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Prop 3 Opponents & Supporters Argue Effect on RatesProp 3 Opponents & Supporters Argue Effect on Rates

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10/31/12 - On November 6, Michigan voters will vote on a constitutional amendment that would require that 25 percent of Michigan’s power come from clean renewable energy sources. Proposal 3, which was put on the ballot by Michigan Energy Michigan Jobs – a coalition that includes businesses, healthcare and labor organizations, would require electric utilities to produce at least 25 percent of their energy from renewable energy sources by 2025. The measure would also require that facilities used to generate clean energy be located in Michigan or within a geographical area that serves Michigan energy consumers. The coalition behind this measure claims that beyond positive environmental impacts, this measure would also create Michigan-based jobs. Retired Navy Vice Admiral Dennis McGinn is among those speaking in favor of the proposal, although he emphasizes a different aspect than cost savings, saying the issue is one of national security because our nation's dependence on foreign oil causes us to spend too much money to safeguard those sources of energy. On the other hand, opponents of the measure say its economic impact is questionable at best. James Hohman is the Assistant Fiscal Policy Director at the Mackinac Center, a conservative think tank. He says Prop 3 will essentially rob Peter to pay Paul because while it will create some up-front economic activity, it will have a net negative effect in the increased costs that will be paid by ratepayers. Currently, under Public Act 295 passed by the legislature in 2008, Michigan’s electric utilities are already required to generate 10 percent of their total energy from renewable energy sources by 2015. For additional details on all of the ballot proposals, you can log onto the Citizens Research Council of Michigan, a non-political public affairs research organization. We’ve put that link below. (JK)

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