Energy Optimization & You!

In October 2008, Governor Granholm signed into law the Clean, Renewable, and Efficient Energy Act (PA295). The goal of this legislation is to delay the need to build new electric generation facilities and protect consumers from incurring these costs through various measures including energy efficiency/optimization programs.

Under the Energy Optimization (EO) section of this law, all natural gas and electric utilities must reduce energy use through customer-supported energy efficiency programs. These utilities will collect the funding required to support these programs through a new energy optimization surcharge on your energy bills. The Energy Optimization surcharge was implemented on July 1, 2009.

 A variety of energy optimization programs are available. We promote these new energy saving opportunities in Michigan Country Lines and through this website.

As a result of our acquisition of the former Edison Sault Electric Company, we currently maintain two similar, but separate Energy Optimization programs. One is for accounts in areas historically served by Cloverland Electric Cooperative, and the other is for accounts in areas formerly served by Edison Sault Electric.

This is a temporary situation, and we are currently working to merge our Energy Optimization offerings so we have one convenient program for all of our members. We apologize for this temporary inconvenience.

Members with an account in an area historically served by Cloverland Electric should click here to view a complete listing of Energy Optimization programs available to them.

Members with an account in an area formerly served by Edison Sault Electric should click here to view a complete listing of Energy Optimization programs available to them

Frequently Asked Questions

1. What is energy optimization?

Energy optimization means using energy wisely and getting more value for every dollar you spend on energy. It’s more than just cutting waste by turning the lights off. It’s about cutting energy use by using more efficient products, such as compact fluorescent lights (CFLs) instead of incandescent bulbs, or a new refrigerator instead of a 15-year-old model, or installing more insulation in your house so you need less fuel to stay warm.

2. Where is the money coming from to fund the EO programs?

Everyone in Michigan is helping to fund the programs offered by their utility through an itemized charge on their utility bills.

3. How much will I have to pay?

Michigan law requires the EO surcharge for residential accounts be based on kilowatt-hour use and that all other rate groups pay a flat monthly per meter charge. The surcharge for Cloverland Electric Cooperative members with a residential account is $.00139 per kilowatt-hour (kwh) and $1.53 per meter, per month for general service and small commercial accounts. Large power commercial and industrial accounts are charged $54.92 per meter.

The Michigan Public Service Commission (MPSC) approved all rates through 2011. However, the MPSC requires utilities analyze their EO program finances to make sure they are covering the costs. Adjustments to the charge may be necessary if utilities collect more or less than what is needed to fund these efficiency programs.

4. Is this surcharge the same for all utilities?

The surcharge is based on the cost of programs needed to meet the goals. Smaller utilities have to spread their costs over fewer consumers, so their surcharges may be higher.

5. How long will this EO surcharge be in effect?

It will be a permanent part of your bill until 2016 at least, unless state lawmakers decide to amend the law, or it can be demonstrated that program costs outweigh the benefits.

6. Do I still have to pay this surcharge even if I decide not to participate in the programs?

Yes. The surcharge is mandated by state law and all natural gas and electric utilities in the state are required to implement the charge and programs. The goal is to cut energy consumption for each consumer, so that savings more than cover the additional cost. Plus, delaying the need for new electric generation facilities keeps electric costs lower for everyone.

7. When will EO programs be available?

Co-ops began rolling out programs in 2009 and will continue to introduce new programs. For a list of programs currently available visit michigan-energy.org.

8. Is there additional cost to participate in these programs?

Yes, for some programs. For example, co-ops may offer rebates to members who wish to replace certain appliances and lights with ENERGY STAR® products rated by the federal government as energy-efficient. In order to receive these rebates, you would have to purchase the appliance or lights associated with the rebate.

9. Will I receive any rebates or credits on my bill for the ENERGY STAR®products I already use in my home?

No, but your use of them is saving you money now. If you purchased the products in 2009, check with your tax preparer for available tax credits.

10. How much can these EO programs save me?

The MPSC currently estimates residential consumers can expect to save $2.92 each month, enough to offset the EO charge. We will provide information about these programs, and a general guide to estimated savings in the coming months. It is impossible to predict the exact savings because many factors influence your energy use, such as living habits, weather, number of people in the household, condition of your appliances and electrical equipment, and building size. A change in any of these factors can easily affect your consumption.

11. How will these programs affect Cloverland’s total kilowatt-hour sales?

The law requires a utility’s EO programs demonstrate collective kwh reductions from previous year sales of no less than 0.3 percent in 2009, 0.5 percent in 2010, 0.75 percent in 2011 and 1 percent annually starting in 2012. This doesn't mean sales won't increase, only that the rate of increase will be slowed.

12. Will energy rates go up if Cloverland sells less kilowatt-hours?

Other than the EO surcharge, rates are not expected to increase because of the EO programs. The intent of these programs is to help stabilize rates by delaying the need to build new power plants. But other factors are likely to force rates higher, such as fuel costs, carbon legislation and increased use of more costly renewable energy.

13. Where can I learn more about these programs?

Information on all co-op EO programs will be highlighted in Michigan Country Lines and promoted on countrylines.com, cloverland.com and michigan-energy.org. The MPSC also has information about energy optimization on their website: michigan.gov/mpsc.

14. I don’t agree with this law, who should I contact?

Contact your state legislator or the MPSC at michigan.gov/mpsc or call 877-932-6424.

15. Who is CLEAResult Consulting Great Lakes, LLC?

CLEAResult is a consulting firm that will process applications for various Energy Optimization programs. The CLEAResult's service team is available to answer any questions about our programs and rebates. For more information call their service center at 877-296-4319. The service center is open Monday through Friday from 8:00 a.m. to 8:00 p.m. (EST) and Saturday from 9:00 a.m. to 1:00 p.m. (EST).