This presentation was given by Irene Dimitry at the Michigan Energy Forum event on September 6, 2012.

1. “25 by 25”
A threat to Michigan’s energy future
September 6, 2012

2. Michigan is already on a smart – and
affordable – path to a cleaner energy future
DTE Energy is fully supportive
of renewable energy!
DTE Energy and Consumers
Energy have made significant
progress toward reaching our
current standard of 10 percent
by 2015.
• $585 million investment by
Consumers
• $1.5 billion in direct capital
investments by DTE
• Our suppliers will make
similar levels of investment
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3. Reality check to meet “25 by 25”
“25 by 25” will ….
• Require additional 5,000 MW of new renewable generation
o More than 3100 wind turbines, covering >500,000 acres
o That’s nearly 6 times the size of Detroit!
• Not eliminate need for existing base load generation
• Force Michigan to make a $10- $12 billion bet on certain renewable
technologies to fuel Michigan’s energy future
o A wrong bet, or one out of step with other states, hurts Michigan’s
competitiveness
o Rate cap language is vague and does not protect customers
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4. Unpredictable variables make locking into a
25% renewables portfolio unsound policy
Future Environmental laws
natural gas prices
Cost considerations
Other unpredictable variables
Future climate change
legislation Future
wholesale
electric
Future (unknown) prices
environmental
legislation
• Impact on customers
• Competitiveness of state
Transmission costs
Performance of
renewable Cost of
technologies renewable
energy
technologies
NIMBY factors
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5. What will energy technology look like in
2025?
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6. Reality check on “25 by 25”
Across the 50 states within the U.S. ….
Only 12 states have renewable requirements for 25% or more….
All of those 12 states allow more options for compliance than allowed
by “25 by 25”….
10 of those 12 states’ renewable programs are structured using
tradeable credits, which would not be allowed by “25 by 25”….
6 of those 12 states do not require providers of all sizes to meet the full
renewable goals….
Not a single state – regardless of the size of their renewable
program – has cemented a renewable requirement within
their state constitution!!
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7. Jobs claims are misleading and vastly
over-stated
• No jobs guarantee in the “25 by 25” ballot proposal
• Both sides agree that ~94% of new renewables under “25 by 25” would
be wind. However ….
o “25 by 25” supporters claim that this proposal will create more jobs
in the state of Michigan than currently exist in the wind industry
across the entire U.S.
o The wind industry is already overcapacity and wind manufacturers
are laying off workers
• “Job years” versus real jobs
• Jobs studies cited by supporters of “25 by 25” include jobs associated
with technologies / sectors not covered by the proposal
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8. Conclusion
• DTE Energy absolutely supports renewables, but we oppose the “25
by 25” ballot proposal because we do not think it is good for our
customers or the State of Michigan
• Michigan’s current renewable energy law is working and will position
the State to make sound decisions about our future
• Any changes to Michigan’s renewable goals should be done only
after careful review and deliberation about what is best for Michigan
– not by amending the Constitution
• The “25 by 25” proposal will prove to be too costly for Michigan
families and Michigan businesses
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