Survey suggests downsides to more Michigan utility dereg

Oct 24, 2013

Ken Sikkema says Michigan officials should consider the experiences of other states before pursuing deregulation.
Credit Public Sector Consultants

Earlier this week we spoke with Michigan Public Service Commission Chair John Quakenbush about draft reports published to guide Michigan’s energy future. One of many of the issues addressed in the report was electric choice and the deregulation of utilities.

In deregulated markets consumers are allowed to choose their utility supplier, but a new report suggest deregulation may not be the right choice for Michigan.

Ken Sikkema is a senior policy fellow at Public Sector Consultants. Their report details some of the drawbacks faced by states that have deregulated. Sikkema says rates are on average 30% higher in deregulated states when compared with states that have regulated markets.