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What Energy Optimization Means To You

Kevin Cragg

Quick, what do you get when you mix good intentions with politics?

One possible answer is the "Clean, Renewable, and Efficient Energy Act" aka Public Act 295. This new Michigan law, signed on October 6, 2008, foresees the need for construction of new power generation plants here in Michigan.

It is reasoned by our legislators that construction of these new plants will necessarily result in higher utility bills for all Michigan utility customers. Therefore, if a short term solution can be found to delay plant construction, all utility customers should benefit.

In recent articles featured in Country Lines - "Taxes Pile up like Snow" (January, 2009) and "We Want Your Old Refrigerator" (March, 2009) – we touched on the short term solution, which is an emphasis on clean, renewable and efficient energy consumption.

PA 295 requires a Renewable Portfolio Standard for all electric utilities and implementation of an Energy Optimization program. The purpose of this article is to explain in more detail what Energy Optimization (EO) means for Cherryland Electric Cooperative and you our member.

In a nut shell, EO rules require all electric utilities to implement programs that will reduce demand for electricity. The EO program begins in 2009 and runs through 2015. A specific formula is used to determine how much each utility must reduce demand for its product.

The 2009 target for Cherryland is just over 1,000,000 kilowatt hours (kWh). The kilowatt hour savings cannot come from improvements in Cherryland’s infrastructure of lines, poles and devices. Instead, EO savings must come from efficiency improvements at the member level.

To encourage our members to make improvements, Cherryland will offer financial and product incentives aimed at inefficient appliances, light bulbs, weatherization, and a long list of other energy saving opportunities. That March 2009 article referenced above talks about a "bounty" Cherryland will pay for removal of that second refrigerator sitting in your garage or basement.

Once a member accepts the "bounty", Cherryland will remove the second refrigerator and count credit toward the kWh savings target. At our upcoming Annual Meeting, Cherryland plans to distribute CFL light bulbs. Each CFL has an associated kWh savings assigned to it.

Finally, there is the question of funding for these efficiency programs. Remember the lead in question about mixing good intentions and politics? Starting in July, all Cherryland members will see a new line item on their monthly bill.

Think of it simply as the "PA 295 Tax". Initially we anticipate this monthly charge will equate to something under $1.00 per month for residential members. Over time, as savings become harder to find, this charge will likely increase.

To stay abreast of Cherryland’s EO opportunities and activity visit our website, watch for billing and email updates, and continue reading Country Lines.

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