LANSING – A plan proposed by State Representative Terry Brown (D-Pigeon) to allow Michigan's vital electric co-ops to self-regulate was signed into law recently, with Mike Krause, general manager of Thumb Electric Cooperative, joining Brown for a bill-signing ceremony at the State Capitol.
"The not-for-profit electric cooperative system has been providing reliable, affordable power to homes, farms and businesses across our state for decades," Brown said. "Now co-ops can choose to regulate themselves so they can cut costs and respond quickly to changing market conditions and adjust their rates. Co-ops will pass the savings on to their members – putting more money in the pockets of hundreds of thousands of Michigan's working families at a time when they need it most."
Currently, the state requires co-ops to go through a cumbersome and time-consuming process when they need to make necessary adjustments. Brown's plan brings Michigan in line with other states that let electric co-ops regulate themselves if they choose. By doing so, they can operate more efficiently and avoid wasting time tied up in bureaucratic red tape.
More than 700,000 Michigan residents in rural areas belong to an electric co-op and rely on it for the reliable delivery of affordable electricity. In addition to providing cost-efficient service, electric co-ops are leading the way in the emerging renewable energy industry that is fueling much-needed economic development in the Thumb.
Brown's plan protects members' rights by spelling out the rules that cooperatives' leaders must follow. It keeps
oversight for safety, interconnection and other issues with the Michigan Public Service Commission.
"This legislation gives Thumb Electric Cooperative and the eight other Michigan rural electric cooperatives an opportunity to choose how best to manage our electric cooperatives to the benefit of our members in today's volatile energy world," Krause said.