Alternative electric suppliers (AES) must have a license to sell retail electric generation service in Michigan. To receive a license, an AES must provide certain information, meet "fitness" standards, and commit to certain conditions.
AES Defined -- Michigan's Customer Choice and Electricity Reliability Act (also known as Act 141) defines "alternative electric supplier" as "a person selling electric generation service to retail customers in this state" (MCL 460.10g(a)). It goes on to differentiate alternative electric suppliers from electric utilities by saying, "Alternative electric supplier does not include a person who physically delivers electricity directly to retail customers in this state."
The following sections of Michigan's Customer Choice and Electricity Reliability Act relate specifically to alternative electric suppliers:
Public Act 286 of 2008 [an amendment to Public Act 3 of 1939], Section 10a(1)(a), provides that the Commission shall issue orders establishing that "no more than 10% of an electric utility's average weather adjusted retail sales for the preceding calendar year may take service from an alternative electric supplier at any time." On September 29, 2009, the Commission established procedures in Case No. U-15801 for implementation of Section 10a(1)(b)-(d) of Act 286 and opened dockets for all individual electric utilities' filings. Electric utilities with choice sales during a month shall file this information in their 45-day report and shall post it on their website.
The Commission Staff processes the Application and makes a recommendation to the Commission, who then issues an order granting or rejecting the license.
AES applications will be filed electronically via the MPSC’s paperless electronic filing program. AES’s should not e-file confidential information with their licensing applications but should provide the confidential material to one of the MPSC’s Financial Analysis & Audit Division Staff contacts, listed below.
Before filing an application, the AES applicant must contact the Executive Secretary Section (Case Management) for assignment of a case number. Please call 517-241-6155 to receive a case number.
Applicants will submit the application, referencing the case number, via the paperless electronic filings procedure (see the Electronic Case Filings User Manual).
For questions, contact Commission Staff:
In a MPSC order dated December 4, 2000 in Case No. U-12134, the Commission established a Code of Conduct for all electric utilities regulated by the Commission and for all AESs to promote the development of competition, consistent with Act 141. In the amended order dated October 29, 2001, the Commission ordered that the Code of Conduct attached as Exhibit A be adopted. Section VII C of the code requires that all regulated electric utilities and AES file an annual report with the MPSC summarizing the number and types of complaints received and their resolution annually. The Code of Conduct annual report PDF is due to the MPSC office by April 30 for the preceding year.
A condition of maintaining a license requires annual data reporting on a Statistical Data Reporting Form PDF. This report should be sent to Commission Staff.
AESs shall file a proposed Renewable Energy Plan with the Commission. A separate docket will be opened preceding a licensing order.
The "Electric Interconnection and Net Metering Standards," R460.640, Rule 40, require an AES to file annual net metering program reports, in a form to be determined by the Commission, not later than March 31 of each year. Also, Net Metering Application Forms are available for AESs to use for their customers who want to participate in a category 1 or 2 net metering project.
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