Manager’s Message

Michael (Mike) Heise

President and Chief Executive Officer of Cloverland Electric Cooperative.

Planning for Michigan’s New Energy Regulations

In the wake of Michigan’s ambitious energy policy overhaul, Cloverland is navigating the challenging landscape shaped by the new state energy regulations, effective November 2023. The mandate outlines transformative goals, which causes electric utilities to drastically redefine their energy portfolios. Although Cloverland currently has a strong clean energy profile, we’ll need to work hard on plans to meet the state’s benchmarks.

  • 60% Renewable Energy by 2035: Michigan’s new renewable energy portfolio standard requires all state electric utilities to have an energy portfolio of 60% renewable generation by 2035. The road to 60% renewable starts in 2030 when the standard first increases to 50% (compared to the current renewable portfolio standard of 15%). Although it’s a significant change, Cloverland is better positioned than most utilities since nearly 50% of our current fuel mix is clean energy generated from hydroelectricity (approximately 30% from Cloverland’s hydro plant and another 20% from the US Corps of Engineers’ hydro plant at the Soo Locks).
  • 100% Clean Energy by 2040: Michigan’s new clean energy target requires all state electric utilities to have a portfolio of 100% carbon-free resources by 2040. Clean energy is largely defined as wind, solar, hydro and nuclear. This move to clean energy starts in 2035, when utilities are first required to obtain 80% of their energy from non-carbon emitting sources. The lines between the requirement for clean and renewable are not clearly defined and we’re working to get clarity on how these two standards work together.
  • Energy Waste Reduction (EWR): When the previous EWR regulation expired in 2019, Cloverland elected to continue offering an energy optimization program knowing the requirement could return. Now we’ll be required to submit a formalized waste reduction plan to the Michigan Public Service Commission (MPSC) every four years. There is a requirement for 25% of the waste reduction dollars generated to benefit low-income members. We will continue to seek clarity on how this factor should be accounted for and achieved.

Our 2024 energy optimization program offers more than 140 rebates and energy savings for residential, farm and businesses, so take advantage of these savings and spread the word to fellow members! Visit Cloverland.com/eo for rebate details and our new simple online application.

Understanding the impact of Michigan’s new energy regulations is critical for Cloverland and our 34,000 members. These regulations pose great challenges that demand ongoing attention and clarification, yet Cloverland remains resilient and committed to understanding the uncertainties to create the best strategic plan. Your involvement, support and awareness are crucial as we navigate this path together. As we traverse this road, stay informed on Cloverland.com and engaged in our social media channels as we collectively shape the future of our energy landscape.

Kind regards,
Michael (Mike) Heise

By The numbers