October 18, 2005

The Michigan Public Service Commission (MPSC) today issued an order directing the MPSC staff to prepare an overview of electric and natural gas energy efficiency programs in Michigan and elsewhere and to make recommendations in a report by Jan. 31, 2006.  Following the issuance of the report, the MPSC will hold public hearings to review the report’s findings and to develop a consensus on a course of action.

Noting the spike in energy costs in recent years, the Commission said Michigan remains vulnerable to increases in energy costs because its many industries rely on imported natural gas and because 80 percent of Michigan households use natural gas for space heating. 

“Natural gas prices have nearly tripled in recent years,” said MPSC Chairman J. Peter Lark.  “The impact of the recent hurricanes has only made the need for a multi-faceted, efficient and effective approach to this situation more important.    A thorough review of energy efficiency programs in Michigan and elsewhere will help us implement practical, cost-effective and achievable suggestions to reduce energy demand.  Improving energy efficiency for Michigan’s homes and businesses can only help bolster the overall economic climate in the state.”

In today’s order, the MPSC directed its staff to provide an overview of energy efficiency programs that are currently being implemented in both the natural gas and electric sectors in Michigan and other states.  It will also include a review of what can be done to achieve gains in energy efficiency in Michigan, including educational and technical assistance programs, utility rate restructuring, efficiency incentive programs, grant and loan programs, or other innovative financing options.

Staff recommendations will include alternatives designed to improve energy efficiency, make energy utility services more affordable for ratepayers, and enhance the state’s economy.

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

Case No. U-14667