Customer choice


Overview

As a Michigan customer, you have the option to buy electricity (power supply) from another provider and still have us deliver it to you. The program is called Customer Choice.

How it works

Traditionally, local electric companies have provided all components of electric service, including power supply and delivery.

Customer Choice allows you to purchase your electricity competitively at prices determined between you and an unregulated Alternative Electric Supplier (AES). You also have the option to continue to buy your electricity from us at prices regulated by the Michigan Public Service Commission (MPSC). Regardless of who produces the power supply, delivery continues to be through us at prices regulated by the MPSC.

To make Customer Choice possible, we separate, or "unbundle," our electric bills to show the prices charged for each component:

  1. Power Supply: Production + transmission of electricity
    • Production: generation (or purchase) of electricity produced at a power plant.
    • Transmission: transporting electricity over high voltage power lines from generation sources to local distribution systems.
  2. Distribution: delivery of electricity (power supply) to homes and businesses, and providing other customer services such as meter reading and billing.

Breaking out the power supply and distribution components separately allows you to compare electricity prices regulated by the MPSC with market-based prices that may be offered by competitive suppliers.

If you choose an AES, delivery of electricity to your home or business will not change. We will continue to:

  • Operate and maintain the poles, wires and transformers that deliver the electricity to your home or business.
  • Own and read your electric meter and provide various customer services.
  • Respond to power outage reports and other electric emergencies.
  • Bill you for distribution and customer services, even if you switch to an AES.
  • Provide you with the same high level of customer service, regardless of your electricity supplier.

If you choose to be served by an AES, you will typically receive two electric bills — one from the AES for production and transmission, and one from us for delivery.

For more information