Introduction
Things to Consider Before Participating in the Program (meter requirements,
terms & conditions)
How the Program Works
Introduction
Electric Choice is a statewide initiative giving all customers the option to choose the company that generates their electricity. Electric Choice, or restructuring, separates electric service into its three basic components: generation, transmission, and distribution.
Regardless of who generates your electricity, Detroit Edison will continue to provide the services required to deliver power to your home or business.
Review the Detroit Edison plan, Retail Access Service Rider and order in detail.
In June 2000, Michigan Electric Restructuring legislation was enacted, the highlights are...
Rate Reductions
- An immediate 5 percent rate reduction for all customers through the use of rate reduction bonds
- A rate cap for industrial customers extending until January 1, 2004, for small business customers until January 1, 2005 and for residential customers until January 1, 2006
Protections
- Consumer protections in the form of anti-slamming, anti-cramming provisions with penalties for infractions
- A fund to finance low-income assistance and energy efficiency projects
- Shutoff protections for low-income customers
- Worker protections, including retraining opportunities for displaced workers
Other
- Opportunity for all customers to shop for an alternative energy supplier beginning January 1, 2002
- Upgrades in the electrical transmission system to allow more power to be imported into Michigan
- Environmental disclosure of fuel sources
- Stranded cost recovery for electric utilities
Things to Consider Before Participating in the Program
- You are responsible for choosing an Alternative Electric Supplier (AES) who is responsible for enrolling you in Electric Choice. Detroit Edison is responsible for verifying your enrollment information (account and meter number), establishing a "switch" date, and providing notification of important information including AES, switch date, meter requirement, and other program details.
- Electric Choice has a minimum term of two years. Upon completion of the initial term, Electric Choice service may continue on a month-to-month basis until terminated by the Customer, AES, or Detroit Edison.
- You may return to Detroit Edison Full Service rates before completing the two-year minimum term; however, you should be aware that it would affect the energy prices you pay. See Energy Pricing Based on Return to Service Conditions*.
- If, at any time, the customer chooses to return to Detroit Edison Full Service, they may do so by contacting Detroit Edison or their AES. Customers who do so may be subject to the Market Priced Power Charge*. Customers planning to return to Detroit Edison Full Service should check their AES contracts for any restrictions for penalty provisions that may apply. See Understanding and Estimating Market Priced Power (MPP) Charges.
- Most special metering requirements for Electric Choice service were eliminated on Dec. 18, 2006 and, in general, the existing metering at the customer's location is sufficient. Interval metering is required for all customers served at Primary voltage. Interval meters are in available option - but not a requirement - for customers served at Secondary voltage. All customers taking interval metered Electric Choice service must provide a working telephone line at the meter so Detroit Edison can read the meter remotely. See Electric Choice Metering for more information on metering and meter reading in Electric Choice.
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Power Factor* is a characteristic of electric service that impacts Detroit Edison's cost to serve a primary voltage customer. For the primary voltage customers, Power Factor and excess kVAR charge, if applicable, are itemized on the distribution bill.
- Customers who participate in Electric Choice may receive two bills, depending on whether the Alternative Electric Supplier (AES) chooses to have Detroit Edison perform its billing services or whether the AES performs their own billing services.
- You do not have to participate in Electric Choice or even select an Alternative Electric Supplier. You can continue to buy electricity from Detroit Edison as a Full Service customer, and your energy rate will remain regulated by the MPSC.
- If you choose to participate in Electric Choice you cannot remain on special metered rates, such as Interruptible Space Conditioning, for energy distribution only. Likewise, other unmetered rates, such as Outdoor Protective Lighting, are not eligible for alternative supply under Electric Choice.
Read our fact sheets to learn more about the Market Priced Power Charge* and Power Factor*.
To view the complete Terms and Conditions for participation in Electric Choice, see the Retail Access Service Rider.
How the Program Works
What's Changed?
Customers have the option of buying electricity from an Alternative Electric Supplier, or they may choose to remain a Full Service customer with Detroit Edison.
What Did Not Change
Detroit Edison will continue to deliver electricity, even if the customer chooses an Alternative Electric Supplier. This means that Detroit Edison will maintain the poles and wires that deliver your electricity. Detroit Edison also will provide customer services such as billing, meter reading, and power restoration in the event of a storm.
How Can I Get More Information
Learn more about Electric Choice in Michigan by visiting the Michigan Public Service Commission Web site. Or call Detroit Edison at 888.235.3535.
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