February 15, 2012 - The Michigan Public Service Commission (MPSC) today issued its annual report on the implementation of the state's renewable energy standard and its cost effectiveness.  Public Act 295 of 2008 requires the report to be issued by Feb. 15 each year.

"Michigan utilities are steadily implementing their plans to reach the goal of supplying 10 percent of their electricity from renewable energy sources," said MPSC Chairman John D. Quackenbush.  "As new renewable energy projects become operational - many by the end of 2012 - Michigan's renewable energy percentage is expected to increase significantly."

This year's report includes data submitted by Alternative Energy Suppliers (AESs).  With their inclusion, the estimated 2010 renewable energy percentage was 3.6 percent.  Without AES data, the renewable energy percentage would be 3.9 percent.  All future reports will include AES data.  The amount reported in last year's report was 3.6 percent (not including AESs).

Highlights of the report include the following:

• By the end of 2012, Michigan's renewable energy standard will have resulted in the development of 1,041 megawatts of new renewable energy projects.
• Compared to building a new, conventional coal facility, renewable energy contracts are significantly lower in price - with the exception of five small contracts negotiated early on.  The two most recent contracts approved by the MPSC for new wind capacity have levelized costs of $61 to $64 per megawatt-hour (MWh).
• The weighted average prices of renewable energy contracts is $91.19 MWh, which is less than what was forecasted in renewable energy plans, and is substantially lower than the cost of new coal-fired plants.
• According to annual reports filed by each electric provider, $21.7 million was spent on renewable energy in 2010, and $78.6 million was anticipated to be spent during 2011.

The entire report is available here. 

The MPSC is an agency within the Department of Licensing and Regulatory Affairs.

For more information about LARA, please visit www.michigan.gov/lara.  Follow us on Twitter www.twitter.com/michiganLARA, "Like" us on Facebook or find us on YouTube www.youtube.com/michiganLARA.

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