KEY LEGISLATION:
Electric Choice
Legislation Introduced –
As Bad as Expected for Retail
A long-anticipated package of bills introduced last
week would eliminate
electric choice for virtually all retailers in Michigan. If passed,
the
changes would be severely detrimental to the retail industry.
According to estimates, Senate Bills 1331-1336 would
make 95 percent of DTE
and Consumers Energy customers pay more than they would if the bills
were
not passed. The bills also threaten to kill opportunity for competition
and
increase profits for the two major utility companies.
DTE rates are already 40 percent higher than the average
rate in Indiana, 24
percent higher than the average rate in Ohio, and 21 percent higher
than the
average rate in Illinois. The cost of electricity is a critical component
of
production of manufacturers, and because electricity in Michigan is
the most
expensive in the Midwest, increasing costs will only further hurt business
and slow job expansion in Michigan.
The proposed bills include a mandatory 10-percent rate
reduction for K-12
schools. "This package admits Michigan's electric bills are too
high by
providing mandatory rate cuts for K-12 schools," said Eric Rule,
director of
government affairs for Michigan Retailers Association. "However,
the rest of
Michigan's consumers are left to cover the bill by paying higher rates.
Small businesses and manufacturers deserve the same cuts offered to
schools."
Businesses across the state, both large and small, have
been saving 10 to 20
percent on electric bills, thanks to electric choice legislation passed
in
2000. Collectively, MRA’s electric choice program is saving retailers
$1
million a year in electric costs. This translates into an average savings
of
$4,000 per year for each retailer.
The DTE legislation would eliminate electric choice
for retailers that
generate under 1 megawatt of electricity per meter per month. Since
even
stores the size of Wal-Mart do not use this amount of electricity, it
is
clear that almost every retailer in the state would be excluded from
taking
advantage of electric choice.
Michigan Retailers Association has been actively following
the DTE
legislation and is strongly opposed to the proposed changes. Retailers
are
encouraged to get involved in the legislative process through the Voter
Voice network. Retailers can access voter voice through the MRA’s
Website at
www.retailers.com. By clicking on the government affairs tab and selecting
the "get involved" tab, retailers can contact their own legislators
with
prepared letters of opposition.
Session Update
The Michigan legislature is now meeting only on Wednesdays
during the summer
session in order to try and finalize budget plans before completely
breaking
for the summer. According to Governor Granholm, the current budget proposal
is still $40 million dollars short of the amount required to balance.
In an effort to balance the budget, the Senate passed
an increase in the
Detroit casino tax from 18-24 percent. The House rejected the bill after
previously passing an 18-36 percent tax hike. The bill now proceeds
to
conference committee where negotiations on the package will no doubt
take
into consideration the Racino package that Speaker Rick Johnson is
aggressively advocating.
As a way to make up the remaining revenue needed for
the budget, Governor
Granholm continues to push for a 5-percent Michigan-specific estate
tax.
Republican leadership and rank and file members have fiercely opposed
this
legislation. MRA has also voiced its strong opposition to such a move,
as it
would severely penalize many retail
KEY BILL INTRODUCTIONS:
No Key Bills to Introduce at this time.
To view the content and current status
of retail-related bills, visit BillTrack,
MRA's legislative tracking database exclusively for members, at
www.retailbilltrack.com
If you are currently receiving Capitol F@cts by fax
and would like to receive
it via e-mail, please contact Kathleen Wilson at 517.372.5656 or
kawilson@retailers.com.
For back issues of online Capitol F@cts, visit MRA's main Capitol F@cts page.
Specific comments or questions regarding this bulletin
should be directed to:
Kathleen Wilson, Administrative Assistant to the Governmental Affairs
Office at
kawilson@retailers.com.
Michigan Retailers Association
603 South Washington Avenue
Lansing, MI 48933
517.372.5656
Toll-Free: 800.366.3699
Fax: 517.372.1303
govt_affairs@retailers.com
www.retailers.com
www.mallofmichigan.com
