Energy Optimization: Q & A / Talking Points

It is a new charge, required by the Michigan State government that covers the cost of energy efficiency and conservation programs for our members.

Yes. It is required by law. Every electric consumer and utility in Michigan is required to participate.

The rate is .00218 cents per kilowatthour. Another way to say it is like I this. .. it is $2.18 for every 1,000 kilowatthours. For an average consumer, it amounts to $1.53 per month. Your charge will go up or down as consumption increases or decreases.

The overall program cost is set bythe Legislature in Public Act 295 where it states “the cost. .. shall not exceed 2.2% of total retail sales ..." Alger Delta calculated the rate based on this and other legal requirements. The rate was reviewed, approved, and ordered by the Michigan Public Service Commission.

This happened in October 2008 when the state legislature passed Public Act 295 — which is also called the "Clean, Renewable, and Efficient Energy Act." Prior to passage, the bill received widespread attention in the press. In addition, several articles were published in Country Lines Magazine which is the primary way we communicate with members. Since then, Alger Delta and other utilities in Michigan, have been working to develop the programs that comply with the law. The programs and their costs were approved by the Michigan Public Service Commission on May 12, 2009. We began applying the Energy Optimization charge beginning June l, 2009.

The purpose of the Energy Optimization program is to save energy by reducing consumption and helping members use energy more efficiently. Public Act 295 required Alger Delta to design a variety of programs to help accomplish this goal. The programs that have been approved by the Public Service Commission are:
· Residential Low Income program
• Residential Heating, Ventilating, and Air Conditioning
• Residential and Small Business Energy Star Products
• Residential New Construction
• Residential Multi-Family Construction
€ Residential Appliance Recycling
• Residential Audit
· Commercial and Industrial RFP
• Commercial and Industrial Prescriptive Program
• Commercial and Industrial Custom Program
· Cormnercial and Industrial New Construction
· Educational Programs
· Pilot Programs

No. These are all the programs that have been approved. Alger Delta will select some of these programs — the ones that make the most sense for our members.

In general, yes. Each program may have its own eligibility requirements and you can participate in any program for which you qualify.

August 1, 2009.

Public Act 295 was passed in October 2008 and took effect immediately. Since then, Alger Delta has invested time and labor to develop these Energy Optimization programs. Approval of the programs and the order to begin collecting the Energy Optimization fee were included in one tiling at the MPSC.

ENERGY OPTIMIZATION PROGRAM CLAUSE

An energy optimization cost reconciliation shall be conducted at the conclusion of 2009 (filed by April 30, 2010) and annually thereafter.

The approved Energy Optimization Surcharges are shown below.

ENERGY OPTIMIZATION SURCHARGES