Energy Optimization Plans

Public Act 295 also contains an energy optimization (EO) standard that applies to both natural gas and electric utilities. The goal of this standard is to reduce the future cost of service for these utility suppliers. Under this standard, electric providers must save 0.3% of their 2007 retail sales between 2008 and 2009, and must increase these savings in order to reach 1.0% savings in 2012. The gas optimization standard requires incremental savings during the 2008-2009 year or 0.1% of 2007 retail sales, accelerating to 0.75% of the previous year’s sales in 2012 and thereafter. As with the RPS, limited use of RECs and ACECs is permitted for compliance with the energy optimization standard.

In addition to the percentage-based energy requirements, a utility with more than 1 million retail customers such as Consumers Energy must meet a renewable energy capacity standard of 200 MW by December 31, 2013, and 500 MW by 2015. Detroit Edison and other utilities with more than 2 million retail customers must meet a renewable energy capacity standard of 300 MW by 2013, and 600 MW by 2015.

Consumers Energy: Energy Optimization Plan and RPS

Detroit Edison Energy Optimization Plan and RPS