Escanaba approves four‑year energy‑waste reduction plan and joins MPPA implementation agreement

The Escanaba City Council on Sept. 4 approved a four‑year energy waste reduction (EWR) plan covering 2026–2029 and authorized participation in the Michigan Public Power Agency (MPPA) VEIL energy improvement program to administer the plan.

The plan implements the state EWR requirements described in the meeting packet as the "clean and renewable energy and waste reduction act, public act 295." Council approved both the plan and the participation agreement after staff and advisory committee discussion.

Why it matters: The law requires municipal utilities to run EWR programs that provide rebates and incentives for energy‑efficient equipment for residential, commercial and large power customers. The plan includes separate funding for each rate class; money collected from a rate class must be spent on programs for that same class, and at least 25% of program funds must be dedicated to low‑income households.

What the council approved - EWR plan (2026–2029): Staff presented a four‑year plan with estimated funding and kilowatt‑hour savings per rate class. The council noted the Michigan Public Service Commission approved the plan format used in the packet. - MPPA participation agreement: Council approved joining MPPA’s VEIL program to administer the EWR plan under a multi‑jurisdiction procurement; staff said the grouped procurement reduced administrative costs and increased program effectiveness compared with the new state plan.

Discussion and oversight John Anthony, a member of the city’s electrical advisory committee, told council the committee reviewed the program thoroughly and recommended participation in the MPPA program. City staff said the agreement can be canceled if the city later chooses a different administrator, but choosing a new administrator would require a new plan and transition steps.

Funding details noted at the meeting included estimated residential program funding of approximately $118,000–$134,000 (about 2.5% of residential sales) and commercial funding of about $198,006.81 (about 2.2% of commercial and large power sales). Staff emphasized the statutory requirement that rate‑class collections be spent within that class and the 25% low‑income carve‑out.

Next steps Administration will execute the MPPA participation agreement and begin program implementation subject to contract terms. Council will receive updates as the program is administered; the agreement includes cancellation provisions if the city later selects a different program administrator.

— Sources: Escanaba City Council meeting transcript, Sept. 4, 2025; remarks by members of the electrical advisory committee and city staff.