What we have decided is that we need to reevaluate the situation, and while we do so we need to suspend the sign-up process. Sources say the company is considering getting out of the retail electricity market and is experiencing funding problems. State regulators were caught off guard by the announcement because they thought sharp price increases would bring more competitors into the state. For example, over the past two months customers using default service provided by Nstar have experienced a 56 percent increase. Unfortunately, there is currently no choice at all.
Energy companies have no intention of repeating the California deregulation mess.
It's a different situation than in California. For one, Michigan's deregulation plan is not as ambitious as California's. The plan passed last June and is being slowly phased-in until full deregulation begins in 2002. Ours is more of a restructuring. Low supply was the driving force for deregulation in Michigan.