Energy Optimization Surcharge Information

Beginning in July, 2009, Edison Sault will participate in a statewide energy optimization (EO) program that will encourage customers to conserve energy.  The program is being implemented as a result of legislation passed in 2008 addressing renewable energy resources and the conservation of energy.  The energy optimization (EO) program will be conducted by a state selected administrator which is expected to promote conservation and the use of high efficiency energy appliances.  The cost of administering the conservation program will be borne by utility customers as a separate surcharge that will be included beginning with their July 2009 bills for utility service.  The monthly charge for Edison Sault’s residential customers will be based upon kilowatthour  (kWh) usage and will cost customers $1.17 per 1,000 kWh used.  General, lighting, commercial, and industrial customers will have a charge per meter on their bills. 

Customers with questions about the energy optimization (EO) surcharge should contact Edison Sault customer service at 906-632-5141 or Toll Free at 877-254-8233 during normal business hours.  Below are a few of the frequently asked questions regarding this new program.

Why is this a statewide program?
Many people-environmentalists, academics, politicians and utility folks-have been pushing increasingly hard to stem the growth in electric use as a way to reduce emissions that contribute to climate change, and to delay the need for new power plants.  Conservation-such as shutting off lights-is one way; efficiency-replacing bulbs with CFLs-is another.  Efficiency is more permanent, since it doesn't depend on consumer whims, as conservation often does.

Who is going to pay for it?
Everyone in Michigan will pay.  The cost will be added as a separate item on consumer utility bills.

I have two accounts and the EO charge for my garage is different than the one for my house. Why?
The 2008 state energy law requires that the EO surcharge for residential accounts be based on kilowatt-hour use.  All other user groups will pay a flat per meter, per month charge on their bills.

Will I still pay the EO surcharge if I decide not to participate in the programs?
Yes, which is another good reason why all utility customers are encouraged to participate.  The surcharge is mandated by state law and all utilities providing service in the state are required to implement the charge and programs.

How long will this EO surcharge be in effect?
It will be a permanent part of your bill until at least 2016, unless state lawmakers decide to amend the law, or it can be demonstrated that program costs outweigh the benefits.  The Michigan Public Service Commission requires that utilities analyze their EO program finances annually 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 cover costs.

If my utility sells less kilowatt hours, will rates go up?
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.

I don't agree with this law, who should I contact?
Contact your state legislator or the MPSC Visit www.mighigan.gov/mpsc or call 1-877-932-6424 to find out who your legislator is.

What if we've already done as much as we can to cut energy use?
You may already have done a number of things to save energy and feel you don't need state government help, but others still need encouragement.  You'll sill pay, even if you cant take advantage of EO programs offered by your utility, But reducing demand on the utility system still benefits you by helping to keep rates lower. 

The table below details the energy optimization surcharges as approved by the Michigan Public Service Commission for Edison Sault customers effective July, 2009.