February 1, 2008

The Michigan Public Service Commission (MPSC) today released its annual report on electric competition in Michigan.  The year 2007 marked the sixth full year of electric customer choice in Michigan.

"While the number of electric choice customers in Michigan continued to decline in 2007, it did so at a lower rate than the previous two years," noted MPSC Chairman Orjiakor Isiogu.  "This is not surprising given higher wholesale prices for electricity and uncertainty about Michigan's electric choice law."

Isiogu added that Michigan's average retail electric price ranked sixth and seventh, based on customer class, among the 20 states that have a competitive electric market.  In addition, among the 10 largest states, Michigan has the fourth lowest average retail electric rates for residential and industrial customers, and the third lowest for commercial customers.

Observations included in the 2007 report include the following:

• Approximately 4,800 commercial and industrial customers in Detroit Edison Company and Consumers Energy Company service territories participated in Michigan's electric customer choice programs, a decrease of approximately 33 percent from the previous year. 
• About four percent of electricity sales in Detroit Edison and Consumers Energy service areas were supplied by Alternative Electric Suppliers (AESs), down from about six percent in 2006. 
• There were 28 licensed AESs in Michigan throughout 2007. 
• Electric standards were developed for interconnections between independent power producers and public utilities. 
• For the first time in 10 years, Consumer Standards and Billing Practices for electric and gas service were significantly revised. 
• The Low-Income and Energy Efficiency Fund grants awarded $72 million for low-income financial assistance and $20 million for low-income energy efficiency. 
• Almost 12,000 customers participated in Consumer Energy's Green Generation pricing program; and over 6,800 in Detroit Edison's GreenCurrents program.  In addition, Constellation NewEnergy, a licensed AES, continued to offer a new "Green-e Renewable Energy" product, and Spartan Renewable Energy LLC permits customers to pay a premium for power from renewable energy. 
• The Commission supports legislation to promote effective energy efficiency programs for utility customers and to establish a renewable portfolio standard to increase the percentage of electricity in Michigan that is generated by renewable resources. 

The entire report is available on the MPSC's Web site:  michigan.gov/mpsc. 

The MPSC is an agency within the Department of Labor & Economic Growth.