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E-M:/ Net metering in Michigan ...

Enviro-Mich message from Lowell Prag <lprag@mail.msen.com>

On Fri, 1 Apr 2005, Sarver, John H  (DLEG) wrote:

... see below ...

Hello John,

First, hurrah in finally getting net metering in Michigan!

It will give a great boost to the installation of more alternative energy
systems and with the increased demand, bring down the cost of such systems.

A couple of questions though, on your net metering post below.

Regarding the clause that allows utilities to delete any credits more than
a year old, as a way for them to recover costs for the net metering program:

That seems like a rip off.

Why was not just a flat one time fee applied to owner of the alternative
energy equipment instead, to cover the cost or a yearly fee, based on the
utility companies real cost in providing net metering?


if a system is oversized to cover contingencies in the design load, one
will not recover that cost and the utilities get that surplus for free,
without proving what their actual costs are to provide net metering and
allowing the customer to keep the difference.

In short:

I can see no real cost to the utilities for providing net metering, other
than in the initial stage of getting the program going. After that, what
costs do they have?


Lowell Prag

On Fri, 1 Apr 2005, Sarver, John H  (DLEG) wrote:


2005 Energy Star Home Grants were awarded by DLEG Director David C.
Hollister at Urban Options on March 22.  The recipients are: Olde World
Custom Homes (Traverse City), Steinorth Fine Homes (Traverse City), C.L.
Gruner (Ada), T. Joseph & Sons Construction (Linden), and Raymar Homes
(Hudsonville). Builders compete for the grants based on
energy-efficiency, marketing plans and innovations.  Some of the
innovative features of the five houses include radiant floor heating,
soy-based wall insulation, water retention basins for capturing rain
water run-off, and passive solar designs.   The deadline for the 2006
grants will be mid December. If interested, check
www.michigan.gov/energyoffice in the fall.

Opportunities to Save with Renewable Energy: Focus on Wind Power will be
held on April 21 in Warren.  Learn the details on renewable energy and
wind power at the second annual conference for the benefit of
administrators, business officers, and building management officials in
the educational, municipal and agricultural communities. Conference
registration is required.  Call (586) 498-8840 or (734) 285-7273.

New Residential Energy Code was going to be effective February 28.  On
February 24 the Ingham County Circuit Court issued an injunction on the
implementation date of the revised Michigan Uniform Energy Code. As a
result of the judge's order, the code did not go into effect and is not
being enforced.

USDA Section 9006 Renewable Energy and Energy Efficiency grant
applications will be due June 28.  $11.4 million will be initially
available for grants. USDA is setting aside the other $11.4 million for
guaranteed loans. These funds will be administered under a final rule to
be published in the Federal Register later this fiscal year. Any funds
for loan guarantees not used by August 31, 2005 will be awarded to grant
applicants. The basic grant program and application processes are
largely unchanged from last year. The minimum grant size is $2,500 and
the maximum is $250,000 for energy efficiency improvements and $500,000
for renewable energy systems. Grants can provide up to 25% of total
project costs. www.elpc.org/farmenergy/index.htm

Voluntary Net Metering program has been approved by the MPSC for a
minimum of five years.  Utilities that signed the agreement have until
April 28 to file their proposed tariffs. The program covers solar, wind,
geothermal, biomass, including waste-to-energy and landfill gas or
hydroelectric. The MPSC approved an amended version of the consensus
agreement reached with utilities.  Based on comments filed, the
Commission rejected a provision in the agreement that would have
required that all renewable energy certificates associated with the
customer's generation be owned by the utility. Under the agreement,
net-metered customers will be credited for net excess generation (NEG)
at the utility's retail price of generation.  Any credits will be
carried over from month to month, limited to a 12 billing-month cycle.
At the end of each 12 billing-month cycle, cumulative NEG credits, if
any, may be retained by the utility and the customer's credit reset to
zero.  The value of any generation credits retained by the utility will
be used to offset net metering programming costs.  The following
utilities signed the consensus agreement:  Alpena Power, Indiana
Michigan Power, Edison Sault Electric, Upper Peninsula Power, Wisconsin
Public Service Corp., Wisconsin Electric Power, Northern States Power,
Consumers Energy, Detroit Edison, Michigan Electric Cooperative Assoc.,
and Michigan Electric and Gas Assoc.

Consumers Energy is seeking competitive bids for the development of
renewable energy projects that will supply 265,000 megawatt-hours of
renewable energy.  The Renewable Resource Program is a replacement and
significant expansion of a smaller Green Power Pilot Program which
Consumers Energy offered from 2001-2004.   Under a separate MPSC order,
Consumers Energy created a $5 million annual fund for the company's
Renewable Resource Program that will be used to offset the costs of
Consumers Energy's purchases. Consumers Energy's 1.75 million electric
customers will have the option of choosing to purchase a larger part of
their electric supply from green power sources, following commercial
operation of the independent projects.  That is expected by the end of
2005. The utility's Request For Proposal offers independent green power
developers long-term power supply contracts of up to 20 years.  A copy
of The Request For Proposal is at www.consumersenergy.com/greenenergy.

Pet Power Potential is being researched at a Michigan university.  Cat
and dog manure will produce methane that will be used to generate power.
Homeowners in the local community are being asked to collect the
resource and drop it off at the pet power recycling center.  Results
from the project will be announced April 1, 2006.

World's Largest Wind Turbine, the REpower 5M, was recently inaugurated
in Germany. The 5 MW unit has a rotor diameter of 126 m. Two turbines
are proposed for a demonstration project off the coast of Scotland.

Introductory Renewable Energy Seminars will be held on Saturday, April
16, 9 am - 5 pm at the Great Lakes Renewable Energy Association in
Dimondale. Contact:  Brendan Schauffler, (800)434-9788, info@glrea.org
Website:  www.glrea.org <http://www.glrea.org/>

Energy Management Pathfinding, a new report from the Alliance to Save
Energy, offers case studies of the energy management strategies
developed by 10 major U.S. corporations including Frito-Lay,
Kimberly-Clark, and 3M.  The case studies, an analysis of their
findings, and a corporate self-test for energy management are available
online at
http://www.ase.org/section/topic/industry/corporate/pathfinding> .

Energy and the Economy Summit will be held on April 20 at Lawrence
Technological University in Southfield.  Contact:

Flex Your Power is California's statewide energy efficiency marketing
and outreach campaign.  Check out their web site at  www.fypower.org
<http://www.fypower.org/>   (Bill Decker Sr)

2005 Southeast Michigan Biodiesel Bus Tour will introduce you to key
biodiesel facilities and players on April 11.  Leaving from Lansing at
7:30 am and returning at 5:30 pm.  Contact 734-994-4780 or

Voters in Columbia, MO adopted a local renewables portfolio standard
(RPS) last November. The City of Columbia will generate or purchase
electricity generated from renewable energy sources at the following
levels:  2% by 2007, 5% by 2012, 10% by 2017, and 15% by 2022. Eligible
energy sources include solar, wind and bio-energy. The RPS was passed
with 78% of the vote. www.columbiansforcleanenergy.com

New Ballasts made after April 1, 2005 will use more efficient electronic
technologies, although existing magnetic ballasts may be repaired
through 2010. That revision, according to the Appliance Standards
Awareness Project, will save 13.7 billion kWh's by 2020 and by 2030 net
benefits will reach $2.6 billion.

April Fools if you believed Pet Power Potential.

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