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Electric Rates Increase Following New 2008 Law

Electric Rates Increase Following New 2008 Law
by: Bruce Goodman of Varnum LLP  -  
Monday, October 22, 2012

In 2008 new Michigan legislation ended an eight-year electric market deregulation and capped the electricity that could be sold competitively at 10 percent. According to a report by Continental Economics of New Mexico, between 2008 and 2012 electric residential rates have increased 47 percent for Consumers Energy residential ratepayers and 28 percent for DTE Energy residential ratepayers. Rates for industrial ratepayers increased 35 percent and 18 percent, respectively. These increases occurred at a time when wholesale electric rates in Michigan decreased by 45 percent. DTE and Consumers have responded to the report by explaining the rate increases have paid for environmental improvements and other long-term upgrades.  See http://www.freep.com/article/20120822/NEWS15/308220120/Electric-rates-soar-but-utilities-say-they-fund-green-energy-initiatives,

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