Electric Choice* is a statewide initiative giving all customers the option to choose the company that supplies their electricity. Electric Choice, or restructuring, separates electric service into its three basic components: generation, transmission and distribution.
Regardless of whom supplies your electricity, Detroit Edison will continue to provide the distribution and metering services required to deliver power to your home or business.
Michigan Electric Restructuring
On June 5, 2000, Michigan Electric Restructuring legislation, Public Act 141, was enacted. Highlights included:
- Opportunity for all customers to shop for an alternative energy supplier beginning January 1, 2002
- Consumer protections in the form of anti-slamming, anti-cramming provisions with penalties for infractions
- Upgrades in the electrical transmission system to allow more power to be imported into Michigan
Refer to the MPSC Order in Case Nos. U-11290 et al* for detail about Michigan Electric Restructuring implementation.
Return to Full Service
On November 23, 2004, the Michigan Public Service Commission issued a final order in Case No. U-13808* addressing Return to Full Service; further clarification was provided on June 30, 2005 in an order on rehearing*. Highlights included:
- Utilities require reasonable notice for Electric Choice customers returning to Full Service to plan for the needs of its customers during the summer peak demand season (June through September)
- Electric Choice customers are required to provide the utility with notice no later than December 1 if they will be taking Full Service during the coming summer
- Customers returning to Full Service must remain on Full Service for one year
- Electric Choice customers are prohibited from returning to Full Service for two years
- Customers who fail to abide with the requirements and Return to Full Service will pay the higher of the applicable tariff rate or the market priced power charge, plus 10% during the summer
Electric Choice 10% Cap
On October 6, 2008, the “customer choice and electricity reliability act”, part of Public Act 286 was enacted. Highlights included:
- No more than 10% of an electric utility’s average weather-adjusted retail sales for the preceding calendar year may take retail access service from an Alternative Electric Supplier at any time
- The Michigan Public Service Commission is to establish procedures to administer and allocate the amount of retail open access load allowed to be served by Alternate Electric Suppliers
- Allocation will be through the use of annual energy allotments awarded on a calendar year basis
- Customers in a retail open access program since April 1, 2008 are allowed to expand load at that facility as well as any new facility constructed or acquired (>50% ownership)
On September 29, 2009, the MPSC Order in Case Nos. U-15801 et al* established procedures to implement Public Act 286.
- Each utility must determine and file an initial Cap by January 1st of each year; final Cap by February 1st
- Each customer is prioritized based on one of five customer groups
- Award and allocation of energy allotments is on a first-come first-served basis
- Each utility will provide additional information about its retail sales in its monthly Power Supply Cost Recovery (PSCR) reports. The Appendix to the Power Supply Cost Recovery (PSCR) 45-Day Report* provides the most recent monthly and year-to-date summaries
- Each utility will provide a web-based Cap Tracking System (CTS) that will show the Cap level, current Electric Choice participation level, and available energy allotments available
- Customers have the option of buying electricity from an Alternative Electric Supplier (AES), or they may choose to remain a Full Service customer with Detroit Edison.
- Detroit Edison will continue to deliver electricity, even if the customer chooses an AES. This means that Detroit Edison will maintain the poles and wires that deliver your electricity. Detroit Edison also will provide customer services such as billing, meter reading, and power restoration in the event of a storm.
- You are responsible for choosing an AES who is responsible for enrolling you in Electric Choice. Detroit Edison is responsible for verifying your enrollment information (account and meter number), establishing a "switch" date, and providing notification of important information including AES, switch date, meter requirement* and other program details.
- Electric Choice has a minimum term of two years. Upon completion of the initial term, Electric Choice service may continue on a month-to-month basis until terminated by the customer, AES or Detroit Edison.
- You may return to Detroit Edison Full Service rates before completing the two-year minimum term; however, you should be aware that Market Priced Power (MPP) charges will be applied to your Full Service bill for the number of months required to complete the Electric Choice minimum term. Refer to the Market Priced Power Charge* fact sheet for more information.
- If, at any time, you choose to return to Detroit Edison Full Service, you may do so by contacting Detroit Edison or your AES. Customers who do so may be subject to MPP Charges Based on Return to Service Conditions*. Customers planning to return to Detroit Edison Full Service should check their AES contracts for any restrictions or penalty provisions that may apply. You may estimate Detroit Edison's potential Market Priced Power (MPP) charges by using the MPP Estimator.
- In general, the existing metering at the customer's location is sufficient. Interval metering is required for all customers served at primary voltage. Interval meters are an available option - at customer expense - for customers served at secondary voltage. All customers taking interval-metered Electric Choice service must provide a working telephone line at the meter so Detroit Edison can read the meter remotely. See Electric Choice Metering for more information on metering and meter reading in Electric Choice.
- Power Factor* is a characteristic of electric service that impacts Detroit Edison's cost to serve a primary voltage customer. For the primary voltage customers, Power Factor and excess kVAR charge, if applicable, are itemized on the distribution bill.
- Customers who participate in Electric Choice may receive two bills, depending on whether the Alternative Electric Supplier (AES) chooses to have Detroit Edison perform its billing services or whether the AES performs its own billing services.
- You do not have to participate in Electric Choice or even select an AES. You can continue to buy electricity from Detroit Edison as a Full Service customer, and your energy rate will remain regulated by the MPSC.
- If you choose to participate in Electric Choice you cannot remain on special metered rates, such as Interruptible Space Conditioning, for energy distribution only. Likewise, other unmetered rates, such as Outdoor Protective Lighting, are not eligible for alternative supply under Electric Choice.
To view the complete Terms and Conditions for participation in Electric Choice, see the Retail Access Service Rider*.
Learn more about Electric Choice in Michigan by visiting the Michigan Public Service Commission Web site. Or call Detroit Edison at 888.235.3535.