New Report Finds Electric Competition In Michigan Would Lower Rates

By: WILX News 10
By: WILX News 10

A new report to be released this morning finds electric competition would significantly lower electric bills for Michigan consumers.

The report, commissioned by Energy Choice Now, names Jackson-based Consumers Energy and Detroit Edison. It says high electric rates by both utility companies are hurting Michigan's economy.

According to the report, between 2008 and 2012, residential electricity rates jumped 47 per cent for Consumers Energy customers, and 28 per cent for Detroit Edison customers.

Back in October of 2008, former governor Jennifer Granholm signed a bipartisan energy package into law that aimed to lower electric bills. According to the Detroit Free Press, that law has instead led to higher rates. It capped ten-percent of the electric market to be sold competitively, and thousands of businesses grabbed up the entire ten percent allotment, paying $350 million less than they would have, and leaving nothing for residential customers.

The report says residential customers are now paying more, even though wholesale electricity prices have fallen.

Energy Choice Now is backing Republican legislation that would increase the cap on electric competition in Michigan. Michigan is among 16 states that control the competitiveness of electric markets. When compared to the 10 largest states in the country, Michigan had the fourth highest electric rates for residential customers.

Consumers Energy says its rates are at national average, and claims the rates have gone up because of environmental improvements and upgrades.

You must be logged in to post comments.

Password (case sensitive):
Remember Me:

Read Comments

Comments are posted from viewers like you and do not always reflect the views of this station.
  • by RT Location: Lansing on Aug 23, 2012 at 06:34 AM
    What??? Competition in the marketplace actually REDUCES costs to the consumer!!?? Gosh-golly...who woulda thunk that woulda worked??
  • by Anonymous on Aug 23, 2012 at 02:53 AM
    I use less and pay more. Just doesn't seem right,some how.
  • by Robbin Location: Eaton Rapids on Aug 22, 2012 at 01:39 PM
    2008 My January electric bill was $87. In 2012 it was $240. For less than the amount of electricity used in 2008. I live on disability and get less than 7 hundred a month. I spend a lot of the winter freezing and in pain. One of my disabilities has an intolerance to the cold so I'm in pain a lot. I just didn't understand the jump in my bill and I called them back then and just got the run around. At the same time the rates jumped they also gave me a different account number and I though that that was a mistake, but they told me everyone's had been changed. Somebody's making a lot of money off of people who don't have enough.
  • by David Location: Charlotte on Aug 22, 2012 at 07:38 AM
    You have to have a report to tell you that ?
  • by Bob Location: Williamston on Aug 22, 2012 at 07:09 AM
    Why would you fight enviremental requirements when you get paid to implement them and a percentage of your rate?
WILX 500 American Road Lansing, MI 48911 517-393-0110
Copyright © 2002-2016 - Designed by Gray Digital Media - Powered by Clickability 167018935 -
Gray Television, Inc.