Legislative Priorities-Energy and Telecommunications

Issue: Foster Economic Development and Job Creation through a Safe, Reliable and Affordable Energy Marketplace

CHAMBER MEMBERS ADVOCATE:

Supporting implementation of cost-of-service rates as required by PA 286 of 2008. The Public Service Commission (PSC) must ensure that rate subsidization by industrial and commercial customers is eliminated within the next five years.
Supporting development of affordable energy supplies, reliable electrical interconnections and utility services that will be competitive with those states that Michigan competes with for jobs and investment.
Continuing support of customer choice and competition in electric markets. The PSC should ensure that customers can exercise choice based on the new requirements of PA 286 of 2008. Michigan customers should continue to have access to economical energy supplies located both within and outside of the state.
Supporting efforts to ensure that new clean coal and nuclear plants, including new regulated utility plants—when a need has been demonstrated—can be fairly evaluated. New base-load plants should not be held up due to political agendas. The Michigan Department of Environmental Quality must review environmental permits related to new base-load plants in a timely fashion and act in accordance with the law.
Supporting efforts to reduce regulatory barriers to promote the new generation of renewable energy.
Supporting cost-effective implementation of Michigan’s renewable portfolio standards required under PA 295 of 2008, and assuring that renewable energy supplies are economically and efficiently connected to the power grid. The new law will require one of the largest renewable builds in the country. In order to ensure Michigan achieves the stated goals of renewable energy, lawmakers must avoid increasing renewable percentages or making any dramatic changes to current law.
Supporting cost-effective implementation of energy efficiency requirements under PA 295 of 2008. The PSC must ensure that business customers have adequate time and opportunity to self-certify that they are implementing efficiency standards. The costs of energy efficiency programs must be implemented without any inter- or intra-class subsidies.
Supporting additional reviews for cost-effective energy efficiency savings including appliance and equipment standards, model building codes, peak management response programs, smart metering technology, and operational practices and measures.
Opposing efforts to establish a Michigan-specific, low-carbon fuel standard for gasoline. Efforts to enact a low-carbon fuel standard are best addressed by the federal government. Requiring boutique, state-specific fuels will drive up the price of gasoline.
Supporting federal action to enhance the viability of nuclear energy production as a supply option if and when the need for more capacity is demonstrated. Efforts should be made to streamline the regulatory process at the Nuclear Regulatory Commission. In addition, Congress and the states must look to find effective nuclear waste solutions, including enhancing opportunities for the reprocessing of waste, and establishing a permanent waste repository.
Opposing efforts by Congress to preempt state-adopted renewable portfolio standards. Congress should recognize the work done by the states and defer to state approved standards. Each state is unique and has unique resources that should be accounted for. A one-size-fits-all national approach could lead to dramatic electric rate increases.

WHY?

In 2008, the Michigan Legislature adopted a comprehensive energy plan for Michigan. The new laws set the framework to address Michigan’s energy needs, including construction of new generation, upgrades of transmission, enhanced energy efficiency programs, a robust renewable energy build, and the establishment of cost-of-service rates. In 2009, the Legislature should closely monitor the Public Service Commission to ensure that the new laws are being properly implemented. The Legislature must be responsive to any new information or issues that arise

Issue: Fight Overregulation of Michigan’s Telecommunications Industry

CHAMBER MEMBERS ADVOCATE:

Supporting the premise that private sector deployment and ownership of technologies is the most efficient manner of delivering services to customers.
Eliminating existing state and local laws or regulations that discourage or delay deployment of technologies without substituting excessive regulation at one level for overregulation at the other level.
Supporting the principle that a level regulatory structure among all providers - wire-line, cable, satellite and wireless - be competitively and technologically neutral.
Opposing state net neutrality or net regulation legislation. State government should not regulate the provision of internet services due to its national and international nature. Telecommunications markets should be driven by advances in technology, competition between telecommunications companies, and consumer choice, not by government regulation.
Opposing new taxes or excessive fees on the infrastructure needed to provide broadband services, video, telecommunications or other new technologies.
Supporting funding 911 services through general revenues instead of user fees. Any 911 user fees collected must go to support 911 services. Government entities receiving fee dollars must provide a defensible workload analysis.
Supporting the proposition that 211 services continue to be locally funded.

WHY?

State government’s primary role in this rapidly changing and increasingly important area of economic activity should continue to be fostering competition and encouraging private sector development of Michigan’s telecommunications infrastructure by maintaining a minimum level of regulation that is applied fairly to all providers.