michigan has so much to offer without mandating programs to benefit a few at the cost of many.

Here’s hoping that we have a successful 2008.