ENERGY OPTIMIZATION

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Public Act 295 - Clean, Renewable, and Efficient Energy

Public Act 295, also known as the “clean, renewable, and efficient energy act” became law in October of 2008. Act 295 contains two major provisions for the City of Escanaba Electric Department and the Department’s customers. These two major provisions are: 1) Energy Optimization and 2) Renewable Energy. These two provisions required the City to develop an Energy Optimization Plan and a Renewable Energy Plan. Both of these plans were filed with the Michigan Public Service Commission in the spring of 2009, and were approved by the MPSC. Act 295 defines how these plans are to be funded and sets limits for the customers for the various plans. Below is a direct link to Act 295.
 

Act No. 295, October 6, 2008

 

 

Energy Optimization Plan: www.michigan-energy.orgmichigan-energy.org


Act 295 requires each provider create an Energy Optimization Plan. The City of Escanaba contracted the Michigan Electric Cooperative Association (MECA) to direct our plan. The City contracted with MECA as it was a low-cost option available to the City and it would provide uniform plans with some of our neighboring utilities. MECA is contracted with various electric cooperatives in Michigan and with three other Upper Peninsula municipalities: Marquette, Newberry, and Stephenson. As the director of programs, MECA had initially subcontracted CLEAResult Consulting Great Lakes, LLC. in 2009-2011 to perform the necessary work implementing programs and provide information to each utility’s customers. As of 2012 the Wisconsin Energy Conservation Corporation (WECC) is managing and implementing the EO programs for the City.

The Act defines how much each utility is to collect from each customer class. For the City of Escanaba, residential customers are currently charged $0.00223/kWh of electricity used as of July 2013. Commercial and Large Power customers are charged $.00209/kWh and $0.00180/kWh, respectively.

The money that is collected from each customer is set aside to be used to fund programs designed to influence customers to purchase energy saving equipment. Energy Optimization programs are currently available to customers to take advantage of. There are both Residential and Commercial/Industrial programs in place that will allow customers to install energy efficient measures at a reduced cost or for free. Some of these categories include: Low income assistance; Energy Star product incentives; appliance recycling incentives; commercial and industrial incentives for energy efficient installations; heating, ventilation, and air conditioning (HVAC) incentives; online energy audit profiler for homes and businesses.

A website with detailed information on the current programs is available to customers in Escanaba. Please visit www.michigan-energy.org for full information on programs and to download applications for the incentives available. If customers have any questions on eligibility or the programs, they may call the information center provided at 1-877-296-4319. Customers may also sign up for a newsletter on the website to automatically receive the latest information on programs available.

Customers are encouraged to take advantage of these offers. By installing energy efficient measures in homes or businesses, customers can save money on their utility bills and help in the effort to promote energy efficiency.

Click here to view the most recent EO Annual Report (2015)


Renewable Energy Plan

Act 295 also requires each electrical energy provider to create a Renewable Energy Plan. The City of Escanaba contracted with the Michigan Municipal Electric Association to develop our renewable energy plan. Escanaba’s plan was developed last spring and was approved by the Michigan Public Service Commission. 

The renewable energy provision of Act 295 set forth minimum amounts of energy that must be from a renewable source starting with 2% in 2012 and ramping up to 10% in 2015. Currently, the City of Escanaba purchases renewable energy credits (REC's) generated from other sources to meet the mandated requirements. Act 295 specifies that any additional costs that are due to the renewable energy requirements shall be paid for by collecting money as a separate line item on each customer’s bill.

Both the Energy Optimization plan and the Renewable Energy Plan are designed to be revenue neutral for the utility.
 


Reducing and Improving Energy Use

 
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