Energy waste reduction efforts in Michigan produce more than $1.4B in cost savings for utility customers

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Michigan's investments in energy waste reduction (EWR) programs in 2025 will generate more than $1.44 billion in savings for the state's utility customers, according to an annual report released today by the Michigan Public Service Commission.

EWR programs, which enhance energy efficiency statewide, resulted in the saving of 1.76 million megawatt hours (MWh) of electricity last year - enough to power a city the size of Ann Arbor - and 5.88 million thousand cubic feet (Mcf) of natural gas.

The MPSC's 2025 Utility Energy Waste Reduction Programs Annual Report on the Implementation of Public Act 295 details these and many other benefits of Michigan's EWR programs, which rank among the very best in the country at reducing unnecessary energy use and lowering customer bills.

For residential customers, EWR offerings include upgrades in lighting, heating, ventilation and cooling, home weatherization, energy education, appliance recycling and more, which help customers use energy more efficiently and save money on their utility bills. There are also programs to help businesses of all sizes reduce energy waste. These savings can help delay or eliminate the need to build costly new power generation sources and reduce the impact of rising fuel costs that factor into all customers' bills.

Michigan's electric and natural gas utilities spent more than $595 million on EWR programs in 2025. That spending is expected to result in customer savings of $1.44 billion over the 12-year lifecycle of EWR programs and measures. Every $1 spent by utilities on EWR programs generated $2.42 in customer savings last year.

EWR programs also reduce the energy burden, improve health outcomes and strengthen the economic security of income-constrained customers and communities. The MPSC's EWR Low Income Workgroup, which includes state agencies, utilities and outside organizations, continues its work to develop initiatives to reduce energy costs for low-income customers. In 2025, more than $162 million was spent on programs for income-qualified customers, representing more than 27% of the funds spent on utility EWR programs, up from less than 10% of spending dedicated to low-income customers in 2016. More information is at the MPSC's EWR Low Income Workgroup page.

The American Council for an Energy-Efficient Economy's 2025 State Energy Efficiency Scorecard ranked Michigan among the nation's best and most cost-effective EWR programs. Michigan ranked first nationally in natural gas savings as a percentage of sales and third nationally for electricity savings.

Michigan's EWR standard - created in 2008 and amended by the Legislature in 2016 and 2023 - requires all electric and natural gas utilities to implement customer programs that lower energy use to reduce the future cost of service.

EWR programs also support Michigan's economy, with about 78,000 Michiganders working in the energy efficiency sector, including jobs in certified energy efficiency and efficient lighting; traditional HVAC; high efficiency and renewable heating and cooling; and advanced materials and insulation, according to the U.S. Department of Energy's 2026 Energy and Employment Report. EWR programs offered by Michigan utilities rely on these workers and energy efficiency contractors across the state.

For information about the MPSC, visit www.michigan.gov/mpsc, sign up for its monthly newsletter or other listservs. Follow the MPSC on Facebook, X/Twitter or LinkedIn.

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