Posted on 03/03/2014 7:46:12 AM PST by MichCapCon
A new commercial is attempting to make Michigan residents fear electricity deregulation.
It claims that Texas "decided to experiment with deregulating their electricity," and subsequently, prices "shot through the roof" and "blackouts threatened communities." It then tells that a proposed bill in this state that would "deregulate Michigan's electricity."
Michiganders need not fear, however, for this commercial is charged with only half-truths.
For starters, state policymakers are not considering electricity deregulation. The cited legislation — Rep. Mike Shirkey's House Bill 5184 — merely lifts the cap on the portion of consumers who would be able to choose an alternative electricity provider (other than the one assigned to them by Michigan's current monopoly system). The electricity market in Michigan would remain just as regulated as it is now. The state would still control which utilities could operate and would continue to regulate rates, among other things.
The use of Texas as an example of failed deregulation due to its impact on prices in the Lone Star State is puzzling. As outlined in a recent report by the Michigan Public Service Commission, the average residential retail price of electricity in Michigan increased faster than Texas's over the last decade and remains significantly higher. Texas's rates were about eight cents per kilowatt hour in 2000 and about 11 cents in 2013. Michigan's rates were about 11 cents per kilowatt hour in 2000 and increased to almost 15 cents in 2013, the highest in the Midwest region and 11th highest in the nation.
If the deregulated Texas rates "shot through the roof," it might be said that Michigan's monopoly rates rocketed through the stratosphere.
By artificially blocking potential competitors from the electricity market, current Michigan law enriches the state's two largest utilities — Consumers Energy and DTE. It should come as no surprise that these electricity providers will fight to maintain their privileged status. But this debate should focus on what's best for consumers, not just providers.
And as Mackinac Center for Public Policy Scholar Ted Bolema recently argued, the facts are that consumers are best served when electric utilities have to compete for their business, just like consumers are better off now that they have a wide selection of telephones and television providers.
Blackouts?
No, the only reason Texas will have a blackout is because Obama shut down at least 4 coal-burning power stations.
A mistake Texas made was falling for the environmental/government bait of wind power. In a really cold winter such as the current one, wind turbines simply stop, forcing the Texas grid to call on consumers to turn their thermostats to 66 this morning to keep the grid functioning. In 2011, we were forced to buy power from Mexico, and that bunch of thieves/hyper-capitalists charged an exorbitant rate, which consumers paid for, of course.
In Ohio my change from the local utility’s standard rate to another generator has dropped my rate per kWh from 9.7¢ to 5.7¢. That saves me about $30 per month.
Yeah that’s another issue for Consumers. They’re afraid of losing subsidies for renewable energy if their market share shrinks.
Seems like that should be easy enough to confirm or refute.
Ah. The science is settled. The debate over.
I remember when I lived up there (late 60s) they would give you a free light bulb for every burned out one you turned in.
Consumers energy is especially aggressive here in Jackson county where they own city and county government. Last fall they dropped a line on top of another and set my neighbor’s house on fire and burned up all my appliances, computers etc.
First they tried to charge me a thousand dollars for their surge and I’m still fighting to get them to pay for all the crap they destroyed.
Sorry to hear that. Give ‘em hell.
Just like Austin building the huge solar farm in the Webberville area. Prices shot up, but they voted to have "green energy" a few years ago and deserve the consequences.
By Democrat design.
At what point does a nat gas fueled home power plant get economically viable?
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