Michigan Energy Efficiency Obligation

In 2008, the government of Michigan introduced an energy efficiency obligation for all sectors using electricity and gas to reach an energy savings of 2 852 GWh per year. Obligated parties include all electricity and natural gas utilities. The obligation seeks to achieve an electricity savings target of 1% of annual retail sales in megawatt hours for 2012 and thereafter; and a natural gas savings target of 0.75% of annual retail sales in MCF's for 2012 and thereafter. Eligible energy efficiency measures vary, however savings are calculated based on deemed savings as a % of total annual retail sales. According to statute, energy optimisation plans shall include a process for obtaining an independent expert valuation of the actual energy optimisation programmes to verify the incremental energy savings from each energy optimisation programme (MCL 460.1071).

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