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Energy Waste Reduction Standards and Plans

All MPSC workgroup meetings are being conducted via teleconference. Remote access information for upcoming meetings is available on our calendar of events.

Public Act 229 establishes new Energy Waste Reduction targets for Electric and Natural gas providers and requires the filing of new customer energy optimization plans beginning January 1, 2025 which are to include energy waste reduction plans as well as optional efficient electrification measures plans. By July 1, 2024, the Commission must commence a proceeding to adopt a framework for the updated energy waste reduction programs of the independent program administrator, Efficiency United, and establish an Alternative Compliance Payment.

On February 8, 2024, the Commission issued an order, U-21567, to provide background information on the implementation of Act 229, an amendment to PA 295 of 2008. In this order, the Commission also laid out some clarification on areas of the Act for utility provider mandated energy waste reduction (EWR) plans and voluntary efficient electrification (EFEL) plans. Combined, these utility plans will now be called energy optimization plans or EO plans. Within that order, the Commission directed interested persons and parties (IP) to file comments in this docket by July 17, 2024, and reply comments by August 9, 2024. A final order was issued in this case on November 7, 2024. (link final order)

The Commission issued an order on June 6, U-21654, for the Efficiency United framework development. Act 229, Sec. 91(2), requires the commission to initiate a proceeding and adopt a framework EWR program for providers wishing to elect the state administrator, Efficiency United to implement their EWR and EFEL programs. Staff held a collaborative to gather input from interested parties, and subsequently filed testimony including a perspective on the proposed framework on August 6, intervening parties filed testimony on September 20, and rebuttal was filed on October 11.

On April 25, 2024, the Commission issued an order, U-21627, setting a deadline for comments to filed regarding the revision of Self-Direct forms for larger customers wishing to self-implement EWR for their organization in lieu of paying surcharges to their provider (surcharges are still required at a lower amount to cover low-income programs). The criteria and required forms to file as application for this concession can be found in the order. No comments were filed, and therefore the revised self-direct forms were adopted on July 2, 2024.

On November 7, the Commission issued an order in Case no. U-21679, directing all providers to file their next EWR plans and optional EFEL plans in 2024 and 2025 for programs beginning Jan. 1, 2026, through December 31, 2029. These will be contested case filings.

Public Act 231 of 2023, Sec. 6t., requires the Commission to conduct a study to assess the potential for EWR, demand response (DR) programs, and electrification of transportation, buildings, and industries. The request for proposals (RFP) was posted on June 24, 2024. The contract was ultimately awarded to Optimal Energy, LLC, d/b/a NV5 Global Inc. The first collaborative meeting for interested parties will be held virtually on December 16. Information on joining that meeting will be posted here soon.

 

Implementation Status: In Process

Lead Staff: Karen Gould

 

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