Gov. Rick Snyder launches Michigan Agency for Energy

May 20, 2015 | By Jaclyn Brandt

Just two months after Gov. Rick Snyder announced many changes to Michigan's energy plan, the Michigan Agency for Energy (MAE) has opened its doors.

Valerie Brader. Credit: Michigan Agency for Energy

MAE will be housed under the Department of Licensing and Regulatory Affairs, and Valerie Brader will serve as the executive director of MAE -- as well as the state's chief advisor regarding the development of energy policies and programs.

"As Michigan shifts from the energy sources of the past to those of our future, we will focus on energy policies that will help families and businesses have affordable, reliable, and environmentally-protective energy," Brader said in a statement. "We will make those decisions in Michigan and not be directed by Washington, D.C."

The state of Michigan has a history of fossil fuels and nuclear, but they are making big moves toward more renewables. Because of this, utilities in Michigan will be an important part of the new energy plan.

A spokesperson for DTE told FierceEnergy, "Michigan is entering a transformational period in its energy sector because of environmental regulations and aging power plants. The electric generation infrastructure that has energized our economy for the last half century, is entering a period where it will be retired and new generation, including renewable energy, will support our economic activity well into this century. The new Energy Department ensures some continuity and long-term planning as we work through this process. The Public Service Commission, the Department of Environmental Quality and the Legislature, however, will continue to have an active role as we implement policies to ensure Michigan stays in control of its energy future."

The agency was created after Gov. Snyder outlined his plans to make sure Michigan will be ready to adapt to energy challenges in the coming years. The agency was created through Executive Order 2015-10.

"Michiganders need to be confident that they'll have affordable and reliable power for their homes and businesses," Snyder said at the time of the announcement. "As our state faces the retirement of 10 coal-fired plants in the coming years, we also need to a plan moving forward that is adaptable and protects our environment, helping families and job-creators long into the future."

In March, Gov. Snyder also said the state needs to take steps to avoid spiking energy prices and power outages.

"We've made real progress since 2012. We met the 11th most aggressive renewable portfolio standard in the nation, and we did so under budget -- in some cases, at no additional cost compared to other energy sources. We were able to do that for a lot of reasons," the Governor added. "Our standard encouraged collaboration, so we had access to people familiar with the newest technologies."

He continued, "We saw huge price reductions in even the last five years as we took advantage of those new technologies -- better towers, better blades, and better electronics all meant better prices for Michiganders in the wind space, which has 2 been our least expensive resource to date. In another success story, we established both utility and non-utility programs to reduce energy waste that are delivering measureable and very cost-effective results."

The legislature has also been outlining plans for their energy vision, which includes what to do when Consumers Energy and DTE Energy retire their coal-fired plants.

"The retirement of coal facilities scheduled for next year is just the beginning of the transformation in Michigan's generation fleet," a spokesperson for DTE Energy told FierceEnergy. "Over the next 10 to 15 years, most of Michigan's current generation facilities will be replaced. Having an energy agency in place is recognition by Gov. Snyder that this is a huge transition. It needs to be planned out thoughtfully and in a way that places Michigan at the forefront of this change. We need to ensure that electricity, which is the heart of our economy, continues to be a reliable and affordable resource."

Consumers Energy announced earlier this month that they would be closing seven of its oldest coal-fired generating plants in the next year -- or 32 percent of its fleet. Michigan's utilities and the state are working together to assure, even with the closure of plants, energy continues to provide reliable electricity in the state.

"We are prepared to provide energy safely, affordably, reliably and sustainably, even as seven of our coal plants are retired next year," said David Mengebier, Consumers Energy's senior vice president for governmental and public affairs, in a statement. "It will be important for Michigan to support a fully regulated electric system that provides certainty for us to build the next generation of clean power plants, carry out cost-saving energy efficiency strategies that help our customers, and develop cost-effective renewable energy technologies such as wind, solar, biomass and hydroelectric power."

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http://www.fierceenergy.com/story/gov-rick-snyder-launches-michigan-agency-energy/2015-05-20