March 9, 2015
Dear Senator Nofs, Representative Nesbitt, and Members of the Michigan Senate Energy and Technology Committee and Michigan House Energy Policy Committee:
We, the undersigned employers and trade associations – representing thousands of jobs within this state – strongly oppose any effort to eliminate Michigan’s successful and cost-effective Energy Optimization (EO) standard. Since its creation in the 2008 energy law, Michigan’s EO standard has helped tens of thousands of Michigan businesses reduce energy costs and improve their overall competitiveness, lowered energy rates by reducing the need for costly new generation, and saved ratepayers $2.5 billion since 2011.
The American Council for an Energy Efficient Economy (ACEEE) has found that having a specific energy efficiency standard is far more effective than other mechanisms (such as integrated resource planning or utility rate design) in actually reducing energy consumption and lowering energy bills. Specifically, ACEEE notes that “[i]n a time when some state policymakers are becoming skittish about the concept of ‘mandates,’ it is worth noting that the use of an [energy efficiency resource standard] to set targets for cost-effective efficiency has been by far the most effective policy for achieving customer energy efficiency savings.”
The cost of eliminating the current EO standard is estimated at $8 billion in lost economic activity over the next ten years, and that doesn’t include lost energy savings for businesses and homeowners. In addition, Michigan’s energy efficiency programs provide a range of benefits to the state, including:
- Solid return on investment. Michigan’s energy efficiency programs create $21 in economic activity for every $1 in incentive – a total of $1.2 billion in energy upgrades in the commercial and industrial sectors alone, helping Michigan businesses maintain their competitive position in global markets.
- Highly cost-effective. The EO program generated savings of $3.75 for every dollar spent in 2013. These figures reflect real investment – and show there is much left to do to maximize the economic benefits of Michigan’s EO standard.
- Critical to addressing capacity shortfalls. As Consumers Energy noted in a recent filing with the Michigan Public Service Commission, “[w]hile peak demand reductions are not the primary focus of [energy efficiency] programs, the act of reducing consumption at all times results in significant peak reductions.” At one-fifth the retail cost of electricity in Michigan, energy efficiency represents the single most cost-effective way to address the capacity issues facing the state.
- Broad-based public support. A poll commissioned by the Michigan Conservative Energy Forum found that 84 percent of Michigan ratepayers – including 74 percent of Republicans and 66 percent of self-identified Tea Party voters – support policies to increase the energy efficiency of Michigan homes and businesses. Similarly, a poll from the National Association of Manufacturers found that 90 percent of Americans support energy efficiency as a key part of our nation’s energy policy, including 74 percent who support investing taxpayers’ dollars on energy efficiency technologies, innovations and programs if it would save consumers more money.
As employers and trade associations, we are keenly aware of the importance of reasonable energy costs as a key input in decisions regarding investment, job creation, and ultimately whether to remain in Michigan. Eliminating Michigan’s successful EO program would cost jobs, increase energy costs for businesses, and make Michigan a less attractive place to invest and do business. For this reason, and because so many Michigan businesses have directly benefited from the programs currently in place and many more will benefit by maintaining the standard, we strongly oppose any effort to eliminate the current EO standard, and look forward to working with you to craft an energy policy that keeps Michigan businesses competitive.
Sincerely,
| Clay Donnel | 6 Insulation Services |
| Jim Moran | Advanced Energy Group |
| Jason Riebel | AEM Solar |
| Diane Mills | Ameresco |
| Doug Young | Behler-Young |
| Mark Lee | Better World Builders |
| Steve Leadman | Billy Eletric, Inc |
| Kevin Bailey | Blanket Insulation |
| David Camps | Blue Terra Energy, LLC |
| Jill Steiner | Cadmus Group |
| Jeffrey Caplan | Cappy Heating & Air Conditioning, Inc. |
| Bob Sutherland | Cherry Republic |
| Brad Mann | Comfort First Heating & Cooling |
| Fritz Kreiss | Community Green Energy |
| Jim MacInnes | Crystal Mountain Resort |
| Walter Dindoffer | Development Solutions |
| Brian Johnson | E3Inc |
| Sridhar Ayer | EcoJiva |
| Amanada Godward | Ecotelligent Homes |
| Scott Ringlein | Energy Alliance Group |
| Brad Bartholomew | Energy Saving Services |
| Shelley Sullivan | Energy Sciences |
| JT March | Environment Security Management |
| Melissa Epstein | Epstein Legal Services, PLLC |
| David Snyder | Falling Waters, LLC |
| Austin Whitman | First Fuel |
| Art Toy | Four Elements |
| Paul Schueller | Franklin Energy |
| Fred Dreher | Franklin Energy of Michigan |
| Duane and Karen Watson | GeoSmart Systems, LLC |
| Mark Pytiak | Green Home Energy |
| Peter Sinclair | Greenman Studio |
| Stephen Hamstra | Greensleeves, LLC |
| Lauren Bigelow | Growth Capital Network |
| Mike Hennesey | Hennesey Mathes Storage Solutions |
| John Freeman | Homeland Solar |
| Greg Mott | ICF International |
| Ian D. Tran | ISMOTION |
| Charlie Weaver | Jackpine Savage Guide Service |
| Tim Pulliam | Keen Technical Solutions |
| Doug Jenkins | Kimberly Lighting, LLC |
| Douglas McInnis | Leelanau Community Energy, LLC |
| Andrew Levin | Levin Energy Partners |
| Alexander Castro | Lime Energy |
| Dave Livingston | Livingston Restorations |
| Carissa Savage | Lost Lake Farm, LLC |
| Richard F. VanderVeen | Mackinaw Power LLC |
| Steve Toeppner | Masco Contractor Services |
| Joe McHugh | McHugh Financial LLC |
| Kevin McNeely | McNeely Building Group, LLC |
| David Moyar | MEI Hotels, Homewood Suites Detroit/Troy |
| Michael Langenburg | Midland Solar Applications |
| Brian Pageau | Midwest Strategy Group |
| Randy Gunn | Navigant |
| Jim Newman | Newman Consulting Group |
| Matt O’Keefe | Opower |
| Douglas Elbinger | Optimized Building Solutions |
| Tom Sheren | Option Energy |
| Chad Jones | Parker-Artnz Heating and Cooling |
| Linda Rasor | Practical Energy Management |
| Ryan Oswald | Pure Eco |
| Robert Bedzyk | R. A. Bedzyk Consulting, LLC |
| William McMullin | Real Estate One Associates |
| Tania Evans | Riverbend Equine Services |
| Trent Varva | Small Business Majority |
| Art Olson | SmartWATT |
| Don King | Solar King, LLC |
| Mike Linsea | Solar Winds Power Systems |
| Dale Neville | Sound Comfort Insulation |
| Bill Beckman | Spider 9 |
| Steve Miles | Sunsteer |
| Curt Monhart | The Energy Alliance Group of Michigan |
| Adam Harris | The Green Panel, Inc |
| Adam Larson | The Oscar W. Larson Company |
| Nate Lowery | TM3 Systems |
| Charlie Sterken | TMI Compressed Air System, Inc |
| Ellen Zuckerman | United Technologies |
| Bryan Houck | Vantaura Energy Services |
| Doug VanderMeer | VerWys Home Improvement |
| Jon Pedersen | Viking Sun Funds |
| Carla Walker-Miller | Walker-Miller Energy Services |
cc: Michigan Governor Rick Snyder
Commissioner John Quackenbush, Chair, Michigan Public Service Commission
Commissioner Sally Talberg, Michigan Public Service Commission
Commissioner Greg White, Michigan Public Service Commission