Advancing energy equity in Michigan: An analysis for the state’s largest electric energy provider

Energy equity is a critical concern in Michigan. Electric companies face myriad challenges to meet modern energy demands, including increasing reliability in the face of extreme weather and meeting policy targets, such as those outlined in the MI Healthy Climate Plan, to generate electricity from renewable sources. 

Situated amid all these challenges and industry shifts is the need for the energy transition to be just and equitable. Energy equity is defined by the American Council for an Energy-Efficient Economy (ACEEE) as “policies and programs that are informed by the community’s input and designed to meet the needs of all individuals.” They must “be based on the principle that each action taken must not deepen, and should reduce social, environmental, or economic inequalities.” 

The Michigan Public Service Commission outlined energy equity, in the form of assessing equity and justice considerations of communities within service areas, as a requirement in approving Consumers Energy’s 2024 payment rate structure. With the energy company seeking approval annually for rate structures, the need to take action and build community-informed equity initiatives was urgent.

To meet Consumers Energy’s needs in this area, Undergraduate Erb Fellow Andrew van Baal (BA/MS ’26) and Erb dual-degree student Chelsea Silber (MBA/MS ’26) were recruited via an Erb Impact Project to assess economic and environmental justice across the state, with a focus on energy issues. Over the summer of 2024, they built a justice-centered engagement framework and conducted outreach and interviews with elected officials, community leaders, neighborhood organizers, and tribal nations. These interviews sought to determine how communities currently perceived and/or worked with Consumers Energy to achieve community goals, and how processes and relations can be improved to move toward community justice and self-determined sustainable futures. 

van Baal and Silber also connected with experts at the University of Michigan to guide their project. These included Liesl Clark, Director of Climate Action and Engagement at the School for Environment and Sustainability (SEAS). She is the former director of the Michigan Department of Environment, Great Lakes, and Energy, and lead author of the statewide MI Healthy Climate Plan. They also spoke with Sarah Mills, a professor at SEAS and the Taubman School of Architecture and Urban Planning. She directs the Center for EmPowering Communities at the Graham Sustainability Institute and conducts research on the perceptions of renewable energy siting in rural communities in Michigan. Additional expertise from the university was derived from the Ford School of Public Policy Center for Local, State, and Urban Policy, as well as the Energy Equity Project at SEAS. All these resources allowed for the project to be grounded in emerging policy, science, and validated methods of just community engagement.

van Baal and Silber presented their findings in an economic and environmental justice landscape analysis to executives and community affairs managers at the utility’s headquarters in Jackson, Michigan, in late July. They received positive responses from all attendees and were assured that their work would directly inform the company’s community relations and equity strategies moving forward.

Silber said about the experience, “As students concentrating in sustainable systems at the University of Michigan’s School for Environment and Sustainability, this project reinforced the complex webs of energy equity. It became clear that addressing energy equity requires a systems-based approach, considering interconnected factors such as food security, educational opportunities, clean water, and housing.”

van Baal added: “It was immensely fascinating to see how energy providers are adapting to an ever-changing regulatory landscape that appears to be directed by equity and justice considerations. Talking with folks on the ground about the issues they are facing, and elevating those honestly to Consumers was the most rewarding experience for me. I hope Consumers Energy can take further action with our findings to extend community empowerment initiatives beyond state compliance.”