This month the Michigan Public Service Commission released their 2010 report on the status of the state?s electricity market. The report showed an increase of 38 percent in the number of customers choosing their power suppler over the past year. More than 8,500 businesses and residents have taken advantage of electricity choice.

In 2008, Michigan legislators handicapped electric choice by imposing a 10 percent cap on the number of customers that could shop for electricity. Consumers Energy and Detroit Edison, the two major default utilities, reached their cap within ten months. Today, over 2,000 industrial and commercial customers are in the ?que? waiting to exercise their right to choose.

It?s clear that Michigan has outgrown its ill-conceived cap in a short two years after it was implemented. With such an obvious demand for choice and 23 suppliers to choose from it should be clear that any cap, let alone such a small one, is holding back business in the Great Lake state.

This past spring, Rep. Tom McMillin introduced legislation to increase the cap to 25 percent. Despite lots of media attention the bill never made it to the Governor?s desk. But this time, Republicans control the both the Governor?s mansion and the State House. With the reshuffling of power, Rep. McMillin predicts that the state will see relief from the cap within the next six months. It?s a hopeful statement and backed up by the entrance of two new Alternative Electric Suppliers in 2010, Geary Energy, LLC and DPL Energy Resources, Inc. These developments all indicate Michigan could soon unleash the power of competition once again.

So what?s stopping Michigan from allowing companies to exercise their right to choose? The current default utilities are wary of the uncertainty associated with the open market. Consumers Energy is set to make major infrastructure investments, including the building of new power plants, and is unwilling to let go of their captive ratepayers who give them a guaranteed return on their investment.

It?s clear these companies have been operating in a state sanctioned monopoly for too long and should be subject to the same risk taking that other companies entering the marketplace operate under. Any widespread improvements to the transmission or distribution network should be passed on to all ratepayers but investing in new generation plants when there are many alternative suppliers looking for business may not be the best use of resources.

Let?s hope the 2011 electricity report focuses on the expansion of competition and savings spurring more growth in Michigan?s recovering economy.