Michigan Attorney General Prevents Ratepayers from Paying $20-Million Forced Subsidy to For-Profit Energy Companies

26 November 2005

Attorney General Mike Cox announced today that the Michigan Court of Appeals issued an opinion earlier this week agreeing with his office's position that it was unlawful for the MPSC to force all customers of Consumers Energy to subsidize for-profit energy suppliers. On November 22, 2005, the Michigan Court of Appeals granted Attorney General Cox's appeal and reversed a May 2004 MPSC order that permitted Consumers Energy to charge all its customers a $.05 per meter per month surcharge to subsidize buying electricity for the next 20 years from renewable energy suppliers. Set to begin January 1, 2006, this subsidy if allowed would have totaled well over $1 million per year for Michigan ratepayers. "In these tough economic times, I will do everything I can to protect Michigan ratepayers from paying increased utility costs. Michigan ratepayers should not be forced to subsidize for-profit energy companies," stated Cox. "I support using renewable energy facilities to supply electricity so long as retail customers are given a choice whether they will voluntarily agree to pay these additional costs. The Public Service Commission does not have the statutory authority to force this subsidy on ratepayers, and I am happy the court agreed with our position." In its ruling, the Court of Appeals agreed with the position of the Attorney General's office that the Public Service Commission exceeded its authority by forcing customers to pay a forced subsidy to for-profit energy companies. The $.05 per meter per month subsidy which quickly adds up to over $1 million per year for Consumers Energy's 1.7 million customers, was ruled unlawful and outside the Public Service Commission's statutory authority by the Court of Appeals in Wednesday's ruling. Attorney General Cox has appealed another order by the MPSC that created an additional $5 million per year subsidy for renewable energy projects. "In these cases, I have been concerned about rate subsidies for ratepayers and other potential rate increases for ratepayers that will result from the Commission's orders. In the face of other pending rate increases requested by Consumers Energy, my office is doing everything it can to minimize the impact of high gas and electric monthly bills for retail customers. People in Michigan work too hard to have these unfair, skyrocketing electricity costs imposed on them," said Cox.

Source: PR Newswire

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