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Smart vs. Poor Energy Policy: Electric Deregulation

Electricity deregulation is a major issue in Michigan—especially with some aspects of our 2008 energy law set to mature in 2015. 

To refresh your memory, here’s what full electric deregulation would look like for Michigan.  As we’ve discussed at length, a move toward full electric deregulation would have serious, unintended consequences for many Michigan families, just like it has in other states that have tried this risky scheme.

A Prime Example of Poor Energy Policy

Full electric deregulation is a classic example of poor energy policy—today we want to take a look at the impact such a policy would have on all Michiganders, as well as what smart solutions will look like for Michigan. 

Smart Energy Policy Full Electric Deregulation
  • Supports local jobs and strengthens Michigan’s economy. 
  • Drives energy jobs out of state so other states benefit from economic activity related to Michigan’s energy use. 
  •  Encourages local energy providers to invest in new technologies that increase sustainability and energy efficiency. 
  •  Creates barriers and limits incentives for local energy companies to invest in new energy infrastructure and innovation. 
  •  Helps keep energy rates stable and fair, preserving access to reliable energy for all Michigan consumers. 
  •  Unfairly allows less than 1 percent of Michiganders to avoid paying their fair share for energy infrastructure- sticking everyone else with the bill!
  •  Increases Michigan’s energy independence by ensure we are able to produce our own energy and not become overly reliant on other states for our energy needs. 
  • Jeopardizes Michigan’s energy independence by weakening our ability to produce the energy we need and causing us to become dependent on other states’ energy leftovers. 

Energy Deregulation Wrong for Michigan

Under our current energy law, 99.9% of families and businesses are paying $300 million more to maintain our electric grid so that 0.1% can use the deregulated part of the market.  If lawmakers pursue full electric deregulation, this gap would expand—fast. 

Each 5% increase in deregulation costs Michigan families and businesses $150 million. Full deregulation would mean $2.7 billion in extra costs.  Is that really what our lawmakers want for hardworking Michigan families?  We certainly hope not.

Have you been impacted by electric deregulation in Michigan or in another state? Tell us your story!