Michigan’s energy waste reduction efforts generate $1.4B in cost savings for utility customers

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Investments in Michigan energy waste reduction (EWR) programs made in 2024 will save Michiganders $1.4 billion, according to a report released today by the Michigan Public Service Commission. These programs, designed to enhance energy efficiency across the state, resulted in savings of 1.73 million megawatt hours (MWh) of electricity and 6.44 million thousand cubic feet (Mcf) of natural gas last year. For comparison, the electricity saved by Michigan’s EWR programs is approximately double the total electricity sales for all homes and businesses in the City of Ann Arbor each year.

The MPSC’s 2024 Utility Energy Waste Reduction Programs Annual Report on the Implementation of Public Act 295 highlights a wide range of financial and other benefits of Michigan’s strong EWR programs. EWR offerings for residential customers include ways to upgrade lighting, heating, ventilation and cooling, weatherization, energy education, appliance recycling and other ways residential customers can use energy more efficiently and save money on their utility bills. There are also programs to help businesses of all sizes reduce their energy waste.

In addition to benefits for customers participating in EWR programs, savings realized through EWR programs can help delay or eliminate the need to build costly new power generation sources and reduce the impact of rising fuel costs that factor into all customers’ bills.

Michigan’s electric and natural gas utilities spent more than $583 million on EWR programs in 2024. That spending is expected to result in customer savings of $1.4 billion over the 12-year lifecycle of EWR programs and measures. For every dollar utilities spent on EWR programs in 2024, customers see $2.40 of benefits, the report concludes.

EWR programs also reduce the energy burden, improve health outcomes and strengthen the economic security of low-income customers and communities. The MPSC’s EWR Low Income Workgroup, which includes state agencies, utilities and outside organizations, continues its work to develop initiatives to reduce energy costs for low-income customers. In 2024, more than $142.5 million was spent on programs for income-qualified customers, representing more than 20% of the total program budget, up from less than 10% of spending dedicated to low-income customers in 2016. More information is at the MPSC’s EWR Low Income Workgroup page.

Michigan’s EWR efforts rank among the best and most cost-effective programs in the nation, including Michigan being best in the country for natural gas savings as a percentage of sales and ranking third nationally for electricity savings.

Michigan’s EWR standard — created in 2008 and amended by the Legislature in 2016 and 2023 — requires all electric and natural gas utilities to implement customer programs that lower energy use to reduce the future cost of service.

Underscoring other impacts of EWR programs, some 78,442 Michiganders work in the energy efficiency sector, including jobs in certified energy efficiency and efficient lighting; traditional HVAC; high efficiency and renewable heating and cooling; and advanced materials and insulation, according to the U.S. Department of Energy’s 2025 Energy and Employment Report. The energy waste reduction programs offered by Michigan utilities rely on these workers and energy efficiency contractors across the state.

For information about the MPSC, visit www.michigan.gov/mpsc, sign up for its monthly newsletter or other listservs. Follow the MPSC on Facebook, X/Twitter or LinkedIn.

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