Does this legislative package end rate skewing for business customers, forcing residential customers to pay more?
One part of the energy package is designed to make Michigan more attractive to business by requiring electric rates to reflect the cost of service. Today, businesses pay more than the cost of serving them and residential customers pay less. In other words, businesses subsidize residential customers with higher rates. Energy costs are a major consideration for businesses that are thinking about expanding in Michigan or coming to the state. The higher rates for business discourage investment and job creation in Michigan. The pending legislation would phase out that subsidy over five years in order to minimize the impact on individual customers.
