Michigan Households Are Expecting To Receive A Rate Hike On Their Energy
“Gretchen Whitmer’s progressive green energy agenda continues to spell disaster for Michiganders. The move towards “cleaner” energy will increase already enormous bills for Michiganders and could even lead to power outages this summer. As if Michiganders haven’t suffered enough under Gretchen Whitmer’s authoritarian regime, they must now brace themselves to pay even more, in more ways than one, for a green climate agenda they never asked for. This November, we’ll elect a Republican governor who will put people ahead of politics, and who will actually put Michiganders first.” – Gustavo Portela, MIGOP Communications Director
Consumers Energy Submitted A Rate Increase Approval To The Michigan Public Services Commission To Cover A $272 Million Investment Into Clean Energy Development – The Increase Will Raise The Monthly Bill Of Michigan Households By $7.50 Per Month. “The average household purchasing electricity from Consumers Energy could see an increase of $7.50 on their monthly bill if the Jackson-based utility receives approval for a $272 million investment for improved reliability and cleaner energy. The expenditures require approval from the Michigan Public Service Commission. Half falls under the CMS Energy Corp. subsidiary’s five-year, $5.4 billion Electric Distribution Infrastructure Investment Plan focused on reducing the average time that customers are without power by nearly 15% from 2020 to 2025. They’ll also help eliminate the use of coal as a power source by then, promote electric vehicle adoption and support economic development.” (Breana Noble, “Consumers Energy Seeks Rate Increase To Shorten Power Outages,” The Detroit News, 4/27/22)
Consumers Energy Blamed Spending Transitioning Away From Fossil Fuels For The Rate Increase. “The rate change includes incentives for purchasing and installing EV chargers. Consumers Energy wants to power 1 million EVs by 2030 in its service territory covering 1.8 million business and residential electricity customers in the western and central parts of the Lower Peninsula.” (Breana Noble, “Consumers Energy Seeks Rate Increase To Shorten Power Outages,” The Detroit News, 4/27/22)
As Michigan Moves Away From Fossil Fuels, There Are Real Concerns There Could Be A Power Shortage In Michigan
In April 2022, The Midcontinent Independent System Operator (MISO) Issues A Report Warning That Shifting Away From Coal Could Lead To Power Shortages In July And August. “A report by the Midcontinent Independent System Operator (MISO), the nonprofit organization that oversees our power grid, said Michigan could be facing power shortages in July and August. Michigan is moving away from coal or thermal powered electricity and the state is pressing to use more and more wind and solar power. ‘The reality for the zones that do not have sufficient generation to cover their load, plus their required reserves, is that they will have increased risk of temporary, controlled outages to maintain system reliability,’ MISO’s CEO said.” (Rod Meloni and Kayla Clarke, “Will Michigan Residents Face Rolling Electric Brownouts This Summer? Study Predicts Power Shortage,” Click On Detroit, 4/26/22)
WDIV: There May Be A Power Shortage In Michigan In July Or August Due To A Lack Of Supply In Traditional Energy. ANCHOR: It’s a problem we’ve have not had to deal with much in Michigan. Knock on wood. We’re talking about rolling electric brownouts. But that’s the concern expressed in a new study concerning Midwest power supplies this coming summer. To look at the issue, we turn to local business editor Rod Maloney.” REPORTER: “You know, here in Michigan when you go to plug in an extension cord or the toaster unless we’ve had severe weather, you have no problem getting power. But the MISO or the Mid-Continent Independent System Operator, which is the nonprofit organization overseeing our power grid just did a study that says we could have some real problems come July and August. Michigan is moving away from coal or thermal powered electricity, the state pressing us to use more and more cleaner, wind and solar power, but MISO’s CEO said about the report ‘the reality for the zones that do not have sufficient generation to cover their load plus they’re required reserves is that they will have increased risk of temporary controlled outages to maintain system reliability.’ Tradition energy analyst Gary Cunningham tells local 4.” TRADITION ENERGY ANALYST GARY CUNNINGHAM: “This time we’ve had even more retirements of old generators, and we’re not building enough new ones and the ones that we are building, to be candid, they tend to be intermittent, like wind and solar which aren’t always there when we need them” REPORTER: “And as uncomfortable as that might get heat wise, MISO says its not good for your pocketbook, either. ‘From a consumer perspective, those zones may also face higher costs to procure power when it’s scarce.’ CUNNINGHAM: “Tighter market like this means that we’re using every bit of generation whenever we you know whenever we need to, and that extra generation is extra expensive. Cunningham says here’s an example on your DTE or Consumers bill, you’ll find that capacity charge. You might pay a dollar a month now but when the summer hits, it’s likely to go up to $5 or even $10. (WDIV, 4/26/22)
Whitmer’s Plan Is To End Fossil Fuels In The Name Of “Environmental Justice”
In April 2022, Whitmer Released The “MI Healthy Climate Plan” Which Aims To Achieve A Carbon Neutral Michigan Economy By 2050. “Governor Gretchen Whitmer today released the MI Healthy Climate Plan, a roadmap for Michigan to achieve economy-wide carbon neutrality by 2050 with interim 2030 goals. Governor Whitmer joined Liesl Clark, Director of the Michigan Department of Environment, Great Lakes, and Energy (EGLE), business owners, tribal leaders, and students at a large solar array in Traverse City to announce the plan. The MI Healthy Climate Plan proposes climate action that would create tens of thousands of clean-energy jobs, spur economic development and innovation, protect clean air and water, and improve public health. The MI Healthy Climate Plan builds off the leadership of tribal communities and cities and town across Michigan, in addition to the private sector.” (Press Release, “Whitmer Unveils MI Healthy Climate Plan,” Governor Gretchen Whitmer, 4/21/22)
Whitmer’s Plan Calls For “Environmental Justice” And Promises A “Transition Ahead.” “The Plan strongly emphasizes environmental justice to ensure Michigan’s climate strategies uplift every portion of the state, including individuals and communities that have borne the brunt of climate impacts and are at the greatest risk of being left behind in the transition ahead. It also spotlights decarbonization strategies that will yield significant health, economic, and other benefits.” (“MI Healthy Climate Plan,” Michigan Department Of Environment, Great Lakes And Energy, 4./2022)
Whitmer’s Plan “Transitions Away From Fossil Fuels And Traditional Carbon Heavy Industries … As Fast As Possible.” “As Michigan transitions away from fossil fuels and traditional carbon heavy industries, it is critical to prepare our workforce for the new opportunities of a carbon neutral economy and ensure all Michigan families have access to those opportunities, particularly those who have not enjoyed equitable access in the past. To ensure our transition to carbon neutrality is just—and avoid responding to climate change in a way that reinforces challenges that historically disadvantaged communities have faced—we need to proactively and intentionally plan for equity and environmental justice. During the transition to a carbon neutral economy, Michigan’s most vulnerable communities must be prioritized. The transition to a carbon neutral Michigan needs to happen as fast as possible without leaving anyone behind.” (“MI Healthy Climate Plan,” Michigan Department Of Environment, Great Lakes And Energy, 4./2022)
- MI Healthy Climate Plan: “Retiring Coal Facilities On An Accelerated Timeline Is Fundamental To Reaching Michigan’s Near-And Long-Term Climate Objectives.” (“MI Healthy Climate Plan,” Michigan Department Of Environment, Great Lakes And Energy, 4./2022)
Whitmer’s Plan Calls For Building Infrastructure For 2 Million Electric Vehicles In Michigan By 2030. “Electrify Vehicles and Increase Public Transit: Build the infrastructure necessary to support 2 million electric vehicles on Michigan roads by 2030. Increase access to clean transportation options – including public transit – by 15 percent each year.” (“MI Healthy Climate Plan,” Michigan Department Of Environment, Great Lakes And Energy, 4./2022)
Michigan Depends On Fossil Fuel
Fossil Fuels Contribute $15 Billion To Michigan’s Economy Each Year
The Oil And Gas Industry Contributes $14.6 Billion Annually To Michigan’s Economy. (“Impacts Of The Oil And Natural Gas Industry On The US Economy In 2015,” PricewaterhouseCoopers (Prepared For American Petroleum Institute), 7/17)
In Michigan, The Coal industry Contributes $402 Million Annually To Michigan’s Economy. (“Economic Impact of Mining – Michigan,” National Mining Association, Accessed 5/10/21)
Michigan Residents Depend On Fossil Fuels
In 2019, 85.8 Percent Of Michigan Households Use Natural Gas, Fuel Oil, Or Propane To Heat Their Homes.(“Michigan – Consumption & Expenditures,” U.S. Energy Information Administration, 3/17/22)
- 76.4 Percent Michigan Households Use Natural Gas As Their Primary Source For Home Heating. (“Michigan Profile Analysis,” U.S. Energy Information Administration, 3/17/22)
- 8.4 Percent Michigan Households Use Propane As Their Primary Source For Home Heating. (“Michigan Profile Analysis,” U.S. Energy Information Administration, 3/17/22)
- 1 Percent Michigan Households Use Fuel Oil As Their Primary Source For Home Heating. (“Michigan Profile Analysis,” U.S. Energy Information Administration, 3/17/22)
“In Part Because Of Its Cold Winters, Michigan Is Among The Top One-Third Of States In Per Capita Residential Energy Use…” (“Michigan Profile Analysis,” U.S. Energy Information Administration, 6/17/21)
- “Michigan Routinely Ranks Among The Top 5 States In Residential Use Of Natural Gas And In The Top 10 For Total Natural Gas Consumption By All Sectors Combined.” (“Michigan Profile Analysis,” U.S. Energy Information Administration, 6/17/21)
In February 2021, During A Cold Snap, Governor Whitmer Declared A State Of Emergency After Reports That There Were Propane Shortages In Michigan’s Upper Peninsula. “Gov. Gretchen Whitmer declared a state of energy emergency on Saturday to ensure adequate delivery of propane during the nationwide cold snap, the Governor’s Office announced. The executive order exempts motor carriers and drivers who transport propane and heating oil from compliance with maximum weekly driving and on-duty limits. The order takes effect on Saturday and will remain in effect through Sunday, Feb. 28. The emergency order drew a quick rebuttal from Michigan Senate Republicans, whose Twitter account reminded constituents that Whitmer in December ordered the spring shutdown of Line 5 under the Straits of Mackinac, which supplies propane to about 15,000 households in the Upper Peninsula, citing it as a risk. We’re offering a great deal on all-access subscriptions. Check it out here. ‘Governor who issued executive order to shut down crucial source of propane issues executive order declaring a propane emergency,’ the tweet read. The administration is expected to release a report next month on alternative methods for supplying the Upper Peninsula. A press release from the Governor’s Office noted that Michigan has experienced an abnormally high demand for propane from in-state and regional consumers, causing longer lines at propane distribution centers.” (Karen Bouffard, “Whitmer Declares Energy Emergency; GOP Cites Impending Line 5 closure,” The Detroit News, 2/20/21)
Michigan’s Transportation Sector & Automotive Industry Depends On Fossil Fuels
The Transportation Sector is The Leading End-Use Energy-Consuming Sector In Michigan. “The transportation sector is the leading end-use energy-consuming sector in the state, followed closely by the residential and industrial sectors. Michigan is famous for manufacturing automobiles, and transportation equipment accounts for more than two-fifths of the state’s manufacturing gross domestic product (GDP).” (“Michigan Profile Analysis,” U.S. Energy Information Administration, 6/18/20)
The Motor Vehicles Industry Is The Largest Energy Employer In Michigan. “Michigan has a low concentration of energy employment, with 65,046 Energy workers statewide (representing 2.1 percent of all U.S. Energy jobs). Of these Energy workers, 26,790 are in Electric Power Generation, 9,309 are in Fuels, and 28,947 are in Transmission, Distribution, and Storage. The Energy sector in Michigan is 1.9 percent of total state employment (compared to 2.6 percent of national employment). Michigan has an additional 74,242 jobs in Energy Efficiency (3.5 percent of all U.S. Energy Efficiency jobs) and 218,456 jobs in Motor Vehicles (9.4 percent of all U.S. Motor Vehicle jobs). The median wage for all energy workers in Michigan is $24.69, which is 29 percent above the national median wage of $19.14.” (“U.S. Energy + Employment Report 2021: Michigan,” Energy Futures Initiative, Accessed 3/18/22)
The Largest Fraction Of Motor Vehicle Jobs In Michigan Is In The Manufacturing Industry. “Motor Vehicle employment accounts for 218,456 jobs in Michigan, down 30,872 jobs over the past year (-12.4 percent). The industry sector that accounts for the largest fraction of Motor Vehicle jobs is manufacturing.” (“U.S. Energy + Employment Report 2021: Michigan,” Energy Futures Initiative, Accessed 3/18/22)
- Manufacturing Jobs Represent 34.4 Percent Of Fuels Jobs In Michigan. “Manufacturing jobs represent 34.4 percent of Fuels jobs in Michigan.” (“U.S. Energy + Employment Report 2021: Michigan,” Energy Futures Initiative, Accessed 3/18/22)
Whitmer Has Called For Shutting Down The Line 5 Pipeline Which Would Increase The Cost Of Fuel Prices Between 9 And 12 Percent And Lead To A Fossil Fuel Shortage
Consumers Are Expected To Pay More
In February 2022, Consumer Energy Alliance Published A Report Concluding That Michiganders Should Expect Their Fuel Prices To Rise Between 9.47 Percent To 11.66 Percent In The Event The Pipeline Gets Shut Down. “Based on previous studies of disaster-related fuel production disruptions, we conservatively estimate that the closure of Line 5 will spark a 9.47% to 11.66% regional (U.S.) increase in fuel prices.1 This increase is independent of any other market conditions, such as the surge in fuel prices observed over the past 12 months that are tied to international oil markets and logistical challenges caused by the pandemic.” (“Enbridge Line 5: Shutdown Impacts On Transportation Fuel.” Consumer Energy Alliance, 2/2022)
Michiganders Should Expect To Pay Between $1.8 Billion And $2.2 Billion More In Gasoline Per Year. (“Enbridge Line 5: Shutdown Impacts On Transportation Fuel.” Consumer Energy Alliance, 2/2022)
Families And Businesses Across The Midwest Would Pay An Additional $23.7 Billion More In Gasoline And Diesel Over Five Years. “If Line 5 shuts down, families and businesses across the Midwest will spend at least $23.7 billion more on gasoline and diesel over the following five years due to the resulting loss of production at area refineries. The regional market may eventually adjust to the disruptions caused by a Line 5 shutdown. However, such shifts will not happen quickly, given the time it takes for state and federal regulators to review and permit options such as expanding refining capacity or rerouting pipelines. Alternatives, such as using rail or trucks to replace the lost production of transportation fuels for regional markets, ignore capacity constraints at other refineries, the scarcity of railroad rolling stock, and the severe national shortage of qualified truck drivers.” (“Enbridge Line 5: Shutdown Impacts On Transportation Fuel.” Consumer Energy Alliance, 2/2022)
“There Is No Recent Historical Precedent For Government Actions Forcing The Sudden, Simultaneous Shutdown Of Multiple Energy Production Facilities.” (“Enbridge Line 5: Shutdown Impacts On Transportation Fuel.” Consumer Energy Alliance, 2/2022)
24,000 Michigan Homes Heated By Propane Are Under Threat If Line 5 Is Shut Down
Shutting Down Line 5 Would Threaten 24,000 Michigan Homes. “About 24,000 of the 320,000 Michigan homes heated by propane would be affected.” (“Enbridge Line 5,” Michigan Oil And Gas Association, Accessed 5/10/21)
“Line 5 Delivers 85 Percent Of The Propane That Heats Upper Peninsula And Northern Michigan Homes.” (“Enbridge Line 5,” Michigan Oil And Gas Association, Accessed 5/10/21)
Shutting Down Line 5 Threatens More Than Half Of Propane In Michigan And Nearly Two-Thirds Of The Upper Peninsula
Enbridge: “Shutting Down Line 5, Even Temporarily, Would Have Immediate And Severe Consequences On The Economies Of Michigan, Ohio, Ontario, And Elsewhere.” (“The Impact Of A Line 5 Shutdown,” Enbridge, Accessed 5/10/21)
Line 5 Transports Up To 540,000 Barrels Or 22.68 Million Gallon Of Oil And Natural Gas Per Day. “Line 5 transports up to 540,000 barrels per day (bpd), or 22.68 million US gallons per day, of light crude oil, light synthetic crude and natural gas liquids (NGLs), which are refined into propane.” (“The Impact Of A Line 5 Shutdown,” Enbridge, Accessed 5/10/21)
Line 5 Supplies 65 Percent Of Michigan’s Upper Peninsula’s Propane Demand. “Line 5 supplies 65% of propane demand in Michigan’s Upper Peninsula, and 55% of Michigan’s statewide propane needs. The light crude transported by Line 5 feeds refineries in the Upper Midwest and Eastern Canada.” (“The Impact Of A Line 5 Shutdown,” Enbridge, Accessed 5/10/21)
Line 5 Supplies 55 Percent Of Michigan’s Statewide Propane Demand. “Line 5 supplies 65% of propane demand in Michigan’s Upper Peninsula, and 55% of Michigan’s statewide propane needs. The light crude transported by Line 5 feeds refineries in the Upper Midwest and Eastern Canada.” (“The Impact Of A Line 5 Shutdown,” Enbridge, Accessed 5/10/21)
Refineries Will Lose 45 Percent Of Their Crude Oil Input
Refineries In Michigan, Ohio, Pennsylvania, Ontario And Quebec Would Lose 45 Percent Of Their Crude Oil Input. “Refineries in Michigan, Ohio, Pennsylvania, Ontario, and Quebec would lose about 45% of their crude oil input in the event of a Line 5 closure. The closure of Line 5 will reduce the ability of area refineries to maintain current production levels or force them to secure alternative sources of feedstocks. It is not possible from publicly available data to ascertain how each refinery may respond, but the result will be higher prices for transportation fuels. By using alternative (non-Line 5) feedstock sources, under any reasonable scenario the cost of that feedstock will rise dramatically, and those costs will be passed onto consumers through higher transportation fuel prices. The refineries could choose to lower production levels proportionate to their Line 5 take. This reduction in regional transportation fuel supplies will cause prices to rise along normal supply-demand economic principles. We discuss the availability of alternative fuel sources below. Because of the extremely high fixed costs of operating a refinery, the loss of Line 5 feedstocks may make Toledo-area refineries financially unsustainable, which would exacerbate regional supply challenges in a post-Line 5 market.2 This analysis uses publicly available data and insights from professional and academic literature to estimate the costs of transportation fuel price increases for consumers in Michigan, Ohio, Indiana, and Pennsylvania that would likely attend the closure of Line 5.” (“Enbridge Line 5: Shutdown Impacts On Transportation Fuel.” Consumer Energy Alliance, 2/2022)
- “By Using Alternative (Non-Line 5) Feedstock Sources, Under Any Reasonable Scenario The Cost Of That Feedstock Will Rise Dramatically, And Those Costs Will Be Passed Onto Consumers Through Higher Transportation Fuel Prices.” (“Enbridge Line 5: Shutdown Impacts On Transportation Fuel.” Consumer Energy Alliance, 2/2022)