The process

The process

To change its electric rates, a regulated company such as Consumers Energy must go through a process that resembles a trial. Here's how it works.

The utility files an application for a rate change.

Public hearings are scheduled and advertised. Prior to the hearings, anyone can file a petition to participate, the Public Service Commission auditors review the applicants' records and the rate request is reviewed.

The utility company presents its case in a courtroom in front of an administrative law judge. The PSC and parties to the case present evidence and witnesses, questions are asked and answered.

The judge issues a decision.

The commission issues its opinion and order.

Parties may appeal the order to the PSC or the court.

Source: Michigan Public Service Commission

What exactly am I choosing?

The supply chain for electricity is broken into three components: generation - where and how the electricity is produced; transmission - how it gets to the neighborhood; distribution - the lines that bring the electricity to your door.

Electric choice lets you pick the company used for the generation portion of the chain, but not transmission or distribution.

Electricity will still be delivered through your local utility, such as Consumers Energy.

Lansing Board of Water & Light customers are not eligible for choice. Municipal utilities will not be forced to participate until 2007.