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Mon September 10, 2012
Report: Electricity Will Cost More if Proposal 3 Passes
The campaigns squaring off against each other over Proposal 3 on the November ballot are arguing the economic merits of renewable energy.
Proposal 3 would require utilities to generate 25% of their electricity using renewable fuels by the year 2525.
The fight is essentially a battle between businesses.
The question pits energy entrepreneurs trying to build demand for renewable fuels against Michigan’s existing utilities.
The campaign against Proposal 3 hired former legislator Ken Sikkema to research the issue. He says an examination of existing wind and solar projects shows ramping up Michigan’s renewable energy targets would drive up the cost of electricity – especially as the cost of natural gas is going down.
“It demonstrates that you shouldn’t be paralyzing the state in terms of energy policy,” he says.
The campaign for Proposal 3 says that does not take into account the drop in cost as renewable technology improves and becomes more common. The campaign also says the cost of renewable fuels will be more stable than fossil fuels.