mibusinesses-energyoptimizationfactsheet

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The Energy Optimization Standard has been a tremendous success for Michigan. The Energy Optimization Standard has exceeded its goals every year since implementation. Every dollar invested in energysaving programs is providing $3.75 in benefits. i The benefits from 2013 programs will exceed $900 million. ii All Michigan businesses and consumers experience these benefits – whether they participate in energysaving efforts or not. Energy Optimization programs are Michigan’s least expensive energy option. Energy Optimization programs are the least expensive way for Michigan to meet its energy needs (see chart on reverse). iii Other energy sources cost three times more than Energy Optimization programs. iv For Michigan consumers and businesses, electricity bills will be higher if other energy resources are pursued instead of Energy Optimization. Energy Optimization can help Michigan overcome its capacity shortfall. Energy Optimization programs have significantly reduced peak demand and are helping to mitigate the state’s capacity shortfall. v Given the successful track record, Energy Optimization programs represent a lowcost, lowrisk way for Michigan to meet a significant portion of its current capacity needs. A commitment to continuing and advancing the Energy Optimization Standard would benefit all Michiganders and give businesses more confidence to invest and grow. Policies like the Energy Optimization Standard provide the regulatory and market certainty we need to make investment decisions and longterm plans for our workforce in Michigan. Repealing the Energy Optimization Standard would introduce uncertainties that make it harder for us to consider the Michigan market in our longterm investment decisions. Our Businesses Support Michigan’s Energy Optimization Standard

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MIBusinesses-EnergyOptimizationFactSheet

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"#$ %&$'() *+,-.-/0,-1& 2,0&30'3 #04 5$$& 0 ,'$.$&3164 4677$44 81' 9-7#-(0&: 1he Lnergy CpLlmlzaLlon SLandard has exceeded lLs goals every year slnce lmplemenLaLlon. Lvery dollar lnvesLed ln energy-savlng programs ls provldlng $3.73 ln beneflLs.l 1he beneflLs from 2013 programs wlll exceed $900 mllllon.ll All Mlchlgan buslnesses and consumers experlence Lhese beneflLs - wheLher Lhey parLlclpaLe ln energy-savlng efforLs or noL. %&$'() *+,-.-/0,-1& +'1('0.4 0'$ 9-7#-(0&;4 $ $&$'() 1+,-1&: Lnergy CpLlmlzaLlon programs are Lhe leasL expenslve way for Mlchlgan Lo meeL lLs energy needs (see charL on reverse).lll

CLher energy sources cosL Lhree Llmes more Lhan Lnergy CpLlmlzaLlon programs.lv lor Mlchlgan consumers and buslnesses, elecLrlclLy bllls wlll be hlgher lf oLher energy resources are pursued lnsLead of Lnergy CpLlmlzaLlon. %&$'() *+,-.-/0,-1& 70& #$$'71.$ -,4 70+07-,) 4#1',80$ 564-&$44$4 .1'$ 71&8-3$&7$ ,1 -&>$4, 0&3 ('1@: ollcles llke Lhe Lnergy CpLlmlzaLlon SLandard provlde Lhe regulaLory and markeL cerLalnLy we need Lo make lnvesLmenL declslons and long-Lerm plans for our workforce ln Mlchlgan.8epeallng Lhe Lnergy CpLlmlzaLlon SLandard would lnLroduce uncerLalnLles LhaL make lL harder for us Lo conslder Lhe Mlchlgan markeL ln our long-Lerm lnvesLmenL declslons. *6' A64-&$44$4 26++1', 9-7#-(0&;4 %&$'() *+,-.-/0,-1& 2,0&30'3

l Mlchlgan ubllc Servlce Commlsslon, 2014 8eporL on Lhe lmplemenLaLlon of .A. 293 uLlllLy Lnergy CpLlmlzaLlon rograms ln Compllance wlLh ubllc AcL 293 of 2008," november 26, 2014. ll lbld. lll 1he Mlchlgan ubllc Servlce Commlsslon recenLly reporLed LhaL Lnergy CpLlmlzaLlon cosLs $20/MWh, compared Lo $69-$78/MWh for naLural gas (ln Lhe charL above we selecLed Lhe mld-polnL of Lhls range), $77/MWh for renewables, $108/MWh for nuclear and $133/MWh for coal. Mlchlgan ubllc Servlce Commlsslon, 8eporL on Lhe lmplemenLaLlon of Lhe .A. 293 8enewable Lnergy SLandard and Lhe CosL-LffecLlveness of Lhe Lnergy SLandards," lebruary 13, 2013, & Mlchlgan ubllc Servlce Commlsslon, 8eadylng Mlchlgan Lo Make Cood Lnergy ueclslons," november 4, 2013. lv Mlchlgan ubllc Servlce Commlsslon, 8eporL on Lhe lmplemenLaLlon of Lhe .A. 293 8enewable Lnergy SLandard and Lhe CosL-LffecLlveness of Lhe Lnergy SLandards," lebruary 13, 2013. 1he Commlsslon reporLs LhaL energy efflclency cosLs 2 cenLs/kWh, whlle Lhe cosL of elecLrlc supply ls 6.4 cenLs/kWh overall. v Accordlng Lo LlA daLa, efflclency programs ln Mlchlgan saved over 133MW ln 2013 (lorm LlA-861).