Michigan May Expand Electric Competition

Since 2008, Michigan has capped participation in retail electricity markets at 10 percent of load in each utility’s service territory. On March 11, Retail Energy buyer reported that Michigan Representative Aric Nesbitt had introduced legislation to eliminate competitive electricity markets in the state entirely. Last week, the Lansing State Journal reported that state Senator Mike Shirkey has proposed competing legislation that would increase the cap. Specifically, the bill would:

• Allow the 11,000 business customers currently on the waiting list to buy competitive power to do so immediately. This would double the cap on competitive power to 20 percent of sales for the state’s largest utilities.
• Increase the cap another 18 percent over 3 years, and potentially further.

Governor Rick Snyder has proposed maintaining the 10 percent cap provided that alternative suppliers guarantee enough capacity to provide long-term reliable power to the state.