State Policy Description
Michigan - Energy Efficiency Resource Standard
Policy Components Questions
- 1. Does the state have an EERS? Yes
- 2. Is the standard mandatory? Yes
- 3. Does the mandatory EERS include a demand response standard? No
- 4. Does the mandatory EERS apply to both electric and natural gas utilities? Yes
- 5. Does the state's mandatory EERS require electric utilities to achieve more than 1.5% annual savings per year? No
Policy Component information last updated July 02 2021
Description
Energy efficiency is often an objective of our public utilities – yet, because it means selling less electricity and reducing revenues, there may not be an incentive for the utility to make their consumers more productive or efficient users of electricity. If legislatures want to ensure a more productive and efficient system that is taking advantage of the latest technological innovations, they may want to require a utility demonstrate a percent reduction in demand through efficiency programs or “demand side” programs. This is an energy efficiency resource standard (EERS) or energy efficiency target – for example: x utility will achieve a 10% reduction in demand (or demand growth) over the next 10 years. For more information, see the full policy brief.
For more information on the components of the policy see the full policy brief.
