Michigan Electricity Deregulation

Michigan

Good Energy is currently able to provide electricity supply consulting services for commercial and industrial consumers of power in Michigan. You can take the first step towards achieving savings for your Michigan facility by downloading Good Energy's account usage release form, printing it, filling in the blanks, then faxing it back to us at (212)792-0223 FAX.

Deregulation Milestones in Michigan:

  • Retail choice in Michigan is here - and competition will bring savings to electricity users in Detroit Edison. The decision to switch is easy - but to which supplier?
  • Service from a competitive supplier will begin shortly after contract execution, and are offering contract terms from one to three years.
  • Each customer receives a Ceiling Price for electricity supply based on its Price to Compare. (That is what you would pay the utility if you didn't switch.) This not-to-exceed price per kWh cannot increase through the life of the contract.
  • You will receive two bills - one from your host utility and one from competitive provider (CP). The CP will provide a monthly invoice to you for electricity supply and transmission charges, and the utility will bill you for distribution charges. The combined bills will add up to be less than what you pay today.
  • Utilities in Michigan have proposed a Competitive Transition Charge (CTC) to the Public Service Commission in an effort to collect "stranded costs." So far, this charge is zero, and there is no sign that it will increase, although it is difficult to predict with 100% certainty what the PSC will do from year to year. Still, the savings from switching suppliers is great enough that they will almost surely outweigh any future CTC charge.
  • Regardless of system conditions, CP customers have the same rights to service as those who remain with Detroit Edison.

Enrollment

  • Michigan regulations require customers who switch to a competitive supplier to have a new meter installed that the utility can read over a phone line connected to the meter. Customers will not be charged for the installation of the meter, but must make a phone line available. We will help customers arrange for phone service that meets the utilities' specifications.
    » Detroit Edison - The phone line must be in place within 60 days after enrollment. Otherwise, the regulations allow Detroit Edison to force the customer back to the utility where it charges a price even higher than its former price.
    » Consumers Energy - Meters/phone line installation must be completed prior to enrollment.
  • Detroit Edison customers who switch from the utility will not be charged for the initial switch. After the free initial switch, customers will be charged $5 for every subsequent switch.

Quick Facts - Detroit Edison

  • LOA is required to release information and must be completed on the DTE Customer Information Release Form - no fee for getting historical usage information required to price customer load.
  • Customer cannot have any outstanding billing at the time of enrollment or the switch will be rejected.
  • Enrollment is immediate, and will result in a site sweep. All meters at that location that qualify for retail access will be enrolled.
  • Account number(s) will change.
  • Remote meter reads (by phone) will occur between 11 p.m. - 7 a.m.

Quick Facts - Consumers Energy

  • LOA is required to release information and must be completed on customer letterhead. Initial request within a 12-month period will be provided at no charge; after initial request an administrative fee will be apply and billed to the customer on the utility bill.
  • No rescission period
  • Account number(s) will change
  • Remote meter reads (by phone) will occur between 11 p.m. - 7 a.m.
  • Enrollment may take up to 15 days after phone line installation and enrollment request
  • Enrollment will revert to a calendar month billing and will be sent at the beginning of the month

Customer Checklist

  • Obtain bill copy if possible.
  • Is there a phone line within 6 feet of the meter?
  • Are you currently under Electric Customer Choice?

D.O.E. Information

  • Dec/00: Detroit Edison completed the fifth and final bidding phase in its Electric Choice Program. As in the previous bidding, the demand for capacity exceeded the amount available. So far, about 1,125 MW, or 12 percent, of DE's capacity is available to alternative suppliers.
  • June/00: As provided by restructuring legislation, all consumers of DE and CE, as well as cooperative consumers with a peak load of 1 MW or more will have retail access to alternative suppliers by December 31, 2002.
  • March/00: The third and fourth bidding phase took place in Michigan Jan. 20 and Mar. 20, respectively. Together, Consumers Energy and Detroit Edison have a cumulative total of 1,875 MW electric load under competitive bidding. In all four phases Consumers Energy offered 150 MW each time, and Detroit Edison offered 225 MW for bid. Demand for capacity exceeded the amount available in all four bidding processes.
  • Jan/00: The second phase in Consumers Power's plan to gradually implement retail direct access now allows 300 MW of load to be served by alternative suppliers. As in the first round of bids for 150 MW, the second set of bids exceeded the 150 MW of allotted capacity. Three more blocks of 150 MW each are scheduled to be offered for direct access on 12/27/99, 2/28/00, and 10/30/00. By Jan. 2002, all consumers will have direct access to retail electric power.
  • Jan/00: Detroit Edison customers participating in Phase I of the customer choice program began taking power from alternative suppliers in December 1999.
  • Dec/99: The first phase of retail access was implemented in September 1999 with full participation in Detroit Edison's territory. The second phase began in November. Each of five phases will make 225 MW of capacity available for all classes of consumers, until beginning in January 2002, when all consumers will have retail direct access to competitive generation provider companies.
  • May/99: Seven large consumers of Detroit Edison can begin buying power from competitive suppliers on 6/1/99. Choice will be phased in for all DE consumers by 1/02.
  • March/99: The PSC plan is for 2.5% of consumers of Detroit Edison and Consumers Energy to choose electric suppliers beginning September 1999, and adding an incremental 2.5% every six months until 1/1/02, when all consumers of Detroit Edison and Consumers Energy will gain retail access.