Electric Customer Choice
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Michigan
Public Service Commission Electric Customer Choice |
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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:
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| Public Act 141 of 2000 (The Michigan Customer Choice and Electricity Reliability Act) requires a license. Accordingly, the Commission established licensing procedures for Alternative Electric Suppliers (AES) desiring to participate in Commission-approved electric customer choice programs (see June 19, 2000 order and press release). The licensing procedures apply to any person selling electricity at unregulated retail rates in Michigan and participating in a Commission approved electric choice program. To receive a license, an AES must provide certain information, meet "fitness" standards, and commit to adhere to certain conditions when operating in Michigan. These requirements are detailed in the AES application: Retail Access Participation Agreement PDF. The Commission Staff processes the Application and makes a recommendation to the Commission, who then issues an order granting or rejecting the license. Effective February 1, 2006, all Alternative Electric Supplier (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 Regulated Energy 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: Sheila Cornfield OR Audrey Weber In a MPSC order, Case No. U-12134 dated December 4, 2000, the Commission established a Code of Conduct for all electric utilities regulated by the Commission and for all alternative electric suppliers (AES) 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.
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