MI Electric Choice Continues Successful Bid Process
Detroit Edison reported that its unique bid-phased electric
choice program in Michigan continues to receive a positive response
from new participants using the system. The fifth and final bid
phase of the program showed that demand for capacity on its
distribution system again exceeded the amount of space available,
as the company received over 70 requests.
Bidders, which include power marketers, electricity customers
and other aggregated groups, bid on the opportunity to use the
Detroit Edison distribution system to transmit electricity from
Bids are collected and tabulated by the public accounting firm
of Rehmann Robson, which acts as an independent bid administrator.
The Michigan Public Service Commission also oversees the entire bid
Starting with the first phase, which began in August 1999, and
in each of the next four phases leading up to Jan. 1, 2002, Detroit
Edison and Consumers Energy have opened a portion of their
transmission infrastructure capacity to competitive providers.
Currently, the company has opened up 1,125 MW, or more than 12%
of its capacity to more than 40 customers wishing to choose an
alternative supplier. The list includes Meijer, the University of
Michigan-Ann Arbor and North Star Steel.
The company said Michigan's bid-phased format was unlike other
electric deregulation efforts in other states. The five-phase
approach allowed Detroit Edison to ease its way into the program,
and correct things along the way. The company remains responsible
for the upkeep and distribution reliability of the electric system.
"Michigan and Detroit Edison have developed an electric choice
program designed to be fair to all energy users," said James
Gessner, Detroit Edison Electric Choice Program manager. "It will
be the benchmark for other states and utilities because customers
and other participants will experience a seamless transition to
full statewide electric choice in 2002."
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