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Government Affairs > 2013 Agenda > Energy > Cost of Service
Cost of Service
To end the subsidization of non-manufacturing customers by industrial customers, MMA calls for continued implementation of the cost of service rates established in Public Act 286 of 2008. Progress is being made but the Act requires full implementation within 5 years of the effective date of the act on 10/15/13. In addition, the Michigan Public Service Commission (MPSC) should recognize that industrial customers generally use power on a constant, levelized basis, unlike residential customer usage which tends to peak during the summer months as a result of air conditioning use. Allocating production costs to more accurately reflect summer demands placed on the system by residential customers would provide significant cost savings to industrial customers.