Michigan's energy market continues to impact businesses throughout the state, including Grand Rapids (shown here).
For businesses and organizations in Michigan that are trying to grow and succeed it has become very challenging to compete in today’s recovering economy when a legislative hurdle blocks most businesses from developing a strategy to manage their energy costs, the third largest cost impact on their operational performance.
Under the state’s current electricity monopoly market structure, electricity rates have increased by more than 20 percent since 2008. One of the two utilities under the monopoly recently submitted a request for another 5 percent increase, more than triple the rate of inflation, to the Michigan Public Service Commission (MPSC).
The situation isn’t getting any easier. As stated in an article published on Wednesday by an employee of Amway, one of the few businesses able to work with a competitive supplier under the 10% cap, Michigan’s rates are:
–already the highest in the Midwest,
–well above the national average, and
–exceed the average of states that have competitive electricity markets.
By working with a competitive electric supplier, Amway suggests it has saved millions and procured an energy plan generated by 10% wind – not because they had to but because they were able to choose a plan with predictable energy costs.
More than 4,800 companies are on a growing waiting list for the opportunity to experience the same benefits as Amway, with the hope that legislation will enable electric competition.
When faced with increasing rates and the inability to choose an energy supplier to help develop a proactive energy management strategy, what can your business or organization in Michigan do? Take action – contact your local lawmakers and let them know the 10% cap on electric competition is harming Michigan’s economy and stifling business growth.
Contact your legislators through Energy Choice Now (www.ECNMichigan.com), a coalition of businesses, consumers, suppliers, trade associations, and other interested stakeholders that are committed to passing legislation that will eliminate or at minimum raise the current cap on Michigan’s electric suppliers, increase competition, and lower energy costs. Support Michigan businesses and consumers by joining ECN. There is NO cost to join.
Will lawmakers expand or eliminate the cap altogether? Be sure to check this blog for updates as we continue to follow the issue.