- General
- Customer Billing and Charges
- Metering and Meter Reading
- Return to Full Service and the Market Priced Power (MPP) Charge
- More Information
General
Q: What is Electric Choice
A: Electric Choice is a statewide initiative giving customers the option to choose the company that generates their electricity. These companies are referred to as Alternative Electric Suppliers. Providing electricity includes three separate activities: generation, transmission and distribution. Only the generation portion of your electric service is open to choice. Regardless of who supplies your electricity, Detroit Edison will continue to provide the services required to deliver power to your home or business.
Q: What is restructuring or deregulation?
A: Electric Choice is sometimes referred to as restructuring. Restructuring or deregulation refers to changes taking place in the electric utility industry as it transitions from a regulated monopoly to a more competitive market. It is the process of separating, or unbundling electric service into its three basic components:
- Generation (electric supply)
The production or purchase of electricity.
- Transmission
The movement of electricity over high voltage power lines from the generation source to a local distribution system.
- Distribution
The delivery of electricity to individual customers.In a restructured environment, customers will be able to shop for electric generation supply among competing Alternative Electric Suppliers or stay with their current electric utility under full service. Transmission and distribution functions will remain regulated. Detroit Edison will continue to be responsible for the delivery of electricity within its existing service territory.
Q: How did the electric restructuring process start and why?
A: In 1992, the U.S. Congress empowered the Federal Energy Regulatory Commission (FERC) to allow wholesale electric customers the opportunity to purchase electricity on the open market. This led to a desire for similar access for all customers. Each state is addressing this issue individually.
In October 1997, the Michigan Public Service Commission (MPSC) ordered Michigan's electric utilities to develop plans to allow all customers to choose their own electric generation supplier. In June 1998, Detroit Edison filed its Electric Choice Plan with the MPSC. In September 1999, Detroit Edison began a phase-in of Electric Choice. On June 5, 2000, Governor Engler signed legislation enabling electric restructuring in Michigan. On January 1, 2002, Electric Choice became available to all Detroit Edison customers.
Q: How will restructuring benefit the customer?
A: Electric Choice is intended to bring competition to the electric utility industry. The underlying theory is that competition can do a better job than government regulation in setting prices and promoting efficiency and innovation.
All Detroit Edison customers received a 5 percent rate reduction as a result of electric restructuring legislation.
Q: Who is involved in Electric Choice?
A:
- Alternative Electric Supplier (AES) - an entity that produces or purchases electric generation on the wholesale market for retail sale to end-use customers. An AES does not provide electric transmission and distribution services. In Michigan, an AES refers to a retail company that has been licensed to sell electricity by the MPSC.
- Aggregator - a person or group that consolidates customers into a buying group for the purpose of purchasing large amounts of electricity. Alternative Electric Suppliers, customers and brokers may act as aggregators.
- Utility - traditional electric utilities (e.g., Detroit Edison) that sell regulated electricity in exclusively defined areas, and are responsible for energy distribution in those defined areas.
- Customer - a residential, commercial or industrial end-user of electricity at one or more locations who has facilities connected to the utility's distribution system.
Q: Can I choose an Alternative Electric Supplier?
A: Yes. All customers have the option to choose the company that generates their electricity. However, customers must meet certain eligibility requirements i.e., a current account, and no special contracts. Otherwise, any Detroit Edison customer is eligible to choose an Alternative Electric Supplier. Note: Electric Choice is not available for unmetered service.
Q: How can I sign up with an Alternative Electric Supplier?
A: You will need to contact an Alternative Electric Supplier of your choice directly and make arrangements to enroll in Electric Choice. Upon your approval, your new supplier will submit an Electric Choice enrollment to Detroit Edison.
Q: If I change my mind, can I cancel after my new Alternative Electric Supplier submits by enrollment?
A: You can change you mind without penalty, up to the point you begin receiving service from an Alternative Electric Supplier.
Q: What happens if I cancel after my Alternative Electric Supplier begins supplying my electricity?
A: There is a $5.00 switch fee to return to Detroit Edison Full Service. When you return, you may be subject to additional charges in accordance with the Retail Access Service Rider Section 5.3 Term, Commencement of Service and Return to Service.
Q: I have already been approached by an Alternative Electric Supplier. How do I know whether they are eligible to offer this service in Michigan?
A: Under electric restructuring legislation, any company that wants to sell retail electricity in Michigan must be licensed by the Michigan Public Service Commission (MPSC) before they can begin to provide service. The MPSC web site contains a directory of Alternative Electric Suppliers who have been licensed by the MPSC. The Web site address is www.michigan.gov/mpsc.
Q: Will Detroit Edison release my account information to an Alternative Electric Supplier?
A: An Alternative Electric Supplier can request your usage history, but only if they submit a Customer Information Release Form to the Detroit Edison Electric Choice Supplier Support Center indicating the specific account number(s) and meter number(s). The release form must be signed by the person who is responsible for the account. To protect you against slamming, no electronic signatures will be accepted.
Q: What is "slamming?"
A: Slamming is the unauthorized switching of your energy supply without your permission.
Q: How will slamming be controlled?
A: The Detroit Edison Electric Choice customer enrollment process incorporates a confirmation process to help reduce the likelihood of slamming. The electric restructuring legislation enacted in June 2000 made slamming illegal. The Michigan Public Service Commission has established penalties for companies that engage in this practice. For more information, go to the MPSC website. The Web site address is www.michigan.gov/mpsc and then locate MPSC Case Number U-12640.
Q: How do I know if I'm getting a good deal?
A: Each Alternative Electric Supplier may offer you different programs and prices, so it is best to make comparisons. The more you understand your electric usage, the better prepared you'll be to make a wise energy decision. Consider the details of each program and ask questions such as:
- What price is being offered?
- Is the price fixed or variable?
- Is this price guaranteed, and if so, for how long?
- If you are offering a discounted rate, to what part of my bill does this discount apply?
- Do I have to sign a contract? If so, for what period of time?
- What other charges, if any, will appear on my bill?
- What services are included?
- Who will read my meter and send my bill?
- How do I contact the AES when I need assistance?
- Is a deposit required?
- Will I have to pay a fee to switch my electric supply from Detroit Edison to an AES?
- What guarantees does the AES offer for its products and services?
- Are there any penalties if I decide to switch from one AES to another?
- Where is the AES located?
- Does the AES have a local office or a local telephone number?
- What literature does the AES have that can be mailed to me?
- Does the AES have a Web site with more information?
Q: Do I have to participate in Electric Choice or can I still buy my electricity from Detroit Edison?
A: You do not have to participate in Electric Choice or select an Alternative Electric Supplier. You can still buy electricity from Detroit Edison under rates regulated by the Michigan Public Service Commission. Electric Choice is designed to provide customers with options - and one of those options is to do nothing.
Q: What do the terms "bundled" and "unbundled" mean?
A: Electric service is traditionally provided on a bundled basis, meaning the generation, transmission and distribution services are provided by an electric utility company on a total-cost basis. Bundled service is also known as "full service". By unbundling, the total cost for the traditional utility services are separated into individually priced components and itemized on customers' bills.
Customer Billing and Charges
Q: How will customer billing be handled?
A: The Alternative Electric Supplier (AES) has the option to have Detroit Edison bill on its behalf, which is referred to as complete billing, or to bill its customers directly, which is referred to as separate billing. If Detroit Edison bills on behalf of the AES, energy charges will be separated from delivery charges, so the customer can review each individual charge. If the AES chooses to bill separately from Detroit Edison, the customer will receive two separate bills (one from the AES for energy supply, and one from Detroit Edison for energy delivery).
Q: Will there be additional charges or additional services that customers will pay for as a result of Electric Choice?
A: Today customers charges include energy supply, transmission and distribution and are billed as one total cost under bundled or full service. Alternative Electric Suppliers may offer new products and services that may include additional charges to customers who choose to buy them.
Q: Will there be a charge to switch to an Alternative Electric Supplier?
A: A $5.00 fee will be charged each time a customer switches to a different energy supplier. The switch fee applies when a customer switches from Detroit Edison to an AES, from one AES to another AES, or from an AES back to Detroit Edison.
Q: How are distribution services charged??
A: : Distribution or delivery changes are based on your type of service. View the charges in the Electric Rate Book.
Q: What is the Excess kVAR demand charge? (Primary customers).
A: The Excess kVAR demand charge is a charge for any reactive demand resulting from operations below 80% power factor.
Q: What is Power Factor? (Primary customers).
A: Power Factor is a term that applies to the supply and delivery of electric power. It is the ratio of "working power" (current and voltage) to "apparent power" (working power plus reactive power). View the Understanding Power Factor fact sheet.
Q: Will I need to change my electric meter?
A: Residential and other customers served at Secondary voltages are not required to change their electric meter to participate in Electric Choice. An interval demand meter is required for Primary voltage customers. See Electric Choice Metering or Metering and Meter Reading FAQs for more information on metering in Electric Choice.
Q: What is aggregation and how does it work?
A: Aggregation is the combining or pooling of multiple customers' electric usage to create a large buying group that can achieve cost savings by buying electricity in bulk. Aggregated customers are more attractive to Alternative Electric Suppliers. Any one customer's electric usage pattern will likely have peaks and valleys. However, when electricity usage is spread over a number of customers, the peaks and valleys tend to offset each other resulting in a smoother, more predictable pattern of electric consumption.
Any person, group or other entity that pools electric customers is known as an Aggregator. Electric Choice may lead civic clubs, business associations or even communities to become Aggregators.
Q: Can I choose a new Alternative Electric Supplier for my home and keep my Interruptible Space Conditioning rate?
A: No. All metered use at a single home must either stay with Detroit Edison Full Service or go with a new Alternative Electric Supplier.
Q: If I choose another Alternative Electric Supplier, will Detroit Edison remove my Interruptible Space Conditioning meter?
A: Not at this time. The meter will still record your space conditioning use for billing purposes. The meter will remain in place in case you or the next customer decides to return to Detroit Edison Full Service and then chooses to participate in the Interruptible Space Conditioning Program (if available).
Q: If I choose a new Alternative Electric Supplier, can I stay on BudgetWise® Billing?
A: An Alternative Electric Supplier who bills separately for energy may offer a budget plan, so be sure to ask if this type of plan is available. The Detroit Edison BudgetWise® Billing program is not available to customers who receive energy and delivery charges on one combined bill.
Q: If I choose a new Alternative Electric Supplier, can I stay on the Automatic Payment Plan?
A: You can remain on the Automatic Payment Plan for your Detroit Edison delivery charges or both your energy and delivery charges if your AES elects the Complete Billing option. If your AES bills you separately for their energy charges, you will need to ask your AES if this plan is available.
Q: Can I choose a new Alternative Electric Supplier for my Outdoor Protective Lighting account?
A: Only metered loads are open to Electric Choice. Outdoor Protective Lighting accounts are not eligible for choice, since the light fixture is not metered. Under the Outdoor Protective Lighting Program, you pay Detroit Edison for the cost of the fixture, the unmetered use and $24.00 a year, if a pole is provided. If you choose a new Alternative Electric Supplier, your lighting account will be billed with your Detroit Edison delivery charges.
Q: Can I keep my Home Protection Plus (HPP) Plan?
A: You may continue to participate in the DTE Energy Hope Protection Plus (HPP) plan without any changes. Plan charges will be billed along with your Detroit Edison delivery charges.
Q: Who should a customer call if they have a power failure? Who will restore their electric service?
A: Detroit Edison will continue to own and operate the distribution system and will continue to be responsible for trimming trees, restoring power, maintaining overhead and underground wires. Customers should continue to report outages or other service problems by calling 800.477.4747.
Q: Does the priority of restoration change?
A: No, priority of restoration will remain the same as it is today.
Q: What will happen to a customer who can't pay their electric supplier and/or delivery charges?
A: In the event a customer is unable to pay the electric generation charges, the AES may terminate the customer relationship. Should this happen, the customer would automatically return to Detroit Edison Full Service subject to the Retail Access Service Rider's Section 5.3 Term, Commencement and Return to Full Service. If a customer cannot pay Detroit Edison for services rendered, the existing collection policies would then apply.
Metering and Meter Reading
Q: Are there special metering requirements for Electric Choice?
A: No. Effective December 18, 2006, the metering required for Electric Choice service is the same as that required for customers on the equivalent Full Service rate. This means that customers are not required to have meter changes made in order to switch to Electric Choice.
Q: Do Electric Choice customers have a choice of metering?
A: Primary customers do not have a choice of metering. All Primary customers (customers taking service at 4,800 volts or higher) are required to have interval meters.
Secondary customers taking Electric Choice service do have a choice of metering. Secondary customers may keep their standard energy or standard energy/demand meters, OR may elect an optional interval-metered service. If you elect this service, you must have an interval meter installed at your location. This optional service has an additional monthly service charge and a one-year minimum term. (Note: If you had an interval metered installed for Electric Choice service prior to December 18, 2006, this additional fee will be waived until December 2008).
Q: What is the difference between an interval meter and standard meter?
A: An interval meter is a meter that records your electric usage for each individual hour (or half hour) in a billing period, rather than just accumulating a running total. This allows you or your energy supplier to know exactly how much electricity you used at any point in time, as well as your usage patterns over time.
Standard energy and energy/demands meters measure your accumulated usage during the billing period, and, if demand is measured, the highest demand that occurred in the month.
Q: What special requirements must I meet as an interval-metered Electric Choice customer?
A: You must provide a working telephone link to the interval meter so that Detroit Edison can download the metered data electronically. This can be either:
- A traditional analog land-line (Plain Old Telephone Service or POTS) This can be either a dedicated line or one that is shared with other telephones or equipment. If you or your AES wish to download the data directly, then a dedicated line would be required. You are responsible for all costs associated with supplying and maintaining the phone line
- or, in cases where a land-line is impractical, Detroit Edison will install a digital cellular device to enable electronic reading of the meter
This is an additional optional service that Detroit Edison will provide for a monthly service charge of $45.00. Detroit Edison will own, install, and maintain the digital cellular device. You are responsible for all cellular provider charges
Q: What else must I do?
A: You must have the telephone line installed and then Call Detroit Edison at 888.235.3535.
Detroit Edison will initiate a field visit to your site for our technician to hook the phone line up to the meter and verify that the meter communicates successfully with our data collection system. Once successful communication is confirmed, your change to interval-metered Electric Choice service will be scheduled. Usually this is the next scheduled meter read date.
You must keep the telephone line in place and fully functional.
Q: Why does Detroit Edison offer a digital cellular service?
A: Digital Interval Meter Service is available for secondary customers who desire Optional Interval Meter Service, but find that it is impractical to run a "land line" to the meter for data collection. For example, Digital Interval Meter Service might be used for a lighted bill board, an "out building" on a customer's premise, etc. Remember, the $45/month charge is for digital equipment, installation and maintenance. The customer must activate and pay for the digital cellular service. The $45.00 charge is in addition to the Optional Interval Meter Service monthly service charge (applicable to Secondary voltage customers).
Q: What happens if my meter phone line stops working?
A: If Detroit Edison cannot read the meter electronically because of a telephone line problem we will read the meter manually (one time per month), for a charge of $37.00 , after the first manual read. If the telephone line is inoperative for three consecutive months, Detroit Edison may terminate your interval-metered Electric Choice service.
- If you are a Primary customer, this means you will be returned to Detroit Edison Full Service, subject to the provisions of the Retail Access Service Rider Section 5.3. Term, Commencement and Return to Full Service.
- If you are a Secondary customer, this means you will remain on Electric Choice, but you will be switched to standard energy metered service (or energy and demand metered service, if you are on a rate with a demand component). With standard metering, you won't be able to see exactly how you used energy over the hours of the month. Also, if you have not completed the twelve-month minimum term for the optional interval-metered service, you will be subject to the monthly charge for the balance of the twelve-month minimum term.
Q: What is the monthly charge for the Optional Interval Meter Service?
A: Monthly charges are:
Online tools
Customer information
General Service/Business Electric Service $25.00/month Large General Service/Business Electric w/Demand $20.75/month
Q: When does the Optional Interval Meter Service monthly charge take effect?
A: The Optional Interval Meter Service monthly charge will be assessed beginning with the first billing cycle after December 18, 2006.
- If your interval meter was installed before December 18, 2006, your bill will show a charge for Optional Interval Meter Service and an offsetting credit, for a 24-month "grandfather" period. After the 24th month, there is no offsetting credit.
- If your interval meter is installed after December 18, 2006, you will be assessed the Optional Interval Meter Service monthly charge when you begin the service. There is no offsetting credit-or "grandfather" period- for interval meters installed after the December 18, 2006 effective date.
Q: When does the Optional Interval Meter Service 12-month minimum term take effect?
A: Your Optional Interval Meter Service 12-month minimum term depends on when your interval meter was installed:
- If your interval meter was installed before December 18, 2006, you are considered to have fulfilled the minimum term until the 24-month "grandfathered" period expires
- If your interval meter is installed after December 18, 2006, you will be subject to the 12-month minimum term. The term begins when you begin taking the Optional Interval Meter Service. There is no "grandfather" period for the Optional Interval Meter Service 12-month minimum term for meters installed after the December 18, 2006 effective date.
Q: What happens if I do not complete the 12-month minimum term?
A: Customers who do not complete the initial 12-month term on Optional Interval Meter Service-because they return to Full Service, or switch to standard energy metered service-will be assessed the monthly Optional Interval Meter Service charge until the term is completed.
Return to Full Service and the Market Priced Power (MPP) Charge
Q: What do you mean by 'Return to Full Service'?
A: When customers leave Electric Choice-for any reason-and come back to Detroit Edison bundled or regulated rates, they 'return to Full Service.'
Q: What are the rules regarding return to full service?
A: Rules regarding return to Full Service are found in the Retail Access Service Rider, Section 5., Term, Commencement of Service and Return to Full Service. In general, these rules address:
- Electric Choice "minimum term."
- Notice of Intent to Return to Full Service during summer months-with binding 12-month commitment. This formal notice must be provided to Detroit Edison by December 1 each year, for the following summer.
- Return to Full Service-without binding 12-month commitment. Customers who do not provide the December 1 notice will be asked to specify their return option:
- Option 1-12-month commitment
- Option 2-Short-term full service
Q: What is the Electric Choice "minimum term?"
A: The minimum term is two years for customers who elect choice as of November 24, 2004 or later. November 24 is the date of the final order in the Electric Rate Case, U-13808. Customers who were in choice as of November 23, 2004 were "grandfathered" with a one year term.
Q: What is "Notice?"
A: "Notice" refers to the new December 1st notice requirement, specified by the MPSC in its Final Order in the Main Electric Rate Case, U-13808:
"…a customer shall provide Detroit Edison with notice no later than December 1st if the customer will be taking Full Service from Detroit Edison during the following summer. For this purpose, summer means regularly scheduled billing periods beginning June 1st through September 30th. (RAST §5.3.1 Return to Full Service).
The MPSC stated "the utility needs some reasonable horizon to allow it to plan for the needs of its customers. The critical timeframe relates to the summer peak demand season." Planning for summer generally takes place in the winter months.
Detroit Edison will implement this notice requirement by mailing all Electric Choice customers a "Return to Service" form approximately 60 days prior to the annual deadline. Signed and returned forms from customers constitute "Notice".
Q: What does "binding 12-month commitment" mean?
A: "Binding 12-month commitment" means that the customer who provides the December 1 notice is obligated to return to Detroit Edison in the month specified by the customer, and the customer must stay on Full Service rates for 12 months. This means a customer cannot switch to an AES until they have been on Full Service rates for 12 months.
Q: Can a customer change his mind after submitting Notice?
A: A customer may revoke or amend their Return to Service form prior to the December 1 deadline. No changes can be made after that date.
Q: Why should a customer submit this notice?
A: A customer, who is planning to return after December 1 of the current year but before October of the following year, should submit the notice by December 1 to avoid being charged higher prices on return to Full Service.
Q: What are Option 1 and Option 2?
A: Option 1 and Option 2 are two different ways customers-who return to Full Service without providing the December 1 notice-may choose to take Detroit Edison full service.
- Option 1 is a 12-month service commitment. A customer who fails to remain on Full Service for 12 months will be back-billed for the higher of the tariff energy rate or market based rate (Market Priced Power charge, or MPP).
- Option 2 is Short-term Full Service. In this case, customers 'pay as they go' for the ability to return to Electric Choice before 12 months of Full Service. For example, a customer's AES contract ends March 15. The customer returns to Full Service until April 15, at which time the customer contracts with a new AES. The customer pays bundled tariff and one month of MPP for the right to switch again.
Customers who submit the Return to Service form don't have to choose Option 1 vs. Option 2, since they are committed to 12 months on full service under the terms of the Return to Service notice they provided.
Q: What is the 'Market Priced Power Charge'?
A: The Market Priced Power Charge is a Michigan Public Service Commission (MPSC)-approved customer charge designed to compensate Detroit Edison for accommodating customers who need to return to Detroit Edison Full Service without adequate notice, or on a temporary basis, less than 12 months. The MPP charge represents Detroit Edison's incremental cost to serve these returning customers.
Q: Who gets the MPP charge?
A: Customers who return from choice to Detroit Edison Full Service may be subject to MPP if they return…
- For summer, without providing the prior December 1 notice
- For less than 12 months and then return to choice
- Before completion of their Electric Choice two-year minimum term
Q: Is MPP addressed in the Retail Access Service Rider?
A: Yes. See Section 5.3, Return to Full Service.
Q: How is the Market Priced Power Charge applied?
A: MPP Charges will be assessed as follows:
- MPP will appear as a taxable line item charge on your electric bill, representing the difference between the energy cost in bundled rates and market prices. If market prices are lower than the energy cost in the bundled rates, no MPP charge will be assessed.
- MPP charges will be in addition to the regular charges of a Full Service rate, i.e., Business Electric, etc.
- During the summer billing months-June 1st through September 30th-customers who returned without the December 1 notice will pay "the higher of (energy cost in rates or MPP) plus 10 percent." The 10 percent adder for summer months is specified in the Retail Access Service Rider §5.3.1.
- For customers who return without meeting the Electric Choice minimum two-year term: MPP will be charged until such time as the minimum two year commitment has been met, for all power taken from the utility. For example: a customer spends 6 months on choice and returns to Full Service. That customer would pay MPP for as much as 18 months for any power taken from Detroit Edison. (24 - 6 = 18).
Q: How is MPP calculated?
A: The Market Priced Power Charge is an average market price calculated for the customer's individual billing month on an after-the-fact basis, using published hourly market prices for the Michigan energy market.
For any short-term Full Service bill period where the average market price of power (in ¢/kWh) is greater than the energy portion of the Full Service rates, the customer pays the difference, for all kWh used in that period.
More simply:
Average Market Price in ¢/kWh
minus Detroit Edison energy cost in ¢/kWh
equals Billable Market Price Power Surcharge in ¢/kWh
Then: Billable MPP ¢/kWh X bill period usage = MPP charge for the period. For example, for a customer who uses 4,500 kWh in the month:
Average Market Price 3.95 ¢/kWh
minus Detroit Edison energy cost --- 1.90 ¢/kWh
equals Billable Market Price Power Surcharge 2.05 ¢/kWh
Then: Billable MPP charge is 2.05¢/kWh X 4500 kWh usage = $92.25 .
Q: What are these 'published index prices'?
A: The published index prices are the DECo.nec Loadzone hourly prices, tracked and published by the Midwest Independent System Operator (MISO).
Q: Where are these published?
A: These prices are posted each day to the MISO Web site, under Market Reports\Historical LMPs.
Q: How does the charge appear on the customer bill?
A: The charge appears as the following line item:
Market Priced Power Adjustment $xxx.yy
Q: How do customers know about the charge?
A: A "Drop" order is the mechanism which terminates Electric Choice service. (A Drop order can be initiated by a customer, AES, or Detroit Edison.) When a "Drop" is received Detroit Edison sends notices to the customer and the AES informing them when the "Drop" will be effective. This letter also explains return to service rules and the MPP charge, as provided in case U-13808.
In addition, each fall Detroit Edison will notify all Electric Choice customers about the December 1 notice deadline for return to Full Service during the following summer months.
More Information
Q: Where can I learn more about utility restructuring?
A: You can start with the Michigan Public Service Commission's (MPSC) Web site on Electric Utility Restructuring at www.michigan.gov/mpsc. This site links to documents and to other important information sources.
You can also visit the U.S. Department of Energy Web site at http://energy.gov.
Q: How can I keep up with news about Electric Choice in Michigan?
A: Check the MPSC Web site at www.michigan.gov/mpsc regularly for updated electric restructuring information.
Q: Who can I contact if I have more questions?
A: If you have additional questions, please call DTE Energy at 888.235.3535.
