The facts about electricity deregulation
Affordable, reliable electricity. It’s something that’s easy to take for granted. So when it comes to Michigan’s energy laws, it’s important to make sure that we have some common-sense protections for energy that’s affordable and reliable.
Some politicians in Lansing want to deregulate Michigan’s electricity. The problem is that electricity deregulation sets up an unfair system where a few people get special breaks while the rest of us pay for it.
Electricity Deregulation is a failed model under which some or all customers can opt out of having their electricity provided by their local Michigan utility. Instead, these customers receive electricity provided by an out-of-state energy marketer.
In regulated electricity markets, prices and reliable service are overseen by state public utility commissions. In deregulated markets, electricity prices can swing wildly and state public utility commissions have much less control over ensuring adequate power supplies.
Today, Michigan allows 10 percent of the state’s electric usage to be served by deregulated out-of-state energy marketers. Other states that have tried energy deregulation have seen electricity bills grow higher and higher for families and businesses. States with deregulated electricity have also experienced rolling energy blackouts, price gouging, and market manipulation.
We need stable, reliable, affordable energy that’s Michigan-owned and Michigan-operated by Michigan workers. Electricity Deregulation is the wrong thing to do for Michigan.