Michigan Orders Utility to Complete Delayed Switches to Retail Supplier

The Michigan PSC has ordered Wisconsin Electric Power Company to arrange for two customers, for which Wisconsin Electric was delaying switches to an alternative electric supplier, to be switched to choice service immediately.

The case, first reported by EnergyChoiceMatters.com in June, concerns two customers with non-tariff electric service agreements with Wisconsin Electric. These customers, who are seeking to take supply service from Integrys Energy Services, have since been revealed as Dickinson County Memorial Hospital and Northern Star Industries, Inc.

Wisconsin Electric had argued that the electric service agreements required advance notice of termination, and that choice service amounted to termination. Accordingly, Wisconsin Electric was delaying the switches for six months.

However, the PSC denied this interpretation.

The PSC noted that both agreements are explicitly "subject to the company's Rules and Regulations on file with the Public Service Commission of Michigan, and to such filed changes in the Rules and Regulations and the General Primary Rate Schedule as may become effective."

The Commission noted that it had previously found that the language of the eligibility requirements in a retail access service tariff cannot be used to unreasonably delay enrollment in choice.

"Filed tariffs have the force and effect of law," the PSC said.

"WEPCo's relationship with its customers is defined by its tariffs, and separate contracts may not be used to modify those tariffs," the PSC said.

"To the extent that the language of the agreements conflicts with the RAS-1 and Cp1 tariffs, the tariffs control the Commission does not find that the decision to switch constitutes termination of the agreements," the PSC said, ordering that the switches occur immediately.

Case No. U-17422