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Clearly, you can help improve Michigan's electrical deregulation law

Date Posted: August 6 2004

Michigan’s electrical industry CLEAR Coalition – which includes the Michigan Building and Construction Trades Council – is looking for a boost from the public.

The coalition says it was formed because Michigan’s electric deregulation law, Public Act 141 of 2000, “has failed to deliver and is leading Michigan down the path toward a California-like crisis, with the potential for blackouts, huge rate increases and bankrupt utilities.”

Back in March, at the state building trades legislative conference, DTE Energy’s Nancy Moody said the current electric system in Michigan “is threatening our jobs and the reliability of the electrical system.”

When it was adopted by ruling Republicans, CLEAR pointed out that the goals of Public Act 141 included:

  • Introducing electrical choice for all residents and businesses in Michigan by allowing people to choose their own electricity supplier.
  • Lower costs and more jobs.
  • Bringing affordable and reliable electric power from financially stable Michigan utilities.

But the real affect of the legislation is that when the law’s rate freeze expires in 2006, Detroit Edison’s residential rates could go up 30 percent. In addition, less than 100 residential customers are being served by an “alternative energy supplier” – and Michigan utilities have about 3.7 million residential customers.

Moody said the current law allows alternative energy providers to “strip” business customers – and about 15,000 have been cherry picked from DTE Energy. As a result, DTE’s earnings for 2003 dropped 31 percent. If a business or residence is too small or too far out of the way to be profitably serviced by an electrical provider, they can be ignored by everyone except the established utilities.

Last month, Republican and Democratic lawmakers came out with a package of bills that mostly corrects the problems associated with PA 141. Building trades members and their families are urged to log on to www.clearmichigan.com and sign up to help steer the legislation through the Michigan Senate.

“It seems to me that DTE Energy over the years has been one of the great customers for the building trades, and has provided our members with a lot of work,” said Michigan Building Trades Council Secretary-Treasurer Tom Boensch. “We urge our members to back DTE Energy on this matter and contact their state lawmakers.”