In a previous post, I reported on the efforts of many Michigan businesses and customers to encourage lawmakers to raise the cap on the competitive electricity market in Michigan. I am pleased to announce that legislation has now been introduced in both the House (HB 6127) and Senate (SB 1317) that would increase the cap on retail competition in Michigan from 10% to 25%.
On May 4th, the legislation was introduced in the House with 12 co-sponsors and Rep. Roy Schmidt (D) as the lead sponsor. On May 6th, legislation was introduced in the Senate and is being sponsored by Senator Wayne Kuipers (R). This is the beginning of the legislative process which will lead to debate and likely hearings on the merits of the proposals. It is too early to predict the timing for such hearings but this is a very positive step in the right direction.
This proposed increase in the cap on retail competition would allow a larger number of customers to shop for a supplier, enabling them to access electricity prices that reflect the current competitive retail electricity market. Stay tuned for further updates and how you can become engaged in the process.
I am confused about Michigan’s electricity market. Deregulated retail sales for industrial and commercial customers touched 35% of Total Retail Sales in 2004 and started to decline. According to 2008 EIA data it hit 3%. Then I read about this 10% cap. Was there another Act signed between 2008 and now?
Rahul, thanks for posting a comment. To answer your question, the legislation signed into law in 2008 capped the competitive market at 10% of load/utility. Legislation was recently introduced to increase the cap to 25%. Please let me know if you have further questions.
Thanks for the response David. Does this mean the provisions from Customer Choice Act 141 were abandoned? This report has me confused…http://www.dleg.state.mi.us/mpsc/electric/restruct/reports/compreport2005.pdf
Some of the provisions from PA 141 were amended, numerous other new provisions were created.