Legislators to push bills in final days

The Michigan Legislature enters the stretch run this week as it prepares to wrap up its two-year session in two weeks. And as usual, some of the most divisive issues have been left for the "lame duck" final days, in hopes the cooler, post-election atmosphere will help members reach agreement where none existed before.

And time is running out. Legislation not passed by the time lawmakers officially adjourn for the year late next month will die, and have to be reintroduced next year to begin the tortuous journey to passage all over again.

The top issue in the Senate this week is electric deregulation, a fancy title for a plan to let Michigan residents shop around for their electric power. It would expand on orders already issued by the state Public Service Commission.

"We've got an excellent bill," said Sen. Mat Dunaskiss (R-Lake Orion) chair of the Senate Technology and Energy Committee which approved the legislation last week.

"I think we're very close (to an agreement)," he said. "I think this is the No. 1 legislative priority. We'll be one of the leaders in the nation if this bill passes."

If it must start all over again, he said, "It will be a real shame. If we do nothing, we do have deregulation in the state in the state of Michigan" through the PSC orders.

Under the bills now before the Senate, 7.5 percent of each utility's annual peak load would be able to choose an alternative electric supplier within 60 days of the new deregulation laws taking effect. That percentage would rise in steps until all electric customer would have that choice by Jan. 1, 2002.

The legislation also would:

n Freeze rates at the 1998 level until 2003. The Michigan Chamber of Commerce wanted rates limited, not frozen, to permit them to drop if needed.

n Authorizes a code of conduct relative to utilities and their affiliates sharing resources and information. Some small businesses, such as construction firms, worry that utility subsidiaries could steal their business.

n Requires utilities to use part of their excess earnings to reduce "stranded costs" - the costs of moving from the current regulated scheme to deregulation.

"The governor remains very committed to getting this done in lame duck," said John Truscott, a spokesperson for Gov. John Engler. "Deregulation is going to happen; we think it's appropriate to do it legislatively" rather than under the PSC orders.

But critics see the legislation as a gift for Consumers Energy and Detroit Edison Co., the state's largest electric utilities, and a threat for smaller businesses and residential customers.

The Customer Coalition, which represents businesses and residential users dependent upon the power companies, predicted a 10 percent rate increase because of cost increases approved above the rates frozen by the legislation.

Barry Cargill, vice president for government relations of the Small Business Association of Michigan, said the legislation would lock in "uncompetitive electric rates that are already higher than most states."

11-30-98