Responsible regulation is one of the foundational pillars of Michigan’s energy market. A well-regulated energy market is absolutely critical for Michigan. Responsible regulation helps keep energy reliable, affordable, and increasingly clean and sustainable—all while ensuring fairness for all Michigan homes and businesses.
Learning from the Past
Michigan reestablished regulation in 2008, however the state still saw challenges on the horizon created by out-of-state retail energy marketers. The 2016 bipartisan energy law put into place a number of provisions to strengthen the regulated energy market in our state in order to keep energy flowing reliably, affordably, and fairly to all Michiganders.
State Reliability Mechanism
One of the provisions the law established, was the State Reliability Mechanism (SRM). This mechanism keeps energy reliable and affordable in hybrid markets, like Michigan, where consumers may purchase their energy from local energy companies or retail energy marketers.
The SRM is overseen and implemented by the Michigan Public Service Commission (MPSC) and sets guidelines for both local energy providers and retail energy marketers to follow including:
Regulation in the 2016 energy law doesn’t just stop at SRM. The smarter planning that the SRM regulation laid out in the 2016 energy law also the same framework used to establish and achieve Michigan’s clean energy goals. It ensures that energy remains reliable, and affordable as we diversify and create a cleaner energy mix for Michigan. Stay tuned next week as we look at how the framework of the SRM process relates to the regulatory goals of the Integrated Resource Planning process. Need a refresher on IRPs? Check out our IRP series here.