MichCon officials announced a successful beginning to its pilotprogram yesterday, with 70,000 of their 75,000 eligible customerschoosing a newly introduced competing supplier in the first year ofa three-year program. Stephen E. Ewing, the president of theMichigan gas utility, said the results prove customer choiceprograms can work for the entire state.

The pilot program was approved by the Michigan Public ServiceCommission (MPSC) in April 1998 and allows 75,000 customers to signup each year until 2001, amounting to a total of 225,000 eligibleresidential and small commercial customers. Seven suppliers,including Columbia Energy, Consumers, and Energy America (A SempraEnergy affiliate), will take part in this program.

The way the program is designed, there are enrollment periods ineach of the three years; the first ended on May 15. The nextsign-up period for MichCon customers to choose their gas supplieris November 1.

MichCon’s program is one of three in Michigan and the resultsare viewed as an important step in building the state’s futureenergy marketplace. Consumers Energy and Semco Gas also haveongoing three-year pilot programs. Like MichCon, Consumers Energysaid results from its program have exceeded expectations. In thefirst year of the Consumer pilot, 100,000 customers switched awayfrom the gas utility. It is currently in the second sign-up periodas well.

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