For Immediate Release Contact: John Truscott (517) 335-6397
June 3, 2000
Governor Signs Electric Restructuring Bills Giving at Least 5 Percent Rate Cut
In a ceremony on Mackinac Island, Governor Engler today signed a bill package that will cut electric rates for residential customers by at least 5 percent and will create more competition.
"Today, electric customers are the clear winners. There’s choice for those who want it and protection for those who need it," said Governor Engler. "Customers get immediate relief through a rate reduction of least 5 percent and the guarantee of more competition in the future. In addition, the state will get increased electrical generation and increased reliability of the power supply."
The Governor thanked the Michigan Legislature for putting his restructuring plan on the "fast track" and passing it with bi-partisan support. He noted the hard work of bill sponsor State Senator Mat Dunaskiss (R- Lake Orion) and Rep. Mary Ann Middaugh (R – Paw Paw).
The Governor signed SB 937 and SB 1253, both sponsored by Sen. Dunaskiss.
The legislation signed into law will give an immediate 5 percent rate reduction through the end of 2003 to every residential electric customer of Detroit Edison and Consumers Energy. The cut will be followed by a rate cap that will last at least two additional years. Rates for large commercial and industrial electric customers will be capped at current levels through 2003, and rates for small business customers will be capped at current levels through 2004.
In addition, the bill:
Authorizes securitazation (refinancing) to allow customers to have significant rate reductions;
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