Get Full Government Meeting Transcripts, Videos, & Alerts Forever!
Get email alerts on the Energy Efficiency topic
No spam. Unsubscribe anytime.
MPSC approves Consumers Energy EWR settlement after audit; staff says ratepayers saved about $496,572
Summary
The commission approved a settlement in case U-21671 resolving Consumers Energy's energy waste reduction reconciliation for 2024. Staff said an audit found improper labor allocations and agreed disallowances, producing $496,572 in savings for ratepayers and prompting commitments to new labor-tracking procedures.
The Michigan Public Service Commission approved a settlement resolving Consumers Energy Company's energy waste reduction (EWR) reconciliation for the 12-month period ended Dec. 31, 2024 (case U-21671).
Commission staff described an on-site audit by the commission's energy optimization team that examined internal Consumers Energy employee labor charged to the EWR program. Staff said their review found that the company allocated labor on a forward-looking percentage rather than reconciling at year-end, that some listed employees were not involved in EWR work, and that there were no work logs or year-end true-ups to verify costs.
As a result of settlement conversations between staff and the company, the parties agreed a disallowance was warranted and Consumers Energy committed to new labor-tracking procedures. A commissioner summarized the audit's impact, saying staff were "able to save rateayers almost half a million dollars from this audit, or $496,572 to be exact." The commission voted to approve the order unanimously.
The approved settlement resolves the reconciliation, implements changes to improve EWR labor allocation and oversight, and preserves the company's ability to continue implementing EWR measures under the program rules. The order does not outline further financial penalties beyond the agreed disallowance; staff will track implementation of the new procedures.
