Tag: Competition

In 2012, an even MORE ridiculous 25x25 requirement was promoted (and failed) as a constitutional amendment, in a state which has a monstrous electricity appetite as a leader in manufacturing.  Now as the legislature approaches the crossroads of [Oh gosh we can't meet the 10%!] and [What the hell happened to electricity prices?] in Michigan, another 35% 'mandate' pusher shows up with a 'conservative' emphasis and the useful idiots who have already signed on.

As soon as Michigan State Representative Mike Shirkey announced a solid-as-steel return to electricity competition in our state, the rust of cronyism began eating away at the plan. Snyder stepped up the call for increased renewable energy in the midst of the current mandate meltdown, and a new shadow group was formed with friendly 'conservative' faces to front it. (see useful idiot mention above)

Sometimes however, its worth looking to other experts who have a different take on such things.

Are the mandates even legal?

Thanks to the TB912, and Dining Room productions for another useful and informative video.

As the drum beat for real electric competition picks up, its interesting to see utilities offering reductions in rates.  How convenient and thick with irony is it that as Mike Shirkey starts beating said drum, DTE proclaims accross the board rate cuts! From Crains:

"Last month, DTE announced it would lower electric rates starting this month for business and most industrial customers between 5.5 percent to 7.4 percent and drop residential rates by an average of 6.5 percent. The cuts are expected to save about $80 a year for homeowners and varying amounts for businesses based on usage.

It was DTE's first rate reduction since 2007, when the company lowered base rates by $80 million. "

Yes timing IS everything when attempting to pass legislation that limits consumer choice.  Perhaps its good to look benevolent so that people say "what a nice organization this is," and let up pressure on competition legislation.  It worked in 2007, and monopoly legislation passed. And now that the peasants with pitchforks and torches are approaching,

"Since 2008, requests (and approvals) for rate increases have been nearly four times the historic average. Meanwhile our retail electric energy costs have gone up more than 30 percent, while wholesale costs for electric energy in the Midwest region have gone down almost 50 percent.

Let them eat it.

We knew the costs that "green energy" programming in Michigan would incur on the taxpayers left in the state.  The utilities knew this as well, and wasted no efforts in having such draconian reversals of free markets passed with the likes of HB 5524 (2007):

"Passed 78 to 29 in the House on September 18, 2008, to adopt a compromise version of the bill reported by a House-Senate conference committee. This would mostly end the state's electric competition law that allows customers to choose an alternative provider; allow the utilities to impose surcharges on customers so they can recoup the "costs" incurred from Michigan's experiment with competitive electricity markets; and phase out over five years the current cross-subsidization of residential customers by commercial and industrial ones. The bill would guaranty DTE and Consumers Power at least 90 percent of the utility business in the areas they serve, even if other providers offer lower prices. The bill is tie-bared to Senate Bill 213, which imposes "renewable" energy mandates on utilities. "

SB 213 was a doozy, with each chamber ratcheting up the mandate for renewable energy produced each time it was reconciled:

"Introduced by Sen. Patricia Birkholz (R) on February 20, 2007, to mandate that electric utilities acquire at least 4 percent of their power from "renewable" sources, growing to at least 8 percent by 2013. .. to mandate that electric utilities acquire at least 7 percent of their power from "renewable" and "clean" sources (including "carbon capture" coal plants) by 2015 .. to mandate that Michigan electric utilities acquire 10 percent of their power from "renewable" sources by the end of 2015. .."

And as long as the power monopoly remained, it was no problem for the major utilities in Michigan.  They get 90% of the market GUARANTEED by legislation, and the ratepayer gets the shaft through piss poor legislation and cronyism.

One legislator is bringing some attention back to this.

What better way to insure higher prices, less competition, and bigger bureaucracies than to pass the so-called "MainStreet Fairness Act"?

A letter being sent today to the Michigan Congressional Delegation makes the following claims:

• "The signatories consist of a wide spectrum of constituencies, including small business owners, members of state retailers associations and chambers of commerce, local elected officials, and consumers, all who want to see this commonsense highly oppressive solution signed into law."
  
• "This is a critical issue for small businesses. They not only struggle to match the tax-freeShipping and logistics added prices their customers can find online, but also frequently find themselves in the frustrating position of having their stores used as showrooms by online shoppers.  Their time and resources are being used up to make sales for their out-of-state competitors."
  
• "Opponents of the Marketplace Fairness Act have tried to argue that it imposes a new tax on consumers.  But that is simply not true.  The Marketplace Fairness Act will impose no new tax or tax increase of any kind, but merely create a method that states and communities can use to collect taxes they are already owed. An incredible bureaucratic nightmare for low volume sellers who are struggling to deal with increasing regulatory conditions already.  For over two decades, the Internet sales tax loophole has prevented these taxing entities from receiving the legitimate revenue they need to fund essential public services for our residents leaving a revenue hole that taxpayers have had to fill."

It is an increase in the cost of business.  An increase in the complication of business. An Increase in the growth of government.  An increase in prices as the big box stores and larger internet retailers regain their advantage over the mom and pop enterprises.

Its cronyism.  Pure and simple.  BIG MONEY pushing the little guy out, and using the hammer of government to do it because that 'little guy' keeps competition in place.

I have said before, that there IS a way to solve this, and for the states who collect sales tax to get their revenues, but this cluster foxtrot is not a good path.  Any congressman worth his or her salt would recognize a disaster in the making for what it is.

LANSING - As students across Michigan end the fall semester and prepare to break for Christmas, the state House of Representatives on Wednesday approved Senate Bill 618, legislation to lift the arbitrary cap on charter schools in Michigan, empowering parents and putting children first.

Two-thirds of the state's charter schools, most in urban districts like Flint, Grand Rapids, Lansing and Detroit, have waiting lists as parents demand more choices and better results for their children.

"Parents want the best for their children, and that starts with a quality education," said the bill's sponsor, Senate Education Committee Chair Phil Pavlov, R-St. Clair Township. "Today's action by the House of Representatives to lift the cap on charter schools and give parents quality options for their kids' education is a critical step toward improving Michigan's whole education system."

SB 618 was previously approved by the state Senate in October. The bill now goes to Gov. Rick Snyder for his signature.

The unions have pretty much had their way for decades, and our proof of their successes might have labels like made in Detroit, Flint, Saginaw, etc..  Looking at those cities, one might find merely shells of what were once vibrant and very wealthy communities.  Hosts to a variety of industries that our great state of Michigan once held out as shining examples of both ingenuity, and determination.  People thrived, all the while unknowing that their guts were being eaten out by the parasites that care little about the health of their host.

Parasites that eagerly move along to infect the next body willing to tolerate their presence until it too is dead.  And now, as we have discovered, there are fewer sanctuaries for the bubonic labor movement, and perhaps in government, it is where they will make their final stand.  Either their methods will die in a bloody screaming hissy, or our state governments might.  Or perhaps both.

And its truly a shame.

Man makes decisions. Its one of the pretty cool things we have been endowed by our creator with. The ability to decide, communicate, create, negotiate, all given to us as 'rights' not by government, nor by a king, nor even by a government sanctioned body like the NLRB.

Its true. Reward DOES affect activity, and even our state government understands that.  But its only a part of the impact, and the other part which they use to FUND that reward strategy has its inverse effect.  How many DE-rewarded (those who PAID the taxes to support the incentive) businesses did not expand, innovate, or hire new workers as a side effect? In a recent Mackinac center release:

"It is conceivable that programming the actual costs of this subsidy into the economic model (known as REMI) would show that the Michigan Film Incentive destroys more jobs than it creates," said LaFaive, who has used the model and studied it at REMI headquarters in Massachusetts. "The revenue has to come from somewhere. In this instance, it is reasonable to conclude that it is coming from existing Michigan businesses that have been paying the new Michigan business tax and its related surcharge. As much as $48 million was taken from businesses in 2008 to subsidize filmmakers, and this has probably destroyed more jobs than it could have hoped to create."