COMMISSIONERSCONTACTS
Laura Chappelle, Chairman Dorothy Wideman
David A. Svanda Mary Jo Kunkle
Robert B. Nelson 517.241.6160

	
	LANSING, October 29.  On December 4, 2000, the Michigan Public Service 
Commission adopted a code of conduct for all electric utilities regulated by the Commission 
and for all alternative electric suppliers.   The code of conduct is intended to promote fair 
competition by establishing measures to prevent cross-subsidization, information sharing and 
preferential treatment between a Michigan utility's regulated and unregulated services or 
between an alternative electric supplier offering regulated services in Michigan and its 
affiliates.

	As a result of numerous petitions for rehearing, the Commission today granted a limited 
review of provisions of its earlier order and adopted a modified code of conduct that applies to 
all relationships involving both regulated and unregulated services among electric utilities or 
alternative electric suppliers offering regulated services in Michigan and their affiliates.   
Under the code of conduct, a regulated service is one which the Commission has authority to set 
the price for the service. 

	Today's order also permits electric utilities and alternative electric suppliers to 
request waivers from one or more provisions of the code after demonstrating that the waiver 
will not inhibit the development or functioning of a competitive market.   An electric utility 
or alternative electric supplier may request a waiver at the time it files its code of conduct 
compliance plan with the Commission, which is required within 60 days of today's order.  

	Today's order requires Michigan's electric utilities and alternative electric suppliers 
providing regulated services in Michigan to comply with the code of conduct provisions, 
including:   

    * Functioning in a manner to prevent anti-competitive behavior, by requiring 
      the offering of unregulated services or products through one or more affiliates 
      or other entities within the corporate structure, such as divisions;
    * Prohibiting subsidization in any manner, directly or indirectly, of the 
unregulated business of its affiliates or other separate entities;
    * Maintaining books and records separately from those of its affiliates or other 
      entities within the corporate structure;
    * Prohibiting the sharing of facilities, equipment or operating employees, but 
      may share computer hardware and software with documented protection to prevent 
      discriminatory access to competitively sensitive information;
    * Offering to all alternative electric suppliers operating within the electric 
      utility's service territory or all alternative electric supplier customers any 
      discounts, rebates, fee waivers, or waiver of its regulated tariffed terms and 
      conditions for service provided to its affiliate or other separate entity;
    * Prohibiting the sharing of information obtained by the electric utility or 
      alternative electric supplier gathered as a result of its regulated business 
      with its affiliates or other entities within the corporate structure unless the 
      same information is provided to competitors operating in Michigan on the same 
      terms and conditions and contemporaneously.

	"Adopting a code of conduct is a key element in implementing the Customer Choice 
and Electricity Reliability Act," said Chairman Laura Chappelle.  "Beginning January 1, 2002, 
nearly all of Michigan's electric customers will have the opportunity to choose an alternate 
electric supplier, and the Commission is pleased to move forward with a code that protects 
Michigan consumers while promoting fair competition."


The MPSC is an agency within the Department of Consumer and Industry Services.

Case No.  U-12134
October 29, 2001
(MPSC adopts modified code of conduct for Michigan's electric utilities and alternative 
electric suppliers providing regulated services in Michigan)