October 14, 2004

At a conference on alternative energy technology in Traverse City, Michigan Public Service Commission (MPSC) Chair J. Peter Lark today announced that the Michigan Renewable Energy Program has reached a consensus on a potential net metering program in Michigan that could be in place early next year.

Net metering occurs when customers produce electric energy in excess of their needs, providing power back to the serving utility and permitting the customer to receive a credit for power they place on the system.

"Michigan will soon join 38 other states in offering residents and small businesses a net metering program," said Lark. "This will benefit the state by encouraging the use of renewable energy sources. If enough customers take advantage of this net metering program and install their own renewable energy systems, it will make Michigan less dependent on traditional energy sources and enhance the environment. This order should provide the incentive necessary to residential and small business customers to invest in solar and wind generation. "

On May 18, the MPSC issued an order directing the Commission staff to work with members of the Michigan Renewable Energy Program Collaborative to form a consensus on net metering and deliver it to the Commission by the Nov. 30 deadline for the 2004 report. Since then, representatives of renewable energy companies, utilities, environmentalists and state government agencies have been involved in a collaborative process to design a proposed net metering program. They recently reached a consensus and will soon forward their proposal to the MPSC. The Commission is expected to issue an order on the proposal, which could be in place early next year.

Chairman Lark today also announced that the MPSC has begun the process to award the latest round of energy efficiency grants from the Low-Income and Energy Efficiency Fund, totaling $6 million. These grants are awarded to organizations to promote energy efficiency for all customer classes in Michigan and may also be used for renewable and other advanced energy technologies. Information about the grant process is available on the MPSC Web site at: michigan.gov/mpsc.

The MPSC is an agency within the Department of Labor & Economic Growth.

# # #