Michigan Public Service Commission (MPSC) Chairman Orjiakor Isiogu today said Michigan is entering a new era of energy efficiency to save ratepayers money.

He joined utility executives and representatives of various energy-related organizations at the kickoff of an energy optimization collaborative meeting in Lansing attended by over 130 people.  The focus of the collaborative is to scrutinize the energy optimization programs offered by utilities and to make sure they result in savings for customers.   

"Michigan is entering a new era of energy efficiency," Isiogu said, noting that it has been at least 15 years since utilities offered energy efficiency programs to their customers. 

"Michigan's aging electric plants are approaching the end of their lifecycles.  So, energy efficiency efforts are the smartest and quickest approach to save on future energy costs.  The cheapest energy is the energy that is never used.

"Conservatively, every dollar spent on an energy optimization program yields three dollars in avoided cost savings to ratepayers.   The amount to be saved in Michigan is staggering:  funding during the first three years of the programs will produce $1.2 billion in savings over the lifetime of the measures installed."

Utilities unveiled details of their energy optimization plans that will soon be available to customers.  Programs vary from utility to utility but many will include an emphasis on the use of ENERGY STAR-qualified appliances, compact fluorescent light bulbs, and rebates for installing new, high-efficient heating and cooling equipment.  Customers should watch for details from their utility companies in the coming weeks.

Over the next three years, energy optimization programs in Michigan will be funded through surcharges totaling $387 million.  Of that, $69 million will go toward helping low-income customers to help them manage their energy use. 

Public Act 295 of 2008 requires all electric and natural gas utilities in Michigan to establish energy optimization programs designed to save ratepayers money by reducing the future costs of providing electric and natural gas to customers.  In particular, programs are designed to delay the need for constructing new electric generating facilities and thereby protect consumers from incurring the costs of such construction.

The MPSC is an agency within the Department of Energy, Labor & Economic Growth.