What's New

Making Michigan Energy Efficient

Our cheapest and cleanest resource 

 

 

 

An Energy Crossroads

According to the 21st Century Electric Energy Plan prepared by the Michigan Public Service Commission, more electricity is needed “as soon as practicable.”  We have the opportunity to meet this need through investing in the cheapest and cleanest resource available – energy efficiency. 

 

The Smart Resource: Energy Efficiency

Instead of spending $20 billion a year importing fossil fuels from out of state, we should invest in a better, more cost-effective resource and keep those dollars in Michigan. 

 

• Cheapest – efficiency programs “produce” electricity for 2.57 cents/kWh compared to the 6 cents/kWh for electricity from a new power plant – less than half as much.

• Cleanest – using energy more efficiently improves public health and hedges the risk associated with the rising cost of fuel and impending carbon limits. 

• Fastest – efficiency programs can be started immediately, while constructing a new power plant can take 6 to 12 years. 

• Popular – 83% of consumers and 81% of businesses agree that more needs to be done to promote energy conservation according to a recent poll by the Detroit News, EPIC-MRA, and MIRS. 

• 11,380 Jobs – A study conducted by the American Council for an Energy-Efficient Economy shows that 11,380 jobs would be created in Michigan after ten years. 

1.  Statewide Utility-Funded Energy Efficiency Programs

These programs provide the greatest energy savings through providing education and incentives to both businesses and consumers.  Twenty other states have shown that they effectively reduce energy consumption, which lowers rates and saves money for everyone.  Rates are increased when expensive new electricity generation resources are added.  By reducing demand through energy efficiency, rates are lowered and stabilized for everyone.  For example, these programs would include the following products and services:

 

Residential Markets

Consumer electronics	Compact fluorescent lighting	Multi-family common area lighting
Variable speed furnaces	Central air conditioning	Multi-family heating systems
Room air conditioning	Water heater purchases	New home construction
Remodeling	Dehumidifier purchases	Direct install market
Shell improvements	Clothes washer purchases	Multi-family fuel-switching

 

Commercial and Industrial Markets

High performance buildings	HVAC replacement and improvement	Lighting upgrades
Boiler replacement and improvement	Lighting system retrofit improvement	Chiller replacement and improvement
Ventilation system improvement	Refrigeration improvements	Motors
Compress air systems	Fan and blowers	Pump Systems
Manufacturing process upgrades	Water and wastewater systems	Agriculture upgrades

 

These programs are funded by a small charge that is pooled to create larger savings and ultimately save consumers and businesses money.  For example, the average household would contribute $1.67 a month to meet all growth in demand through efficiency, but save $7 a month for a net savings of over $5 a month.  Consumers get their money back when they invest in energy efficiency, but money spent on a new plant has no return on investment.    

The most efficient states are reducing their electricity consumption by .8% per year, yet the Public Service Commission arbitrarily cut their recommendation in half, only calling for funding that would reduce our consumption by less than .4%.  Instead, we should maximize our cheapest and cleanest resource.

 

 

2.  Building Codes

Our residential and commercial building codes have not been updated in fifteen years, leaving Michigan far behind other states.  Right now, 25 other states have standards referring to the International Energy Conservation Code (IECC).  Since 1991, these model residential energy codes alone have saved over $7.4 billion and enough electricity to meet power 4.7 million homes for one year.  

Please support updating Michigan’s building codes to the 2006 IECC.

 

 

3.  Appliance Efficiency Standards

Updating efficiency standards on ten everyday appliances such as furnaces and DVD players will save Michigan consumers over $2 billion.  Michigan is quickly becoming a dumping ground for inefficient appliances that cost consumers money in the long run. 

Please support updating Michigan’s efficiency standards on 10 everyday appliances.