Self-directed EWR Plan
Under 2008 Public Act 295 as amended by 2016 Public Act 342 (the Act), certain customers may create and implement, or "self-direct", a customized energy waste reduction (i.e., energy efficiency) plan and thus be exempt from paying the full Energy Waste Reduction (EWR) surcharge to its utility provider. The surcharge exemption does not apply to a contribution to the low income programs and fees charged by the utility provider to cover self-direct plan review and evaluation costs. Specifically, Section 93(1) of the Act states:
"An eligible electric customer is exempt from charges the customer would otherwise incur as an electric customer under section 89 or 91 if the customer files with its electric provider and implements a self-directed energy waste reduction plan..."
Electric customers who are eligible to participate in the self-directed EWR plans are commercial or industrial having at least 1 megawatt annual peak demand at all sites to be included in the self-directed plan.
Please note that all but the largest customers must use the services of an Energy Waste Reduction Service Company (EWRSC) to develop and implement their self-directed plan. Customers with annual peak demand of at least 2 megawatts at each site or 10 megawatts in aggregate are not required to use an EWRSC.
Details on the components of a self-directed EWR plan are described in Section 93(6) of the Act.
Links to self-directed plan forms and examples are found below. (Forms and instructions were approved in Docket No. U-16563.) Customers considering a self-direct EWR plan are encouraged to contact their electric utility for provider-specific enrollment procedures. New plans and plan term extensions must be submitted to the provider by July 15th preceding the plan year. Information regarding EWRSCs is available further below.
Self-direct plan results shall be reported using the Annual Report Template found below and submitted to the electric utility by March 1st following the plan year. Please address any questions to Dave Walker.
EWR Self-direct Plan Forms:
- 2018 Annual Report Template
- 2020 Self-Direct Plan Template (3-Year Average)
- 2020 Self-Direct Plan Template (Weather Normalized)
Energy Waster Reduction Service Company (EWRSC) requirements are described in Section 93(13) of the Act. The EWRSC must possess the expertise, resources, and business practices necessary to design and implement customized energy waste reduction programs for certain non-residential electric customers that will meet the energy savings requirements of the Act. For more information on the eligibility of customers, please see the Self-directed EWR Plan section above.
The Commission, in U-16199, has established an approval process for companies seeking designation as an EWRSC. A company that desires to become an EWRSC shall submit an application to the MPSC that complies with each requirement set forth in the approval process and agree to follow the EWRSC Code of Conduct. The MPSC will maintain a list of approved EWRSCs on this website. (Note: there are no approved EWRSCs at this time.)
Please address any questions to Dave Walker.