Energy waste reduction (EWR) programs in Michigan saved the state more than 3.43 million megawatt hours (MWh) of electricity and more than 12.5 million Mcf (thousand cubic feet) of natural gas savings from 2021 through 2022, according to the Michigan Public Service Commission's Report on the Implementation of PA 295 2021 & 2022 Utility Energy Waste Reduction Programs.
The annual report, released today (Oct 4) to coincide with national Energy Efficiency Day, shows the continued benefits of EWR efforts across Michigan. The report found that EWR programs saved more than 1.8 million MWh of electricity and 6.2 million Mcf of natural gas in 2021, and more than 1.6 million MWh of electricity and 6.3 million Mcf of natural gas in 2022. All told, the combination of minimum requirements, incentives for higher performance, and a comprehensive planning process has resulted in actual savings of approximately twice the minimum savings required by law for electric utilities, and one-third higher than the minimum savings required for natural gas utilities.
The report found that all of Michigan's natural gas and electric utilities spent more than $498 million EWR programs in 2021, expected to result in savings of $1.36 billion for customers over the 12-year lifecycle of EWR programs and measures. For every dollar spent on EWR in 2021, customers should realize benefits of $2.73. The utilities spent more than $517 million on EWR programs in 2022, expected to produce lifecycle savings of $1.39 billion. For every dollar spent on EWR in 2022, customers should realize benefits of $2.68.
EWR programs result in savings through benefits including delaying or eliminating the need to build new power generation and increasing fuel cost savings that factor into customers' bills.
In 2021, utilities spent more than $68 million on EWR programs for income-qualified customers, reaching a statewide lifetime energy savings of 345,845 MWh for those electric customers and 3,298,842 Mcf for those gas customers. In 2022, that number reached more than $101 million spent on programs for income-qualified customers, for a lifetime energy savings up to 592,262 MWh for electric customers and 4,962,398 MCF for gas customers.
EWR programs reduce the energy burden, improve health outcomes and strengthen the economic security of low-income customers and communities. The MPSC's EWR Low Income Workgroup, which includes state agencies, utilities and outside organizations, continues its work to develop initiatives to reduce energy costs for low-income constituencies. More information is at the MPSC's EWR Low Income Workgroup page.
Created in 2008 and amended in 2016, Michigan's EWR standard requires all natural gas and electric utilities to implement customer programs that lower energy use to reduce the future cost of service.
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