California’s Energy Crisis: Can It Happen Here?
Just For BWL Customers: A Special Deal on Lugnuts Tickets
 

Even in the midst of a harsh Michigan winter, Greater Lansing residents are opening their newspapers and giving thanks that they don’t live in California.

The news has been full of horror stories lately about electric utility bills in California that have doubled or even tripled over the last year; about energy shortages and rolling blackouts; and even about rumors of California’s biggest electric companies going bankrupt.

The big questions—What on earth is going on, and could it happen here?


California was one of the first states in the country to deregulate its electric utility industry. The concept was that if customers could choose their own energy supplier rather than being forced to take service from their existing utility, lots of suppliers would enter the market and competition would bring prices down. 

In California, the opposite has happened, and the failure of deregulation to deliver on its promises has lots of people asking questions and pointing fingers. There are many reasons behind what happened in California, but the basic problem is that the industry was deregulated before there was a balance between supply and demand. In short, there wasn’t enough electricity to go around, and when that happened, prices went through the roof.


Last year, the Michigan Legislature passed its own set of electric restructuring bills. They give the Michigan Public Service Commission (MPSC) until 2002 to establish rules that will allow customers of investor-owned utilities like Consumers Energy and Detroit Edison to choose their own power supplier. The power would continue to be delivered through existing lines by the utility already serving the customer.

There are significant differences between the deregulation bills passed in California and Michigan. Still, some are concerned that the two states could suffer a similar fate, and for similar reasons. Although some companies have announced plans to build new power plants, the margin between energy demand and capacity in Michigan is somewhat narrow, and there’s limited ability to import power from other areas.


The BWL is one of about 40 municipally-owned utilities in Michigan. Our owners are the citizens of Lansing. As a public power utility we exist to provide our customers with reliable, low-cost, not-for-profit electricity. 

When the Michigan Legislature debated the utility restructuring bills, the BWL and other public power utilities insisted that their governing boards be given the option to decide for themselves whether to play in this new deregulation game. Our Board of Commissioners has some time to decide whether to open up our service territory to outside suppliers. This will allow our Board to observe how Michigan’s new electric market develops so they can do what’s in the best interest of our utility and its customer-owners.

 BWL customers have another big thing going for them. We own our own generating plants and they have enough capacity to meet the energy needs of our customers for at least the next decade. That means we won’t be held hostage to wild fluctuations in the price of wholesale power. It also means we don’t have to rely on others for our electricity. Instead, we’ve concentrated on making our power plants more efficient so we can continue to supply our customers with the reliable, low-cost electricity you’ve come to expect.


In the midst of this long winter, warm summer nights may be hard to imagine, but Opening Day on April 5 is right around the corner and the 2001 season has something for everyone. Whether you’re a baseball fanatic or you just want to spend a fun, affordable evening close to home, a Lugnuts baseball game—with tickets starting at only $5.50 each—will be just your ticket to entertainment in Lansing. And to make the summer even more exciting, the Lugnuts have packed twelve spectacular LAFCU Fireworks shows into the schedule to light up the sky all summer long.


As a special bonus to Board of Water & Light customers, you have the chance to buy tickets to individual Lugnuts games before the general public! Just print out this Web site newsletter and take it to the Lugnuts Box Office between March 10 and March. If you prefer, you can even call the Lugnuts ticket office at 485-4500 to order by telephone.


Just give the box office representative your home zip code number when placing your order to qualify for early purchase options. As an added incentive, each order you place between March 10 and March 16 will enter your name into a drawing to win one of five autographed baseballs or the grand prize: a night for four in the owner’s suite!

Prizes will be awarded in April, so order early to get tickets to the hottest nights at Oldsmobile Park and your chance to win!

Winners will be notified in writing in April of 2001. Additional information on ticket prices, seating levels and special events should be directed to the Lansing Lugnuts at 485-4500 x 251.