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Letter Writer Supports Michigan Ballot Proposal 3

Ron Austin says he wants to move Michigan forward with more renewable energy.

 

To the editor:

Using more renewable energy in Michigan will help rein in rising energy costs, which is why the big utility and oil companies seem to be doing everything they can to mislead the public about Proposal 3.

I’m not falling for it. More than 30 other states have already passed measures like Proposal 3. Renewable energy is creating jobs and reducing electricity prices in places like Illinois.

We should be doing the same thing, so we can get the same benefits and not get left behind.

The utility companies are hiking our bills by double digits and they will keep doing that if we continue to rely on outdated and expensive energy sources like coal and oil.

I want to move Michigan forward with more clean, renewable energy. That’s why I’m voting yes on Proposal 3.

Ron Austin
Franklin 

Related Topics: Letter to the Editor and Proposal 3

Mumford Chopp

6:21 am on Wednesday, October 24, 2012

Vote Yes on Prop #1 and No on the rest.

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Marcia Robovitsky

10:39 am on Wednesday, October 24, 2012

Vote NO on ballot proposals 2-6 because the Michigan STATE CONSTITUTION would be changed....and that is NOT good.

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FHVoice

11:39 am on Wednesday, October 24, 2012

Vote YES on 2,3, & 4. Vote NO on the rest.

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John Doe

11:54 am on Wednesday, October 24, 2012

There is one MAJOR factor that the letter writer forgets to mention, of all the states that have passed some kind of green energy mandate, NONE have written it into thier constituions making it nearly impossible for an elected representative body to make adjustments as the market and economics may dictate at a later date. What if an even more efficient and cost effective means of energy production appears? We will be forced by our constitution to continue throwing good money after bad into a form of energy production that could be deemed archaic within 10-15 years. technology advances at an amazing pace and this could enshrine something to be a mandate even when it is the least sensible option in the future.

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Hugh McDiarmid, Jr.

2:32 pm on Wednesday, October 24, 2012

Leaving 75% of our electricity generation wide open is a lot of flexibility. With zero lifetime fuel costs, it's unlikely that wind energy will become archaic. The same can not be said of coal -- which supplies 70 percent of DTE's electricity and has doubled in cost since 2005. Our legislature -- beholden in large part to huge utility company lobbying influence -- took 10 years to pass our current standard and has shown no indication of addressing the issue. In fact, there is legislation with multiple cosponsors that would eliminate the existing standard.

John Doe

3:14 pm on Wednesday, October 24, 2012

Hugh, Im glad you brought up the rising costs of coal. Why has coal increased in cost? I can tell you why, and prove it too. Its ONLY becasue this particular administration has decided to wage a war against coal with massive regulations that have pushed prices up over 1000% per mega watt hour.

Electrical Producers (the power plants) negotiate contracts with the Electrical distributer (i.e. DTE) three years in advance. The negotiated price of electricity for contracts written in 2009 for delivery in 2012 are at 16$ per megawatt hour. the contracts that were written and signed this year for delivery in 2015, the price delivered is ranging from 160$ to 357$ dollars per megawatt hour. The ONLY reason for this price rise is arbitrary regulation being placed on coal plants by this administrations EPA, the same administration that vowed "electricity prices will necessarily skyrocket" The only reason green energy looks attractive is because of deliberate manipulation of the markets to pay off a politicians political contributers favored corporations. Who pays though in the end? Everybody else, especially the poor and the retired who dont have the means to make up for the increased costs.

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Jim Weeks

3:16 pm on Wednesday, October 24, 2012

Maureen Taylor, longtime chairperson of the Michigan Welfare Rights Organization, echoed Kolt’s comments and said poor and low-income families would be in jeopardy if Proposal 3 passes.

“Locking at least $12 billion into our constitution and on the backs of Michigan’s most fragile families is ill-advised, especially during these difficult economic times ....,”

You can see this is far from a utilities’ disinformation campaign as alleged. It is about real MI people.

The real weakness in this Prop 3 is that it isn't completely about improving air quality in Michigan, but it portends to do so. As an example, switching from coal to natural gas or using nuclear for electric generation is not recognized as cleaner energy under this proposal. However, from an emissions standpoint both are much cleaner than using woody biomass, which DOES receive credit under Proposal 3.

Also, for intermittent energy like wind, you have to make a double investment (another plant to follow load). This is because wind generation is not reliable (intermittent) and a large majority of the time provides its output during hours of low electric demand.

You would also have to make large investment in very costly transmission to crisscross the state to bring the wind from its source back to the load.
Send a strong message to out-of-state interests in San Fransisco and Wall Street trying to push a high-cost scheme to line their pockets at the expense of MI taxpayers.

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Hugh McDiarmid, Jr.

4:48 pm on Wednesday, October 24, 2012

Anonymous John: Again, 75% non-renewable is a lot of flexibility. As for coal in Michigan, the rising costs are primarily due to the increasing cost of the diesel fuel to ship it here. Public health regulations add costs, but nowhere near the fuel costs. Also, the environmental compliance costs are higher in Michigan, with old power plants that have long outlived their intended lifespans. A bet on coal in MI is a bet that oil costs will decline long term. I'm not willing to make that bet.

There are also public health and medical costs associated with coal that the utilities are allowed to shift to the health care system. Those should be included in any cost calculus. But they never are.

Your figures don't ring true because I think you have used "megawatt hours" interchangeably with "megawatt days" You assert that 2015 coal electricity prices will be in the $160 to $300-plus range per MWh. Yet the Michigan Public Service Commission reports the price of coal electricity from current plants is in the $70/MWh range, and will be $133 for a new coal plant.

Simply put, renewable electricity is cheaper than power from new coal plants would be.

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John Doe

6:02 pm on Wednesday, October 24, 2012

Fuel costs? Coal is transported by train where 1 ton can be moved 500 miles on one gallon of diesel, CSX Website. Sorry Hugh, you try to mislead with fishy "facts" far too often on the Patch. I dont buy it for one second.

http://www.csx.com/index.cfm/about-csx/projects-and-partnerships/fuel-efficiency/

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John Doe

7:15 pm on Wednesday, October 24, 2012

Also Hugh, you even admit my argument is accurate with your last sentance; "renewable electricity is cheaper than power from new coal plants would be". The PRIMARY reason for coal generated electricity to rise in cost is? Regulations being applied in an arbitrary manner by the DOE under this administration. New Plants? Built under new regulations? Does it for some reason cost immensely less to transport the same coal to the old style plants vs the new style plants? No, the regulatory costs of the new plants is the primary driver of increased cost. I provide one more citation, this time from the DOE, its branch the EIA (Energy Information Administration) that shows in the most up to date data they offer, Coal is the cheapest method of producing electricity in MI, bar none.

http://www.eia.gov/state/seds/sep_sum/html/pdf/sum_pr_res.pdf

To your point, if it is cheaper to produce via wind and the producers are a seperate entity from the distributers, then why cant the market just naturally provide energy from wind? If it is in fact cheaper, wouldnt DTE buy from whatever producer offers them the least costly contracts for supply? Why would DTE care at all from what source the energy comes from? All they want to do is distribute the product at the least costly means so they as a business can sell as much as they possibly can, right? Maximize profit? Cheap supply equals greater profit and if green is so cheap, it will happen via market force.

Hugh McDiarmid, Jr.

5:05 pm on Wednesday, October 24, 2012

Jim: Maureen's a straight shooter, but I believe she's been misled. For low income ratepayers, cheaper renewable energy that stabilizes rates with locked-in long term contracts and zero fuel costs is a better hedge than continuing with the 70% coal generation in DTE's market. What portfolio is safe with 70% investment in a risky, volatile stock?

Additionally, every residential DTE ratepayer in SE Michigan gets an immediate rate cut because Prop 3 would deskew the unfair formula that currently forces them to pay 69% of the renewable surchage even though they only use 36% of the power.

Finally, backup power for renewable systems is necessary, but not remotely on the 1:1 basis you suggest. On a regional system, energy needs are managed across the Midwest and can easily absorb Michigan's 25% with minimal cost and no disruption.

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Jim Weeks

3:02 pm on Thursday, October 25, 2012

Hugh,

Thank you for your response.

Following are a few of my thoughts to your response:

1) How is it, as you suggest, that on a regional basis Michigan energy needs can “easily” be absorbed by other resources throughout the Midwest when wind is not producing? It is because we rely on production from NATURAL GAS AND COAL BASELOAD PLANTS LOCATED IN STATES UPWIND FROM MICHIGAN. (see map of Midwest electric infrastructure/MISO). This is bad for Michigan air quality;

2) During times of high eclectic usage the wind capacity factor is less than 10% (for every 100 MW of installed capacity 10 MW is actually producing). So, while measured on a 24/7/365 basis the factor is 32-35%, it doesn’t produce on days of highest electric usage by Michigan customers;

3) Reliability has been a problem in areas like Texas because of too much wind. Reliability and affordability should be major concerns, along with environment. MI needs a balanced approach - Prop 3 is slanted to investors;

4) Lastly, 34 utilities in MI that have invested in NEW wind; hydroelectric; landfill gas and geothermal will not have any of that investment recognized under Prop 3. Those utilities relied on present MI law signed by Gov. Granholm. Is it fair to these utility customers to rely on current law only to get cut off at the knees from out-of-state investors?

One thing we can agree on is that Maureen is a straight shooter. On this one she hit the bullseye!

Best,

Jim

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Hugh McDiarmid, Jr.

10:43 pm on Thursday, October 25, 2012

Thank you also Jim, for your thoughtful response and relevant arguments and observations.
I would agree with you on your point #1 – the natural gas and coal capacity both in MI and Midwest provide balance to the intermittency of wind. I think some people lose sight of the fact 75 percent of our generation will still be available for that sort of generation if we get to 25x25.
On #2, my understanding is that modern grid management (balancing demand forecasts, weather forecasts, peak-load management, etc.) can work with wind intermittency during peak demand times. Wind also works with solar – as solar capacities are often at their peak at the same time wind is at a low capacity (hot, muggy summer days).
I’m not conversant with Texas’ situation in your point #3, although I understand their wind energy program has been credited with saving money for ratepayers.

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Hugh McDiarmid, Jr.

10:44 pm on Thursday, October 25, 2012

I’m not sure what you mean in your last point, that investors in renwewables will not have their investments “recognized.”? They have contracts with the utilities to provide electricity, and I assume those contracts will go forward without alternation, no?
I agree with you that MI needs a balanced portfolio, and I do not think 10% gets us there. The Anderson Economic Group report recently commissioned by Proposal 3 opponents predicts that – with no change in the status quo – Michigan’s renewable electricity percentage will only move from 10 to 11% between 2015 and 2025. We can and should do better.
Finally, no plan is without risk. I think the course charted in Prop 3 minimizes risk better than any of the alternatives I’ve seen offered, and better than wrestling with a reluctant legislature for another decade.

John Doe

4:17 pm on Friday, October 26, 2012

Bring a staggering failure to be enshrined in the MI Constitution.

Only 16% of Obamas "Green Jobs" training actually lead to employment lasting longer than 6 months. We too can bring this glowing example of fraud, waste and corruption to MI by signing it into our very highest law of the land, the Constitution.

http://www.washingtontimes.com/news/2012/oct/26/audit-green-jobs-stimulus-program-wastes-cash/

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Dale Behler

9:53 am on Saturday, November 10, 2012

The Obama administration and environmentalists need to have balance in forcing these mandates on us. In a weak economy like we have now with high unemployment and families trying to make ends meet financially, the high cost of gasoline caused in part by environmental processing restrictions have added to their problems. Those who are lucky enough to have jobs, are having difficulty paying for the high cost of getting to work. Environmental regulations need to consider the added impact they have on strained family budgets at least until the economy turns around. I see no evidence that the human cost of living factor and negative impact on the economy is ever considered when they push through their Green Agendas. Some balance is necessary.

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