Electricity Market Structure
The Michigan Customer Choice and Electric Reliability Act (Public Act 141) passed in 2000 and went into effect January 1, 2002, allowing customers to choose their electricity provider and bringing competition to the generation side of the electricity market. By allowing competition, the act promotes lower prices, efficiency, and innovation in electricity supply.
For those who do not choose to switch suppliers, utility default service rates are available and vary by customer class. Residential rates are capped until January 2006, and customers switching to utility default service have a 12-month minimum stay requirement. Utility rates are set via periodic proceedings conducted by the Public Service Commission. In 2005, Detroit Edison has a large proceeding underway at the Commission to determine new distribution rates. Because Detroit Edison and Consumers continue to own generation assets, their default service rates are predominately derived from their own generation, stranded costs and other costs.
About Switching in Michigan
As an alternative electric supplier, Constellation NewEnergy is licensed by the Michigan Public Service Commission. To be eligible to switch to our services, your company must be located in one or more of these utilities' service territories:
- Detroit Edison (DTE)
- Consumers Energy
The first step in switching your business' electricity service is completing a Customer Usage Information Authorization form that allows Constellation NewEnergy to gather historical electricity usage data from your utility. This data is necessary to analyze your power consumption patterns and to develop a proposal that is customized to the needs of your business.
You will then sign a retail Electricity Supply Agreement stating the specific product your price for electric service and the duration of the agreement. After our agreement is signed, our local operations team will work to provide a seamless transition from the utility as your electricity accounts are transferred to our service.
Depending upon your electricity service, an interval meter and phone line may be required to complete the switch. If an interval meter installation is required, your local utility will be responsible for supplying and installing the new meter. Constellation NewEnergy will work with you to coordinate the installation of the phone line and make sure it is working. Once the installation of the meter and phone line (if necessary) is complete and verified by your local utility, you will be notified of your official switch date.
 authorization_MI_DTE.pdf
authorization_MI_utilities.pdf
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