LETTER: No on 25 by 25

Proposal 3 is bad for Michigan.

Also known as 25 by 25, this proposal would change our constitution to force Michigan electric customers to pay for 25% of their electric supply from renewable sources by the year 2025.

These unnecessary, unproven, and expensive sources are estimated to cost at least 12 billion dollars to implement.

Michigan’s 2 major electric providers, Consumers Energy and DTE, are regulated utilities. This means they will be able to raise their rates to ensure investors a stable rate of return on investment.

Rates for residential, commercial and industrial customers are certain to rise until the 12 billion dollars are recovered. In a tough economic climate, why in the world would we make it harder for businesses to stay here let alone move here?

How can this proposal claim to create jobs when it drives up costs for every business in the state? Advocates of proposal 3 might argue that rate increases are restricted to 1% per year.

Sound good? Well think about it.

If the utilities cannot recover their costs in a timely way through rate increases, they will begin cutting investment in existing infrastructure.

This means old poles, wires, equipment, substations, etc. are not upgraded or replaced. In addition, utilities will likely reduce hiring electrical engineers, accountants, business analysts, lineman, etc. Electric reliability is affected when physical infrastructure and human resources are not maintained.

Now, if you are a business considering moving to Michigan, isn’t it sensible to be hesitant when you see high energy costs and perhaps questionable reliability?

If your business is already in Michigan wouldn’t you consider relocating if you energy cost are lower elsewhere and reliability is better? This proposal appeals to our emotional desire to have a “clean environment”. Don’t be fooled though. It is really a 12 billion dollar tax increase you are asked to impose on yourself to subsidize the “green energy” industry. Its passage would be disastrous for Michigan.

Vote NO on proposal 3.

Sam Chansler

-Fremont, MI