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Michigan Gov. Snyder Signs Pro-Efficiency Energy Package

Michigan

On December 21, 2016, Governor Snyder signed into law a comprehensive energy bill package (PA 341/PA 342) that the Michigan legislature passed (as SB 437/SB 438) on December 15, 2016, the very last day of its “lame duck” fall session. PA 341 amends PA 3 and PA 342 amends PA 295. The new language will give additional authority to the Michigan Public Service Commission (MPSC) to 1) initiate a process for reviewing utilities’ integrated resource plans on a three year basis and 2) administer various regulatory mechanisms.

The legislation retains the current 1% (electric) and 0.75% (natural gas) annual energy efficiency standards. However, beginning in 2021, the MPSC will open a docket to determine the appropriate mandated energy efficiency targets for each rate regulated electric provider. 2022 will mark the first year that standards might differ from existing standards and this docketed evaluation will occur every two years.  Despite the possibility of adjusted standards, mechanisms are expected to spur utility investment, including: cost-recovery, electric decoupling, financial incentives and tiered shared savings incentives. Lastly, the legislation removes a 2% cap on the rates that utilities can charge customers to pay for energy efficiency programs.

During the legislative process, MEEA provided informational materials and testimony to legislators, including the recently released MEEA/The Cadmus Group report on the Economic Impacts of Energy Efficiency Investments in Michigan.

For questions or information on additional details, please contact Policy Manager Nick Dreher at ndreher@mwalliance.org.