Every dollar spent on Michigan's energy waste reduction programs returns $2.40 in customer savings. As budgets grow, cost-effectiveness is improving — the opposite of diminishing returns.
Total EWR spending by fuel type ($M)
Target overperformance (% of target achieved)
$22/MWh
Cost of EWR resources in 2024 — down from $23.20 in 2023. New gas combined cycle costs ~$37/MWh: a 40% premium over efficiency.
2.6 UCT
Electric cost-effectiveness score in 2024, up from 2.4. Benefits outweigh costs by more than 2.5×. Gas UCT also rose: 2.0 → 2.1.
>20% → 25%
Low-income share of EWR budget — up from <10% in 2016. PA 229 now mandates a 25% floor for all utilities.
"Michigan's EWR programs have eliminated the need to construct multiple electric generating facilities at a fraction of the cost. EWR could be credited for decreasing the need for generation of over 2,000 MW annually."
— MPSC, 2024 Utility Energy Waste Reduction Programs Annual Report, p.11. EWR accounted for 15% of Michigan's 2024 electric resource mix, projected to reach 17% by 2025.
Sources: Spending — 2023 EWR Report Fig. 2; 2024 EWR Report Fig. 2. Targets/achievements — 2023 EWR Report Fig. 1; 2024 EWR Report Fig. 1. UCT — 2023 EWR Report p.7; 2024 EWR Report p.5. Cost/MWh — 2023 EWR Report p.5; 2024 EWR Report p.3. LI spend — 2024 EWR Report p.5; 25% floor — PA 229 of 2023. Mix — 2024 EWR Report Fig. 3.