Wednesday, May 1, 2024

Charging residents more for green energy unfair

When it comes to green power in Michigan, there’s good news and bad news.

The good news is Michigan lawmakers recently passed legislation to reduce the percentage businesses contribute for new renewable energy for the state.

The bad news is Michigan residents now will be footing the majority of the bill.

Since the consumer energy crisis in the 1970s, businesses have paid disproportionate costs to energy companies while residents’ rates were subsidized. With the downturn of Michigan’s economy, however, businesses are no longer able to pay as much, and the energy costs are coming back to ordinary citizens like us.

The legislation states that residents will pay up to $3 per month extra for green power, in addition to a 15 percent increase in residential rates during five years. That’s a lot, especially considering the fact that residents account for about one-third of energy sales. Now, they’ll be paying two-thirds of the collective energy cost for the state. Knowing this, residents are understandably upset.

It’s admirable the state of Michigan is thinking ahead and really making a push for alternative forms of energy. Unfortunately, this really isn’t a good time to make residents pay for it.

What is the Michigan Legislature thinking? With the Michigan economy in a recession, this is the worst time to squeeze more money out of residents — even if it is for a noble enterprise like green energy.

An extra $3 per month is quite a bit, especially to latte-drinking college students. Although renewable energy is a cause we can all get behind, residents are more concerned about their checks bouncing or paying their credit card bills on time than going green.

Additionally, there really is no incentive in the short run. Even if the energy companies get all the money they need (or can squeeze) from residents, it will still be over a decade until, say, wind power becomes a viable and profitable form of energy.

It’s laudable that despite the state of our economy, Michigan’s lawmakers are still concerned about renewable energy policy, but there’s no reason why the residents should pay twice as much as businesses. State lawmakers should think twice before taking unnecessary funds from residents — the ones who make the economy work in the first place.

If Michigan is really serious about making the switch to green energy, the best option would be to either make the energy companies pay for it themselves, or just wait. Wait until our economy is no longer in a recession. Wait until Michigan residents are able and willing to pay a little more for the switch. And wait until residents trust their government to use the funds correctly.

Forcing this bill on residents adds insult to injury. Residents are already struggling to make ends meet, and residential rate hikes might not only become damaging to the economy, but damaging to the state’s morale.

Although MSU students living on campus need not worry about the future costs (MSU creates its own energy), anyone living off campus might. And if the state and energy companies succeed in raising rates and making residents pay more, the cry of many MSU students won’t be “Go green, go white,” but rather “Go green, go broke.”

Support student media! Please consider donating to The State News and help fund the future of journalism.

Discussion

Share and discuss “Charging residents more for green energy unfair” on social media.