Prospective alternative electric suppliers (AES) that wish to sell power supply at unregulated retail rates to customers participating in Michigan’s Electric Customer Choice program must obtain a license pursuant to Public Act 141 of 2000. Accordingly, the Commission established licensing procedures for AES desiring to participate in Commission-approved electric customer choice programs with the most recently revised licensing application form and procedures approved in the April 18, 2018 Order in Case No. U-11915.
The MPSC does not currently register or license brokers or aggregators of electric service. The MPSC will hold licensed AESs responsible for all marketing efforts conducted on their behalf.
Public Act 286 of 2008 as amended by Public Act 341 of 2016 provides that "no more than 10% of an electric utility's average weather adjusted retail sales for the preceding calendar year may take service from an alternative electric supplier at any time." The Commission established procedures in Case No. U-15801 for implementation of Section 10a(1)(b)-(d) of Act 286 and opened dockets for all individual electric utilities' filings.
Utilities in Michigan with Electric Customer Choice participation:
Applications to become a licensed AES should be filed electronically via the MPSC’s paperless E-docket system. Suppliers should not e-file confidential information with their licensing applications but should provide the confidential material to the MPSC’s Retail Choice Staff.
There are no application or license renewal fees. However, as a condition of licensure, an AES is required to maintain a $100,000 bond or letter of credit with the MPSC.
Code of Conduct - In a MPSC order dated December 4, 2000 in Case No. U-12134, the Commission established a Code of Conduct for all electric utilities regulated by the Commission and for all AESs to promote the development of competition, consistent with Act 141. On December, 20, 2018, pursuant to MCL 460.10ee of PA 341 of 2016, the Commission issued an order in Case No. U-18361 formally adopting updated Code of Conduct rules. The code requires that all AES' file an annual report with the MPSC summarizing the number and types of complaints received and their resolution annually. The Code of Conduct annual report form is due to the MPSC office by April 30 for the preceding year. See more about Code of Conduct.
Statistical Data – A condition of maintaining a license requires annual data reporting on a Statistical Data Reporting Form. This report should be sent to MPSC Staff.
Regional Fuel Mix Disclosure - Pursuant to PA 141 and the June 5, 2001 Commission order, Staff requests that AES’s e-file its Regional Fuel Mix & Emissions information through the MPSC E-docket system in Case No. U-12487. Suppliers may rely upon the MPSC’s disclosure information and template to meet their annual disclosure requirements.
Renewable Energy Plan (REP) - AESs shall file a proposed REP with the Commission. A separate docket will be opened preceding a licensing order.
The "Electric Interconnection and Net Metering Standards," R460.640, Rule 40, require an AES to file annual net metering program reports, in a form to be determined by the Commission, not later than March 31 of each year. Net Metering Application Forms are available for AESs to use for their customers who want to participate in a category 1 or 2 net metering project.
Current Status of Customer Participation
As of December 2019, there were just under 6,000 customers participating in the electric choice program. This represents approximately 2,016 MW of electric demand, which is an increase of about 46 MW from 2018. Electric choice participation remained slightly above 10% for each utility and there continues to be approximately 6,447 queued customers statewide.
To date, Michigan remains one of 20 states that had full or limited restructuring of the competitive electric market.
Form more information, see the MPSC’s 2019 Status of Electric Competition Report.
Related Case Information
- U-15801 – Electric choice procedures
- U-11915 – June 19, 2000 order establishing licensing procedures
- U-18361 – Code of Conduct
- U-15919 – Net Metering Application Forms
- U-15800 – Renewable Energy Plan implementation
Licensed Alternative Electricity Suppliers
- Licensed Alternative Electric Suppliers
- Licensed Electric Suppliers in Cloverland Electric Cooperative's Service Territory
- Licensed Electric Suppliers in Consumers Energy's Service Territory
- Licensed Electric Suppliers in DTE Electric Company's Service Territory
- Licensed Electric Suppliers in Indiana Michigan's Service Territory
- Licensed Electric Suppliers in Upper Peninsula Power Company's Service Territory
- Licensed Electric Suppliers in Upper Michigan Energy Resources Corporation's Service Territory