EO Means Being Smart About Energy Use
In a nutshell, energy optimization means using energy wisely. It’s more than cutting waste by turning the lights off, for example. It’s about cutting energy use by using more efficient products, such as the twisty compact fluorescent bulbs instead of the old-fashioned incandescents, or a new refrigerator instead of the 15-year-old model. It’s also about watching when you use electricity, as well as how. (There’s less strain on the electrical system when you wash clothes late at night, when total electric consumption is low.)
Many people–environmentalists, academics, politicians and utility folks–have been pushing increasingly hard to stem the growth in electric use as a way to reduce emissions that contribute to climate change, and to delay the need for new power plants. Conservation–such as shutting off lights–is one way; efficiency–replacing bulbs with CFLs–is another. Efficiency is more permanent, since it doesn’t depend on consumer whims, as conservation often does.
So, last fall, the Michigan legislature passed, and the Governor signed, legislation that requires all utilities to offer energy efficiency programs to their customers.
Everyone in Michigan is paying for these programs. The cost is added as a separate item on consumer utility bills. The cost is approved by the Michigan Public Service Commission (MPSC). Co-ops will strive to keep costs as low as possible, while still meeting mandated goals.
Michigan’s law requires that it cost no more than about 2.2 percent of your monthly bill, but that will vary somewhat by your usage. Co-ops are designing programs that should cost less.
You may already have done a number of things to save energy in your own house and feel you don’t need the government’s help, but others still need encouragement. You’ll still pay, even if you can’t take advantage of EO programs offered by your utility. But reducing demand on the utility system still benefits you by helping keep rates lower.
The goal is to cut energy consumption for each consumer, so that savings more than cover the additional cost. Plus, delaying the need for new electric generation facilities keeps electric costs lower for everyone. Utilities are required to include information on electric and natural gas bills that shows how much consumers saved by using the programs.
Efficiency programs offered by utilities will be required to pass tough tests that will be administered by independent third-party evaluators.
Co-op plans were approved by the MPSC this spring, so co-ops began rolling out programs in late summer.
The EO programs will run until costs outweigh the benefits to consumers.