While oversimplifying, there are five broad categories into which the issues may be grouped. For all these years, the investor-owned utility companies have made significant investments in supplying electricity to Michigan customers. Under deregulation, these companies may lose generation customers, or the market price of power may be below the level necessary to enable the companies to recover their cost of investments already made. Some customers, including many homeowners, may not immediately have the option or desire to choose another energy supplier. In addition to financial issues, restructuring the electricity market raises numerous social policy questions.
Most observers support the concept of deregulating the electricity market.
The disagreement centers on how best to implement a new system. Supporters of restructuring argue that a competitive electricity market will lead to lower prices, customized services, and service innovations. Proponents further contend that Michigan cannot risk falling behind other states in reducing electricity costs through deregulation. These higher rates in Michigan, it is argued, are a major reason that some firms do not move or expand in this state. If Michigan fails to deregulate, and its competitors do, the gap between rates in Michigan and competing states will widen even more.