Electric Deregulation


Electric Industry Restructuring Resolution
(Approved February 24, 1998)

Resolved, That the Lansing Board of Water and Light Commissioners endorse the following fundamental industry restructuring principles in protection of both the industry and the consumer:

1. We support competition that encourages the maximum number of competitors and protects the right of communities to form their own utilities.
   
   
2. The safety, integrity and reliability of the electrical system must be preserved.
   
   
3. Anti-competitive behavior must be prohibited both during and following the transition.
   
   
4. The new industry structure must not tolerate market dominance by a limited number of competitors.
   
   
5. Local control of the municipally owned electric system must be preserved.
   
   
6. Consumer protection must be a priority; i.e.:

   a. Advertising and solicitation standards must be fair and equitable in advising the consumer of the actual cost and rate charged, including but not limited to taxes and stranded costs.

   b. The consumer must opt in, by writing, that their name, address and/or telephone number may be utilized by competitors or others in providing information for making an alternative choice for utility services.

   c. No switching of services shall occur unless the consumer notifies the utility in writing of the change.

7. The Michigan electric utility industry must maintain or enhance environmental performance.
   
   
8. No new taxes. The tax status of public power is critical to its nonprofit public character. Public Power uses its tax status to keep consumer costs down.
   
   
9. All utilities participating in an open power supply market should have the opportunity to recover just and reasonable, verifiable and prudently incurred stranded costs arising from past decisions. Utilities have the obligation to take all reasonable measures to mitigate such costs.
   
   
10. The competitive environment must be fair and consistent to all participants.
    
    
11. The Board opposes a federal mandate on states and localities to implement retail choice.
    
    
12. Existing private use rules for existing facilities are a significant impediment to the transition to a restructured electric industry. For existing facilities and outstanding bonds, these private use limits should no longer apply. Entry into a competitive environment must not negatively impact the tax-exempt status of outstanding municipal bonds.