Michigan Customers Choose Competition

The number of customers in Michigan choosing their power supplier increased 38 percent over last year, according to the Michigan Public Service Commission’s (MPSC) annual report on electric competition released on Tuesday. By the end of 2010, more than 8,500 businesses and residents actively selected their electricity supplier. As a result, they are now enjoying numerous benefits, from competitive rates to more control over their daily energy usage. However, due the state’s capping of choice at 10 percent of the electricity load – and the cap was quickly reached in 2010 – many customers have been left with no opportunity to explore the market and choose a competitive supplier.
 
From 2002 to 2008, businesses and residents in Michigan have had a choice in electricity providers through programs offered by Consumers Energy Company (Consumers Energy) and the Detroit Edison Company (Detroit Edison). Power suppliers have had to compete against each other to attract and retain customers. The result? The best possible service at the lowest cost, an incentive to innovate, and an influx of new jobs. But when the state limited the amount of electricity that can be obtained from alternative electric suppliers to 10 percent in 2008, many consumers were forced to stick with their monopoly suppliers. With both Detroit Edison and Consumers Energy service territories fully subscribed at the cap in 2010, customers are blocked from shopping around for the best rates and service.
 
The state’s businesses, schools and residents are some of the many voices calling for Michigan to restore its competitive electricity market. In fact, most state residents think homeowners and businesses should have the ability to select their electric company.
 
 Just last month, Governor Rick Snyder called “the need for more and better jobs”a top priority for Michigan. A competitive electricity market will help stimulate job creation – businesses can translate lowered power costs into job openings – but only if Michigan rethinks this artificial cap.
 
 
 
 
 

William Massey | February 3, 2011