MPSC Issues Annual Electric Competition Report Showing Choice Expansion Into Two New Utility Service Territories

Contact:  Judy Palnau, 517-241-3323
Agency:  Michigan Public Service Commission

February 1, 2013 - The Michigan Public Service Commission (MPSC) today released its annual report on electric competition, the 11th full year of electric customer choice in Michigan. The year 2012 marked the first time that customers within the service territories of Indiana Michigan Power Company (I & M) and Upper Peninsula Power Company (UPPCo) participated in electric choice programs.

Highlights of the report include:

  • Alternative Electric Suppliers (AESs) served just over 6,800 electric choice customers throughout the state in 2012, compared to 7,000 in 2011. This represents approximately 2,000 MW of electric demand, about the same as 2011. As of December 2012, approximately 10,450 customers remain in the queue.

  • Until 2012, AESs only served in Consumers Energy and Detroit Edison service territories. During 2012, AESs began serving customers in the I & M and UPPCo service territories as well. As of December 2012, I & M had over 120 customers participating in the electric choice program and UPPCO had four customers participating.

  • Public Act 286 of 2008 caps electric choice at 10 percent of an electric utility's average weather-adjusted retail sales for the preceding year. Both Consumers Energy and Detroit Edison service territories were fully subscribed at the cap throughout 2012, with 5,048,847 megawatt-hours (MWh) and 4,382,423 MWh in their respective queues at the end of 2012.

  • Electric choice load served in the Detroit Edison service territory at the end of 2012 totaled 1,199 MW, compared to 1,212 MW in 2011. The number of choice customers in Detroit Edison service territory decreased to 5,672 from 5,976 in 2011.

  • Electric choice load served in the Consumers Energy service territory at the end of 2012 totaled 776 MW, as compared to 785 MW in 2011. The number of choice customers in Consumers Energy service territory was 1,064 in 2012, compared to 1,069 in 2011.

  • There were 26 licensed AESs in Michigan at the end of 2012. This reflects the addition of three new AES licenses (Energy Services Providers, Inc. d/b/a Michigan Gas & Electric; Lakeshore Energy Services, LLC; and Texas Retail Energy). There were seven active AESs in Consumers Energy's territory; 10 in Detroit Edison territory; one in I & M territory; and one in UPPCo territory serving commercial and industrial customers as of December 2012.

  • The number of residential choice customers participating in the electric choice program is negligible. However, during 2012 residential customers were placed into the queues for both Consumers Energy and Detroit Edison.

The entire report is available on the MPSC's website here.

The MPSC is an agency within the Department of Licensing and Regulatory Affairs.

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