LANSING, MI— The state Senate did not take up legislation last week that would designate U.P. natural gas generators as clean energy.
Michigan law requires all energy generation to be green by 2040, but reciprocal internal combustion engines—or RICE generators—operated by the Upper Michigan Energy Resources Corporation use natural gas. The units are bonded out until 2049. Lawmakers wanted the units classified as “clean” so customers wouldn’t have to pay for bonds and replacement energy.
But on Thursday the Michigan Public Service Commission rejected UMERC’s Renewable Energy Plan, which incorrectly linked compliance with clean energy rules with prematurely shutting down the generators. They said a utility’s clean energy standards must instead be addressed through a clean energy plan that is part of the provider’s integrated resource plan, or IRP.
The Commission determined the RICE generators aren’t required to be shut down, especially if UMERC builds renewable energy systems and storage.
UMERC must now file a new REP by October 15 of 2026, along with its IRP.
