Energy Optimization

 Great Lakes Energy offers Energy Optimization (EO) programs to members of the cooperative. The programs are mandated under the Clean, Renewable and Efficient Energy Act passed by Michigan lawmakers in 2008.

EO programs, which electric and gas utilities are required to implement under the EO section of the law, are designed to ultimately reduce electricity use in Michigan by 1 percent per year over the next six years. According to the act, a key goal of the programs is “to delay the need for constructing new electric generating facilities and thereby protect consumers from incurring the costs of such construction.”

As part of the selection process, we looked closely at each program to determine the ones that best meet the law’s requirements and provide optimal value for Great Lakes Energy members. With every decision we make, we are looking out for our members.

Click on the rate name for the EO programs available for that rate class. The EO surcharge for each rate class is also listed below, effective Jan. 1, 2012. Surcharges are subject to change.

• Residential/Seasonal Surcharge is $0.00198 per kWh
• Small Commercial Surcharge is $4.76 per month
• Large Commercial & Industrial Surcharge is $865.59 per month

For a typical homeowner who uses 700 kilowatt-hours per month, the $0.00198 per kWh surcharge amounts to just over $1.39 per month. All revenue collected from this charge is used solely to cover the costs to run the new EO programs.

As the state regulatory agency responsible for administering the new energy law, the Michigan Public Service Commission expects those who choose to participate in one of these EO programs to reduce their consumption and save enough on their electric bill to more than cover the surcharge.

Because our power supplier, Wolverine Power Cooperative, has been purchasing renewable energy since 2007 from the Harvest Wind Farm, we believe we can meet another mandate of this law that requires at least 10 percent of our energy to come from renewable energy sources by 2015. As a result, we do not need a renewable energy charge on members’ bills at this time. The Harvest Wind Farm is Michigan’s first commercial wind turbine farm.

For more information about Great Lakes Energy’s Energy Optimization programs, click here to visit the EO website or call 877-296-4319.

For more information on the new law and its impact on you, visit the MPSC website or click here.

To review the Energy Optimization Program Clause in Great Lakes Energy’s ratebook approved by the MPSC, click here.