Michigan SBF

SYSTEM BENEFIT FUNDS FOR ENERGY EFFICIENCY-STATE SUMMARY

SECTION LINKS
I. Policy
II. Administration
III. Financing
IV. Program information
V. Policy/Program Assessment

I. POLICY

Date Enacted
June 1, 2000

Date Effective
September 1, 2001

Time Period
2001-2007

Extensions to Time Period
None to date

Applicable Laws, Orders, and Regulations

Initial Order and Notice of Public Hearings for electric utility restructuring
Michigan Public Service Commission (MPSC) Case No. U-11290 (December 1996)
http://www.cis.state.mi.us/cgi-bin/mpsc/vieworder.cgi?filename=/mpsc/orders/electric/1996/u-11290.txt

Customer Choice and Electricity Reliability Act
PA 141 (SB 937) June 2000
Section 10d (5) and (6) of this Act detail creation of funding mechanisms for energy efficiency projects.
http://www.michiganlegislature.org/documents/1999-2000/publicact/htm/2000-PA-0141.htm

Net Metering HB 5104 2000
http://www.michiganlegislature.org/documents/2001-2002/billanalysis/house/htm/2001-HLA-5104-S.htm

MPSC Case No. U-13129 (2/21/2002)
Order approving the first grants from the Low-Income and Energy Efficiency Fund
http://www.cis.state.mi.us/mpsc/orders/electric/2001/u-13129.pdf

Description
Michigan has not established a System Benefits Charge, but has established a securitization mechanism to fund energy-efficiency in the state. The Michigan Public Service Commission (MPSC) authorized securitization of financing to reduce retail rates by 5%. If securitization savings exceed this, the excess savings are to be distributed to the Low-Income and Energy Efficiency Fund.

Restructuring Policy in Place (Y/N)
Yes

Date Restructured
January 1, 2002

II. ADMINISTRATION

Administering Entity
Michigan Public Service Commission
http://www.cis.state.mi.us/mpsc/electric/
(517) 241-6070

Type of Entity
State

Administrative Contact
Maggie VanHaften, Electric Division MPSC
(517) 241-6165
mrvanha@michigan.gov

Outreach/Customer Education
Links to DOE energy efficiency websites


III. FINANCING

Funding Level (All SBC Programs)
The fund is capped at $60 million per year for 6 yrs.
As of May 2002 the fund has received $44 million.
For 2002 Low-Income Energy Assistance grants have been approved for $27.4 million , and the Commission plans to award $12 million in Michigan Energy Efficiency Grants and $5 million for Low-Income Energy Efficiency Grants.

Funding Source
Excess securitization financing savings (Any customer savings in excess of a 5% rate reduction)

Charge
Not applicable

IV. PROGRAM INFORMATION

Name
Michigan Energy Efficiency Grants
Low-Income Energy Efficiency Grants

Project Type
RFPs for Energy Efficiency Grants (due March 25, 2002) and Low-Income Energy Efficiency Grants (due June 28, 2002) have been issued.
www.cis.state.mi.us/mpsc/execsec/efficiencyrfp.pdf
www.cis.state.mi.us/mpsc/execsec/liefficiency.pdf

Press Releases
www.cis.state.mi.us/mpsc/orders/press/

Energy Efficiency Fund Created
Dept of Consumer and Industrial Services (October 2, 2001)
www.cis.state.mi.us/mpsc/orders/press/2001/u-13129.txt.htm

V. POLICY/PROGRAM ASSESSMENT

Reporting Requirements
Issued In accordance with the Customer Choice and Electricity Reliability Act (2000 PA 141), the Michigan Public Service Commission must issued a biennial report on the effectiveness of the energy efficiency fund to the Governor and the Legislature.

Assessing Entity
Michigan Public Service Commission

Report Date
June 4, 2002

Report Name
Low-Income Energy Efficiency Fund Report
www.cis.state.mi.us/mpsc/execsec/LIEEReport5-30.pdf

Assessment Contact
MPUC staff
(517) 241-6180

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