LANSING - The Michigan Environmental Council (MEC) today applauded Michigan Public Service Commission (MPSC) staff for emphasizing energy efficiency and renewable power in its final report of the Capacity Need Forum.

The Capacity Need Forum was ordered by the Commission to assess Michigan's future electric energy needs and the best means for meeting them. As Michigan's first collaborative electric energy planning effort since 1985, the Forum engaged a number of stakeholders in five workgroups. Participants estimated future demand for electricity, analyzed various options for new capacity, and modeled several combinations of options for reliability and affordability. The final commission staff report from this effort was released yesterday.

"Parts of the report echo what we've been saying all along," said David Gard, Energy Program Director for MEC. "Cleaner, more efficient energy reduces pollution, improves public health and strengthens our economy. It also makes the grid more reliable. This is the 21st century. We need to break our habit of relying too heavily on dirty coal for energy."

In the report, MPSC staff recommends that any proposal to build new generating capacity in Michigan must consider clean energy resources such as energy efficiency, renewable energy and combined heat and power systems. Each proposal must also be open to competitive bidding to protect the interests of ratepayers.

"We are glad to see the Commission staff recognize the value of efficiency and renewable power in managing long-term risks such as rising fuel prices and in meeting the stricter air quality standards and limits on global warming pollution that are surely coming," Gard said. "Michigan ought to remove market barriers to homegrown, clean, efficient energy resources."

MEC supports a range of public policies to encourage growth in Michigan's clean energy sector. Some of those policies include:

• Renewable Portfolio Standard (RPS) that sets minimum green power requirements
• Appliance efficiency standards that could also benefit Michigan manufacturers
• Updated building efficiency codes for industrial, commercial and residential construction

See http://www.dleg.state.mi.us/mpsc/electric/capacity/cnf/index.htm for the full Capacity Need Forum report. A separate MPSC evaluation of the potential for energy efficiency as a resource option is expected by January 31, 2006.

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