Michigan House Bill HB4228

Michigan 2023-2024 Regular Session

• Introduced: 3/9/23
• Refer: 3/9/23

Caption

Energy: alternative sources; distributed generation; eliminate caps. Amends sec. 173 of 2008 PA 295 (MCL 460.1173).

Impact

The introduction of this bill represents a meaningful shift in Michigan's approach to energy law, as it removes certain caps on distributed generation. For the initial phases of the program, utilities are not allowed to exceed 1% of their average peak load from distributed generation systems. The bill is designed to promote broader participation among electric customers encouraging the use of renewable resources, with a particular focus on safety standards, grid reliability, and timely interconnection for eligible customers. Therefore, it aligns with national trends towards decentralizing energy production and promoting cleaner energy sources.

Summary

House Bill 4228 seeks to amend the 2008 Clean and Renewable Energy and Energy Waste Reduction Act by revising Section 173, specifically focused on distributed generation programs. The bill mandates that the Michigan Public Service Commission establish a distributed generation program that all electric utilities and alternative suppliers must adhere to. This program is intended to ensure that customers generating electricity from alternative sources can interconnect with the utility grid and operate parallel to it, up to a capacity that matches their past electricity consumption. The legislation proposes more uniformity in application processes across various utilities and encourages a wider adoption of distributed generation systems.

Contention

While supporters emphasize the positive implications for renewable energy adoption and consumer empowerment, critics raise various concerns surrounding the potential impacts on traditional utility business models and infrastructure. The proposed legislation's changes may lead to higher costs for utilities, which could subsequently affect pricing and consumer electricity bills. As such, stakeholders from both sides must navigate the balance between fostering innovative energy solutions and ensuring that existing energy infrastructure remains viable and sustainable.