Issue Background

Electric Choice

MASB opposes HB 4298 and SB 437 and continues advocate for schools’ ability to achieve a lower energy rate by participating in electric choice programs.

There are currently efforts underway in each chamber to eliminate the electric choice program that so many of us have been able to benefit from over the years. House Bill 4298 and Senate Bill 437 would systematically eliminate electric choice in Michigan by creating disincentives for schools to participate and increasing costs for AESs.

Current energy law allows up to 10% of an incumbent electric utility’s (such as Consumers Energy or DTE Energy) customers to take service from an alternative electric supplier. AESs currently serve electric choice customers all over Michigan, typically with substantial cost savings.

For instance, over the past two years, schools around the state have been able to save roughly $35/pupil for more than 540,000 students through participation in the electric choice program, saving our schools across the state over $17 million per year.

Eliminating electric choice could mean catastrophic school budget cuts across Michigan, as higher electric costs will take money directly out of the classroom.

Each bill has made it out of its respective committee and is currently stalled on the floor of each chamber.