|
|
Home >
Electric Rates >
Michigan Energy Choice >
Michigan Customer Education Charge:
Questions and Answers
Effective on bills beginning January 2002, customers
will see a new fixed monthly charge called Michigan Customer Education
Charge. This charge will apply to all customers.
- Please explain the new charge on my bill.
- The charge is to fund a public education program campaign called
Michigan Energy Choice. A new state law, the "Customer Choice
and Electric Reliability Act" (Act 141), created the education
program and determined the funding mechanism. The Michigan Public
Service Commission developed an overall program budget for the
entire state and allocated the program costs among the participating
utilities. The charge is 18 cents per meter, per month. When the
company has fully collected its allocated share of the total statewide
program costs, the charge will end. It is estimated the charge
will expire in approximately three years.
- How did this charge come about?
- Various states, including Michigan, have been considering the
restructuring or deregulation of the electric utility industry
in order to provide customers the opportunity, if they so desire,
to choose other suppliers of electricity instead of their current
electric utility. In the State of Michigan, customer choice became
effective January 1, 2002. To support customer choice, a statewide
education program is being developed. The money collected from
this charge will be used to fund this program so consumers can
understand and make decisions regarding their energy choices.
- Does the charge apply to customers of all utilities in Michigan?
- Not at this time. As a transitionary measure, there is a mandatory
freeze on the existing rates of Michigan's two largest utilities,
Consumers Energy and Detroit Edison, which will be in effect for
several years. Once the rate freeze is lifted, Consumers Energy
and Detroit Edison will begin collecting their portion of the
allocated costs. Municipal-owned utility systems and rural electric
cooperatives are not yet required to open their systems to customer
choice and will not, therefore, immediately participate in the
education program or collect money for funding. All others not
subject to a rate freeze must collect the customer education charge.
This includes Upper Peninsula Power Company.
- How much of this does the utility get to keep for its own use?
- All funds collected through the charge will be used to fund the
statewide customer education program. If the utility so chooses
it may provide additional customer information using its own funds.
- Please describe the Michigan Energy Choice education program.
- The program is expected to run for about a three-year period,
starting in 2002. It is designed to provide unbiased information
in describing the energy choices a customer may have and how customers
may select a provider wisely. Written educational materials, a
centralized call center with a toll-free telephone number and
a web site will be available for customers. The program will also
include advertising campaigns.
- Why is there a need for this type of public education program?
- Electric choice is a new concept to most Michigan residents.
The program will provide an unbiased and objective source of information
for the public who might be confused by the conflicting claims
of competing suppliers.
- Will this Michigan Customer Education Charge be the same for all customers?
- Yes. The charge for residential electric customers is 18 cents
per account, per month. For business customers it is 18 cents
per meter, per month.
- Is there a formal name for this charge?
- While there may be some variation among utilities when referring
to this charge, most will refer to the charge as the "Michigan
Customer Education Charge."
- How will the fee be shown on my bill?
- The charge will be identified in a separate line item on each
monthly bill.
- Will there be any changes to the monthly fee over the period it
remains in effect?
- No changes are proposed at this time. However,
the Commission order allows for the possibility of natural gas
utilities joining in the statewide education program. If this
occurs, there will be additional program costs and those gas utilities
would also pay an allocation of the total statewide costs. The
surcharge could be adjusted, probably downward, if the major gas
utilities join the program.
- Are there safeguards in place to assure that funds contributed
to the education program are used properly?
- An advisory group called the CHOICE Advisory
Council, along with the Commission, will oversee the education
program. Participating representatives include a cross-section
of interests, including residential customers, businesses, the
Michigan Attorney General, the Commission, competitive energy
suppliers and public utilities. Expenditures will be reviewed
on an on-going basis and the Commission will conduct an annual
reconciliation of the utility's payments to the program.
- Does the charge apply all year round?
- Yes, the charge is applied to each monthly bill during the
year.
- If I have more than one meter (summer cottage, business, residence,
etc.), will I be charged a second time?
- Yes. Every meter with a customer charge,
whether residential or commercial, is charged the monthly fee.
The only exception is where a single residential customer location
has more than one meter at that location. In that situation, only
one surcharge applies.
- If I'm low income, can I be exempted from this charge?
- No.
- Is the fee taxable?
- Yes, the fee is taxable.
- What happens if I refuse to pay this fee?
- As with any sufficiently large unpaid balance
on a customer's account, the account may be subject to bill collection
procedures and shut-off, just as for any other non-payment of
bills. We cannot cancel or waive any of the Michigan Customer
Education Charge.
- If I am having difficulty paying my bill and I qualify for public
assistance, will the new charge have any impact on the arrangements
I have already made with the utility?
- No. Customers should continue to work with their utility to make
payment arrangements.
|
