Michigan's electric restructuring legislation, enacted into law in June 2000, divides Michigan into two markets, the Upper Peninsula and the Lower Peninsula. This projection provides information on the market size and expected growth in the two peninsulas. In addition, Consumers Energy and Detroit Edison are shown separately, showing the major importance of Michigan largest utilities in the Lower Peninsula market. Investor-owned electric utilities are regulated by the State. Cooperative electric utilities purchase most of their energy and are also state regulated.
Cooperatives operate in more sparsely populated rural areas.
Municipal electric utilities are publicly-owned nonprofit municipal government agencies and provide electric service to their communities and adjacent areas. Each utility has an exclusive right, called a franchise, to sell electricity in specific geographic areas. These franchises are granted by either the state or by incorporated units of local government. There are 60 electric utilities in Michigan. Thirty-nine are in the lower Peninsula and 21 are in the Upper Peninsula.