Full Title: Feasibility and Implications of the Michigan 2012 Proposal 3 for a 25% State Renewable Portfolio Standard
Author(s): Elisabeth Moyer, Sean Johnson, Lexie Goldberger, Joe Zhu
Publisher(s): University of Chicago Center for Robust Decision-making on Climate and Energy Policy
Publication Date: October 1, 2012
Full Text: Download Resource
Description (excerpt):
Analysis of the wind resources of Michigan suggests that the 2012 ballot Proposal 3, which would amend the state’s constitution to mandate that 25% of the state’s electricity sales derive from re- newable sources, can be met by its 2025 target date with a moderate direct financial impact on the consumer. The amendment as written does pose some conflict between the stated intent of in-state business support and consumer cost-protection, with the responsibility for balancing these objectives likely placed on the Michigan Public Service Commission (MPSC).
The language in Proposal 3 implies intent to favor in-state generation for the purpose of eco- nomic stimulus, but through a technicality allows the use of out-of-state windpower in large parts of Wisconsin, Illinois, Indiana, and Ohio, and, depending on the interpretation of the MPSC, pos- sibly also portions of Minnesota, North Dakota, and South Dakota. (This same exception, that covers all service territories of utilities that serve Michigan customers, also applies to the smaller existing state renewable portfolio standard enacted in Public Act 295.) Over much of the out-of- state eligible area, wind speeds are substantially higher and so the cost of windpower generation is lower than in Michigan. While Michigan has some high-quality onshore wind resources, par- ticularly in the “Thumb” of the state, wind farm site quality would drop off as more in-state wind capacity is built.