Detroit Edison Seeks to Offer Value-Add Flat Bill Pilot

Detroit Edison has filed at the Michigan PSC to offer a pilot flat bill (termed fixed bill by Detroit Edison) program to residential customers.

The fixed bill program would be available to customers on Rates D-1 and D-1.3, under a 12-month commitment, and limited to 5,000 participants.

Under the fixed bill pilot, Detroit Edison will estimate kWh usage for the ensuing 12-month contract period based upon a customer's historical metered usage, adjusted to reflect normal weather and expected increase in usage. The applicable usage charges included in the customer's rate schedule at the beginning of the contract period will be applied to this annual kWh amount. The resulting sum will be increased by a risk adder not to exceed 10%. Applicable service charge(s) will be added, and the total will be divided by 12 to establish the fixed bill monthly charge.

Detroit Edison may terminate a customer's participation in the fixed bill program if the customer's actual usage in a given month is 50% greater as compared to the same month the previous year, excluding the effects of weather.

There would be no reconciliation or true-up of costs under the fixed bill program.

For a subsequent 12-month period, fixed bill offers would be updated based on the prior-year consumption, and contracts will automatically renew for the following year, unless the customer notifies the utility.

If the customer withdraws from the fixed bill program prior to the end of the 12-month period, the customer may be charged for the difference if the amount paid under the fixed bill program is less than what the customer would otherwise have paid under standard tariff rates. No credits or refunds for early termination will be given if the fixed bill payments are greater than what the customer would have paid otherwise under the standard tariff.

In addition, customers leaving the program prior to the end of the 12-month term will not be allowed to rejoin the program for a period of 12 months.

Case No. U-17054