Michigan Profile Page 1 of 14

Michigan State Energy Profile

Michigan Quick Facts • In 2012, Michigan had more underground natural gas storage capacity – 1.1 trillion cubic feet – than any other state in the nation. • The Antrim Gas Field, located in Michigan's Lower Peninsula, was ranked 15th in the nation in estimated proved wet natural gas reserves as of 2009 and produced an estimated 126 billion cubic feet of gas that year. • In 2013, Michigan’s three nuclear power plants, with four reactor units, provided 28% of the state's net electricity generation. • Michigan used coal for 54% of its net electricity generation in 2013; much of its coal is brought by rail from Wyoming and Montana. • Biomass, much of it from Michigan’s almost 19 million acres of forest land, provided fuel for 42% of Michigan's renewable net electricity generation in 2013. • Because the weather in Michigan is cooler than in other areas of the United States, space heating makes up a greater portion of energy use in homes (55 percent) compared to the U.S. average (41 percent), while air conditioning makes up only 1 percent of energy use, according to EIA's Residential Energy Consumption Survey.

Last Updated: March 27, 2014

Michigan Energy Consumption Estimates, 2012

Coal Natural Gas

Distillate Fuel Oil Jet Fuel LPG Residual Fuel Other Petroleum Nuclear Electric Power Hydroelectric Power Biomass Other Renewables

0 100 200 300 400 500 600 700 800 900 Trillion Btu

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Source: Energy Information Administration, State Energy Data System

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Michigan Energy Consumption by End-Use Sector, 2012

26.5 % 26.0 %

Residential Commercial Industrial Transportation

21.5 % 26.1 %

Source: Energy Information Administration, State Energy Data System

Michigan Energy Production Estimates, 2012

Coal

Natural Gas - Marketed

Crude Oil

Nuclear Electric Power

Biofuels

Other Renewable Energy

0 50 100 150 200 250 300 350 Trillion Btu

Source: Energy Information Administration, State Energy Data System

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Michigan Net Electricity Generation by Source, Jun. 2014

Petroleum-Fired

Natural Gas-Fired

Coal-Fired

Nuclear

Hydroelectric

Other Renewables

0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000 4,500 5,000 GWh

Source: Energy Information Administration, Electric Power Monthly

Michigan Price Differences from U.S. Average, Most Recent Monthly

Natural Gas - Citygate

Electricity - Residential

Electricity - Commercial

Electricity - Industrial

-30 -25 -20 -15 -10 -5 0 5 10 15 20 Percent

Source: Energy Information Administration, Petroleum Marketing Monthly ; Natural Gas Monthly ; Electric Power Monthly

Data Last Update: September 18, 2014 | Next Update: October 16, 2014

Energy Indicators

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Energy Indicators Demography Michigan Share of U.S. Period

Population 9.9 million 3.1% 2013

Civilian Labor Force 4.7 million 3.0% Jul-14

Economy Michigan U.S. Rank Period

Gross Domestic $ 400.5 billion 13 2012 Product

Gross Domestic $ 66,230 million 8 2012 Product for the Manufacturing Sector

Per Capita Personal $ 39,215 36 2013 Income

Vehicle Miles Traveled 94,548 million miles 10 2012

Land in Farms 9.9 million acres 28 2012 Prices

Petroleum Michigan U.S. Average Period find more

Domestic Crude Oil $ 101.89 /barrel $ 98.70 /barrel Jun-14 First Purchase

Natural Gas Michigan U.S. Average Period find more

City Gate $ 4.46 /thousand cu ft $ 5.96 /thousand cu ft Jun-14 find more

Residential $ 12.87 /thousand cu ft $ 16.06 /thousand cu ft Jun-14 find more

Coal Michigan U.S. Average Period find more

Average Sales Price -- $ 39.95 /short ton 2012

Delivered to Electric W $ 2.37 /million Btu Jun-14 Power Sector

Electricity Michigan U.S. Average Period find more

Residential 14.94 cents/kWh 12.97 cents/kWh Jun-14 find more

Commercial 11.20 cents/kWh 10.94 cents/kWh Jun-14 find more

Industrial 7.99 cents/kWh 7.30 cents/kWh Jun-14 find more Reserves & Supply

Reserves Michigan Share of U.S. Period find more

Crude Oil 56 million barrels 0.2% 2012 find more

Dry Natural Gas 1,750 billion cu ft 0.6% 2012 find more

Expected Future 26 million barrels 0.2% 2012 find more Production of Natural Gas Plant Liquids

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Energy Indicators Recoverable Coal at -- -- 2012 find more Producing Mines

Rotary Rigs & Wells Michigan Share of U.S. Period find more

Rotary Rigs in 0 rigs 0.0% 2013 Operation

Natural Gas Producing 10,900 wells 2.3% 2012 find more Wells

Production Michigan Share of U.S. Period find more

Total Energy 618 trillion Btu 0.8% 2012 find more

Crude Oil 606 thousand barrels 0.2% Jun-14 find more

Natural Gas - Marketed 129,333 million cu ft 0.5% 2012 find more

Coal -- -- 2012 find more

Capacity Michigan Share of U.S. Period

Crude Oil Refinery 120,000 barrels/calendar day 0.7% 2013 Capacity (as of Jan. 1)

Electric Power Industry 30,730 MW 2.9% Jun-14 Net Summer Capacity

Net Electricity Michigan Share of U.S. Period find more Generation

Total Net Electricity 9,108 thousand MWh 2.5% Jun-14 Generation

Net Electricity Michigan U.S. Average Period Generation (share of total)

Petroleum-Fired 0.1 % 0.3 % Jun-14 find more

Natural Gas-Fired 10.8 % 27.3 % Jun-14 find more

Coal-Fired 50.8 % 38.7 % Jun-14 find more

Nuclear 30.6 % 19.1 % Jun-14 find more

Hydroelectric 1.3 % 7.2 % Jun-14 find more

Other Renewables 5.1 % 6.8 % Jun-14

Stocks Michigan Share of U.S. Period find more

Motor Gasoline 317 thousand barrels 1.5% Jun-14 (Excludes Pipelines)

Distillate Fuel Oil 1,098 thousand barrels 1.2% Jun-14 find more (Excludes Pipelines)

Natural Gas in 671,495 million cu ft 10.6% Jun-14 find more Underground Storage

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Energy Indicators

Petroleum Stocks at 413 thousand barrels 1.4% Jun-14 find more Electric Power Producers

Coal Stocks at Electric 4,380 thousand tons 3.3% Jun-14 find more Power Producers

Production Facilities Michigan

Major Coal Mines None find more

Petroleum Refineries Marathon Petroleum () find more

Major Non-Nuclear Monroe (Detroit Edison Co) ; Ludington (Consumers Energy Co) ; Dan E Electricity Generating Karn (Consumers Energy Co) ; Midland Cogeneration Venture (Midland Plants Cogeneration Venture) ; Belle River (Detroit Edison Co)

Nuclear Power Plants Donald C Cook (Indiana Michigan Power Co), Fermi (Detroit Edison Co), find more Palisades (Consumers Energy Co) Distribution & Marketing

Distribution Centers Michigan

Petroleum Ports Detroit. find more

Natural Gas Market None Centers

Major Pipelines Michigan find more

Crude Oil Enbridge, Sunoco

Petroleum Product Buckeye Partners, Wolverine Pipeline, Marathon Pipeline, Sunoco

Natural Gas Liquids Buckeye Partners, Enbridge, Kinder Morgan

Interstate Natural Gas ANR Pipeline Co., ANR Storage Co., Great Lakes Gas Transmission Ltd, Pipelines Northern Natural Gas Co., Panhandle Eastern Pipe Line Company, Vector Pipeline LP

Fueling Stations Michigan Share of U.S. Period

Motor Gasoline 3,756 stations 3.4% 2011

Liquefied Petroleum 75 stations 2.7% 2013 Gases

Compressed Natural 19 stations 1.6% 2013 Gas

Ethanol 129 stations 5.0% 2013

Other Alternative Fuels 673 stations 4.2% 2013

Consumption & Expenditures

Summary Michigan U.S. Rank Period

Total Consumption 2,705 trillion Btu 11 2012 find more

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Energy Indicators Total Consumption per 274 million Btu 35 2012 find more Capita

Total Expenditures $ 39,315 million 11 2012 find more

Total Expenditures per $ 3,978 37 2012 find more Capita

by End-Use Sector Michigan Share of U.S. Period

Consumption

» Residential 702 trillion Btu 3.5% 2012 find more

» Commercial 581 trillion Btu 3.3% 2012 find more

» Industrial 705 trillion Btu 2.3% 2012 find more

» Transportation 717 trillion Btu 2.7% 2012 find more

Expenditures

» Residential $ 8,646 million 3.7% 2012 find more

» Commercial $ 5,685 million 3.3% 2012 find more

» Industrial $ 5,472 million 2.4% 2012 find more

» Transportation $ 19,512 million 2.7% 2012 find more

by Source Michigan Share of U.S. Period

Consumption

» Petroleum 154.9 million barrels 2.3% 2012 find more

» Natural Gas 790.1 billion cu ft 3.1% 2012 find more

» Coal 32.0 million short tons 3.6% 2012 find more

Expenditures

» Petroleum $ 22,119 million 2.5% 2012 find more

» Natural Gas $ 5,880 million 4.4% 2012 find more

» Coal $ 1,918 million 4.2% 2012 find more

Consumption for Michigan Share of U.S. Period find more Electricity Generation

Petroleum 24 thousand barrels 1.6% Jun-14 find more

Natural Gas 8,345 million cu ft 1.1% Jun-14 find more

Coal 2,569 thousand short tons 3.4% Jun-14 find more

Energy Source Used Michigan U.S. Average Period for Home Heating (share of households)

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Energy Indicators Natural Gas 77.6 % 49.4 % 2012

Fuel Oil 1.7 % 6.5 % 2012

Electricity 7.6 % 35.5 % 2012

Liquefied Petroleum 8.8 % 5.0 % 2012 Gases

Other/None 4.3 % 3.6 % 2012 Environment

Special Programs Michigan find more

Clean Cities Coalitions Ann Arbor, Detroit, Greater Lansing

Alternative Fuels Michigan Share of U.S. Period find more

Alternative Fueled 31,548 vehicles 2.7% 2011 find more Vehicles in Use

Ethanol Plant Operating 268 million gal/year 1.9% 2014 find more Capacity

Ethanol Consumption 10,771 thousand barrels 3.5% 2012 find more

Total Emissions Michigan Share of U.S. Period find more

Carbon Dioxide 157.0 million metric tons 2.9% 2011

Electric Power Michigan Share of U.S. Period find more Industry Emissions

Carbon Dioxide 67,876,595 metric tons 3.1% 2012

Sulfur Dioxide 214,979 metric tons 5.8% 2012

Nitrogen Oxide 80,818 metric tons 3.8% 2012

Analysis Last Updated: December 18, 2013

Overview Michigan, known as the Great Lakes State, has within its boundaries portions of With over one- four of the five Great Lakes. The state has more shoreline than any other state except Alaska, and vessels that transit the Great Lakes–Saint Lawrence Seaway half of the state arrive and depart from its many ports. The northern ends of Lake Michigan and forested, Lake Huron divide Michigan into two distinct sections, the Upper Peninsula, which is lightly populated and heavily forested, and the Lower Peninsula, where most of Michigan has the state's population lives and all of the major cities, manufacturing industries, abundant and commercial agriculture are located. Michigan's largest and longest rivers are in the Lower Peninsula, but of the state's more than 150 waterfalls, all but one are woody biomass. located in the Upper Peninsula. With almost 40,000 square miles of the Great

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Lakes within its borders and thousands of smaller inland lakes, almost one-half of Michigan is water.

Michigan's energy resources include natural gas and crude oil, as well as renewable resources in the form of biomass, hydroelectric power, and wind. With over one-half of the state's land area forested, Michigan has abundant woody biomass. The state has many rivers, but hydroelectric power generation is limited by the generally level terrain and relatively small size of many of the rivers. Winds, occasionally of gale force, sweep in across the lakes and provide the state with another potential resource.

Michigan has a temperate climate with four seasons. Generally, the Great Lakes moderate temperatures with the most extreme temperature highs and lows occurring in the interior of the Lower Peninsula, away from the lakes. Snowfall, on the other hand, is highest along the lakes because of the lake-effect snows created by cold air blowing over the warmer lake waters. The lakes also cause Michigan to have more cloudy days than most states. Despite its cold winters and its high total energy consumption, Michigan's large population places it in the bottom one-third of all states in energy use per capita. The residential sector is the leading energy consumer, followed closely by transportation, and then the industrial sector. The state's most valuable manufactured products are transportation equipment, including automobiles, trucks, buses, airplanes, and boats. Energy-intensive industrial activities in the state include not only automotive manufacturing, but also the forest products, machinery manufacturing, fabricated metal products, and petroleum refining industries.

Petroleum Although Michigan has one oil field that has produced more than 100 million barrels of oil since its discovery in 1957, current crude oil production and reserves in Michigan are modest and account for far less than 1% of both the nation's total production and reserves. The state's one refinery, located in Detroit, was recently upgraded to allow the processing of heavy Canadian crude oils and to increase refinery capacity to 120,000 barrels per calendar day.

Several petroleum pipelines service the state. Two major crude oil pipelines from western Canada, both part of the Lakehead Pipeline System, enter Michigan from the northwest and southwest, supplying both Michigan and eastern Canada. Other pipelines come up from the Gulf South. Petroleum product pipeline systems that supply Michigan markets enter the Lower Peninsula from the area to the southwest and also from the southeast. There are no petroleum product pipelines in the Upper Peninsula. Domestic petroleum products enter the Upper Peninsula at the port of Escanaba. The Lower Peninsula port cities of Detroit and Port Huron receive petroleum products from Canada. Port Huron also receives crude oil imports from Canada.

Petroleum is consumed in the state primarily as motor gasoline. Although most of the state can sell conventional motor gasoline year-round, the vapor pressure of motor gasoline sold in all eight Detroit area counties during the summer ozone season is regulated to reduce emissions that contribute to ground-level ozone. Consumption of liquefied petroleum gas (LPG) is high in Michigan. The state has the largest residential LPG consumption in the nation and ranks among the top 10 states in the use of LPG overall.

Natural gas Michigan has significant natural gas reserves. The Antrim Field in the northern portion of the Lower Peninsula is one of the top 100 natural gas fields in the nation as ranked by proved reserves. However, natural gas production in Michigan peaked in the late 1990s and is declining. Current natural gas exploration is focusing on the Collingwood Shale, which underlies the Utica Shale in northern Michigan. The state's natural gas marketed production meets less than one-fifth of the state's needs. Several pipelines cross Michigan on the way to markets in the northeastern United States and eastern Canada and satisfy the remainder of the state's natural gas demand. Natural gas enters the state from Indiana, Ohio, and . Michigan also receives natural gas imports from Canada at Marysville, St. Clair, and Detroit. The bulk of the natural gas flowing out of Michigan flows into Canada at St. Clair, Detroit, Marysville, and Sault Ste. Marie.

Driven largely by the residential sector, Michigan's natural gas consumption is high. The state routinely ranks among the top 5 in residential use of natural gas,

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and in the top 10 in total consumption. Nearly four-fifths of Michigan households Michigan has use natural gas as their primary source for home heating. With more than one- tenth of U.S. capacity, Michigan has the most underground natural gas storage the most capacity in the nation, and, after Pennsylvania, the second largest number of natural gas storage fields. During the high-demand winter months natural gas is underground withdrawn from storage and supplied within Michigan and to neighboring states. natural gas Coal storage capacity Although Michigan produced substantial amounts of coal between 1860 and 1949, in the nation. there are not currently any active coal mines within the state. However, Michigan's ports handle almost one-third of all Great Lakes coal shipments. The state relies heavily on coal for electricity generation, and some coal is used by coke plants, the industrial sector, and others. The majority of the coal consumed in Michigan comes by rail from the west, primarily from Wyoming and, to a much lesser extent, from Montana and Colorado. A significant amount also comes from nearby states, including some from the Appalachian coal fields of West Virginia and Kentucky.

Electricity Because of Michigan's unique geography, the state is serviced by two major About one-half interstate electricity grids. One covers the Lower Peninsula and a small portion of the Upper Peninsula, and the other covers much of the Upper Peninsula. About of the electricity one-half of the electricity generated in Michigan is produced by coal-fired power generated in plants, the majority of which are in the southern half of the Lower Peninsula. Michigan's three nuclear power plants, with a total of four reactors, are in the Michigan is extreme southern portion of the state and typically supply more than one-fourth of produced from the state's generation. Natural gas fuels much of the remainder, with renewables, including hydroelectric power, routinely contributing less than 5% of the electricity coal. generation delivered to the grid.

Although the amount of net electricity generation in Michigan is in the top one-third of states, residential electricity sales per person in Michigan are below the national average, in part because of low demand for air conditioning during the mild summers and a reliance on natural gas for home heating. Less than one-tenth of Michigan households rely on electricity as their primary source of energy for home heating.

Renewable energy Michigan's renewable electricity generation comes predominantly from biomass, Michigan's wind with a lesser amount from hydroelectric power and a small but rapidly growing contribution from wind energy. Substantial renewable electricity generation comes capacity is from wood and wood waste. Other sources include more than 100 hydroelectric among the power plants and several facilities that generate electricity using methane recovered from landfills and anaerobic digesters on some of Michigan's many fastest growing dairy farms. Although the state's wind resource is ranked as only 18th in the in the nation. nation, in recent years, Michigan has been among the top states in percentage increase in wind capacity. More than 600 megawatts of additional wind generation capacity was installed in 2012 helping the state's net generation from wind more than double. Michigan has about 20 electric utility-scale wind farms. Overall, however, renewable power generation contributes only minimally to the state's electricity grid.

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Michigan has several ethanol and biodiesel production plants in operation. A major corn producer, Michigan uses corn as a feedstock for its ethanol plants. Those plants have the ability to produce more than 260 million gallons of ethanol each year from that feedstock. Michigan also has a small cellulosic ethanol plant that uses wood sugars as a feedstock.

Michigan's Clean, Renewable, and Efficient Energy Act, enacted in 2008, requires that all electricity providers obtain at least 10% of their electricity supply from renewable energy resources by 2015. The act defines renewable energy resources as biomass; solar and solar thermal energy; wind energy; kinetic energy of moving water; geothermal energy; municipal solid waste; and landfill gas produced by municipal solid waste. Electricity generation from hydroelectric facilities at newly constructed dams does not count toward the 10% requirement, but generation from modified facilities at existing dams does. The standard also allows electric utilities to use energy efficiency and advanced cleaner energy technologies to fulfill part of the requirement. The state's two largest investor-owned electric utilities have additional requirements called renewable energy capacity standards. Those capacity standards are based on the number of customers each of the two utilities served at the beginning of 2008. The energy produced from new facilities that meet the capacity standards may be counted towards the 10% required from renewable energy resources for each of those electric utilities.

Michigan offers tax incentives in Renewable Energy Renaissance Zones. Those zones were created to promote the development of a renewable energy manufacturing industry in the state.

Other Resources

Energy-Related Regions and Organizations • Regional Transmission Organization (RTO) : Midwest Independent Transmission System Operator (MISO), PJM Interconnection (PJM) • Petroleum Administration for Defense District (PADD) : 2 • North American Electric Reliability Corporation (NERC) Region : Midwest Reliability Organization (MRO, Reliability First Corporation (RFC)

Other Websites • Michigan Energy Office • Michigan Public Service Commission • Michigan Department of Human Services, Energy and Weatherization • Michigan Public Service Commission, Renewable Energy • Alternative Fuels and Advanced Vehicle Data Center - Federal and State Incentives and Laws • Michigan Department of Environmental Quality, Office of Oil, Gas, and Minerals • Benefits.Gov Energy Assistance (105) • DSIRE - Database of State Incentives for Renewables and Efficiency • National Association of Regulatory Utility Commissioners (NARUC) • National Association of State Energy Officials (NASEO) • National Conference of State Legislatures (NCSL)-Issues and Research - News Highlights: Issues and Research - Energy • National Renewable Energy Laboratory (NREL)-Dynamic Maps, Geographic Information System (GIS) Data and Analysis Tools - Maps • U.S. Geological Survey (USGS) Maps, Imagery, and Publications - Maps • Interstate Oil and Gas Compact Commission • United States Department of Health and Human Services - Administration for Children and Families - Low Income Home Energy Assistance Program

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Email suggestions for additional Michigan website resources to: [email protected] .

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