Michigan is about to allow customer choice in the electric power market and, by doing so, end nearly a century of monopoly protection and guaranteed profits for electric utilities. How the state makes this free market transition will impact Michigan's competitiveness and cost of living. The report reviews key decisions before the legislature; analyzes the Public Service Commission proposals; shows the technical, environmental, and economic impact of deregulation; compares Michigan to other states; and recommends ten specific actions to ensure fair, timely, and comprehensive customer choice. The effects of so-called stranded cost payments to utilities are assessed in detail. A four-page glossary of technical terms is included. 33 pages.
The Mackinac Center for Public Policy is a nonprofit research and educational institute that advances the principles of free markets and limited government. Through our research and education programs, we challenge government overreach and advocate for a free-market approach to public policy that frees people to realize their potential and dreams.
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