On January 1, 2002, the Michigan Customer Choice and Electric Reliability Act (Public Act 141) was enacted introducing electric choice to consumers in Michigan. Customers benefit form increased competition because deregulation ultimately promotes lower rates as well as more innovative and efficient generation processes. The two service areas participating in the competitive electricity market are:

• Detroit Edison
• Consumers Energy

Consumers in Michigan can expect to receive a bill form both the local utility and from the competitive provider (CP). Distribution charges will be billed by the local utility and the transportation charges along with electricity supply charges will be invoiced by the CP.

For those customers who have switched away from the local utility to a Competitive Provider must have a new type of meter installed. This new meter will allow the local utility to monitor usage over a phone line and will be installed at no cost to customers. However, the one requirement of the customer is there must be a phone line established to connect to the meter. The requirements differ by service area:

• Detroit Edison – Customer has 60 days to establish a phone line or they will be forced to return to the local utility at higher rates than before the switch.
• Consumers Energy – Prior to enrollment, customer must have a phone line established prior to enrollment.

Customers who receive all portions of electrical service from Detroit Edison and Consumers Energy will incur a Power Supply Cost Recovery (PSCR) charge. This charge is used by Detroit Edison and Consumers Energy to account for any increases in electricity generation or delivery costs. This charge has increased several times since January 2006, and in 2007 customers in Detroit Edison and Consumers Energy have experienced rate increases of 90% and 60% respectively. Therefore, consumers are only susceptible to PSCR charges if they remain with their local utility.

Pure Energy Solutions will help you evaluate the best energy savings opportunities that are available to you in order to choose the best energy provider for your business. To see what savings can be generated for you simply print the usage release form, fill it out completely and fax it to (214) 975-1051.