Utilities - Utilities Satisfy Mandates

Wisconsin, Illinois, Indiana, and Michigan ("WIIM") have, or are currently preparing to enact, laws for renewable portfolio standards ("RPS"). The United States Congress is also presently considering enacting a law called the Federal Renewable Portfolio Standard. There are penalties for utilities who fail to purchase the necessary amount of renewable energy. The current WIIM states and federal government have the following laws, or pending bills, relating to renewable energy mandates as of April 2, 2007:

Wisconsin:

Law requires renewable energy to be 10% of utilities' electricity by 2015. Penalties for non-compliance are up to $500,000.

Illinois:

A current voluntary standard is in place by the Governor that requires 75% of the renewable resources used by electric utilities to come from wind. The 2007-2008 Illinois General Assembly is presently authoring H.B.1871 which will require utilities to use 10% renewable energy by 2015, 75% of which must be wind energy. Penalty for noncompliance in H.B.1871 is $50 per megawatt hour each year for any shortfall unless and until the utility makes sufficient purchases to meet the requirement.

Indiana:

The 2007 General Assembly is presently reading H.B.1496 which will require utilities to use 8% renewable energy by 2015. Penalty for noncompliance in H.B.1496 is $50 per megawatt hour each year for any shortfall unless and until the utility makes sufficient purchases to meet the requirement.

Michigan:

The Michigan State Senate is presently reading S.B.213 which will require utilities to use 10% renewable energy by 2015. Penalty for noncompliance in S.B.213 is $50 per megawatt hour each year for any shortfall.

The Proposed Federal Renewable Portfolio Standard (2007):

Congress is currently in its 110th Session drafting legislation for a nationwide standard that will require retail electricity suppliers in the United States to use a base amount of 20% renewable resources by 2020. The enforcement provision for not submitting the required renewable credits is a civil penalty of the number of credits not submitted multiplied by 4.5 cents or 300 percent of the average market value of credits for the compliance period.

To learn more about purchasing electricity generated by the Radial Wind Farm, please click here.

This page will be updated regularly as information becomes available. The above analysis is for informational purposes only and is not meant to be relied upon by any outside party.