December, 2002
MAFC Scores Huge Victory Over Unfair Competing Utilities …Sore Losers, Now They Want To Have The Courts Take It Away!

You don't have a lot of time, so let me make this quick…
Pat yourself on the back because thanks to your financial help we have scored a big win by knocking Consumers Energy (CMS), Detroit Edison (DTE), and the Michigan Electrical Cooperative Association (MECA) out of unfairly competing in the HVAC industry.

You don't believe it? Pinch yourself because it's true.

A lot has been happening lately and to bring you up to speed in a hurry here is the 'Cliff Notes' short version:
- Summer 2000 the Legislature passed PA 141 which required the Public Service Commission to formulate a Code of Conduct for electric utilities which would end unfair competition and cross-subsidization.
- On December 4, 2000 the Commission enacted a Code of Conduct, which they revised on October 29, 2001.
- The utilities predictably filed appeals in the Court of Appeals to stay the Code of Conduct that were denied by the Court of Appeals.
- Unsuccessful to overturn the Code of Conduct through the appeal process, the utilities filed for waivers with the MPSC.
- The MPSC granted the utilities every waiver they asked for EXCEPT…

…and this is where you pat yourself on the back…

- citing the arguments put forth by the Michigan Alliance for Fair Competition the MPSC denied the utility waiver requests regarding heating and air conditioning service.
- Stunned, the utilities filed an appeal and also filed for an immediate stay of the code of conduct.
- The stay was denied by the court of appeals…again citing the arguments put forth by the MAFC.

The Code of Conduct is IN FORCE NOW except for some portions that have a 6-month phase in. You can start filing complaints when you see a violation. This is a major victory and a payoff for all the money that has been spent to get us this far.

This week we have gotten word that the utilities are not going to give up. They are going to pull out all the stops on both the legal and legislative fronts in an attempt to overturn the Code of Conduct:

- They will attempt to get the Code of Conduct section of P.A. 141 repealed in the legislative lame duck session.
- CMS and MECA have filed a motion ("Motion for a Preemptive Reversal") to the Appeals Court have the entire Code of Conduct thrown out on the grounds that the MPSC had no authority.
- CMS and MECA have filed a motion ("Leave to Appeal" to appeal directly to the Michigan Supreme Court to overturn the Code of Conduct.

Analysis: These are desperate measures that the utilities are taking. This is going to take a lot of funds for us (you & MAFC) to overcome. But we can't turn back now that we have come so far. If you want to see this through to the end you need to dig deep and make a big contribution NOW! Please send in your contribution now to help finish the job!