In a recent city council meeting held on September 15, 2025, the Petoskey City Council discussed the continuation of its energy optimization program, which has been in place since 2009. This program, initially mandated by the state, focuses on energy waste reduction and clean energy initiatives, including LED lighting improvements and energy efficiency upgrades for homes.

The council is considering an amendment to enter into a new agreement with the Michigan Public Power Agency (MPPA) and Franklin Energy, the selected third-party vendor for the program. This agreement is crucial as it aligns with the newly enacted Clean Energy Renewable Energy and Energy Waste Reduction Act (PA 229), which updates previous legislation and mandates increased energy savings.

The proposed plan for fiscal years 2026 through 2029 will require an annual investment of approximately $250,000. This cost reflects a shift in state requirements, which now mandate a 1.5% annual energy savings, an increase from the previous 1% target. Council members noted that achieving these savings will be more challenging, as many of the easier energy efficiency measures have already been implemented over the years.

Funding for the program will continue to come from a surcharge on residential utility bills, based on kilowatt hours consumed, as well as a flat fee for commercial and industrial customers. This funding mechanism has remained unchanged since the program's inception, but the council acknowledged that adjustments may be necessary to accommodate the increased costs associated with the new state mandates.

During the meeting, council members expressed support for the program, citing its importance in promoting energy efficiency and sustainability within the community. The council unanimously approved the motion to adopt the resolution, allowing the city to proceed with the agreement with MPPA and Franklin Energy.

As Petoskey moves forward with this energy optimization initiative, the council's commitment to sustainable practices reflects a broader trend among municipalities to enhance energy efficiency and reduce environmental impact. The anticipated outcomes of this program will not only benefit the city’s energy consumption but also contribute to long-term cost savings for residents and businesses alike.