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RESA Supports Legislation to Increase Electric Choice in Michigan

Harrisburg, Pa. – The Retail Energy Supply Association (RESA), a leading trade association of retail energy suppliers committed to advocating for vibrant and sustainable competitive residential and commercial energy markets, today announced their support of HB 5503 that would allow a larger number of Michiganders to enjoy the benefits of competition and customer choice by gradually raising the electric choice cap in Michigan.

“Increasing the ten percent cap imposed on electric choice in Michigan will provide Michigan businesses and consumers with greater access to competitively priced electricity products, an opportunity to reap savings on their electricity costs, and access to innovative products and services,” said David Fein, President of RESA. “Currently there are more than 7,700 electric customers in Michigan, large and small, waiting to take advantage of these opportunities in the competitive electric market. RESA strongly supports HB 5503 and encourages Legislators and Governor Rick Snyder to expeditiously consider this legislation in order to provide electric rate relief for consumers and enable more customers to reap the benefits of competition that they have been denied thus far.”

American businesses rank electricity costs one of their top five business expenses. Michigan’s monopoly utility rates are not attractive to new job providers and are a deterrent to businesses already within the state, putting them at an unfair disadvantage with no way to mitigate energy costs.

Legislation enacted in 2008 mandates that 90 percent of the customer electric demand must take service from Consumers Energy and Detroit Edison in Michigan. The 2008 law was enacted over the objections of competitive suppliers and others. Since that time, the state’s electric prices have increased by nearly 30 percent, while competitive wholesale prices have dropped by almost 40 percent. While neighboring states like Ohio and Illinois have benefited from these lower prices, only 10 percent of electric consumption in Michigan is allowed to access the lower prices available in the competitive market. While supportive of restricting competition and customer choice in Michigan, DTE is actively competing in other markets in the Midwest and Mid-Atlantic regions including supplying low priced electricity to residents in Toledo, Ohio. RESA hopes policymakers act to level the playing field and allow for expanded competitive opportunities for consumers and suppliers alike.

“RESA is an ardent supporter of customer choice and retail competition. By enacting this legislation, Michigan will allow for greater competition which will in turn benefit the economic climate in Michigan and lead to better results for all consumers,” said Fein.


About RESA

RESA represents competitive energy suppliers dedicated to creating and sustaining vibrantly competitive electricity and natural gas markets for the benefit of consumers. RESA’s members include: Champion Energy Services, LLC; ConEdison Solutions; Constellation NewEnergy, Inc.; Direct Energy Services, LLC; Energetix, Inc.; Energy Plus Holdings LLC; Exelon Energy Company; GDF SUEZ Energy Resources NA, Inc.; Green Mountain Energy Company; Hess Corporation; Integrys Energy Services, Inc.; Just Energy; Liberty Power; MC Squared Energy Services, LLC; Mint Energy, LLC; NextEra Energy Services; Noble Americas Energy Solutions LLC; PPL EnergyPlus, LLC; Reliant; Stream Energy; TransCanada Power Marketing Ltd. and TriEagle Energy, L.P.. For more information about RESA please contact Tracy McCormick, Executive Director at (717) 566-5405.