Michigan state law requires that utilities periodically file Energy Waste Reduction (EWR) plans outlining allocated resources that advance energy efficiency within their territories. These plans define the programs the utility will run, where the programs will take place, which customers will be targeted as well as the associated budgets and anticipated energy savings. Utilities submit these plans to comply with PA 341 and 342 from 2016, which mandated that the state’s investor-owned gas utilities save .75% and the electric utilities save 1% annually.  

The Michigan Public Service Commission recently approved settlement agreements for EWR plans for DTE Electric, DTE Gas and Consumers Energy. As a result of the settlements, there will be an increase in spending on energy efficiency programming from these three utilities. Collectively across the three cases, an additional $98 million, approximately, is to be allocated in 2022 through 2025 towards income-qualified EWR programming. 

However, it is not the sheer dollar amount that carries all the importance in these cases, but rather where these dollars are to be allocated: specifically towards the expansion of programming that invests in income-qualified communities. This marked growth and commitment to additional funding weaves together specific, measurable action from the utilities in a way that directly benefits the highest-priority customers with the utilities’ overarching commitments to communities, laid out by both Consumers Energy and DTE, respectively. 

Focusing on Consumers electric side, the original filings proposed an income-qualified electric efficiency programming budget of roughly $16.5 million per year through 2025. The settlement increases this by 29% to a total of $85.3 million through 2025 and includes a focus on weatherization, targeted assistance, home repairs and healthy building materials. For income-qualified gas efficiency programs, Consumers’ original filings proposed an approximate annual average of $18.2 million through 2025. The settlement increases this budget by 56%, to a total of $113.1 million through 2025. 

Year	Consumers Gas:  Total Income-Qualified Investment	Consumers Electric:  Total Income-Qualified Investment
2022	$23.6 million	$19.0 million
2023	$26.5 million	$20.3 million
2024	$30.5 million	$22.4 million
2025	$32.5 million	$23.6 million
Total:	$113.1 million	$85.3 million

DTE’s gas and electric efficiency budgets will see a total increase of $10.5 million compared to original filings for 2022-23, while its income-qualified budget will total $99.1 million—approximately $38 million more than the $60.8 million 2020-21 budget. DTE’s original filings proposed annual income-qualified budgets of $28.8 million for electric efficiency programs and $15.5 million for gas efficiency programs. The settlement increases the electric budget by 4.5% to a total of $60.2 million through 2023, and the gas budget by 26% to a total of $39 million through 2023. 

Year	DTE Gas:  Total Income-Qualified Investment	DTE Electric:  Total Income-Qualified Investment
2022	$18.5 million	$29.6 million
2023	$20.5 million	$30.6 million
Total:	$39.0 million	$60.2 million

Specifically, one outcome of DTE’s settlement is the adoption of a new neighborhood approach focused on geographic targeting. This initiative funnels $1 million to priority areas to increase energy efficiency services for income-qualified households. Prior to implementation, prioritized customers will be determined through research analyzing communities experiencing the highest energy burden and other vulnerability indicators or burden including race/ethnicity. The research will define approaches to address the needs of identified customers and carry out effective outreach strategies.  

DTE will also address some common walkaway problems. Walkaways happen when a home is unable to be weatherized due to a structural or health and safety issue. Unfortunately, up to 25% of customers can be rejected from weatherization services due to issues like bad wiring, a hole in the roof, mold, asbestos and other hazards. DTE’s settlement directly acknowledges this by committing to training the home assessors assigned to the weatherization program to identify health and safety issues concurrently with energy savings opportunities, easing multiple burdens for the participating customer. 

A highlight on the Consumers Energy side is the Flint Pilot Program, a targeted initiative in and around Flint to invest $1 million between 2023 and 2024, to provide EE services to economically vulnerable customers struggling to pay utility bills and at risk of deferral due to household health and safety concerns. They will also launch a study to identify historic participation and coverage of its income-qualified efficiency program. The goal of the study is to better understand gaps in program delivery, increase participation in these defined areas and develop an equity snapshot of Consumers’ previous investments. 

These agreements demonstrate a strong commitment to energy efficiency programming across the utilities’ customer bases. Energy efficiency can help reduce energy burden and improve the health and safety of our communities’ buildings. By ensuring that these programs serve Michigan’s most vulnerable communities, DTE and Consumers Energy take a big step toward equitable distribution of energy efficiency programs and their ensuing benefits.