Michigan Regulatory Landscape
Michigan Electric Restructuring Legislation passed in 2000
- Contained a measured approach to restructuring -- no forced generating asset sales
- Allowed Detroit Edison to recover $1.75 billion in stranded costs for the Fermi 2 nuclear plant
- All customers received 5% rate reduction/fuel cost recovery mechanism frozen
Detroit Edison
- All customers able to choose alternative electric suppliers as of 1/1/2002
- Residential rates frozen through 2003; capped from 2004- 2005; subject to normal ratemaking thereafter
- Commercial and Industrial rates frozen through 2003; subject to normal ratemaking thereafter
- Current ROE of 11-12%; no income sharing or cap
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MichCon
- Gas Cost Recovery pass-through mechanism reinstated in January 2002 after a three year commodity rate freeze
- Current ROE of 13-14%; no income sharing or cap