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Michigan Energy Choice >
Changes to Your Energy Bill:
Questions and Answers
- Why do the electric charges look different on my bill?
- The electric charges on your bill are separated into two parts-local
distribution service and electric supply service. Although the
charges are split, the total amount of your bill has not changed
at this time. In the future, if you choose an Alternative Energy
Supplier as part of the new Michigan Energy Choice program, the
electric supply service portion of your bill may change. The local
distribution service charges will not change.
- What is the difference between local distribution service and
electric supply service?
- Local distribution service is the delivery of your electricity
directly to your home by your local utility, Upper Peninsula Power Company. This delivery service includes reading your meter, responding
to emergencies and maintaining the power lines. These services
will remain the same. Electric supply service is the actual generation
of electricity. With the new Michigan Energy Choice law, you may
have the option to choose the company that provides you your electric
supply. If you choose a different supplier other than your local
utility, this part of your bill may change.
- Am I paying more for the services I'm receiving?
- If you do not change electric suppliers, your total electric bill
will not change. If you choose an Alternative Energy Supplier,
your electric supply service rate may change. Your local distribution
service rate will not change.
- Why is this change being made?
- This change is being made to help you better understand the separate
costs of electric supply and delivery. With the beginning of the
Michigan Energy Choice program in January, the Michigan Public
Service Commission and the utilities want you to understand the
difference between electric supply and delivery costs. Separating
these costs will help you see how the choices you make in the
future affect your total bill.
- If I choose an Alternative Energy Supplier, will I get two separate
bills?
- Yes, your Alternative Energy Supplier will
issue a bill for your electric supply. You will still receive
a bill from Upper Peninsula Power Company for your electric delivery
service.
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