DTE Electric Choice Program
Electric Choice Overview
Electric Choice is a statewide initiative giving all customers the option to choose the company that supplies their electricity. Residential and Business customers can elect to remain a customer of a regulated utility, such as DTE Electric, or enter into a contract with an Alternative Electric Supplier.
Electric Choice, or restructuring, separates electric service into its three basic components: generation, transmission and distribution. When a customer elects to participate in Electric Choice, the cost of electric supply, generation and transmission, will be determined by a contract between the customer and the Alternative Electric Supplier.
Regardless of who supplies the electricity, the regulated utility will continue to provide the distribution and metering services required to deliver power to the homes or businesses located within their service territory.
Legislation and Orders
Michigan Electric Restructuring
On June 5, 2000, Michigan Electric Restructuring legislation, Public Act 141, was enacted creating the opportunity for electric choice in the state of Michigan with the following provisions:
- All customers have the choice to switch to an Alternative Electric Supplier to supply their electricity beginning January 1, 2002
- Consumer protections in the form of anti-slamming and anti-cramming provisions with penalties for infractions
- Upgrades in the electrical transmission system to allow more power to be imported into Michigan
Refer to MPSC Order in Case Nos. U-11290 et al for further details regarding 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 as well as further clarification was provided on June 30, 2005 in an order on rehearing:
- 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, DTE Electric, with notice no later than December 1 if they will be taking DTE Electric Full Service during the coming summer
- Customers returning to DTE Electric Full Service must remain on Full Service for one year
- Electric Choice customers are prohibited from returning to DTE Electric Full Service for two years
- Customers who fail to abide with the requirements and Return to DTE Electric 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 with the following provisions:
- 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 will 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 the following 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
DTE Electric Choice Program Overview
In the DTE Electric Choice Program, DTE Electric will maintain a relationship and interact with at least three separate participants: The Customer, the Alternative Electric Supplier and the Marketer. One entity may be responsible for both the Alternative Electric Supplier and Marketer roles. Only Alternative Electric Suppliers and Marketers who have obtained all the necessary legal approvals to sell retail electricity and act as a wholesale supplier in Michigan are allowed to participate in the DTE Electric Choice Program.
Availability: Electric Choice 10% Cap
Electric Choice is available only for metered electric service when a customer elects to take power supply service from an Alternative Electric Supplier. There are no provisions for unmetered service.
Under state law, no more than 10 percent of a regulated electric utility’s average weather-adjusted retail sales for the preceding calendar year may take service from an Alternative Electric Supplier at any time. If the regulated electric utility’s 10 percent cap is fully subscribed, new enrollments will be placed in a Cap queue, per the procedures established in Case No. U-15801. For more information regarding Case No. U-15801 and the Electric Choice 10% Cap, please see the Customer Choice tab under Electricity on the MPSC website.
The Cap Tracking System is a web-based tracker that displays the Cap level of the DTE Electric Choice Program. Click on Cap Tracking System on the menu bar to view the current Electric Choice participation level and available energy allotments of the DTE Electric Choice Program. DTE Electric reports its monthly and year-to-date retail sales summaries in the Appendix to the Power Supply Cost Recovery (PSCR) 45-Day Report.
The Customer Role
The Customer is the end-user of Power at one or more locations in the State of Michigan who has facilities connected to the DTE Electric distribution system. Under Electric Choice, the Customer will conduct transactions with at least two entities – DTE Electric and an Alternative Electric Supplier. The Customer is responsible for choosing an Alternative Electric Supplier.
DTE Electric’s principal requirement is that the Customer must already be connected to the DTE Electric Distribution System as a Full Service Customer or meet the requirements for new Customers connecting to the DTE Electric Distribution System. All Primary Customers and Secondary Customers with Customer Service Capacities greater than 300 kW must execute Customer Distribution Agreements with DTE Electric.
The Alternative Electric Supplier Role
An Alternative Electric Supplier (AES) is an entity that has obtained all the necessary legal approvals to sell retail electricity in Michigan. The Alternative Electric Supplier buys products and services needed to provide power to Customers, combines these products and services in different marketing packages, and sells the packages to Customers. Alternative Electric Suppliers must meet all applicable statutory and regulatory requirements of Michigan and Federal law.
The Marketer Role
The Marketer is an entity that acts as a wholesale supplier; takes title to power and has FERC authorization to market energy services. FERC authorization allows the Marketer to use transmission systems to move power from the generator(s) to the distribution system. The Marketer is either a FERC-authorized power Marketer or a utility. As defined by FERC, in the context of the Retail Access Service Rider, the Marketer is responsible for all Transmission-related responsibilities related to serving the Electric Choice customers served by its supply. These include: scheduling energy, obtaining ancillary services, and paying energy imbalance charges. The Alternative Electric Supplier and Marketer functions may be handled by one entity or may be performed by different parties. Either way, both the Alternative Electric Supplier role and the Marketer role must be performed to complete delivery to a Customer.
The Supplier Account Manager Role
DTE Electric provides a liaison to every Alternative Electric Supplier and Marketer that participates in the DTE Electric Choice Program. The Supplier Account Manager is the daily DTE Electric contact that will assist Alternative Electric Suppliers and Marketers with all Electric Choice qualification, enrollment, customer usage, and disenrollment activities.
DTE Electric Choice Program Terms and Conditions
The DTE Electric Choice Program is regulated by the Michigan Public Service Commission (MPSC) and adheres to all Michigan legislation and MPSC Orders pertaining to Michigan Electric Restructuring. The Retail Access Service Rider sets forth the following terms and conditions for participation in the DTE Electric Choice Program.
- All Alternative Electric Suppliers and Marketers who are interested in participating in DTE Electric Choice Program are required to qualify as an AES or Marketer as well as adhere to the terms and conditions specified in the Retail Access Service Rider.
- A Customer will specify only one Alternative Electric Supplier (and the Alternative Electric Supplier shall specify only one Marketer) at any given time for the supply of Power to each Customer account or Customer Location.
- The Alternative Electric Supplier is required to electronically submit an enrollment order to DTE Electric to enroll Customers into DTE Electric Choice Program.
- DTE Electric shall be required to complete all retail access enrollment activities required to place a Customer in “site-ready”.
- Electric Choice service for Business customers shall have a minimum term of two years subject to the provisions of Section E5.3 of the Retail Access Service Rider.
- Customers shall be permitted to change Alternative Electric Suppliers. The changes will become effective at the completion of their normal billing cycle. Customers will be assessed a $5 processing charge per account for each change. The change will be submitted to DTE Electric electronically by the Customer’s new Alternative Electric Supplier as a new enrollment.
- Upon completion of the initial two years term, Electric Choice service shall continue on a month to month basis until terminated by the Alternative Electric Supplier, the Customer or DTE Electric.
- Customers shall provide DTE Electric with written notice no later than December 1st if the Customer will be taking full service from DTE Electric during the following summer. For this purpose, “summer” means DTE Electric regularly scheduled billing periods beginning June 1st through September 30th. Customers who so notify DTE Electric shall be obligated to take full service from DTE Electric for twelve months and pay for such service at any tariff rate for which the customer qualifies.
If a Customer does not provide DTE Electric with written notice prior to December 1st and then takes full service from DTE Electric during the following summer, the Customer shall pay DTE Electric the higher of (a) the applicable tariff energy prices plus 10% or (b) the Market Priced Power charges plus 10% until such time as the minimum two year commitment to retail open access service has been met and the December 1st written notice requirement has been met.
Refer to the Retail Access Service Rider for the complete details of the terms and conditions associated with the DTE Electric Choice Program.
Refer to MPSC website or the Electric Choice Overview section of this website to find the Michigan legislation and MPSC Orders that govern the DTE Electric Choice Program.
How to Get More Information on DTE Electric Choice Program
The DTE Electric Choice Supplier Support Center is available from 9:00 am – 5:00 pm EST Monday through Friday at 888.830.2170 to answer any questions regarding the DTE Electric Choice Program.
Interested in Participating in DTE Electric Choice Program
Alternative Electric Suppliers and Marketers who are interested in participating in the DTE Electric Choice Program can find the qualification requirements and associated pertinent documentation in the Qualifying Supplier and Marketer Tool Box section of this website.