Michigan's utility energy efficiency programs ranked No. 1 in the nation, highlighting how utility energy waste reduction efforts in the Great Lakes State are helping lower customer bills by reducing unnecessary energy use.
Michigan tied with California for first place in utility public benefits programs and policies in the American Council for an Energy-Efficient Economy's (ACEEE) 2025 State Energy Efficiency Scorecard. This category of the ACEEE's report focuses on utility energy efficiency or energy waste reduction (EWR) programs and spending and the amount of savings for utility customers, through electricity savings, natural gas and fuel savings, energy efficiency resource standards, performance incentives and fixed-cost recovery, low-income energy efficiency programs, and policies for equitable utility-sector efficiency.
"The MPSC is immensely proud of this accomplishment, spearheaded through the hard work of the Staff of our Energy Optimization Section," said Commissioner Alessandra Carreon. "The goal of EWR is to enable utility customers to use energy more efficiently, reducing their energy costs and ensuring they receive benefits through offerings and programs."
Michigan's natural gas savings were first place in the nation in 2023, saving more than 6.3 million mcf (thousand cubic feet) that would have otherwise been used by customers absent the state's energy waste reduction programs.
In electricity savings, Michigan ranked in second place. Utilities saved nearly 1.7 million megawatt hours of electricity in 2023.
The report also found Michigan's EWR programs are getting these results more cost effectively than other states that spent more but achieved lower savings.
Michigan's electric utilities, for example, spent $380 million on EWR programs in 2023, or 2.8% of their total annual revenues. Other states spent more on these programs but achieved comparable or lower savings.
In addition, Michigan's robust low-income EWR programming and spending, which includes health and safety measures and an effective collaborative process, helped Michigan rank at the top, showing that energy efficiency's benefits can be shared by all customers.
EWR offerings for residential customers include ways to upgrade lighting, heating, ventilation and cooling, weatherization, energy education, appliance recycling and other ways residential customers can use energy more efficiently and save money on their energy bills.
Learn more about the MPSC's work on energy waste reduction at the agency's Energy Optimization webpage. You can also check out the MPSC's most recent annual report on utility EWR programs.
Overall, Michigan ranked 17th in the nation in the ACEEE's report, factoring in policies and programs outside the MPSC's purview such as industrial decarbonization, energy efficient building codes and clean vehicle standards. The report is based on 2023 data from all 50 states.
For information about the MPSC, visit www.michigan.gov/mpsc, sign up for its monthly newsletter or other listservs. Follow the MPSC on Facebook, X/Twitter or LinkedIn.
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