The Energy Independence Act has been passed by the legislature. Importantly, this law requires that the Department, "conduct a proceeding to determine whether a practical, effective, and cost-effective process exists under which an electric customer, when initiating electric service, may receive information regarding selecting electric generating services from a qualified entity." The proceeding must be completed by December 1, 2005, and implemented by March 1, 2006, or on a later date deemed appropriate by the Department. The full text of the Energy Independence Act is available on the NEM Website.

Commission Staff released a Report on the state's Sustainable Energy Initiative. With respect to both renewable energy as well as demand response and energy efficiency programs, Staff makes three recommendations: 1) rather than impose a mandatory standard, the voluntary participation by electric public utilities as well as certified alternative retail electric providers should be encouraged; 2) a rate impact test should be adopted to ensure that participating utilities do not place excessive reliance on resources that are uncompetitive at current prices; and 3) the same requirements concerning arms-length transaction requirements should apply to participating utilities whether they are acquiring conventional electric supply resources or renewable or energy efficiency resources. The full text of Staff's Report is available on the NEM Website.

DTE has filed an application to offer a renewable resources program. As described by DTE, the program will be, "a Standard Contract Rider and will be available on a voluntary first come-first served basis to residential, commercial and industrial full-service metered Detroit Edison electric customers who desire to pay a renewable resources premium to promote the operation and development of renewable power facilities in the Great Lakes region." DTE proposes that customer participation in the program be discretionary and that customers may terminate participation on three days notice. DTE notes that it plans to retain a renewable energy marketing firm to promote the program. The full text of DTE's Application is available on the NEM Website.

The Commission opened a proceeding to examine the appropriate statewide level of future support and funding for the Gas Technology Institute (GTI). The FERC surcharge that funded the GTI has been discontinued. The Commission will consider a mechanism for the recovery of GTI-related support and funding including for example an energy surcharge to apply to all gas distribution and transportation volumes in Michigan, a per-meter charge, or another method of cost recovery. Petitions to intervene in the proceeding are due August 15, 2005. The full text of the Order Initiating Proceeding is available on the NEM Website.