Michigan Energy, Water and Green Tech Market Research

and Opportunities
Supply: Current Energy Production Estimates

Quick Facts

• Coal fuels the largest share of Michigan’s electricity generation, but coal-fired
power plants' share declined to 37% of Michigan's net electricity generation in
2018, down from 53% five years earlier.

• The share of Michigan's net electricity generation fueled by natural gas

surpassed that of nuclear power for the first time in 2018. They each provided
slightly more than 26% of state generation.

• In 2018, renewable resources provided more than 8% of Michigan's net

electricity generation with more than half of that provided by wind. Michigan is
among the top 15 states in the nation in wind-powered electricity generation.

SOURCE: https://www.eia.gov/state/?sid=MI#tabs-1
Demand: Current Energy Consumption Data

Estimated Aggregate Demand/Trend

SOURCE: https://www.eia.gov/state/?sid=MI
Household Energy Use Profile

• Michigan households use 123 million Btu of energy per home, 38% more than
the U.S. average. That translates to over $2,100 a year (excluding
transportation).

• High consumption, combined with low costs for heating fuels compared to states
with a similar climate, result in Michigan households spending 6% more for
energy than the U.S. average.

• Michigan homes are typically older than homes in other states.

• Compared to the U.S. average, a greater proportion (78%) of Michigan residents

use natural gas for heating and a smaller proportion of residents (6%) use
electricity for heating.

• Nearly 20% of Michigan households do not use air conditioning, but those that do
still predominantly rely on central air conditioning for cooling.

SOURCE:
https://www.eia.gov/consumption/residential/reports/2009/state_briefs/pdf/MI.pdf
Per Unit Energy Price Quote

“Gasoline prices averaged $2.576 per gallon in the Detroit-Warren-Dearborn area in

March 2019, the U.S. Bureau of Labor Statistics reported today. Assistant
Commissioner for Regional Operations Charlene Peiffer noted that area gasoline prices
were comparable to last March when they averaged $2.573 per gallon. Detroit area
households paid an average of 14.7 cents per kilowatt-hour (kWh) of electricity in March
2019, less than the 16.4 cents per kilowatt-hour in March 2018. In March, the average
cost of utility (piped) gas was 84.4 cents per therm, higher than its average price of 75.7
cents per therm a year earlier. (Data in this release are not seasonally adjusted;
accordingly, over-the-year-analysis is used throughout.)

At $2.576 per gallon in March 2019, costs for gasoline in the Detroit area were 4.4 cents
lower than the national average of $2.620 per gallon. In March 2015 and 2018, Detroit
area gasoline prices were lower than the national average by 12.5 cents and 5.8 cents,
respectively. Detroit area gasoline prices in March 2016 were comparable to the
national average, whereas in March 2017 local area prices were 7.5 cents higher than
the national average.”

SOURCE:
https://www.bls.gov/regions/midwest/news-release/averageenergyprices_detroit.htm

Water Usage
(Quote from the Detroit Water and Sewage Department website)

“Each year, billions of gallons of stormwater runoff and snowmelt flow from roofs,
driveways, parking lots and similar hard, impervious surfaces into the city’s combined
sewer system. This drainage flows into the same underground pipe as unsanitary
wastewater and must be treated at the wastewater treatment plant before it can be
released back into the environment.

Federal and State regulations required DWSD to invest more than $1 billion in
combined sewer overflow control (CSO) facilities to help prevent untreated overflows
into the Detroit and Rouge rivers and preserve Detroit’s water quality. The drainage
charge recovers the cost for operating Detroit’s CSO facilities and treating wet weather
flows at the wastewater treatment plant -- more than $100 million annually.

Since 1975, most DWSD customers have been paying for drainage as part of their
water and sewer bills. DWSD is updating its drainage charge program to ensure all city
parcels are equitably billed for their share of drainage costs.
State regulation requires DWSD to rid millions of gallons more stormwater flow from the
city’s combined sewers or invest an additional $1 billion in “gray” infrastructure.
Together with city residents and businesses, DWSD is using green stormwater
infrastructure (GSI) to meet permit requirements and make Detroit one of the “greenest”
cities in America.

Customers who reduce stormwater runoff on their property – by disconnecting from the
sewer system, planting rain gardens, installing detention areas and pervious pavement
– can earn credits to be applied to your bill. A $5 million per year capital partnership
program has been established to provide a 50/50 match for approved nonresidential
GSI projects.”

SOURCE:
https://detroitmi.gov/departments/water-and-sewerage-
department/resources/stormwater-drainage

SOURCE: https://detroitmi.gov/document/rates-detroit-water-and-sewer-customers-
2017-2018
SOURCE:

https://www.michigan.gov/documents/deq/Water_Use_Statistics_557539_7.pdf