DTE Energy offers guidance, rebates and savings for conservation

DTE Energy wants to sell less electricity and natural gas to its 2.7 million customers in southeast Michigan.

In fact, DTE Energy actually will help pay customers to use less energy, on top of the savings that will appear on the monthly bills for customers who embrace conservation. Dozens of methods are unveiled on a website, YourEnergySavings.com, which reaches its first anniversary in June.

What kind of a business plan is this? Would McDonald's aim to sell fewer hamburgers? Would General Motors strive to sell fewer vehicles?

"The thinking here is that we are offering opportunities for customers to lower their bills," says Emmett Romine, DTE Energy's manager of energy optimization. "Intuitively, it doesn't make sense, but we want customers to be able to afford electricity and gas. It's better that somebody has an affordable bill that they can pay."

State government takes leadership

Indeed, DTE Energy's shutoff count for nonpayment last year was 221,000, a 36-percent increase. The utility in effect lost money on households who couldn't afford to pay the bills. Still, that's not the only motivation.

Public Act 295, passed by the Legislature and signed by Gov. Jennifer Granholm in 2008, requires DTE Energy and other utility companies not only to pursue alternative energy, but also to offer their customers energy optimization programs. The act provides for financial incentives for utilities that exceed the energy efficiency targets. This is an aspect of the green environmental movement.

Romine says DTE started offering efficiency programs during the 1990s, arranging rebates for such items as up-to-date furnaces and water heaters.

"Act 295 formalizes the requirements to set up a cost structure and a revenue structure by law," Romine says. "Each utility will design our own programs and set energy-saving standards each year, with programs through which the benefits outweigh the costs."

Each dollar invested in energy-efficiency programs yields at least $3 in savings, says Judy Palnau, spokeswoman for the Michigan Public Service Commission, which oversees DTE Energy and other utilities.

In addition, Palnau notes that Michigan-based companies such as Whirlpool are doing more business and creating more jobs.

"Fifteen years ago, our primary concern was offsetting peak demand and reducing the need for new power plants," Romine says. "With today's program, the message is very different. We're helping our customers save on their bills, because a lot of people are going through hard times."

Energy-efficiency kits offer incentives

DTE Energy is distributing thousands of energy-efficiency kits containing goods that would cost about $25 combined at a hardware store. They include items that range from low-flow shower heads, to pipe wraps, to the new compact fluorescent light bulbs that are shaped like coils.

Also, in calendar year 2009, DTE reports that 9,000 customers recycled their household appliances in favor of new, more efficient models. DTE will pick up the old refrigerator or freezer free of charge and also give the customer a $40 credit. The rebate for a room air conditioner or dehumidifier is $20. New appliances must meet or exceed federal Energy Star standards.

Another contributing source is the federal American Recovery and Reinvestment Act of February 2009, better known as the economic stimulus plan, which provides infusions during a two- to three-year span. DTE Energy, for example, is encouraging low- and low-middle income customers to contact their local community action agencies, such as the Wayne County Community Action Agency, to apply for home weatherization grants.

Website provides library of information

A visitor to YourEnergySavings.com will view a vast array of options:

- An instructional video takes a viewer through what looks like an open doll house, offering room-by-room tips for energy efficiency.

- Rebates and special offers are outlined in detail. A homeowner can save up to $1,500 on the cost of insulation alone.

- Through My Energy Analyzer, DTE conducts a computer analysis of a property's energy-efficiency potential, relying in part on past customer billings.

- With an Energy Calculator, a customer uses the computer screen to inform DTE of the age and size of an old air conditioner, for example. Information is provided on potential cost savings from a new purchase.

- Videos on energy-saving goals are displayed, such as adding insulation and sealing leaks.

- Specific guidance is provided for appliances, lighting, construction, water heating, air heating and cooling, weatherization, and finding contracts.

- Businesses receive special advice and guidance for options such as exhaust heat recovery or on-site electricity generation.

- DTE Energy provides a calendar of upcoming events and workshops, especially for people who desire a hands-on experience rather than searching through a computer. The utility conducted 17 public events last year, drawing 25,000 customers.

Meanwhile, any Michigan resident may take the Energy Star "Change the World" pledge to help conserve resources. The site is EnergyStar.gov/changetheworld.