MIDLAND, Mich. — Michigan lawmakers should give more residents, businesses and institutions the option to choose who supplies their electricity before utilities spend billions on new energy projects and raise customer rates, according to a new Mackinac Center report.

Michigan’s Electric Customer Choice Program allows schools, businesses, hospitals, and households to choose a state-licensed company to supply their electricity. The program saves participating customers an estimated $185 million per year and has operated for more than two decades. But participation in the program is capped at 10% by state law.

The report estimates that raising participation cap from 10% to 30% could reduce utility spending as much as $8 billion. That could save customers millions of dollars by reducing the need to fund unnecessary utility projects through higher electricity rates.  More than 5,100 customers are waiting to participate in the existing program.

The new report, “Competitive Power, Affordable Rates,” finds that DTE Energy and Consumers Energy plan to build nearly 30 gigawatts of new generation, storage and other energy resources over the next two decades, at an estimated cost of $39 billion. Under the current model, those costs would be paid in part by raising electricity rates for customers.

Michigan households and businesses already pay the highest electricity prices in the Great Lakes region, making it especially important to reduce the cost of the state’s next wave of electricity investment.

“Michigan will need more power, but customers should not be stuck paying for every new utility project through higher electric rates,” said David Stevenson, author of the report. “Expanding electric choice gives more people the freedom to pick their electricity supplier and allow for more private investment to help meet Michigan’s growing electricity demand.”

The report recommends lawmakers:

• Raise the electric-choice participation cap to 30%.

• Account for alternative suppliers when utilities forecast future generation needs.

• Allow new and expanding electric load to use choice without increasing utility procurement obligations.

• Count qualifying alternative-supplier resources, including nuclear power, toward Michigan’s net-zero requirements.

• Act before utilities lock in a new generation investment cycle that will shape customer rates for years.

The full report, “Competitive Power, Affordable Rates: The Case for Expanding Michigan’s Electricity Choice Program,” is available HERE.