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Michigan Detail Page


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Index

Detailed Customer Switching Data
Contains data from state PUC's. Updated monthly, the data details customer switching activities by state.
Alternative Suppliers
A complete listing of approved alternative suppliers in states that have undergone deregulation.
Regulated Suppliers
Contains a listing of the electric companies under state PUC jurisdiction.
Regulatory Summary
A quick summary of the regulatory activity in each state.

Regulatory Summary

06/08: The Michigan Public Service Commission authorized Consumers Energy Company to raise electric rates by $27,468,600. The utility had requested $68,869,000. The average residential Consumers Energy electric customer will see a rate increase of less than 2 percent per month, effective in July 2008. The Commission also reduced the subsidy paid by commercial and industrial customers by nearly $20 million. Source: Michigan Public Service Commission http://www.michigan.gov/mpsc/

02/06: The Michigan Public Service Commission (PSC) issued the Status of Electric Competition in Michigan report that reviewed electric competition within the state for 2005. The PSC found that overall, electricity load served and the number of customers participating in Michigan’s competitive electric choice market fell by approximately 40% and 20%, respectively, in the service territories for both Consumers Energy Company and The Detroit Edison Company. Likewise, the MWh’s of energy sales decreased 26% in The Detroit Edison territory, but increased by 1% overall in Consumers Energy territory. The decline was attributed to several factors, primarily the steadily increasing power supply costs, and state and federal regulatory changes, including implementation of stranded cost surcharges and federal seams (“seams” refer to the transmission grid connecting two or more defined regions) elimination charges. The seams charge particularly affected one supplier causing it to cease doing business in Michigan. These factors likely impacted the competitive price of electricity supply in 2005.

9/05: The Michigan Public Service Commission (MPSC) granted a license to UP Power Marketing LLC as an alternative electric supplier (AES) under two conditions: 1) the company is restricted to selling retail power to operations at the White Pine Copper Refinery, Inc., and 2) The company must report sales and an environmental disclosure each year, as required by Michigan law.

In June 2005 the Quarterly Update Report on electric deregulation was released. Highlights of the 1st and 2nd quarters showed that retail access load in Consumers Energy territory declined slightly, as did the load that served the Detroit Edison area. 26 Alternate Electric Suppliers (AESs) are operating in Michigan, which are two less than the 4th Quarter of 2004. For the complete report, please see (PDF 116 KB, 8 pp). Previous years' reports can be found at: http://www.dleg.state.mi.us/mpsc/electric/restruct/status.htm.

1/05: Per state law as of January 1, 2005 all member owned co-op customers now also have open access to suppliers.

2/04: On January 29, 2004 the Michigan Public Service Commission (MPSC) released its annual report, Status of Electric Competition in Michigan 2003. Highlights of the report included the following statistics: the number of customers nearly doubled in 2003, to over 13,000; the number of megawatts (MWs) served by Alternative Electric Suppliers (AESs) grew by 70%; and there are currently 27 AESs serving customers statewide. The PSC made no recommendations for legislative action at this time.

11/03: On September 11, 2003, the Michigan Public Service Commission (MPSC) approved a schedule for Michigan's rural electric cooperatives to implement customer choice programs for those having less than one megawatt of peak load. The schedule was jointly developed by the electric cooperatives and MPSC staff and includes the following goals:

January 1, 2005 - choice will be made available for all commercial and industrial consumers with a peak load of 200 kilowatts (kW) and above; unbundled rates will be filed no later than July 1, 2004.

January 1, 2006 - choice will be made available for all commercial and industrial consumers that currently have a demand meter installed and have a peak load of 50 kW and/or above. However, no more than 30 percent of the total number of member-consumers between 50 kW and 199 kW for each cooperative shall be permitted to switch. Unbundled rates shall be filed no later than July 1, 2005.

September 30, 2006 - each cooperative shall file a status report with the Commission detailing the cost to implement choice for their customers; and

January 1, 2007- the MPSC will determine the success of this directive and make adjustments to the programs as it sees fit.

10/02: The Michigan Public Service Commission approved AEP Ohio Commercial & Industrial Retail Company’s application for an alternative electric supplier license. There are 21 other licensed alternative electric suppliers in the State.

8/02: The Michigan PSC issued an order that mandates the CHOICE Advisory Council subcommittee to instigate a statewide customer choice education program. Their program must complete the following tasks: "informing commercial electric customers about customer choice, informing commercial and residential electric customers about the availability of green power, and informing potential alternative electric suppliers of the opportunities to participate in the customer choice program in Michigan." The utilities and the contractors have two months to comply with this order.

1/02: The Michigan Public Service Commission (PSC) issued an order allowing nine electric cooperatives to use deferral accounting for the implementation and administrative costs associated with customer choice and unbundling electric rates. Cooperatives are not guaranteed cost recovery under this order, and the cooperative will have to file a separate recovery plan with the PSC.

12/01: The PSC issued nine new orders "to advance Michigan's competitive electric environment" that took effect on January 1, 2002. The first and second orders prohibit both the Detroit Edison and Consumers Energy from changing their depreciation accrual rates and practices until January 1, 2006. The third order initiated the drafting of "rules for service quality and reliability standards for electric distribution systems." The fourth order adopted standards for the disclosure of customer information, fuel mix information, and environmental characteristics of electricity products. The fifth and sixth orders approved Detroit Edison and Consumers Energy's new retail rates. The seventh order unilaterally determines net stranded costs for utilities. The eighth order approved Wisconsin Electric Power Company and Edison Sault Electric Company's "revised return-to-service proposal." The ninth order rejected the Detroit Edison Company's application "to unbundle existing commercial and industrial electric rates."

11/01: Recently issued orders by the PSC include: an order adopting procedures to protect customers from slamming, switching a customer to another service provider without their consent, and cramming, billing a customer for unauthorized service, in compliance with the Customer Choice and Electricity Reliability Act of 2000; an order establishing a procedural framework for implementing and administering the Low-Income and Energy Efficiency Fund; and an order adopting a modified code of conduct for regulated and unregulated services provided by electic utilities and alternative electric suppliers.

10/01: The PSC issued an order October 11, 2001, to adopt the settlement agreement and authorizing Wisconsin Electric Power Co, Edison Sault Electric Co, Wisconsin Public Service Corp, Upper Peninsula Power Co, Northern States Power Co - Wisconsin, Indiana Michigan Power Co, and Alpena Power Co to implement Customer Choice and Electricity Reliability Act implementation plans.

11/00: The PSC issued two orders approving Detroit Edison's and Consumers Energy's financing order applications that allows them to issue securitization bonds. Detroit Edison will secure $1.77 billion in costs by issuing bonds, and Consumers Energy will secure $469 million. The refinancing will allow both companies to cover the cost of implementing the 5-percent reduction in rates, which began in June 2000 after the passage of Public Act 141 and 142.

6/00: The PSC issued a series of orders to implement the restructuring legislation, which was signed into law on June 3, 2000. In the orders the PSC directed: Consumers Energy and Detroit Edison to file, by September 20, revised tariffs to implement retail access programs; investor-owned utilities, other than DE and CE, and cooperatives that have any customer with a peak load of 1 MW or more, to file restructuring plans to implement retail access; MPSC staff to consult with utility owners, merchant plant owners, and other stakeholders to develop standards for the interconnection of merchant plants; utilities to file reports with the PSC when they learn of any reductions in federal funding for low-income and energy assistance programs; and electric generating facilities to file reports with the PSC on compliance with all applicable federal Environmental Protection Agency regulations governing mercury emissions. The PSC issued also issued an order that establishes the framework for alternative electic suppliers to participate in retail electric markets under the restructuring law.

6/00: The PSC ordered Detroit Edison and Consumers Energy to immediately reduce residential rates by 5-percent. According to Public Act 141 and 142, Michigan's "Customer Choice and Electricity Reliability Act," the Commission must reduce rates by 5-percent.

8/99: The PSC established September 1, 1999, as the deadline for Detroit Edison and Consumers Energy to notify the PSC of their intent to voluntarily implement the Electric Choice plan, as ordered by the PSC. Both Detroit Edison and Consumers Energy have announced that they intend to implement retail competition under a voluntary basis. The Governor issued a statement in which he stated that he "continued to support the implementation of the PSC's Orders to begin the creation of a competitive market" and that "the next step is to codify those Orders into law..."

6/99: The Michigan Supreme Court decided that the PSC does not have the authority to mandate retail wheeling. However, Consumers Energy and Detroit Edison, which serve 90 percent of the consumers in Michigan, are voluntarily restructuring according to the PSC restructuring plan. All of their consumers will have retail access by January 1, 2002.

3/99: A PSC Order adopted implementation plans for 2.5 percent of Detroit Edison and Consumer's Energy consumers to choose electric suppliers beginning September 1999. Another 2.5 percent will be added each 6 months until all consumers have retail access by January 1, 2002.

4/98: Responding to the PSC order, Consumers Energy and Detroit Edison filed restructuring plans to implement retail competition. In other PSC action, the utilities were ordered to file plans for obtaining additional capacity for this summer.

1/98: The PSC completed final action on rehearing orders required to introduce competition into the state's electric utility market. A phase-in schedule was adopted allowing 2.5 percent of Consumer's Energy and Detroit Edison customers retail access as early as March 1998, adding another 2.5 percent on June 1998, January 1999, January 2000, and January 2001 and all consumers by 2002.

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