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MPSC Releases Annual Electric Competition Report Showing 23 Percent Decrease in Choice Customers

Contact:  Judy Palnau (517) 241-3323


January 30, 2009

The Michigan Public Service Commission (MPSC) today released its annual report on electric competition in Michigan.  The year 2008 marked the seventh full year of electric customer choice in Michigan.

"High wholesale electricity prices no doubt contributed to the decline in electric choice customers in 2008," said MPSC Chairman Orjiakor Isiogu.  "The decline could also be based on changes to Michigan's energy laws.   However, while the new law limits electric choice sales to 10 percent, electric choice sales in 2008 were about 3 percent.  So, there is room for new choice customers."

Highlights included in the 2008 report include the following:

·         Approximately, 3,717 commercial and industrial customers in the Detroit Edison and Consumers Energy service territories participated in Michigan's customer choice programs, a decrease of 23 percent from the previous year.

·         Over three percent of electricity sales in the Detroit Edison and Consumers Energy service areas were supplied by Alternative Electric Suppliers (AES), down from about four percent in 2007.

·         There were 26 licensed AESs in Michigan throughout 2008.

·         Electric standards and practices were revised to lower deposits required of small business customers and to establish an informal complaint resolution process.

·         The Low-Income Energy Efficiency Fund grants awarded $62 million for low-income financial assistance, $10 million for low-income energy efficiency, $12 million for general energy efficiency, and $6.5 million for energy efficiency technologies.

·         The Wind Energy Resource Zone Board and the Michigan Planning Consortium were created.

·         A pilot program to integrate plug-in hybrid electric vehicles into Michigan's electric grid was initiated through the Smart Grid Collaborative.

·         Constellation NewEnergy, a licensed AES, continued to offer a "Green-e Renewable Energy" product; and Spartan Renewable Energy LLC, a licensed AES, allowed customers to pay a premium for power from renewable energy resources.

The entire report is available on the MPSC's Web site:  http://www.dleg.state.mi.us/mpsc/electric/restruct/status.htm.

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

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