Contact: Nora Naughton, nora.naughton@sierraclub.org, 248-345-1456
LANSING, MI- Michigan Senate Republicans put out a press release Tuesday that claims: "Without legislative intervention, new energy laws would force the RICE generators to shut down.” This claim is a thinly veiled attempt by one of the UP’s largest utilities to circumvent our clean energy laws – and worse, it is categorically false.
In fact, the proposal for decision hyperlinked in the Republicans’ release clearly contradicts their claim. The PFD reads: “This PFD agrees with AG-CUB that it is possible for UMERC to operate its RICE units beyond 2040 as merchant plants and still meet the RPS, that is that Act 235 does not per se require their retirement."
Republicans are either hoping no one will read this dense document or have not read it properly themselves.
Upper Michigan Energy Resources (UMERC) – one of the Upper Peninsula’s largest utilities – claims that compliance with state renewable energy standards would force drastic bill increases for ratepayers. Meanwhile, UMERC’s largest ratepayer, the massive out-of-state steel company Cleveland Cliffs, is ginning up fear among UP miners by threatening an early closure of the Tilden Mine due to our clean energy laws.
One big problem: none of this is true.
UMERC argued that to comply with a 2023 act it would need to prematurely close two natural gas-burning power plants. The legislation actually requires gradual compliance levels through 2040 that are designed to insulate both utilities and ratepayers from unmanageable costs.
The law establishes a renewable energy standard of 50% by 2030 and 60% by 2035, as well as a clean energy standard of 80% by 2035 and 100% by 2040, it would need to prematurely close two natural gas-burning power plants.
Michigan Public Service Commission (MPSC) staff and an administrative law judge (ALJ) agree that the gas units will not need to shut down for UMERC to comply with these renewable and clean energy standards. They also agree UMERC greatly exaggerated its costs by including expensive, unnecessary battery storage in their proposal that are unlikely to be approved.
House Bills 4007 and 4283 are a “solution” to a fabricated problem. These bills distract from the very real contributors to the energy affordability problem in the UP like tariffs and outdated infrastructure
The truth is, these bills are a gift to the gas industry which wants to keep Michiganders locked in to buying their product forever. Worse, they undermine the nation-leading clean energy policy that the Sierra Club worked with the Michigan legislature and Governor Whitmer to pass in 2023. This landmark legislation has made Michigan first in the nation for clean energy investment, creating thousands of new jobs and protecting our state from the cost of importing fossil fuels that harm our health.