Michigan Energy Forum - September 6, 2012 - Irene Dimitry

Transcript

• 1. “25 by 25” A threat to Michigan’s energy futureSeptember 6, 2012
• 2. Michigan is already on a smart – and affordable – path to a cleaner energy futureDTE Energy is fully supportiveof renewable energy!DTE Energy and ConsumersEnergy have made significantprogress toward reaching ourcurrent standard of 10 percentby 2015. • $585 million investment by Consumers • $1.5 billion in direct capital investments by DTE • Our suppliers will make similar levels of investment 2
• 3. Reality check to meet “25 by 25”“25 by 25” will ….• Require additional 5,000 MW of new renewable generation o More than 3100 wind turbines, covering >500,000 acres o That’s nearly 6 times the size of Detroit!• Not eliminate need for existing base load generation• Force Michigan to make a $10- $12 billion bet on certain renewable technologies to fuel Michigan’s energy future o A wrong bet, or one out of step with other states, hurts Michigan’s competitiveness o Rate cap language is vague and does not protect customers 3
• 4. Unpredictable variables make locking into a25% renewables portfolio unsound policy Future Environmental laws natural gas prices Cost considerations Other unpredictable variablesFuture climate change legislation Future wholesale electric Future (unknown) prices environmental legislation • Impact on customers • Competitiveness of state Transmission costs Performance of renewable Cost of technologies renewable energy technologies NIMBY factors 4
• 5. What will energy technology look like in2025? 5
• 6. Reality check on “25 by 25”Across the 50 states within the U.S. …. Only 12 states have renewable requirements for 25% or more…. All of those 12 states allow more options for compliance than allowed by “25 by 25”…. 10 of those 12 states’ renewable programs are structured using tradeable credits, which would not be allowed by “25 by 25”…. 6 of those 12 states do not require providers of all sizes to meet the full renewable goals…. Not a single state – regardless of the size of their renewable program – has cemented a renewable requirement within their state constitution!! 6
• 7. Jobs claims are misleading and vastlyover-stated • No jobs guarantee in the “25 by 25” ballot proposal • Both sides agree that ~94% of new renewables under “25 by 25” would be wind. However …. o “25 by 25” supporters claim that this proposal will create more jobs in the state of Michigan than currently exist in the wind industry across the entire U.S. o The wind industry is already overcapacity and wind manufacturers are laying off workers • “Job years” versus real jobs • Jobs studies cited by supporters of “25 by 25” include jobs associated with technologies / sectors not covered by the proposal 7
• 8. Conclusion• DTE Energy absolutely supports renewables, but we oppose the “25 by 25” ballot proposal because we do not think it is good for our customers or the State of Michigan• Michigan’s current renewable energy law is working and will position the State to make sound decisions about our future• Any changes to Michigan’s renewable goals should be done only after careful review and deliberation about what is best for Michigan – not by amending the Constitution• The “25 by 25” proposal will prove to be too costly for Michigan families and Michigan businesses 8