MPSC Staff Reports
on Electric Customer Choice
Summaries of MPSC Staff reports and documents about electric Customer Choice, competition, and general restructuring issues, with links to the reports.
MPSC Annual Reports on the Status of Electric Competition in Michigan
see Customer Choice Program Status
Staff Report on On Electric Industry Market Power in Michigans Upper Peninsula
June 5, 2001 -- PDF (249k)
The Michigan Legislature began the process of restructuring the States electric industry with the enactment of 2000 PA 141. An important policy goal of Act 141 is to introduce competition into the electric industry by offering Mic higan ratepayers the opportunity to choose to purchase electric generation services from a competitive electric service provider. One purpose of the legislation was to promote reliable power at reasonable rates. The goal of promoting reasonable rates will not be realized, however, if one or a few suppliers can exercise market power and cause prices to increase unnecessarily. Act 141 requires the Commission to analyze and submit a report on the potential for market power in Michigans Upper Peninsula (U.P.). This report fulfills that requirement. This report has been written by the Staff of the Michigan Public Service Commission, which is solely responsible for its contents.
MPSC Staff Report on Investigation of Consumers Energy Company Retail Open Access Program Customer Enrollment and Supplier Support Systems and Processes
June 2001 -- PDF (325k)
In January through March 2001, the Staff of the Michigan Public Service Commission (Staff) conducted an investigation of the enrollment process used by Consumers Energy Company (Consumers) for its Retail Open Access (ROA) program. The purpose of this audit was to review the procedures, policies and methods utilized by Consumers to determine if, in Staff's opinion, Consumers was effectively and efficiently processing enrollments. This is a report of Staff's investigation.
Statewide Customer Education Program Proposal
(Combined Natural Gas and Electric Campaign)
April 27, 2001 PDF
The Statewide Customer Education Program Proposal, a report by the CHOICE Advisory Council is attached to a settlement (see U-12133 order) which provides a plan and 2½-year timetable (from mid-2001 to year-end 2003) to accomplish customer education for both industries open access programs through a single initiative. In view of the possibility that the Commission may not wish to combine the two programs, the settlement presents the option of approving an electric-only program, which would effectively defer all issues relating to an education program for retail gas open access to a future case.
MPSC February 2001 Report on the Status of Electric Competition in Michigan during 2000
February 1, 2001-- see Customer Choice Program Status
MPSC Staff Report on Investigation of Detroit Edison Company Retail Open Access Program Customer Enrollment and Supplier Support Systems and Processes
December 19, 2000 -- PDF (100k)
During October and November, 2000, the Staff of the Michigan Public Service Commission (Staff) conducted an investigation of the enrollment process used by The Detroit Edison Company (Edison) for its Retail Open Access (ROA) program. The purpose of this audit was to review the procedures, policies and methods utilized by Edison to determine if, in Staff's opinion, Edison was effectively and efficiently processing enrollments. This is a report of Staff's investigation.
Final Report On Establishing Interconnection Standards:
A Report by the Michigan Public Service Commission Staff
October 2, 2000 -- PDF (27k)
By its order dated June 19, 2000, the Michigan Public Service Commission initiated a proceeding (Case No. U-12485) to establish standards for the interconnection of merchant plants with the transmission and distribution systems of electric utilities. As a part of this proceeding, the Commission directed its Staff to consult with electric utilities, owners and operators of merchant plants and proposed merchant plants in Michigan and other relevant stakeholders. The Commission further directed the Staff to file a status report on the results of its consultations by August 31, 2000, and a final report by October 2, 2000. The Staff Status Report was filed on August 31, 2000. This document is the Staff’s final report.
This is an efile case. See http://efile.mpsc.cis.state.mi.us/cgi-bin/efile/viewcase.pl?casenum=12485
Staff Report on Bid Cycle One for Case No. U-11290 et al.
October 20, 1999 -- PDF (31k)
In its March 8, 1999 Order in Case No. U-11290, the Commission directed Staff to conduct a review of various aspects of the Commission's open access program and file a report within 30 days of the deadline for the submission of bids for the initial bid cycle. This document is the report the Commission requested.
Staff Report on Code of Conduct Meetings for Case No. U-11290
June 4, 1999 -- PDF (65k)
"[O]n December 23, 1998, the Staff filed in Case No. U-11290 a discussion paper entitled 'Developing and Implementing Codes of Conduct for the Retail Electric Industry.' ... The Staff should meet with Consumers, Detroit Edison, and other interested parties to get their comments on the paper and to attempt to develop a consensus on what additional actions, if any, are needed. The Staff should file a report within 90 days detailing the issues on which there is consensus and identifying any remaining issues that need to be addressed by the Commission."
This document is the report the Commission requested.
CHOICE Advisory Council Statewide Customer Education Program Proposal
June, 1999 -- PDF (230k) | HTML
In its March 8, 1999 Order in Case No. U-11290, the Commission stated,
"The Commission, as it previously stated in the June 5 order, believes there is a clear need to address the information requirements of customers and supports the voluntary efforts of the CHOICE Advisory Council to address these needs. Accordingly, the Commission requests the CHOICE Advisory Council to submit a proposal to the Commission within 90 days for a statewide customer education program to ensure an effective, highly visible, and competitively neutral approach to customer education on electric industry restructuring. This proposal should address the education efforts identified in the Customer Focus Report, propose a budget and funding mechanism, and indicate required funding levels necessary to carry out the program. The Commission sees this statewide customer education program as distinct from, but complementary to, the education and information programs identified in the utilities' implementation plans."
This document is the proposal the Commission requested.
Gas-Fired Generation in Michigan: Assessment of Gas Infrastructure and Generation Costs
March, 1999 -- PDF (444k)
Low fuel costs and low emissions have made natural gas the preferred fuel for new electricity generation. Expanded use of gas raises questions regarding its impact on Michigan's natural gas markets, including the future supply and price of gas, the ability of the gas pipeline system to deliver gas to gas-fired generators, the impact of gas-fired generation on Michigan's gas distribution and storage infrastructure, and the expected cost of electricity from gas generators. This report presents an initial assessment on these questions and the general viability of using natural gas to generate electricity in Michigan. This report was prepared by the Gas, Electric, Executive Secretary, and Licensing and Enforcement Divisions of the Michigan Public Service Commission, Michigan Department of Consumer and Industry Services.
Developing and Implementing Codes of Conduct for the Retail Electric Industry
December 23, 1998 -- PDF (138k)
One of the market power mitigation actions recommended in the Staff Market Power Discussion Paper was the establishment of a code of conduct governing the relationship between utility companies and their affiliates. In the Code of Conduct Paper, Staff discusses the market context of codes, and how they have been employed by the Federal Energy Regulatory Commission for wholesale transactions and by the Michigan Public Service Commission for natural gas utilities. The paper looks at what additional provisions will be needed to appropriately cover retail competition in the electric industry. It illustrates this primarily through reference to codes adopted for use in the retail electric industry by other state legislatures and regulatory commissions. The Code of Conduct Paper was written by:
Margaret Roberts VanHaften
Michigan Public Service Commission
P.O. Box 30221
Lansing, MI 48909
Staff Market Power Discussion Paper
June 5, 1998
Staff filed this report in response to the Commission's directive in the June 5, 1997 Order in Case No. U-11290. Recognizing market power as a major issue to be addressed, the Commission directed its Staff to file this final report not later than one year from the date of the order (p 45). Preparation of the Staff Report was overseen by:
Please note that the layout (fonts, line spacing, page numbering, etc.) in these files is not always in perfect accord with the paper copy of this document.
HTML | PDF (315k)
Customer Focus Issues and Recommendations
October 13th, 1997
Staff filed this report in response to the Commission's directive in the June 5, 1997 Order in Case No. U-11290. It contains a discussion of customer protection recommendations including: supplier and aggregator licensing; rights of privacy; low income protection; and universal service. It proposes one consolidated set of billing and service quality rules for the electric industry, an Electric Consumer Bill of Rights, and a customer education outreach program.
Report Version: PDF (160k) | HTML
Public Comments -- In an Order in Case No. U-11290, issued on January 8, 1998, the Commission requested public comments on this report. Comments were requested to be received by March 9, 1998. See the Press Release, or the January 8 Order PDF.
Staff Draft Interim Discussion Paper on Market Power
On June 5, the Michigan Public Service Commission issued an Order in Case No. U-11290 for the purpose of considering restructuring the electric utility industry in Michigan. Recognizing market power as a major issue to be addressed, the Commission directed its Staff to "...file periodic interim reports with the Commission and a final report as expeditiously as possible, but no later than one year from the issuance of this order" (p 45). This draft report was an initial attempt to identify and analyze market power issues and potential mitigation options. As such, it was a "work in progress" intended as a preliminary step to fulfill the Commission's directive to submit a final report on this important subject by June 5, 1998.
Public Comments: All parties interested in electric restructuring were invited to provide comments on this report. Comments were provided by 17 interested persons.
Report Version: PDF
Staff Report on Electric Utility Restructuring
December 19th, 1996