Dive Brief:
- Michigan's energy efficiency measures exceeded their targets and returned almost $4 in savings for every dollar spent, according to a new report from the state's energy regulators.
- The report concluded that 2013 energy optimization program savings achieved for electric utilities were 132% of target, and for gas utilities savings were 121% of targets established in 2008, Michigan Radio reports.
- Michigan spent $253 million on energy optimization programs in 2013, which regulators say will result in savings of $948 million to customers over the lifetime of the measures installed.
Dive Insight:
Electric savings in 2013 totaled over 1.3 million megawatt-hours, and natural gas savings totaled over 4.41 million Mcf, according to an analysis of Michigan's efficiency programs.
"Once again, Michigan's energy optimization programs have proven their worth to utility customers large and small," said PSC Chairman John Quackenbush. "For every dollar spent on EO programs in 2013, customers will see benefits of approximately $3.75 by eliminating energy waste."
The report, required annually by law, details energy savings achievements, program highlights and administrative improvements that have been implemented by the PSC.
The savings, almost $1 billion, include avoided capital and operational costs associated with incremental utility generation or purchased power, and additional indirect environmental and health benefits. "Absent energy efficiency programs, customers would pay a portion of such direct and indirect costs, even customers who are able to hold their energy usage at or below current levels," the report said.
"The EO program benefits will potentially reduce future costs of service to all utility customers, whether or not those customers made energy efficiency improvements through a utility efficiency program," the report concluded.
Last month, Michigan was ranked 12th out of the 50 U.S. states in energy efficiency by the American Council for an Energy Efficient Economy.
