Advanced Energy Perspectives

Given the market surge of air and ground source heat pumps, Michiganders have more options than ever to efficiently and affordably heat and cool their homes with electricity. Especially when paired with additional energy efficiency measures, load management, dynamic rates, and distributed energy resources (DERs), the savings can be significant. But until customers upgrade their appliances and ditch the fossil fuels, many remain at risk. In Michigan, gas utilities are rapidly spending on capital-intense pipeline replacement and modernization projects, leading to higher and higher delivery costs for their customers.

What is a daily demand charge?  

A demand charge is a utility fee based on the maximum amount of energy a customer uses during a short period of time within a billing cycle. Nevada Power, a subsidiary company of NV Energy, is proposing to add a mandatory daily demand charge for its residential customers.

Under this plan, your electricity meter would be measured on a 15-minute cycle each day, and your bill will be based on the highest 15-minute period energy use during that day. For example, if your highest energy usage is from 6:45-7 PM on a day in July, the demand charge for that day will be based on this time, regardless of your usage during the rest of the day. This would be in addition to the basic service charge of $18.50 that customers already pay. This is something no other investor-owned utility (IOU) in the country currently does.

Addendum July 16, 2025: On July 2, 2025 the Public Service Commission of Wisconsin (PSCW) released its written order for the decision on the Oak Creek gas plant. Despite intervenor testimony demonstrating that energy efficiency programs, virtual power plants (VPPs), and distributed generation could provide a cost-effective alternative to part of the requested load, the PSCW approved the project in full. Despite WEC Energy Group artificially capping the amount of wind allowed in its modeling and not considering any kind of VPPs, the Commission considers this project compliant with the Energy Priorities Law. The order directs the opening of an investigation examining cost overruns and how to develop a consistent approach across the state. Additionally, the PSCW directs WEC to include an analysis of a robust and comprehensive demand response program in their next rate case, which will be in 2026.

After a robust exchange of testimony, arguments, and briefings among stakeholders, the fate of We Energies’ (WEC) proposal to spend $1.2 billion on a new gas plant – a plant the utility plans to use just 10-20% of the time – now rests with the Public Service Commission (PSC) of Wisconsin. Formal proceedings before the PSC concluded on April 11, and a decision is expected in the coming weeks.

The 2024 NV Energy Integrated Resource Plan (IRP) proceeding is coming to a close, with a decision expected from the Public Utilities Commission of Nevada (PUCN) by December 20, 2024.

In Nevada, an IRP proceeding is conducted every three years with the goal of ensuring that NV Energy has the resources it needs to reliably and affordably serve Nevada’s electric customers and meet state policy goals. However, NV Energy’s proposed IRP, similar to those preceding it, exemplifies how the IRP process encourages investment in new gas resources, despite the availability of cheaper clean energy resources, such as Nevada’s abundant solar, geothermal, and distributed energy resources increasingly found on Nevadans’ rooftops and driveways. 

As we near the end of 2024, I’m pleased to share some good tidings and a bit of hope. While uncertainty hangs heavy on the horizon, Massachusetts offers a bright example of how states can shine when they choose to step up.

Governor Maura Healey recently signed a landmark clean energy package that will accelerate clean energy deployment in Massachusetts, and, in turn, will increase local jobs and lower energy costs. The act includes critical reforms to streamline siting and permitting processes, as well as provisions to expand grid-enhancing technologies, energy storage, and other advanced energy technologies.