LANSING- March 2, 2006-  Legislators say additional focus on Michigan’s energy situation could lead to future jobs and less reliance on out-of-state power sources

House Majority Leader Steve Tobocman, D-Detroit, said that because Michigan allows independent companies to compete for electricity consumers, the state will confront low energy production in the future.

“It is serious not having enough energy in the coming decade,” Tobocman said. “We have not been able to build a power plant in over 30 years because places like Wall Street say ‘we can give you the money (to build a plant) but will people in the state be using it?’”

Tobocman said 25 percent of the state’s electricity comes from nuclear facilities, and most of the rest comes from coal-powered plants.

He added that it’s difficult to finance construction of any plant, making it hard to get one built.

By 2010 Michigan could experience low energy production, he said.

Rep. Frank Accavitti Jr. D-Eastpointe, who chairs the House Energy and Technology Committee, said a potential problem could occur.

“In our upcoming meetings, we will be hearing from all sides that include the bigger companies like DTE, the independent companies producing this energy and the environmental groups in deciding the potential of renewable resources,” Accavitti said.

“This is a long process and we can’t just say ‘let’s build a power plant and have it up in a year,’” he added. “This is something that may take five, six, maybe even seven years to get developed, so this is the time to move.”

There is no specific legislation because all groups haven’t talked with the committee yet, but Accavitti’s office said independent producers are asking for more power plants in the state.

Buying energy from another state’s grid might not seem like a big deal, but Accavitti’s legislative aide, Lindsey Whitenight, said it’s a bigger problem than it might seem.

“When a state does not have to buy power from other states, it can set its own prices and keep them there, which allows them to be set lower,” Whitenight said. “Buying out of state does not guarantee a price and can become pricey down the road.

“In our economic state, we can’t afford paying higher prices for out-of-state electricity,” she said

Besides becoming less dependent on out-of-state energy sources, some legislators say more power plants could lead to more jobs across Michigan.

Rep. Rick Jones, R-Grand Ledge, “The citizens of Michigan expect us to multi-task and we should be looking at other concerns that are affecting the state like this energy issue.

“This issue could help bring in new jobs as well as help us conserve energy, and this makes it a much bigger issue than most people would believe,” he said.

Janice Beecher, the director of Michigan State University’s Institute for Public Utilities (IPU), said energy and economy issues are intricately connected.

“When attracting jobs to the state, a business looks at the state’s ability to supply enough energy sources to allow their business to run properly,” Beecher said. “Without the proper amount, a business’s interest in moving to the state lowers.”

IPU provides training to utility regulators from Michigan and elsewhere.

Accavitti agreed with that connection and said one way to build a stronger economy is to look at where a state is in terms of providing energy.

“Businesses are looking for inexpensive and reliable energy sources,” Accavitti said. “They are going to go to the states that have these types of energy sources, and that’s why we need to act sooner rather than later.”