MPSC Report: State's Annual Utility Energy Optimization Programs Exceed Targets, Saving Customers Money

Contact:  Judy Palnau, 517-241-3323
Agency:  Michigan Public Service Commission

December 1, 2011 - The Michigan Public Service Commission (MPSC) yesterday issued its annual report on the implementation of utility energy optimization (EO) programs under Public Act 295 of 2008.  The report is required to be issued by Nov. 30 of each year.

The report shows that overall, 2010 EO program savings achieved for electric utilities was 148 percent of the target, and the 2010 EO program savings achieved for natural gas utilities was 143 percent of the target.  Targets were established in Public Act 295 of 2008.

"The energy efficiency programs offered by Michigan's electric and natural gas utilities are exceeding expectations," noted MPSC Chairman John D. Quackenbush.  "The MPSC encourages customers to check with their utilities periodically to find out what is available to them, as programs change from time to time."

The report shows that statewide funding for EO programs was $135,369,598 in 2010 and that every dollar spent on energy optimization programs yields over $4 in cost savings to ratepayers.

Public Act 295 of 2008 requires all electric and natural gas utilities in Michigan to establish energy optimization programs designed to save ratepayers money by reducing the future costs of providing electricity and natural gas to customers.  In particular, programs are designed to delay the need for construction of new electric generating facilities and thereby protect consumers from incurring the costs of such construction.

More information on Michigan's energy optimization programs is available on the MPSC's energy efficiency website.

The MPSC is an agency within the Department of Licensing and Regulatory Affairs.

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