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MARCH 2004

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Why Michigan’s electric deregulation law is<br />

bad for us and bad for you.<br />

We’ve been responsible to<br />

the people of Michigan for over a<br />

hundred years. And in all that time<br />

we’ve never cried wolf. But now the<br />

wolf is at the door. Because of flaws<br />

in the electric deregulation law,<br />

Public Act 141, out-of-state companies<br />

are coming in, snatching up the<br />

biggest electricity customers and<br />

leaving the rest of us to pay the price<br />

to keep the entire system running.<br />

These outside companies<br />

don’t care about homeowners or<br />

small businesses. There’s not<br />

enough profit there. In<br />

fact, the law says<br />

out-of-state suppliers<br />

don’t<br />

have to serve<br />

low-income customers or senior citizens<br />

or first-time homebuyers or people<br />

out in rural areas. We do serve<br />

them, of course, we always have.<br />

PA 141 says we must cover<br />

the entire cost of the electric system—all<br />

the power plants, a million<br />

utility poles, 42,000 miles of power<br />

lines—and all the people who make it<br />

work. The out-of-town suppliers don’t<br />

contribute fairly to the maintenance<br />

and upgrading of the system. That<br />

remains our responsibility. The reliability<br />

of that system is at serious<br />

risk. The only way<br />

we can properly<br />

support and sustain<br />

the electric<br />

system<br />

is to make up for the loss of revenue<br />

by increasing rates to homeowners<br />

and small businesses. We’re talking<br />

about rate hikes of up to 30%. Is that<br />

fair to you? No. But our hands are<br />

tied. It could come to a rate increase<br />

or a very real energy crisis.<br />

Michigan’s electric deregulation<br />

law was meant to stimulate competition,<br />

give everyone a choice and<br />

keep electricity affordable. It’s done<br />

none of those things.<br />

As the law stands, it just isn’t<br />

fair, not to you and not to us. It needs<br />

to be fixed. Help us change a law that<br />

simply doesn’t work. Log on to<br />

dteenergy.com and find out how you<br />

can help keep energy reliable and<br />

affordable for everyone.<br />

Anthony F. Earley, Jr.<br />

Chairman and CEO<br />

DTE Energy and Detroit Edison<br />

<strong>MARCH</strong> <strong>2004</strong> CHALDEAN NEWS 29

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