Energy optimization plan and renewable energy plan

Utility companies in Michigan are required to collect funds for an Energy Optimization plan and a Renewable Energy plan as part of Public Act 295 passed by the Michigan state legislature in 2008.

Energy optimization plan

Energy Optimization charges pay for energy efficiency, load management and conservation programs to help avoid or delay the need for new electric generation facilities. The plan is expected to save the average residential customer $3.21 per month.

For residential customers, the charge is $0.00298 per kilowatt-hour. If monthly bill is less than 1 cent, the charge does not appear. For commercial and industrial customers, the charge is per meter, per day. For lighting customers, the charge is per lamp, per month.

Learn more about commercial, industrial and lighting pricing (PDF)

Energy efficiency programs are administered through Efficiency United. Learn more about how you can save by taking advantage of Efficiency United’s energy efficiency programs.

Renewable energy plan

Renewable Energy Plan charges fund our program to acquire additional renewable energy resources, saving the average residential customer an estimated $3.90 per month over the life of the program by avoiding new coal-fired generation costs.

For residential customers, the charge is $2.96 per month for a 30-day bill.

Learn more about Renewable Energy charge pricing for all customer classes (PDF 21k)

If you have questions about the Energy Optimization charge or Renewable Energy charge, contact us:

Residential customers
Business customers

Energy Optimization and Renewable Energy Plan Final Order (U-15812) (PDF 380k)