81 Businesses Support Energy Optimization Programs in Michigan


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.




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
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

Business EO Letter FINAL 3-9