MICH UTILITIES WANT TO DECOUPLE

Mich. utilities offer energy efficiency rebates
David Eggert, June 30, 2009 (AP via Forbes)

"Michigan utility officials said that the new fees showing up on residents' utility bills will be offset by rebates and other incentives to encourage them to make their homes more energy efficient…The program comes under a new state law that requires utilities to help customers reduce their electricity consumption more than 5 percent and natural gas usage nearly 4 percent by 2015. Regulators allowed utilities to add surcharges of about $1 a month to fund the program and its publicity campaign.

"DTE Energy, the state's largest utility, will immediately start paying customers $50 to recycle old refrigerators, which will be picked up for free. Compact fluorescent light bulbs will cost 99 cents at major retail chains in DTE's service territory, cheaper than the usual price of about $3."

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"People can get rebates on washers, dehumidifiers, air conditioners, holiday lights, furnaces and other appliances. In-home energy audits are $25, while online audits are free…Consumers Energy, the second-biggest utility, will offer similar incentives along with Michigan's 65 other utilities and cooperatives. Qualifying low-income residents would get additional help to weatherize their houses…

"Under 2008 law, utilities were required to restart efficiency programs that were abandoned a decade ago amid a booming economy and cheaper energy, and when global warming was not as pressing of an issue…"

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"Utilities, in the business of making money by providing energy, are pushing regulators for "de-coupling," which is breaking the link between profits and sales. Utilities would collect the same amount of revenue or more even though they sell less.

"The Public Service Commission has directed utilities to submit de-coupling proposals. Advocates say the potential savings from using less energy are enormous. For every $1 invested in more efficient lighting and appliances, up to $3 is saved down the road by avoiding or at least delaying the need to build new multibillion-dollar power plants…"