Tag: Michigan HB5184

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.