Electric rate and surcharge increases or decreases are only by order of the Michigan Public Service Commission (MPSC).
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Rate Unbundling
Rates have been 'unbundled" (separated) to itemize power supply and distribution charges separately. The separately itemized charges began appearing on your bill in February 2006. This is simply a format change to your bill. Rate unbundling results in no additional revenue to Detroit Edison.
View a sample bill.
 | What is unbundling?
Electric service was traditionally priced on a bundled basis, meaning the rates were developed based on the total cost of providing power supply and distribution services. By unbundling, the total cost for the traditional utility services are separated into power supply and distribution related components. |
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| Why are we unbundling our charges?
The unbundling of our rates was required by PA 141. Unbundling allows customers to understand how much of their bill is related to power supply and distribution service. Unbundling allows customers to shop for the power supply portion of their service should they desire to do so. |
What is PA 141?
In 2000, the Michigan Legislature enacted The Electric Choice and Reliability Act (PA 141), introducing competition to Michigan's electric market. PA 141 was a transitional statute intended to lead to the eventual deregulation of generation in Michigan. The law also required us to unbundle (separate and itemize) our charges. The Electric Choice Program is the result of PA 141 legislation, and was intended to provide:
- Choice for all customers
- Competition in the electric market
- Development of new power sources
- Continuous safe, reliable and affordable power
- Economic development opportunities for Michigan
- Financially healthy and competitive Michigan utilities
What are the current surcharges?
The current surcharges are:
- Regulatory Asset Recovery Surcharge (RARS) - This surcharge allows Detroit Edison to recover required expenditures, primarily for environmental improvements, that could not be collected from customers during the rate cap period.
- Power Supply Cost Recovery (PSCR) - Each year Detroit Edison must file a plan to recover its cost of fuel and purchased power expenses. As market prices and fuel costs fluctuate, the PSCR surcharge is adjusted. The current PSCR is 0.869 cents per kWh.
- Choice Implementation Surcharge (CIS) - This surcharge of 0.05 cents per kWh is for all customers, recovers costs associated with implementing the electric choice program.
- Rate Reduction Credit (RRC) - In August, 2006, Case U-14383 authorized a rate reduction credit for service rendered on or after Sept. 5.
- Securitization Bond Charge - This charge represents the payment of principal and interest associated with issuance of securitization bonds to recover the cost of past utility investments.
- Securitization Bond Tax Charge - Charge that represents the recovery of an income tax liability incurred by Detroit Edison arising from the collection of securitization bond principal payments.
- Nuclear Decommissioning Surcharge - This surcharge covers the cost to remove the Fermi 2 Power Plant from service when its operating license expires.
How to manage your energy costs
The best way to save
energy is to reduce your energy use and invest in energy savings improvements
for your home.
No-cost energy savings tips
- Turn off lights, televisions and computers when they are not in use
- Lower your water heater to 120°F
- Let the sun shine in during the winter
- Lower your thermostat. For every degree under 72°F you lower your thermostat you save approximately three percent on your energy use.
Low-cost energy savings tips
- Install dimmers or timers on your lights
- Install a photocell unit or motion sensor on outdoor lights
- Use compact fluorescent light bulbs instead of incandescent light bulbs.
- When shopping for appliances, compare energy consumption ratings and look for Energy Star rated appliances.
More tips
- Find more Energy Savings tips online to learn more about enhancing your home's energy efficiency.
- Use free home energy audit tools for valuable tips on how to reduce your energy bills.
- Enroll in BudgetWise® billing, which allows qualified customers to spread electric payments equally over the year.
Having trouble paying your bill?
- Enroll in BudgetWise® billing, which allows qualified customers to spread electric payments equally over the year.
- Payment assistance programs are available for low income customers. Learn more.
- A payment agreement program is also available. Payment agreements allow you to catch up on past due energy bills while maintaining current bills and utility service. Learn more.
Additional Information
- Detroit Edison's Residential Electric rates
- Energy Savings conservation tips
- Analyze Your Energy Use
