Two bills aimed at protecting the Upper Peninsula (U.P.) from rising electrical costs are set to be voted on by the House Energy Committee this Tuesday.
The legislation, introduced by Representatives Dave Prestin and Karl Bohnak, addresses concerns over the 2023 clean energy law, which mandates the phase-out of natural gas-powered generators. These generators were installed in 2019 to replace coal plants in the U.P., but the new law requires the state to transition to 100% renewable energy by 2040.
Prestin argues that the proposed transition to renewable energy will significantly impact the U.P. He pointed out that residents of the region would bear the full financial burden of the $3.1 billion renewable energy buildout.
“The people of the U.P. will be the only ones paying for this,” Prestin said. “We’re still paying for the RICE generators, which just came online in 2019.”
Experts predict that without the new legislation, energy costs for U.P. residents could rise by $87 a month. In addition, Cleveland Cliffs’ Tilden mine could face an extra $15 million in energy costs each month by 2040.
Marty Fittante, CEO of InvestUP, stressed the economic risks for the mine, which could become unsustainable under the proposed cost increases.
“Hearing those numbers, you can understand why some accommodation has to be made for the transition we made from coal to natural gas in 2019,” Fittante said.
He also pointed out that similar exceptions have been granted in other parts of the state.
“When this legislation passed in 2023, exceptions were made in parts of the Lower Peninsula. We’re asking for the same fair treatment,” Fittante added.
If the bills pass the committee vote, they will still need approval from both the House and Senate before reaching Governor Whitmer’s desk.
