MI SB0324

Requires the Public Service Commission to authorize a shared savings mechanism for electric utilities within 90 days of the act's effective date, allowing utilities to share in cost savings from energy waste reduction programs not already capitalized

Electric utilities achieving 1% to 1.25% annual energy savings receive 25% of validated net benefits as an incentive, capped at 15% of their energy waste reduction program expenditures

Utilities achieving greater than 1.25% to 1.5% annual energy savings receive 27.5% of net benefits, capped at 17.5% of program expenditures

Utilities achieving greater than 1.5% annual energy savings receive 30% of net benefits, capped at 20% of program expenditures

Net benefits are calculated using the net present value of lifetime avoided utility costs minus program implementation costs, discounted at the utility's weighted average cost of capital