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.
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:
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:
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:
On September 29, 2009, the MPSC Order in Case Nos. U-15801 et al established the following procedures to implement Public Act 286:
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.
Refer to the Retail Access Service Rider for the complete details of the terms and conditions associated with 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.