Compete to Succeed Manufacturing Vision for Michigan 2023-2024 - Page 14

Manufacturing Vision for Michigan 2023-2024

Energy Policy

Ensuring manufacturers can compete globally and provide low-cost energy with reliable capacity and delivery systems
The cost of energy is often the largest percentage of a manufacturer ’ s product costs . As a manufacturing state , Michigan must implement energy policies which ensure manufacturers can produce products at prices competitive with the rest of the world .
Energy is the critical lifeblood of a manufacturing economy . Our ability to compete against other states and other nations in producing goods is rooted in the cost of production from a Michigan location . Energy is often one the largest cost centers in manufacturing operations . Equally important is the reliability of supply . As we have seen constraints in other supply chains recently , increased system efficiency sometimes brings some risk to uninterrupted operation . The energy system is much the same . As available capacity nears minimum reserve margins , there is less room for error in maintaining Michigan ’ s competitiveness . A diverse fuel portfolio is an important management strategy to reduce risk and ensure economic growth opportunities . We are agnostic on fuel preference . Whether it is natural gas , coal , nuclear , wind , solar , the evolution of battery technology , energy waste reduction , or transmission capacity , the matrix of fuel sources must deliver on price and reliability for our manufacturing-based economy . Michigan ’ s energy policy must provide the flexibility to address future changes in the economy including capacity for new economic growth or changes in demand , such as charging electric vehicles . The state must find the critical balance between lower costs and greater reliability while maintaining the opportunity for choice in the electric market .
Michigan Manufacturers Say
Energy as a production

“ input is critical to Michigan manufacturers competing in a global economy . We are consistently challenged to lower our carbon footprint , reduce costs and increase reliability . As such , our electrical infrastructure must also balance these three factors .

— Phil Rausch , Business Development Manager , Hemlock Semiconductor Corporation , Hemlock
The state ’ s continued success depends on the success of manufacturing — Michigan ’ s largest economic sector . We must seek innovative solutions to increase competitiveness for all manufacturers operating in Michigan
Michigan ’ s Electric Choice Program Total • Major Utilities
ROA Cap 12,336,833 MWh ( 2021 )
6,940.735 MWh total load in the queue
6,217 customers enrolled in the queue
Source : Michigan Public Service Commission
For more information , contact :
Mike Johnston
MMA Executive Vice President of Government Affairs & Workforce Development johnston @ mimfg . org 517-487-8554 mimfg . org