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Making Michigan Energy Efficient
Our cheapest and cleanest resource
An Energy Crossroads
According to the 21st Century Electric Energy Plan prepared by the Michigan Public Service Commission, more electricity is needed “as soon as practicable.” We have the opportunity to meet this need through investing in the cheapest and cleanest resource available – energy efficiency.
The Smart Resource: Energy Efficiency
Instead of spending $20 billion a year importing fossil fuels from out of state, we should invest in a better, more cost-effective resource and keep those dollars in Michigan.
- Cheapest – efficiency programs “produce” electricity for 2.57 cents/kWh compared to the 6 cents/kWh for electricity from a new power plant – less than half as much.
- Cleanest – using energy more efficiently improves public health and hedges the risk associated with the rising cost of fuel and impending carbon limits.
- Fastest – efficiency programs can be started immediately, while constructing a new power plant can take 6 to 12 years.
- Popular – 83% of consumers and 81% of businesses agree that more needs to be done to promote energy conservation according to a recent poll by the Detroit News, EPIC-MRA, and MIRS.
- 11,380 Jobs – A study conducted by the American Council for an Energy-Efficient Economy shows that 11,380 jobs would be created in Michigan after ten years.
Michigan used to be a leader in energy efficiency, but those programs were all but eliminated in the mid 1990s by energy companies who have incentives to sell more energy, not less, even at the expense of consumers. Now, Michigan invests only 16% as much as the average state in energy efficiency and less than 4% as much as the national leader. Now is the time to set Michigan in the right direction by investing in the cheapest and cleanest solution – energy efficiency.
Please support the following energy efficiency policies:
- Restart Michigan’s statewide utility energy efficiency programs
- Update building codes to the 2006 International Energy Conservation Code (IECC)
- Update appliance efficiency standards neglected by the federal government
1. Statewide Utility-Funded Energy Efficiency Programs
These programs provide the greatest energy savings through providing education and incentives to both businesses and consumers. Twenty other states have shown that they effectively reduce energy consumption, which lowers rates and saves money for everyone. Rates are increased when expensive new electricity generation resources are added. By reducing demand through energy efficiency, rates are lowered and stabilized for everyone. For example, these programs would include the following products and services:
Residential Markets
|
Consumer electronics |
Compact fluorescent lighting |
Multi-family common area lighting |
|
Variable speed furnaces |
Central air conditioning |
Multi-family heating systems |
|
Room air conditioning |
Water heater purchases |
New home construction |
|
Remodeling |
Dehumidifier purchases |
Direct install market |
|
Shell improvements |
Clothes washer purchases |
Multi-family fuel-switching |
Commercial and Industrial Markets
|
High performance buildings |
HVAC replacement and improvement |
Lighting upgrades |
|
Boiler replacement and improvement |
Lighting system retrofit improvement |
Chiller replacement and improvement |
|
Ventilation system improvement |
Refrigeration improvements |
Motors |
|
Compress air systems |
Fan and blowers |
Pump Systems |
|
Manufacturing process upgrades |
Water and wastewater systems |
Agriculture upgrades |
These programs are funded by a small charge that is pooled
to create larger savings and ultimately save consumers and businesses
money. For example, the average
household would contribute $1.67 a month to meet all growth in demand through efficiency,
but save $7 a month for a net savings of over $5 a month. Consumers get their money back when they
invest in energy efficiency, but money spent on a new plant has no return on
investment.
The most efficient states are reducing their electricity
consumption by .8% per year, yet the Public Service Commission arbitrarily cut
their recommendation in half, only calling for funding that would reduce our
consumption by less than .4%. Instead,
we should maximize our cheapest and cleanest resource.
2. Building Codes
Our residential and commercial building codes have not been updated in fifteen years, leaving Michigan far behind other states. Right now, 25 other states have standards referring to the International Energy Conservation Code (IECC). Since 1991, these model residential energy codes alone have saved over $7.4 billion and enough electricity to meet power 4.7 million homes for one year.
Please support updating Michigan’s building codes to the 2006 IECC.
3. Appliance Efficiency Standards
Updating efficiency standards on ten everyday appliances such as furnaces and DVD players will save Michigan consumers over $2 billion. Michigan is quickly becoming a dumping ground for inefficient appliances that cost consumers money in the long run.
Please support updating Michigan’s efficiency standards on 10 everyday appliances.
