November 19, 2008, Introduced by Rep. Melton and referred to the Committee on Energy and Technology.
A bill to amend 2008 PA 295, entitled
"Clean, renewable, and efficient energy act,"
by amending sections 71 and 143 (MCL 460.1071 and 460.1143).
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 71. (1) A provider shall file a proposed energy
optimization plan with the commission within the following time
period:
(a) For a provider whose rates are regulated by the
commission, 90 days after the commission enters a temporary order
under
section 171 191.
(b) For a cooperative electric utility that has elected to
become member-regulated under the electric cooperative member
regulation act, 2008 PA 167, MCL 460.31 to 460.39, or a
municipally-owned electric utility, 120 days after the commission
enters
a temporary order under section 171 191.
(2)
The overall goal of an a
proposed energy optimization plan
shall be to reduce the future costs of provider service to
customers.
In particular, an a
proposed EO plan shall be designed
to delay the need for constructing new electric generating
facilities and thereby protect consumers from incurring the costs
of
such construction. The proposed energy optimization plan shall
be
subject to approval in the same manner as an electric provider's
renewable
energy plan under subpart A. A
provider may combine its
energy optimization plan with its renewable energy plan.
(3)
An A proposed energy optimization plan shall do all of the
following:
(a)
Propose Provide for a set of energy optimization programs
that include offerings for each customer class, including low
income residential. The commission shall allow providers
flexibility to tailor the relative amount of effort devoted to each
customer class based on the specific characteristics of their
service territory.
(b) Specify necessary funding levels.
(c) Describe how energy optimization program costs will be
recovered as provided in section 89(2).
(d) Ensure, to the extent feasible, that charges collected
from a particular customer rate class are spent on energy
optimization programs for that rate class.
(e) Demonstrate that the proposed energy optimization programs
and funding are sufficient to ensure the achievement of applicable
energy optimization standards.
(f) Specify whether the number of megawatt hours of
electricity or decatherms or MCFs of natural gas used in the
calculation of incremental energy savings under section 77 will be
weather-normalized or based on the average number of megawatt hours
of electricity or decatherms or MCFs of natural gas sold by the
provider annually during the previous 3 years to retail customers
in this state. Once the plan is approved by the commission, this
option shall not be changed.
(g) Demonstrate that the provider's energy optimization
programs, excluding program offerings to low income residential
customers, will collectively be cost-effective.
(h) Provide for the practical and effective administration of
the proposed energy optimization programs. The commission shall
allow providers flexibility in designing their energy optimization
programs and administrative approach. A provider's energy
optimization programs or any part thereof, may be administered, at
the provider's option, by the provider, alone or jointly with other
providers, by a state agency, or by an appropriate experienced
nonprofit organization selected after a competitive bid process.
(i) Include a process for obtaining an independent expert
evaluation of the actual energy optimization programs to verify the
incremental energy savings from each energy optimization program
for purposes of section 77. All such evaluations shall be subject
to public review and commission oversight.
(4)
Subject to subsection (5), an a
proposed energy
optimization plan may do 1 or more of the following:
(a) Utilize educational programs designed to alter consumer
behavior or any other measures that can reasonably be used to meet
the goals set forth in subsection (2).
(b) Propose to the commission measures that are designed to
meet
the goals set forth in subsection (1) (2) and that provide
additional customer benefits.
(5) Expenditures for programs and measures authorized under
subsection (4) shall not exceed 3% of the costs of implementing the
energy optimization plan.
Sec.
143. Within 60 days after the effective date of this act
By December 5, 2008, the commission shall create the wind energy
resource
zone board. The board shall consist of 9 11 members, as
follows:
(a) 1 member representing the commission.
(b) 2 members representing the electric utility industry.
(c) 1 member representing alternative electric suppliers.
(d) 1 member representing the attorney general.
(e) 1 member representing the renewable energy industry.
(f) 1 member representing cities and villages.
(g) 1 member representing townships.
(h) 1 member representing independent transmission companies.
(i) 1 member representing a statewide environmental
organization.
(j) 1 member representing the public at large.