LANSING – Rep. Aric Nesbitt said this week there is room for technical and clerical changes in legislation overhauling the state’s energy laws, but changes to the competition and competitive bidding pieces are unlikely.
Nesbitt’s (R-Lawton) energy plan in HB 4298, HB 4297 and HB 4575 has been sitting on the House floor since early November when the House Energy Policy Committee – which Nesbitt chairs – reported the legislation after a nearly seven-hour meeting.
House Speaker Kevin Cotter (R-Mount Pleasant) said in late December a vote on the bills could come as early as this month, but Nesbitt said there is no timeline yet.
“It is a complicated subject and I look forward to continuing to work with my colleagues to get their questions answered,” Nesbitt said in an interview with Gongwer News Service this week.
Gideon D’Assandro, spokesperson for Cotter, indicated Friday votes will be taken next week in the House on legislation, but whether the energy bills will move is unclear. The Legislature reconvenes Wednesday.
Cotter said competitive bidding and competition in the energy market will likely face the highest level of scrutiny from the Republican caucus.
Nesbitt said there are already cost controls in the current legislation. He called it a “mystery” that some are calling for competitive bidding.
“The legislation that came out of the committee provides greater opportunities to show there are better cost options … for generating capacity in the state,” he said.
However, Nesbitt said others are pushing for purchase power agreements, which he does not support. He said that would lead to the Public Service Commission telling private companies what to do and ratepayers being forced to pay for generation paid for by another entity.
Rep. Gary Glenn (R-Midland), vice chair of the Energy Policy who is generally at odds with much of Nesbitt’s plan, said he believes the PSC “should put any new electricity generation out to competitive bidding, meaning, for example, that Midland Cogeneration Venture could bid against Consumers Energy for the right to provide that new capacity.”
He said the competitive bidding he and others within the caucus would like to see within the legislation goes beyond approving a plant and then allowing the utility to competitively bid the construction.
“We’re talking about bidding for ownership of the new plant or project itself, not automatically awarding that new generation to an incumbent utility after which the only thing they bid out is its construction,” he said.
Nesbitt said he doesn’t believe changes regarding competitive bidding or the competition piece of the market are necessary to get the bills through the House.
“I think as you walk through the legislation it is a lot better than the status quo,” he said. “I think it’s just a lot of people with questions.”
But Glenn said as long as advocates for choice and competitive bidding don’t “fold” under negotiation pressures, he does not think the bills that came out of committee will clear the floor.
“It’s better that we do nothing at all than do something that moves Michigan’s energy market toward greater monopoly control, which would hurt our economy and job market by further increasing what are already the highest electricity rates in the Midwest,” he said.
Nesbitt noted amendments regarding competition, including one that would allow all schools to be on the energy choice system without counting toward the 10 percent limit, were voted down in committee.
When asked if the support might be different on the House floor, Nesbitt, who is the majority floor leader, quipped: “I talked to the floor leader, and he is not supportive.”
Nesbitt said even with coal plants starting to close this year, there is no hard deadline for energy legislation to reach Governor Rick Snyder‘s desk.
“I think at the end of the day it is better that we look at energy legislation that is a long-term, adaptable energy plan that ensures we have some guarantees in generation,” he said. “I think it is something about making sure we have the right energy bill and not just pass an energy bill.”
But with nine coal plants closing by April this year and several others to close in the coming years, Mr. Nesbitt said it is the responsibility of the Legislature to pass something sooner.
“It becomes more expensive, more dire if we do not pass legislation,” he said.
This story was published by Gongwer News Service. To subscribe, click on www.gongwer.com
