Statement by Former Energy Secretary Federico Peña On Michigan’s Cap on Electricity Competition

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. Secretary of Transportation (1993-1997).  Secretary Peña is co-chairman of the COMPETE Coalition, which represents nearly 400 electricity customers, innovative service and technology providers, generators, transmission owners, and myriad other interests – all of whom support well-structured, competitive electricity markets for the benefit of consumers.

“The fact that DTE Energy’s 10 percent cap was met so quickly is a prime example of consumers’ desire for choice in electricity markets and energy suppliers moving quickly to meet that consumer demand.  Unfortunately, the door is now closed for approximately 90 percent of eligible electric load in Michigan.  Customers who want more options and lower-priced electricity than they can obtain from their monopoly provider will not have the freedom to shop for a better outcome.
   
“As a state struggling economically and actively seeking job growth, Michigan should reconsider the law that has made businesses, schools, religious institutions, local governments, manufacturers, office buildings, retail stores, etc. captive customers of monopoly utility providers.  Absent legislative change, it is impossible for these companies and non-profit organizations to lower their electric rates by exercising their options to explore the market and select a competitive supplier.”