Surcharge to be Added to Detroit Edison Default Service Bills for Reconciliation of Choice Incentive Mechanism

The Michigan PSC approved a reconciliation of Detroit Edison's choice incentive mechanism (CIM) for the period from January 1, 2011 through October 28, 2011, which will see a surcharge placed on default service customers' supply rates.

The choice incentive mechanism is designed to provide Detroit Edison (or return to customers) lost (excess) non-fuel revenues due to increased (decreased) choice sales.

The choice incentive mechanism surcharge will be implemented over a 10-month period beginning March 1, 2013 through December 2013.

The 2011 CIM surcharge for select rate classes is below; the surcharge for all rate classes may be found on page 10 of the PSC's order (click here).

D1 Residential: 0.2307¢/kWh

D3 General Service: 0.1909¢/kWh

D3.2 Educ. Inst.: 0.1909¢/kWh

D4 Large General Service: 0.1909¢/kWh

D6 Primary Supply: 0.1200¢/kWh

D6.2 Educ. Inst.: 0.1200¢/kWh

D10 Schools: 0.1200¢/kWh

Customers on EC2 Retail Access do not pay the CIM surcharge.