The Michigan Senate has passed SB 437, which electric choice advocates have said will effectively kill electric choice

Text of the bill as passed by the Senate was not immediately available

At a high level, the bill retains a generally applicable 10% cap on electric choice

However, SB 437 requires alternative electric suppliers to either make a multi-year forward showing of capacity (2 years, unless a shortage is determined, in which case the forward obligation is increased to 3 years), or pay a state-determined capacity charge (to compensate utilities for their capacity). The Senate rejected amendments which would have limited the types of costs included in the capacity charge applicable to retail suppliers, and independent audits of such capacity charges.

When a state compensation mechanism capacity charge was adopted at AEP's Indiana Michigan Power, choice sales dropped to zero.

See the stories below for more:

Detroit Free Press

The Detroit News

MLive