December 22, 2005

The Michigan Public Service Commission (MPSC) today issued an order cutting rates for Detroit Edison’s commercial and industrial bundled (full service) electric customers, beginning with the February billing cycle.  It also approved a new economic development rate designed to attract new industrial development to Michigan.

The MPSC directed that distribution charges for choice and bundled customers should be brought into parity.  As a result, commercial and industrial bundled customers will see a 4 percent reduction in their rates.  Because choice customers have their own contracts, it is unknown how they will be affected.

“Lowering commercial and industrial rates today will give Michigan a boost during economically difficult times,” said MPSC Chairman J. Peter Lark.  “The 4 percent rate cut for businesses will keep Michigan competitive, attract new business and keep and grow Michigan jobs.  At the same time, the distribution changes made today will contine to keep competitive options available for Michigan customers.” 

The Commission approved the MPSC’s staff proposed new method to calculate the cost to service that better reflects the basis for establishing the responsibility of each customer.

To spur economic development and job creation in Michigan, the Commission today also approved the modified “Rider 9,” which will be available for all new load of 1 megawatt and greater from either existing or new customers.   Customers eligible for discounted rates under Rider 9 must agree to commit to the service for three years and would be required to certify to Detroit Edison that the load to be served was new load not served by the company prior to Jan. 1, 2005 and not resulting from a business closure, sale or relocation, or work from another facility in Michigan. 

“Lowering business rates, coupled with this new economic development rate, will help attract new businesses to Michigan,” added Lark.

In addition, the Commission adopted the staff’s proposal to double the number of customers who may take advantage of Detroit Edison’s residential time-of-day service rate (Rate D1.2), so that more residential customers who are willing to modify their energy usage patterns can achieve savings.

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

Case No. U-14399