In October, the Michigan Legislature swiftly passed several major energy policies that will impact Michiganders for generations to come. The bills passed on party lines, with all Democrats voting in favor and all Republicans voting against.

The Detroit News described the committee hearings as “one-sided and brief” while lamenting the passage of legislation in the middle of the night “without thorough debate or much, if any, public input.”

The most ambitious piece of the bill package is a requirement that 100% of Michigan’s electricity must come from clean energy sources by 2040 (SB 271). This bill requires utilities to get 50% of their energy from renewables by 2030 and 60% by 2035. Starting in 2035, the mandate begins recognizing nuclear energy as a clean energy source for all utilities.

Our statewide association successfully lobbied for a provision in the bill to allow Cherryland to count the output of Palisades Nuclear Power Plant sooner than 2035. This is a big win for our cooperative, reinforcing the value of the long-term vision we have for Palisades and nuclear energy in our power supply portfolio.

While the cooperative is well-served by our nuclear commitments, the bill overall is still problematic for Michigan. It sets an aggressive pace for renewable energy development over the next 8–10 years. This timeline is likely unachievable given the time it takes to finance, permit, and build projects. Most of these projects will be built in a high-inflation, high-interest rate environment, which will drive up costs and lead to higher electric bills.

But, most importantly, this bill does not give enough attention to electric reliability. To keep the lights on today, Michigan is dependent on importing power from outside the state 88% of the time. Forcing the rapid replacement of always available electric generation resources, like coal and natural gas, with variable electric generation resources, like wind and solar, will further destabilize Michigan’s electric grid.

The overall goals of SB 271 are laudable. Mitigating the environmental impact of electricity production is important. The development of renewable energy is good for Michigan. Independent of the mandate, Cherryland and its power supplier, Wolverine Power Cooperative, are already developing enough solar energy to power over 100,000 homes. Those resources will be incorporated into our portfolio alongside plenty of reliable, always available energy from our nuclear-, coal-, and natural gas-generating units.

Good energy policy balances three needs: affordability, reliability, and environmental impact. I am concerned that the policies that were passed last fall focus exclusively on environmental impact and were not appropriately vetted for their impact on reliability and affordability.

As we begin working toward these ambitious clean energy standards, I would encourage you to continue to remind all of your current and aspiring elected officials how electric reliability and affordability impact you.

When it comes to energy policy, there is too much at stake if we get it wrong and leave Michiganders in the dark.

Video Update January 2024
Michigan’s Clean Energy Challenge