Report Analyzes Michigan's Electric Service System

By: AP
By: AP

LANSING, Mich. (AP) -- State officials have submitted a report to Gov. Rick Snyder that outlines the pros and cons of Michigan's choice-based system of providing electric service.

The report was produced by the Michigan Public Service Commission and the director of the Michigan Energy Office.

Commission Chairman John Quackenbush says the state's hybrid electric choice structure is unique in the nation, with characteristics of both a regulated and a deregulated market.

The report says competitive market-based systems can be more efficient but lead to volatile pricing and long-term reliability challenges. Regulated systems must try to find incentives other than competitive pressure to stimulate efficiency.

The report is the third of four on energy and environmental policy that will be submitted to Snyder before Thanksgiving.

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