Michigan businesses need affordable, reliable electricity to operate. But in our noncompetitive electricity system, almost all are forced to accept monopoly utility services. This system, sprinkled with a small amount of choice, means only a small number of companies are able to get lower-cost energy through an alternative supplier. The only other option for reducing costs is to try to get a special deal from one of the two large providers, Consumers or DTE.
There is currently acrimony over the proposed “Hemlock bill,” HB 5902, which would allow Hemlock Semiconductor to purchase electricity at rates far lower than other utility customers. This bill highlights the market-corrupting nature of Michigan’s over-regulated utility system. By heavily restricting choice in Michigan’s electricity market and by barring competitive pressures against monopoly utilities, state law forces most Michigan businesses to endure the services monopolies choose to offer.
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Source: Michigan’s Convoluted Electricity System Leads to Strife and Strain [Michigan Capitol Confidential]
