Constellation NewEnergy Urges Michigan Senate to Preserve Electric Choice for Consumers
August 04 2004 - 11:25AM
PR Newswire (US)
Constellation NewEnergy Urges Michigan Senate to Preserve Electric
Choice for Consumers (The following statement can be attributed to
Robert J. Korandovich, Vice President, Constellation NewEnergy)
BALTIMORE, Aug. 4 /PRNewswire-FirstCall/ -- Today the Senate
Technology and Energy Committee begins review of the package of six
bills which would amend Michigan's Electric Choice law, Public Act
141. While we are just at the beginning of this process, it's
critically important that committee members, the Legislature and
the public understand what's at stake. These legislative proposals
would turn back the clock on electric choice in Michigan, with
sudden and dramatic results - a return to some of the highest
utility rates in the nation. The proposed bills should be summarily
rejected by the committee. First and foremost, electric choice in
Michigan works. It has saved an estimated $100 million in
electricity supply costs for approximately 18,000 customer
accounts, representing more than 3,500 MW of peak usage. Choice has
introduced healthy competition into a regulated, monopolistic
market and the results speak for themselves. Choice means
competition. Competition means savings and improved reliability for
customers across the state. The law is not broken, and there is no
need to fix it. Competition has also fostered the building of new
generation facilities to fill the supply gap for some Michigan
utilities, which have reported inadequate generation resources to
meet peak requirements. The proposed legislation would effectively
gut electric choice in our state, and there would be severe
economic repercussions for the 18,000 commercial and industrial
customers already choosing a provider and contemplating switching
to competitive supply. If the law is rescinded or watered down,
commercial and industrial ratepayers will return to some of the
highest electricity rates in the nation and their $100 million in
cost savings will migrate to Detroit Edison and its shareholders.
This committee will hear from our state's business community, which
is speaking with a virtually unified voice. Commercial and
Industrial rate payers have realized dramatic cost savings through
electric choice and they are demanding that it be preserved. There
are a number of outstanding issues that need to be resolved
regarding the long-term future of electric restructuring in
Michigan, and Constellation and others began a dialogue well over a
year ago with the Michigan Public Service Commission to begin
addressing those issues. The MPSC, not the Legislature, is the
appropriate forum for resolution. Constellation NewEnergy
(http://www.newenergy.com/), a member of Constellation Energy
(NYSE:CEG), is a leading competitive supplier of electricity,
natural gas and energy related services to commercial and
industrial customers throughout North America. Constellation
NewEnergy operates in all competitive energy markets throughout the
United States and Canada, providing products that enable customers
to effectively manage and control energy costs. Constellation
NewEnergy's regional expertise coupled with its national presence
provides customers with customized energy products and services
while leveraging the assets of one of the strongest integrated
energy companies in North America. Constellation NewEnergy, based
in Baltimore, serves more than 8,000 commercial and industrial
customers throughout 31 states and 3 Canadian provinces
representing more than 8,000 megawatts of peak load and more than
300 billion cubic feet of annual natural gas consumption.
Constellation Energy, a Fortune 500 company based in Baltimore, is
the nation's leading competitive supplier of electricity to large
commercial and industrial customers and one of the nation's largest
wholesale power sellers. Constellation Energy also manages fuels
and energy services on behalf of energy intensive industries and
utilities. It owns and operates a diversified fleet of 35 power
plants in 12 states. The company delivers electricity and natural
gas through the Baltimore Gas and Electric Company (BGE), its
regulated utility in Central Maryland. In 2003, the combined
revenues of the integrated energy company totaled $9.7 billion.
DATASOURCE: Constellation NewEnergy CONTACT: Larry McDonnell of
Constellation NewEnergy, +1-410-230-9858 Web site:
http://www.constellation.com/ http://www.newenergy.com/ Company
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