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MPSC adopts guidance for efficient electrification and energy waste reduction filings
Summary
The Michigan Public Service Commission on Nov. 7 approved an order under case U-21567 to implement parts of Public Act 229 of 2023, adopting Energy Star and related standards for efficient electrification measures, directing use of the Michigan Energy Measures Database, and setting filing timelines for related reconciliations and plans.
On Nov. 7, 2024, the Michigan Public Service Commission voted unanimously to approve an order in case U-21567 that provides implementation guidance for energy waste reduction and defines "efficient electrification measures" under Public Act 229 of 2023. The order instructs staff and stakeholders how to treat efficient electrification measures within utility energy optimization plans.
Katie Smith, a commission staff member, told the commission the order clarifies that an efficient electrification measure is “an electric appliance or equipment installed in an existing building to electrify in whole or in part … that would otherwise be served by combustion of fossil fuel on the premises” and that Energy Star standards should apply where they exist. For measures not covered by Energy Star, the Energy Optimization collaborative is to determine whether similar industry standards exist and to develop standards through the collaborative where none exist.
The order directs use of the Michigan Energy Measures Database to vet qualified measures and allows utilities to claim savings for projects that leverage multiple funding sources, including federal weatherization and federal infrastructure funds. It also states that workforce development investments should not receive "deemed savings" but may still be included as program investments in a utility’s EO plan.
The commission also approved related directives for filing reconciliation reports and updated plans in cases U-21670 and U-21679. Filings must follow the docket and deadlines listed in the order’s exhibit A; energy waste reduction plans required by statute will begin with program year 2026, and rate-regulated plans remain subject to commission approval.
Commissioners thanked staff and participants in the EO collaborative for extensive stakeholder engagement during the comment period. The order was approved by unanimous vote; the commission’s action is intended to provide regulatory clarity for utilities, consumers and program administrators as Michigan implements statutory changes to energy waste reduction and optional efficient electrification planning.
