Issue: Fairness
Issue: Cost
Issue: Need
Issue: Jobs
Issue: The Environment
Issue: Rates
Utility-specific Issues
Issue: Fairness
Myth: This is a “backroom” deal cut by the utilities.
Fact: The Legislature, Governor and MPSC have been examining this issue in dialogue with hundreds of stakeholders and committee witnesses for more than two years.
Myth: Deskewing rates is going to hurt residential customers.
Fact: Making rates fair and equitable is essential to making business rates competitive. Competitive business rates are essential to helping small businesses that have been hit especially hard by paying this subsidy, and to making Michigan more attractive as a place to locate and grow a business.
Myth: A cap on electric Choice is a cap on competition.
Fact: A cap on Choice brings stability to the market, makes it possible for all energy providers to plan for the future and build new plants. It also makes Choice permanent and increases the current Choice market 300 percent.
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Issue: Cost
Myth: Michigan can’t afford to build plants and enact new policies.
Fact: Doing nothing will cost Michigan consumers billions more.
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Issue: Need
Myth: The energy projections are worthless; there’s no need for more energy.
Fact: Virtually everything we use –— appliances, MP3 players, cell phones, computers, digital cameras, — are charged by electricity. Growth in demand may have slowed, but sooner or later Michigan will need new power.
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Issue: Jobs
Myth: The renewable resources requirement won’t create jobs — it’s a pipe dream.
Fact: Renewable energy has created jobs and economic development in other states so it can in Michigan. We’re missing opportunities to spur economic development and a new industry in Michigan.
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Issue: The Environment
Myth: The renewable resource and energy efficiency requirements are too expensive, and could be considered a stealth tax.
Fact: Renewable resource facilities and energy efficiency programs are investments in Michigan’s future and represent new jobs — a head start on dealing with climate change and an effort to stimulate economic growth.
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Issue: Rates
Myth: The poor and seniors will be especially hard hit by any rate increases new plants and new policies may impose.
Fact: The legislation package’s energy efficiency provisions give customers new tools to help reduce their energy use and limit the impact of any increases.
Myth: Public Act 141 — Michigan’s electric choice law — has kept Michigan’s rates down.
Fact: Choice has been a disaster for most customers, and ultimately cost customers millions to subsidize a small number of customers cherry-picked by out-of-state electricity brokers. Choice promised Michigan businesses something it couldn’t deliver and enrollment has declined.
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Utility-specific Issues
Myth: Without Choice, utilities have no reason to control operation or new construction costs.
Fact: Unlike Alternative Suppliers, utilities’ rates are regulated. The legislation requires annual rate reviews, providing a higher level of scrutiny on utility activities.
Myth: Utilities never learn; they’re dooming customers to more construction cost overruns like Fermi and Midland.
Fact: Policymakers have learned from countless hours of listening to stakeholders. That’s why they insist on a pre-certification process to ensure thoughtful dialogue about energy need and plant design and construction at the front end of the process rather than at the end.
Myth: New legislation will give utilities the power to set and charge customer rates as they wish.
Fact: Proposed legislation does not erode any of the Michigan Public Service Commission’s rate regulation responsibility. Plus, there’s a huge penalty if utilities implement a rate that exceeds what the Commission authorizes.
Myth: Choice hasn’t hurt the utilities; their earnings are way up.
Fact: This statement is misleading; Detroit Edison earnings actually declined last year, partially as a result of a rate reduction ordered by the Commission.
Myth: Utilities will be able to charge customers for a new plant before the first kilowatt is ever generated.
Fact: It’s a proven way to save customers money in the long run by lowering financing costs.
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