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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 legislators in Lansing want to deregulate Michigan’s energy with House Bill 5184. Energy deregulation is a 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. Statewide, 99.7 percent of Michigan’s families and businesses are paying $350 million more every year to properly maintain the state’s electric system so that the other 0.3 percent of customers can purchase deregulated power.

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.

FailedStates

electricity deregulation failed in other states

“Not one of the 16 states — plus the District of Columbia — that have pushed forward with deregulation since the late 1990s can call it a success. In fact, consumers in those states fared worse than residents in states that stuck with a policy of regulating their power industries. An Associated Press analysis of

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StackofBills

electricity deregulation leads to higher bills

“Once more, with feeling, we say: Re-regulate electricity! According to the consumer group Texas Coalition for Affordable Power, ratepayers in deregulated areas have coughed up $22 billion more than those in regulated service areas over the past decade.” – Houston Chronicle. January 3, 2014 Other states that have tried energy deregulation have seen electricity bills

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Candle in the dark

electricity deregulation leads to blackouts

“Texas May Triple Power Prices to Avert Summer Blackouts” – Business Week, 6/1/2012 “Rates have been higher and more volatile in the deregulated areas of Texas. But the state’s more serious challenges relate to reliability and the adequacy of power supplies.” Public Sector Consultants Texas Report, October 2013 “The rolling blackouts and artificial shortages experienced

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Take action.
Contact your legislator today.