November 4, 2003

The Michigan Public Service Commission (MPSC) today granted, in part, the complaint of the Regents of the University of Michigan (U of M) and ordered The Detroit Edison Company (Edison) to apply rate equalization reductions to its Experimental Retail Access Service Tariff (EC-1), and is required to refund to the U of M 0.28 cents per kilowatt-hour (kWh) for its electric usage after March 2001.

The U of M filed a complaint against Edison on Sept. 4, 2002.  The university alleged that Edison improperly withheld rate equalization reductions under the rate securitization program adopted by the MPSC in Case No. U-12478.  It alleges that the rate equalizations amount to 0.28 cents per kWh and have been granted to all other Edison retail and electric choice customers after March 2001.

While the MPSC found that Edison correctly interpreted and implemented the Commission’s orders related to securitization equalization reductions in cases U-12478 and U-12639, it found that EC-1 customers’ failure to receive the 5 percent rate reduction could be found to violate the Customer Choice and Electricity Reliability Act of 2000 (PA 141).   Therefore, it ordered Edison to apply the equalization reductions to its EC-1 tariff.  Because PA 141 requires that all customers receive a 5 percent rate reduction prior to the funding of the Low Income and Energy Efficiency Fund, the MPSC found it appropriate to award the U of M a 0.28-cent per kWh rate reduction for all kWh used under the EC-1 program subsequent to March 2001.  The Commission noted that a retroactive award is necessary to correct a potential violation of PA 141. 

Therefore today’s order requires Edison to change its Experimental Retail Access Service Tariff to include the equalization adjustment and file conforming tariffs with the Commission within 30 days, and Edison is required to refund to the U of M 0.28 cents per kWh for all electric usage under the Experimental Retail Access Service Tariff subsequent to March 2001.  Edison is authorized to use available securitization savings in making this refund.

The MPSC is an agency within the Department of Consumer and Industry Services.

Case No. U-13534

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