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Proposal 3 will immediately reduce rates for DTE residential customers

Passage would save families served by DTE almost $20 million a year for the next 20 years; current surcharges unfairly penalize residential ratepayers
Oct 8, 2012
DTE’s 1.9 million residential customers would see an immediate reduction in their electricity bills with passage of Proposal 3 – a savings of $16 each year.

DTE customers are paying $3 a month for renewable energy, but should only be paying $1.60 a month based on the power they use (residential customers use 36% of the electricity, but pay 69% of the surcharge).

Proposal 3 would eliminate the current system of per-meter surcharges that creates this unfair structure.

Consumers Energy’s residential customers would not be impacted, because their surcharge is only 52 cents, the appropriate amount based on their electricity use.

The Michigan Environmental Council released a report earlier this week projecting that the average cost to residential customers under Proposal 3 would be about 50 cents per month when utilities start to add to renewable resources in 2016. Costs would decline over the long term. “Over the life of program, DTE residential customers would see a rate reduction under Proposal 3,” said James Clift, Policy Director at MEC. “Even Consumers Energy’s CEO John Russell acknowledged that renewable energy is clean, reliable and affordable.”

MEC has been protecting Michigan ratepayers by intervening in Michigan Public Service Commission rate cases for the last ten years.

The utility front group CARE has claimed Proposal 3 will cost families “thousands” of dollars. This grossly misleading ad has no basis in reality and the utilities know it. MEC called on utility companies and the CARE coalition to withdraw the ads that grossly misrepresent the cost of renewable energy to Michigan families.

Section 3 of Proposal 3 states: Consumers shall be charged for electricity from clean renewable electric energy sources in the same manner and on the same basis as for electricity from other sources. This language would end per meter charges currently used to pay for renewable energy, and would end the unfair treatment of DTE residential customers. ###
Contact: James Clift, MEC: 517-256-0553
RELATED TOPICS: clean energy, renewable energy
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