Dive Brief:

• Legislators will likely consider changes to Michigan's customer choice laws in 2015, and a wide range of options from full deregulation to zero customer choice may be on the table, Midwest Energy News reports
• The power capacity issues on the state's Upper Peninsula have been blamed on the customer choice law, which caps participation at 10% in the state.
• The state is scrambling to find solutions in the region, and recently Wisconsin Energy Corp. signaled it would consider investing in a new power plant.

Dive Insight:

When Cliffs Natural Resources, a mine operator, switched power suppliers last year, the company took with it about 85% of Presque Isle's demand—along with the economic incentive for Wisconsin Electric to continue operating the facility, which powers most of the Upper Peninsula.

Wisconsin Energy has indicated it would be a "willing investor" in a new plant, and during the company's third quarter earnings call CEO Gale Klappa said the state's customer choice law needs to be addressed.

"I think it's becoming very clear to all the parties in Michigan that the customer choice law there is deeply flawed, particularly when it allows 90% customer choice in one area of the state and kept at 10% customer choice in the rest of the state," Klappa said. "And of course, 90% customer choice in the [Upper Peninsiula] makes long-term capacity planning very, very difficult."

Midwest Energy News reported the state is gearing up for a legislative battle over the choice law next year. “Customer choice is clearly in the crosshairs,” Michigan Public Service Commissioner Greg White said.