Glacial Energy Says Michigan Needs To Raise The Cap On Electric Competition
After four years of utility rate hikes, Michigan now has the highest electric rates in the Midwest
, according to the U.S. Energy Information Agency, and now, for the first time ever, rates higher than the national average. This trend will only continue and worsen. Since implementation of the cap on electric competition in 2008, Consumers Energy has raised rates on Michigan customers by 30 percent; DTE is close behind. That's far faster than the rate of inflation, and comes at a time when many Michigan's families, businesses and governments are struggling to make ends meet. Prior to instituting the cap and putting a restriction on electric competition, Michigans rates were below the national average.
Glacial Energy (www.switchtoglacial.com) is an alternative electric supplier in the state of Michigan, who buys electricity wholesale and then sells and services businesses and residential customers directly. Glacial Energy has seen in other states that the benefits of deregulation are a more competitive market that provides lower electricity prices, alternative energy options and better customer service.
Michigans significant electric rate increases are occurring while electric consumers in competitive markets have benefitted from a roughly 50 percent drop in wholesale electricity prices. Due to the cap on retail competition, 90 percent of Michigan consumers are being deprived of those dramatic electric price reductions.
In Michigan, Detroit Edison and Consumers Energy residential customers can switch to Glacial for potential savings by visiting www.switchtoglacial.com. The first 5000 residential customers who enroll with Glacial Energy for a fixed rate will receive their first month of electricity free once they become Glacial Energy customers.
It Is Time To Stop The Madness
Energy costs are among the top three cost drivers, behind only healthcare and labor, which Michigan businesses consider when deciding whether to expand, shrink or relocate. A poll by the Michigan Manufacturers Association shows that 73% of its polled members expect energy costs impacting their companies performance in 2011, and that same poll shows that only 53% plan to expand their business in Michigan. Unequal access to competition makes some Michigan businesses more competitive against other Michigan businesses. Glacial Energy strongly believes that Michigans political leaders should not be in the position of picking winners and losers based on which businesses were lucky enough to get competitive electricity prior to imposition of the 10% cap. Increasing the cap not only would allow Michigan businesses to be able to better compete against other states, but would also allow for fair competition among businesses and residential customers throughout the state.
This Hurts Competitively Priced Alternative Energy
Today, entrepreneurs who wish to develop alternative energy sources and sell it to the many companies and other customers who are asking for green power cannot do so. They must instead sell their power to the utilities, who then add on costs and make green power more expensive than if it could be sold without the high-priced middleman. This Michigan cap on competition is effectively a cap on employment and economic development. Forcing Michigan businesses to only buy higher-priced electric service from the utilities makes them uncompetitive and has effectively placed a cap on job formation. All Michigan consumers should have the right to choose their electric supplier and limiting their choices does nothing to improve the condition of the state and is bad economic policy
Voters Want to Shop for Power
A recent statewide poll showed 79 percent of Michigan residents said homeowners and businesses should be able to select their electric company, just as they choose their telecommunications and natural gas providers. Additionally, over 4,800 Michigan businesses and other customers representing tens of thousands of jobs are on waiting lists kept by DTE and Consumers to access electric choice. Those are strictly businesses with signed contracts with competitive suppliers; its safe to say countless thousands more businesses have expressed strong demand for rate relief and a desire for a choice in their supplier.
A Simple Fix
Glacial Energy believes that passing legislation that eliminates or raises the 10% cap on electric competition is a simple way lawmakers can positively affect the lives of Michiganders. No one is proposing that any other aspect of Michigans 2008 energy law be changed. In taking such action, the Governor and lawmakers would be champions of Michigan businesses and many other entities that are currently struggling with massive state budget cuts: local units of government, public schools, universities, nursing homes and hospitals. In fact, increasing the cap on retail competition would greatly benefit state government financially by providing tremendous savings in electricity costs to state facilities.
Raising the cap on competition is truly a win-win that requires no sacrifice by customers or government. This is an opportunity for state policy makers to easily help businesses and local units of government save jobs by spending less on their utility bills.
To contact your legislator about the Electric Choice Program and to switch to Glacial Energy and receive one free month of electricity visit www.switchtoglacial.com.
by: Sarah Rachfal
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