MI HB5906

Increases renewable energy capacity portfolio requirements for large electric utilities (1+ million retail customers) from 500 megawatts by 2015 to 584 megawatts by 2015 and 1,080-1,100 megawatts by December 31, 2025, with separate targets for utilities with 1-2 million vs. 2+ million customers.

Raises renewable energy credit portfolio requirement from 10% by 2015 to 30% by 2025, with a phased-in approach from 2012-2015 (20% to 100% of incremental amounts) and maintenance of 2015 levels through 2024.

Changes the deadline for extension requests from the 2015 renewable energy standard to the 2025 standard, allowing utilities to petition for single one-year extensions for good cause including renewable energy system feasibility limitations.

Modifies compliance provisions to allow utilities making good-faith efforts to spend approved incremental compliance costs to be deemed in compliance with renewable energy standards.

Establishes cost recovery mechanisms for regulated utilities to recover incremental compliance costs over 20 years with fixed rate of return and debt-to-equity ratios, subject to maximum retail rate impact limits, with provisions for deferral and recovery of excess costs within 5 years post-compliance period.