
| COMMISSIONERS | CONTACTS |
| John G. Strand, Chairman | Dorothy Wideman |
| John C. Shea | Mary Jo Kunkle |
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Retail Electric Competition Emerges In Michigan As Electricity Flows To
Customers Participating In The Consumers Energy Direct Access Program
Lansing, November 18. In a major development within Michigan's
electric industry, Georgia-Pacific Corp., Keebler Company, Keeler Brass
Company, Lakehead Pipeline Company and Martin Marietta Magnesia Specialties,
Inc., are among the first customers in Michigan to take delivery of their
electric power from a supplier other than their local utility company. Today
competitively purchased power is scheduled to flow to Martin Marietta, with
delivery to the other four customers expected within a few days. These
companies are participating in the Consumers Energy Company's Direct Access
Program, a customer choice initiative recently approved by the Michigan
Public Service Commission (Commission). Nordic Electric, an independent
power company, was selected as the energy supplier of these companies.
Several other customers are also expected to participate in the program.
The Direct Access Program is the first program in Michigan that permits
customers to buy power from an alternative provider other than their local
utility company. Consumers Energy will continue to delivery the power across
its transmission and distribution system to the customer. Although limited
in scope, the program is a preview of an industry that is expected to soon
provide choice to all Michigan customers.
The Consumers Energy Direct Access program originated from a
Commission approved agreement between Commission Staff and Consumers
Energy on a number of rate making and competitive issues. Direct access has
attracted enormous interest from Michigan industrial customers eager to
introduce customer choice into the State's electric industry. One hundred
twenty-seven applications, representing nearly 1000 megawatts (MW) of
capacity, were submitted for consideration in the program. Since initial
participation was limited to 100 MW, a lottery was employed to allocate
capacity among eligible customers. A Commission decision is pending
concerning the possible addition of up to 140 MW to the program.
"Retail competition for electricity in Michigan is now a reality,"
said John Strand, Chairman of the Michigan Public Service Commission.
"Electric power is now being provided to several Michigan retail customers
from a supplier of their own choice. With this watershed development,
Michigan continues to lead the way nationally among states in the forefront
of ushering competition into the electric industry. To date, only a handful
of states have empowered customers to select their energy providers from
suppliers other than their local utility."
Commenting on the program from a customer's perspective, Chris Larsen,
Purchasing Manager for Martin Marietta Specialties, Inc., stated "Facing
stiff global competition, we are seeking every available opportunity to
sharpen our competitive edge. The Consumers Energy Direct Access program is
an important step in the right direction and my company appreciates the
opportunity to participate."
John Baardson, Chairman of Nordic Electric, the supplier selected to
supply power to these first participants said "We are anxious to demonstrate
that customer choice will work in Michigan, saving Michigan retail
electricity customers money and making Michigan businesses more competitive
as a result." Walt Balcer, President of Nordic Electric, further added
"We commend Consumers Energy and the Commission for their support and their
efforts in establishment of this landmark competitive initiative."
David Joos, President of Consumers Energy Company, commented that
his company was anxious to test the customer choice waters with this program.
"We know that competition is at the electric industry's doorstep and view
this limited program as an excellent opportunity to gain valuable experience
before a more comprehensive, large scale program is implemented. Consumers
Energy intends to remain a major player in the emerging competitive electric
industry and is diligently preparing itself for the future."
November 18, 1997
(Retail Electric Competition Emerges in Michigan)
JOINT PRESS RELEASE:
Michigan Public Service Commission
Consumers Energy Company
Nordic Electric
Georgia-Pacific Corp.
Keebler Company
Keeler Brass Company
Lakeland Pipe Line Company
Martin Marietta Magnesia Specialties, Inc.
Technical Contact: Michel Hiser (517) 334-6255