News Story

Analysis: Renewable Electricity 'Net Metering' Capacity: 1/28,000 of Michigan’s Total Needs

The Michigan Public Service Commission has just issued a report on "net metering" in the state during the last six months of 2009. The press release that accompanied the report chirped that the number of net metering electricity customers increased by 85 percent during that period, from 135 to 254. With a few exceptions, most of these small generators make electricity with wind turbines and solar collectors.

"Net metering" is a clever practice in which an electricity customer who also generates some juice can sell it back to the utility by essentially "reversing" the flow. The customer is then charged only for the "net" of electricity purchased from the utility minus electricity sold to the utility.

It's more complicated in practice, and potentially adds to the challenges power companies face in planning how much they need to generate. For this reason, net metering is heavily regulated by statute and Michigan Public Service Commission rules that impose limits and price controls.

For example, DTE is required to offer net metering connections under terms that generally favor the customer, but is not required to acquire any more than 1 percent of its total capacity from them. Therefore, even if dispersed renewable power generation became much more cost-effective than currently, net metering would never replace more than a fraction of the total electricity required to keep Michigan's homes, shops and factories humming.

This reality is reinforced by the details of the new MPSC report, which reveals the potential amount of power those 254 net metering customers can provide - at least during the hours the sun shines, the wind blows, etc. - is just 884 kilowatts. Therefore, if the wind blew steadily and the sun shone non-stop for 12 hours a day - they won't, but it's useful to set the outside boundary - these net meterers might produce 3,871,920 kilowatt hours of juice annually.

According to the U.S. Department of Energy, Michigan's total electricity consumption is 110,445,000,000 kilowatt hours each year (110.4 billion). This is 28,524 times more than the maximum potential output of all the state's current net-metering providers. Under current law, net metering could legally provide around five times more electricity, which would potentially bring it up to 1/5000 of Michigan's needs, even under the most optimistic assumptions.

 

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.

News Story

Most Schools Tardy in Posting Salary Data

Michael Van Beek has been downloading the financial data that school districts have been putting up on their web sites as part of a new state law. The state's School Aid Act was amended to make it mandatory for schools to include certain financial information on their web sites. The law went into effect Oct. 19, 2009.

But Van Beek, the education policy director at the Mackinac Center for Public Policy, won't be able to complete the project because the state says that only 23 percent of the districts have complied as of Sept. 16. There is no penalty for not complying.

 "This has been on the books for more than a year," said Jack McHugh, legislative analyst for the Mackinac Center. "It's not like it just happened. They've had plenty of time to do this."

Van Beek said the school districts told him it takes a day or two to compile the information and get it up on the site.

"It's not that it is a huge undertaking or expense for a district," Van Beek said.

What has been released has made big news in communities all around the state.

In Jackson, the news that 39 public school employees take home more than $100,000 made front page of the Jackson Citizen Patriot. The online story drew 41 comments.

When it was learned the Harbor Beach School District Superintendent Ron Kraft's total compensation exceeded $300,000, the Huron County Press reported that a crowd of more than 80 people complained during a school board meeting. When the Oct. 20 meeting ended, the newspaper reported members of the audience faced off with board members in "heated discussions."

According to a Sept. 16 memo from Carol Wolenberg, the state's deputy superintendent, the districts are non-compliant for a variety of reasons. That includes such things as incomplete information, broken links, improper formatting and improper placement of the transparency icon on the web site.

Van Beek downloaded the salary information for all of the employees of the Battle Creek School District. Weeks later, he found the full list had been removed and substituted with just those making $100,000 or more.

"I wonder why the district has chosen to keep that information concealed when at one time it was public. What is the benefit?" Van Beek said. "It is public information that they once had made available and now they are choosing not to. I wonder why?"

Deborah Gregory, executive director of financial services for the Battle Creek School District, described the reasoning for the change in an e-mail: "I had done a survey of surrounding districts and they had the same as I currently have now. I did not feel it was appropriate to have all of the names and amounts if it was not necessary. Besides, the initial report had some errors and I wanted to comply with the requirements in a timely fashion."

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See also"

$300k Superintendent Defends His Compensation

The 600-Student District With the $300k Superintendent

Where Has All the Money Gone?

Analysis: Pseudo School 'Cuts'

Analysis: We Still Need to Reform Teacher Pay

Recaps of New Teachers' Union Contracts

Grand Rapids Superintendent Wants to Use "EduJobs" Bailout Money for Health Insurance

Budget Savings Drained and Raises Continue at Alpena Schools

The Salary History of a Michigan Public School Teacher

Ann Arbor Teachers Union Keeps District Out of Balance 

The Unstable Funding Myth

'EduJobs' Fact Check

"Edujobs" Fact Check, Part II

St. Joseph Teacher Contract Summary

Wayne-Westland Teacher Contract: Summary and Analysis

Walled Lake Teacher Contract Analysis

Traverse City Teacher Contract: Summary and Analysis

Port Huron Teacher Contract: Summary and Analysis

Utica Teacher Contract: Summary and Analysis

Saline Teacher Contract: Summary and Analysis

Fruitport Teacher Contract: An Analysis

Holland Teacher Contract Summary

Detailed Analysis of Holland's Teacher Contract

 

 

Michigan Capitol Confidential is the news source produced by the Mackinac Center for Public Policy. Michigan Capitol Confidential reports with a free-market news perspective.