The first of the energy measures, Senate Bill 213, mandates an RPS of 10 percent by the year 2015. This means that 10 percent of the energy used must be renewable by 2015. This will come at an estimated cost of a $6 to $8 billion dollar tax increase on Michigan residents over the next 20 years when the state’s economy is on life support. I voted no on this bill. Its government mandates on businesses will raise electric rates on millions of Michigan residents and businesses. The use of renewable energy seems to be the way of the future as more and more Michigan companies are taking advantage of these new technologies. So why does government need to place burdensome mandates on our companies? Imposing mandates is hardly the help our businesses are asking for.

In contrast to the cost increases of SB 213, House Bill 5524 provides stability in future electric rates by ensuring more electricity is generated here in the state. I voted yes on House Bill 5524. This measure rewrites the electrical energy “customer choice” law (PA 141). It is intended to encourage significant investment in the state’s energy infrastructure and decrease the state’s reliance on out-of-state electricity generation. HB 5524 moves us toward energy independence and security as we meet the energy needs of the state.

With the nation’s highest unemployment rate, skyrocketing business costs, increased regulatory burdens, a loss of one-third of the state’s manufacturing jobs, and projected shrinking electric demands, Michigan needs economic stability and long-term growth. This bill provides it.

In addition, there is the question of fairness in electric rates. Current electric rates are skewed in favor of residential customers whose rates are being subsidized by businesses. These subsidies place an extreme economic hardship on Michigan companies, causing them to lay off employees or move out of state. Under HB 5524, the two largest electric utilities, Detroit Edison and Consumers Energy, will have their rates deskewed so they are equal to the cost of providing service to each customer class. This is simply a return to basic equity. The Legislature must do all it can to help ensure residents and job providers are treated fairly. Just as I support broad-based tax relief versus targeted cuts for a specific few companies, I support electric rate deskewing so everyone pays their fair share.

Finally, I voted yes on SB 1048. This legislation will provide a 25 percent income tax credit to help offset the RPS cost to residents the first four years and also provides for a tax credit for certain energy-efficient products that are purchased and installed in your home.

So yes, I am in favor of increasing our use of renewable energy and breaking our dependence on foreign oil. Do I think SB 213 is effective legislation in conjunction with these other measures to help us achieve these goals? No, I do not. Rather than government mandates forcing an artificial movement that cannot be supported, we must let the market do its job. Michigan’s economy may not be able to afford the alternative.

PREVIOUS COLUMN

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State Senator Nancy Cassis, a Novi Republican, represents the 15th Senate District, which includes the townships of Commerce, Highland, Holly, Lyon, Milford, Novi, Rose, West Bloomfield and White Lake; as well as the Villages of Holly, Milford and Wolverine Lake; and the cities of Novi, Northville (the portion in Oakland County), Orchard Lake, South Lyon, Walled Lake and Wixom.