Michigan energy efficiency standard netted $4B in savings

Dive Brief:

A new report on efficiency in Michigan shows that for every dollar spent on reducing energy waste consumers are seeing $4.38 in benefits -- the highest level since 2010, Midwest Energy News reports.
The report, released by the state's Public Service Commission, estimates that the program's $1.1 billion in expenditures has saved customers $4.2 billion since 2010.
Efficiency measures installed last year were expected to save over 1.4 million MWh and more than 4.8 million Mcf of natural gas.

Dive Insight:

Michigan's energy efficiency standard has come under legislative opposition as state lawmakers try to end the renewable and efficiency standards. But a new report shows that the state standard has netted ratepayers billions in savings.

A year ago, every dollar spent returned $3.75 in benefits to consumers, but now that figure is $4.38, the recently-published report from Michigan's Public Service Commission said.

"The cheapest energy is the energy never used, and this has proven to be the case again with Michigan's energy optimization programs in 2014," MPSC Chairman John Quackenbush said in a statement. "Because they focus on reducing energy waste, energy efficiency programs benefit all utility customers."

The PSC said last year, aggregate energy optimization expenditures of $257 million by all natural gas and electric utilities in the state are estimated to result in lifecycle savings to customers of $1.12 billion.

All Michigan utilities met their savings targets last year, the report said, and collectively they met a combined average of 141% of their electric energy savings targets and 130% of their natural gas energy savings targets.

The providers are targeting 1% of retail sales for electric service and 0.75% of retail sales for gas. Optimization programs across the state accounted for electric savings totaling over 1.4 million MWh and 4.86 million Mcf for program year 2014, the report concluded.

The American Council for an Energy Efficient Economy (ACEEE) ranks Michigan as 12th in the nation for efficiency.