Michigan

COMPETE’s Bill Massey talks to Steven Anderson from Public Utilities Fortnightly on the current  state of electricity competition in Michigan. During the interview, Massey tells Public Utilities Fortnightly: “A market-based approach will provide space for innovators to enter the market — and we desperately need those.”

Yesterday, the Michigan Public Service Commission (MPSC) released its annual report on electric competition in Michigan. The report showed an increase of 38 percent in the number of customers choosing their power suppler over the past year. In competitive markets, power suppliers compete against each other to provide the best possible service at the lowest cost to attract and retain customers. Comparatively, incumbent power providers in monopoly-regulated states have no incentive to innovate or lower costs because ratepayers are captive to their monopoly-protected supplier.

As of December 10, Michigan’s 10 percent cap for consumer choice for electricity was reached in the DTE Energy service territory.  A similar cap on competition in Consumers Energy’s territory was met earlier this year.  This is the result of a state law passed a year ago that limits the freedom to choose among competing power providers to 10 percent of each utility’s demand.  Following is a statement in response to this development by the Honorable Federico Peña, former U.S. Secretary of Energy (1997-1998) and U.S.

Competitive electricity markets are achieving the clean energy and green jobs goals being discussed at today's Clean Energy Economy Forum in Saginaw, Michigan.  The event, featuring Gov. Jennifer Granholm and Obama administration officials, is focused on the economic benefits of expanding the use of solar, wind and other clean energy technologies. 

Proposals to Suppress Competition in Electricity and Mandate Renewable Energy Use Would Raise Prices Without Improving Service or Environment

Link to study from the Mackinac Center for Public Policy

WASHINGTON, D.C. – A leading group of national and Michigan-based businesses and schools today urged Michigan Governor Jennifer Granholm and legislative leaders to support the continued evolution and implementation of competitive electricity markets. The letter, signed by businesses representing more than 74,600 Michigan employees, noted the measurable benefits to consumers from Michigan’s retail and wholesale electricity market.