September 11, 2003

The Michigan Public Service Commission (MPSC) today approved a schedule that implements electric cooperatives' customer choice programs for customers having less than one megawatt of peak load. The schedule was jointly developed by the electric cooperatives and MPSC staff.

"This order puts in place a phased-in schedule that recognizes the unique situation of rural electric cooperatives while still allowing customers to move forward with customer choice," said MPSC Chair J. Peter Lark.

The Customer Choice and Electricity Reliability Act of 2000 authorizes the MPSC to set a deadline for cooperatives to implement a customer choice program.

Alger Delta Cooperative Electric Association, Cherryland Electric Cooperative, Cloverland Electric Cooperative, Great Lakes Energy Cooperative, Homeworks Tri-County Electric Cooperative, Midwest Energy Cooperative, the Ontonagon County Rural Electrification Association, Presque Isle Electric & Gas Co-op, Thumb Electric Cooperative (the cooperatives) and MPSC staff developed a proposed schedule that does the following:

• By January 1, 2005, the cooperatives shall provide choice for all commercial and industrial member-consumers with a peak load of 200 kilowatts (kW) and above. Unbundled rates for such member-consumers would be filed no later than July 1, 2004;
• By January 1, 2006, the cooperatives shall provide choice for all commercial and industrial member-consumers that currently have a demand meter installed and that have a peak load of 50 kW and above. However, no more than 30 percent of the total number of member-consumers between 50 kW and 199 kW for each cooperative shall be permitted to switch. Unbundled rates for such member-consumers shall be filed no later than July 1, 2005;
• By September 30, 2006, the cooperatives shall file a status report with the Commission detailing the cost to implement and the effectiveness of customer choice for the electric cooperatives; and
• The cooperatives shall make all threshold load determinations for individual member-consumers through aggregation of the member-consumer's multiple metering points located within the cooperative's service territory.

Today's order approves that proposed schedule. In addition, the MPSC shall make a determination by January 1, 2007 regarding further implementation of customer choice for all other member-consumers served by the cooperatives.

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

Case No. U-13698

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