Michigan voters rejected a proposal in November that would have required electric utilities to provide at least 25 percent of their annual retail sales of electricity from renewable energy sources, which are wind, solar, biomass, and hydropower, by 2025. It would have limited the rate increases of electric utilities to not more than 1 percent,  only to achieve compliance with the renewable energy standard. It would have allowed annual extensions of the deadline to meet the 25 percent standard in order to prevent rate increases over the 1 percent limit, and it would have required the legislature to enact additional laws to encourage the use of Michigan made equipment and employment of Michigan residents.

Proposal 3 was filed in 2012 by Michigan Energy, Michigan Jobs, a bipartisan coalition of more than 300 Michigan businesses, labor organizations, health care advocates, faith leaders, environmental and conservation groups and others.

According to supporters of the proposal, the amendment was projected to provide more than 40,000 jobs and attract $10 billion in new investments. Supporters also said the amendment would have a positive impact on personal health through reduction of coal emissions and other pollutants, and so also improving the environment. Its most noted opponent was Governor Rick Snyder.

“Current law sets a goal of generating 10 percent of electricity from renewable sources such as wind, solar, hydro and biomass by 2015, Snyder stated in a September, 2012 press release. “This is a standard that’s already difficult to meet. Proposal 3 would set the bar even higher – and we would be the only state to have such a mandate in our constitution.”

Four years later, time has disproved Snyder’s argument, and solar power is rapidly gaining popularity across the United States. In July of this year, the Upper Peninsula Power Company declared it had its cap for renewable energy sources, according to the UPPCO website. The reason was due to a state law, part of which began as Senate Bill 437, which was sponsored by two Republican senators, Mike Nofs (R. Battle Creek), and John Proos (R. St. Joseph).

The lawmakers have said that as renewable energy production grows, the net metering program would be expected to reach its limit and shut out new customers within a few years of the bill’s passage unless the cap is lifted, according to an article by Robert Walton, which appears on utilitydive.com.

According to the bill, excess generation will be credited at the customer’s applicable standard tariff’s full retail rate (distribution service plus power supply service).  The credit shall appear on the customer’s next bill.  Any credit not used to offset current charges shall be carried forward for use in subsequent billing periods.

Typical customer electric generation technologies include solar photovoltaic systems, wind turbines, and on-farm anaerobic digestion systems. These systems are located on the customer’s premises. See the Energy Information Administration website for more detailed information on these generation technologies. Customer generation facilities must be located on the customer’s premises, according to the Michigan Department of Licensing and Regulatory Affairs.