Securing Michigan’s Energy Future
2015 is poised to be a watershed year for energy policy in Michigan.
Read the news lately? DTE and Consumers Energy just raised electric rates again, while pumping millions of dollars into a new television advertising campaign designed to undermine electric choice.
The time has come to secure Michigan’s energy future to bring customers rate relief and competition!
THE PROBLEM WITH ELECTRIC MONOPOLIES
Michigan has the highest electricity rates in the Midwest, and rates significantly higher than the national average. In 2008 Michigan established an arbitrary 10 percent cap on electricity competition, shielding DTE and Consumers Energy from competition that would save customers hundreds of millions of dollars each year.
While electricity prices went up an average of 2.7 percent nationally since 2008, rates have skyrocketed by 30 percent in Michigan. That’s an increase of 1,000 percent more than the national average.
WHERE DO WE GO FROM HERE?
Approximately 11,000 Michigan electric customers—most of them job providers—are currently in the “queue,” demanding an opportunity to shop competitively for their electricity
Empowering Michigan job makers and families to take advantage of a competitive marketplace will drive down prices and lower costs.
- Wholesale electricity rates are nearly 40 percent lower than utilities’ rates in Michigan.
- According to the U.S. Energy Information Agency, Michigan families and job makers who filled the state’s 10 percent competition cap in 2009 have already saved $400 million.
- 11,000 Michigan electricity consumers currently on waiting lists would save an additional $235 million each year in a fully competitive marketplace, according to economists.
- Economists say Michigan’s monopoly-style system has resulted in energy costs more than $10.5 billion higher than competitive market prices paid by our neighbors in Illinois.
In 2015 and beyond Michigan must:
1. Protect the 10 percent of the market already buying electricity from a competitive supplier. Thanks to competition, employers have saved $400 million on electricity. Eliminating choice would:
- Drive up prices on thousands of public schools and employers;
- Discourage competition and the free market for thousands of job makers;
- Reward the monopoly utilities for years of rate hikes and broken promises
2. Lift the arbitrary cap to empower the 11,000 consumers in the queue to shop competitively for their electricity, saving an estimated $235 million annually and creating 21,000 jobs.
3. Eliminate the cap to bring rate relief and competition to families and job providers across Michigan.