MPSC Approves Settlement Agreement Reconciling Consumers Energy Company's 2012 Energy Optimization Plan

Contact:  Judy Palnau, 517-241-3323
Agency:  Michigan Public Service Commission  


November 14, 2013
- The Michigan Public Service Commission (MPSC) today approved a settlement agreement reconciling Consumers Energy Company’s costs and revenues for its 2012 energy optimization (EO) plan and an incentive payment for both its gas and electric EO programs. 

Under the terms of the settlement, the parties agree that the utility achieved 123 percent of its statutory electric savings target and 129 percent of its statutory gas savings target. As a result, the utility earned an incentive payment for the performance of its 2012 electric EO program portfolio of $10,105,351 and earned $7,222,269 for its 2012 gas EO program portfolio.

Residential customers using 500 kilowatt-hours of electricity a month will see a decrease of 4 cents on their monthly bills, effective January 2014. Residential customers using 100 ccf of natural gas a month will see a decrease of 61 cents on their monthly bills, effective January 2014.

On Oct. 10, the utility and the MPSC staff participated in the settlement. The Association of Businesses Advocating Tariff Equity (ABATE) filed a statement of non-objection to the settlement. On Oct. 11, the utility filed a corrected Attachment B to the settlement, and ABATE filed concurrences with the correction on Oct. 15.

The most recent report on the state's energy optimization programs shows that for every dollar spent on EO programs in 2011, customers realized benefits of $3.55.

The MPSC is an agency within the Department of Licensing and Regulatory Affairs.

Case No. U-17281

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