MARQUETTE — The U.P. Energy Task Force today submitted to Gov. Gretchen Whitmer its 14 recommendations on propane availability in the Upper Peninsula. The report, Upper Peninsula Energy Task Force Committee Recommendations: Part I – Propane Supply, has been posted online at Michigan.gov/UPEnergyTaskForce.

“The report encapsulates hundreds of hours of discussion and work and includes important public input regarding affordable energy in the Upper Peninsula,” said Liesl Clark, chair of the Task Force and director of the Michigan Department of Environment, Great Lakes, and Energy (EGLE). “The Task Force looks forward to working with the Legislature and stakeholders on these common-sense ideas designed to protect U.P. propane customers.”

The U.P. Energy Task Force received more than 800 public comments on the draft recommendations and more than 1,000 total comments since it began meeting last July. An appendix to the report is a technical document, prepared for the Task Force by Public Sector Consultants, which explains how propane markets are changing across the country and explores how those markets might react to a propane disruption.

“We all know that there are unique challenges in the U.P. when it comes to energy and I appreciate Gov. Whitmer’s recognition of the issue and her desire to find possible solutions,” said Mike Prusi, vice-chair of the U.P. Energy Task Force. “The Task Force encourages legislators and state agencies to take quick action on our recommendations so the region’s residents and businesses can be confident that any potential disruption in energy availability won’t mean a huge hit to their budgets.”

The recommendations to the Legislature:

– Explore creation of a customer storage incentive program designed to encourage propane retailers and their customers to work together to maximize the amount of propane in customer storage at the beginning of and throughout the heating season.

– Explore a wholesalers and retailers storage incentive program to encourage wholesalers and retailers to create more propane storage capacity. In order to avoid creating a disadvantage for companies that made early investments in this area, the incentive could be designed to focus on the relationship between a company’s annual sales and its storage capacity.

– Review the Freight Economic Development Program to determine if any program revisions are needed to encourage greater capacity for receiving propane delivery by rail and diversifying our supply infrastructure to protect Michigan consumers. Because of the lead time necessary to expand rail infrastructure, action on this recommendation should be taken as soon as is practicable.

– Increase LIHEAP funding for weatherization to help reduce long-term resource burdens imposed upon low-income customers to pay utility bills.

– Engage the Michigan Propane Gas Association about the potential of levying a small surcharge on propane fuel to target an Energy Waste Reduction/weatherization program focused on propane users in Michigan.