Energy Deregulation in Michigan
MI Deregulated energy services: Electricity (limited) and natural gas.
MI Deregulated electricity service territories: None, deregulation enacted but there are no electricity provider options as of 2022.
MI Deregulated gas service territories: Consumers Energy, DTE Energy, Michigan Gas Utilities, SEMCO Energy Gas Company.
Legally, both electricity and natural gas are deregulated in Michigan: electricity was deregulated in 1998, and natural gas was deregulated in 2008. However, electricity retailers are only allowed to cover 10% of the sales volume in a utility’s service territory, which means the competitive market is very small. In other words, utility companies are guaranteed 90% of sales in their respective service territories.
- Generally, the percentage of sales that can come from electric choice has already been negotiated well in advance. There are thousands of customers in the queue if you want to choose an electricity provider in Michigan.
- Most participants in the deregulated electricity market are large commercial and industrial consumers. The 10% deregulated electricity sales volume is used up by only 0.5% of customers, and the average homeowner does not have access to electricity choice.
Choosing a gas provider is much easier since the market does not have a restrictive sales cap: almost half a million Michigan households have participated in the market. Alternative gas suppliers operate under oversight from the Michigan Public Service Commission, and you also have the option of staying on the regulated gas tariff.
Gas deregulation was implemented gradually in Michigan. At first, only large consumers could choose their gas providers, but the program was soon expanded to homeowners and other small consumers due to its success.