Information for lawmakers and candidates

Thank you for taking the time to learn more about this important issue. If you have any questions or would like to discuss this further, please contact Barry Cargill at info@customerchoicecoalition.org or at the phone number listed above.

Comparison of Small Industrial Electric Rates
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Regional Comparison of all Sectors
Frequently Asked Questions on the Electric Choice Cap

News and Information

September 2010 Newsletter

Lawmakers should give energy providers a chance to vie for new business
(Detroit News, September 22, 2010)
It's time for lawmakers to seriously consider relaxing Michigan's anti-competitive energy policies, unless
they're willing to let electricity rates become an obstacle to recovery from one of the worst recessions in
history. Most Michigan residents and businesses have seen double-digit rate hikes, but can't shop
around for lower prices under state rules adopted in 2008.

That year, lawmakers and Gov. Jennifer Granholm ended an eight-year experiment with energy
competition by returning Michigan to a regulated system that guarantees DTE and Consumers Energy
90 percent of the state's power business. (full article)

A Rate Increase For Consumers Energy Customers?
(MIRS, July 13, 2010)
If Consumers Energy chooses to implement a $150 million rate increase on July 22 as allowed by Michigan law, the Michigan Public Service Commission (MPSC) today said the utility will have to apply a specific rate design.

Such a rate increase would amount to $3.76 more in the monthly bill of an average residential customer.

David Waymire of the Customer Choice Coalition said the 2008 Michigan energy law that limited electric choice has raised residential rates in Michigan by about 20 percent -- at a time when rates around the Midwest have been moderating or going down. (full article)

Consumers Directed on Rate Increase
(Gongwer News Service, July 13, 2010)
The Public Service Commission on Tuesday said that if Consumers Energy decides to raise
residential electric rates it has to apply a specific rate design that would set the increase at an
average $3.76 a month at households.

A spokesperson for the Customers Choice Coalition called the decision another reason why the
state needs to change the 2008 utility law that sets a cap on the number of customers that can go to
other utilities. (full article)

Electric Cap Expanded Under Bill
(MIRS, May 11, 2010)
The 10 percent cap on the amount of business alternate energy suppliers can siphon from Consumers Energy and DTE Energy would expand to 25 percent under legislation sponsored by Sen. Wayne KUIPERS (R-Holland) and Rep. Roy SCHMIDT (D-Grand Rapids).

The limits, put into law as part of the state's energy reform package of 2008 have been the target of competitive energy suppliers. The bills are SB 1317 and HB 6127 .

"Electric rates have skyrocketed since Michigan eliminated competition in 2008, are the highest in the Midwest and, for the first time in years, are even higher than the national average," said Barry CARGILL, executive director of the Customer Choice Coalition. "The bipartisan sponsorship of these bills will begin reintroducing competition into the electric system, and help hold down rates that are crippling Michigan."

Bills would allow more customers to buy electricity from cheapersources; 547 on waiting list to buy power from someone other than Consumers
(Jackson Citizen Patriot, May 10, 2010)

A bipartisan group of state lawmakers aims to weaken the “monopoly” large utilities enjoy so morebusinesses and schools can purchase electricity from cheaper sources.

A component of the energy reform law signed in 2008 restricts competition to 10 percent of the sales of thestate’s two largest utilities: Consumers Energy and Detroit Edison.

When the law was enacted, 3 percent of Consumers’ customers were buying from alternative providers. Tenmonths later, it hit the 10-percent cap. (full article)

Customer Choice Coalition applauds House and Senate bills expanding electric competition
Only competition can curb huge rate hikes hurting Michigan families, businesses, governments

May 6, 2010

LANSING , Mich. – Sen. Wayne D. Kuipers, R-Holland, and Rep. Roy Schmidt, D-Grand Rapids, introduced legislation this week that would open Michigan's electric system to increased competition, reducing the monopoly power utilities have been using to dramatically raise rates since passage of the state's electric remonopolization act in 2008.

“Electric rates have skyrocketed since Michigan eliminated competition in 2008, are the highest in the Midwest and, for the first time in years, are even higher than the national average,” said Barry Cargill, executive director of the Customer Choice Coalition. “The bipartisan sponsorship of these bills will begin reintroducing competition into the electric system, and help hold down rates that are crippling Michigan.”

(Read the full press release)
Energy Information Agency Rate Chart

Groups applaud bills expanding electric competition
(MiBiz, May 6,2010)

Chamber: Businesses forced to pay higher costs; cap must be raisedGRAND RAPIDS – The Grand Rapids Area Chamber of Commerce and the Customer Choice Coalition applaud Sen. Wayne Kuipers (R-Holland) and Rep. Roy Schmidt (D-Grand Rapids) for introducing legislation to open Michigan’s electric system to increased competition and ease the restrictions on choice that have led to higher rates since the re-regulation of the electric energy market in 2008.

The 2008 legislation limited competition to 10% of each utility’s load. That limit was hit in both utilities’ territory in 2009. The Michigan Public Service Commissioner reports long waiting lists of customers seeking to use alternative providers. Kuipers’ legislation will lift the cap to 25 percent. (full article)

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