Our

Businesses Support Michigans Energy Optimization Standard

The Energy Optimization Standard has been a tremendous success for Michigan.

The Energy Optimization Standard has exceeded its goals every year since implementation.
Every dollar invested in energy-saving programs is providing $3.75 in benefits.i
The benefits from 2013 programs will exceed $900 million.ii
All Michigan businesses and consumers experience these benefits whether they participate in
energy-saving efforts or not.

Energy Optimization programs are Michigans least expensive energy option.

Energy Optimization programs are the least expensive way for Michigan to meet its energy
needs (see chart on reverse).iii
Other energy sources cost three times more than Energy Optimization programs.iv
For Michigan consumers and businesses, electricity bills will be higher if other energy resources
are pursued instead of Energy Optimization.

Energy Optimization can help Michigan overcome its capacity shortfall.

Energy Optimization programs have significantly reduced peak demand and are helping to
mitigate the states capacity shortfall.v
Given the successful track record, Energy Optimization programs represent a low-cost, low-risk
way for Michigan to meet a significant portion of its current capacity needs.

A commitment to continuing and advancing the Energy Optimization Standard would benefit all
Michiganders and give businesses more confidence to invest and grow.

Policies like the Energy Optimization Standard provide the regulatory and market certainty we
need to make investment decisions and long-term plans for our workforce in Michigan.
Repealing the Energy Optimization Standard would introduce uncertainties that make it harder
for us to consider the Michigan market in our long-term investment decisions.

Michigan Public Service Commission, 2014 Report on the Implementation of P.A. 295 Utility Energy Optimization
Programs In Compliance with Public Act 295 of 2008, November 26, 2014.
ii
Ibid.
iii
The Michigan Public Service Commission recently reported that Energy Optimization costs $20/MWh, compared to $69-
$78/MWh for natural gas (in the chart above we selected the mid-point of this range), $77/MWh for renewables,
$108/MWh for nuclear and $133/MWh for coal. Michigan Public Service Commission, Report on the Implementation of
the P.A. 295 Renewable Energy Standard and the Cost-Effectiveness of the Energy Standards, February 13, 2015; &
Michigan Public Service Commission, Readying Michigan to Make Good Energy Decisions, November 4, 2013.
iv
Michigan Public Service Commission, Report on the Implementation of the P.A. 295 Renewable Energy Standard and the
Cost-Effectiveness of the Energy Standards, February 13, 2015. The Commission reports that energy efficiency costs 2
cents/kWh, while the cost of electric supply is 6.4 cents/kWh overall.
v
According to EIA data, efficiency programs in Michigan saved over 153MW in 2013 (Form EIA-861).