Plug into big savings with Electric Choice

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Electric Choice enables many members to save substantially on electricity costs by switching from Detroit Edison or Consumers Energy to Quest Energy, one of the alternative suppliers authorized to operate in the state's newly deregulated electric industry.

A majority of new participants in the MRA program are saving 10 to 20 percent on their electric bills, with some saving as much as 30 percent.

"In this tough economic climate, retailers need to reduce operating expenses any way they can," said James P. Hallan, MRA president and chief operating officer. "Cutting your business electric bill goes straight to your bottom line."

Although full electric deregulation didn't take effect until January 1, MRA was a year and a half ahead of the game, launching its Electric Choice program in mid-2000 in a partially deregulated climate.

At first a number of roadblocks appeared in implementing the program, as traditional power companies and alternative suppliers adjusted to the new environment. Members who transferred to Electric Choice faced long delays before having their service switched and sometimes received multiple bills.

MRA complained to the Michigan Public Service Commission and temporarily stopped recruiting new participants in early 2001 until the problems were fixed. Existing participants were transferred from the original supplier, DTE Energy Marketing, to Ann Arbor-based Quest Energy, which worked with MRA and the utilities to get the Electric Choice program running smoothly.

With the difficulties resolved, MRA relaunched Electric Choice in October and now has more than 30 members participating, with some 50 store locations.

"The time between signing the contract and the actual switchover to Quest now should be no more than six to eight weeks," said Hallan. "Most of that waiting period involves the time required for the original power company to install a new meter that can be connected to a phone line for remote readings."

The Association is beginning an intensive marketing push for the program in the new year.

"This is one of the most exciting new services MRA has introduced in recent years," said Hallan. "Switching to Quest Energy involves minimal cost and effort on the part of the retailer and results in immediate savings. We would like to see large numbers of retailers taking advantage of this great opportunity."

Electricity cost under Quest service is projected to be less than nine cents per kilowatt-hour, though members' savings will vary based on their power needs and usage patterns. Quest takes into account usage at off-peak hours (evenings and weekends) to maximize participants' savings. Members can lock in their low rate on a three-year contract to guard against future cost increases.

To find out how your business can begin saving under MRA's Electric Choice program, contact MRA's Robin Gregory at 800.366.3699 or rsgregory@retailers.com.

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