Michigan Senate Bill SB0362

Michigan 2023-2024 Regular Session

• Introduced: 5/25/23
• Refer: 5/25/23

Caption

Energy: alternative sources; distributed generation program; eliminate modified net metering and cap on system capacity, increase cap on peak load, and provide for fair value tariffs and standard-offer contracts. Amends secs. 5, 7, 9, 13, 173, 175, 177 & 179 of 2008 PA 295 (MCL 460.1005 et seq.) & repeals sec. 183 of 2008 PA 295 (MCL 460.1183).

Impact

If enacted, SB0362 could significantly impact how distributed generation systems are integrated into Michigan's energy landscape. By establishing a fair value tariff, the bill seeks to ensure that customers who generate their own electricity receive credits that reflect not only the energy generated but also other economic benefits associated with their contributions. The proposed changes could facilitate a more robust market for renewable energy and alter the financial dynamics for electric utility providers in the state.

Summary

Senate Bill 362, known as the amendment to the Clean and Renewable Energy and Energy Waste Reduction Act, focuses on enhancing the framework for distributed generation in Michigan. The bill proposes to eliminate the modified net metering system and impose a new fair value tariff for customers generating their own electricity. This initiative aims to provide equitable compensation to distributed generator users for the electricity they contribute to the grid, thereby promoting renewable energy use.

Contention

However, the bill has also raised points of contention among stakeholders. Critics argue that the proposed changes may place additional financial burdens on electric utilities and could lead to higher costs for non-participating customers. Furthermore, some advocates believe that while the fair value tariff is a step forward, it doesn't go far enough in addressing potential barriers to more widespread adoption of renewable energy technologies. There are concerns that the limitations on certain capacities for net metering may stifle innovation in smaller renewable energy projects, thereby hindering the overall growth of the renewable sector in Michigan.