2008–2016 Michigan’s Hybrid Market Structure— PAs 286 and 295 • The state’s 21st Century Energy Plan, published in 2007, predicted the need for new power generation and recommended meeting the state’s energy needs by diversifying Michigan’s energy mix to encourage efficiency, renewables, and new generation. Only 3–4 percent of customers were participating in the ROA market in 2008. • In 2008, Michigan adopted new energy policies with broad bipartisan support from labor and environmental organizations as well as the business community. PAs 286 and 295 included mandates for renewables and efficiency and limited the ROA market, establishing a cap that limited ROA participation to 10 percent of the state’s electric load, which left plenty of room for new participants at the time. • Another policy outcome was the deskewing of residential electric rates to be based on the cost of service. Prior to 2008, rates were skewed, forcing commercial and industrial ratepayers to subsidize residential customers. This made commercial and industrial rates higher than they would have otherwise been. The realignment removed the subsidies for residential customers being provided by commercial and industrial customers. Source (exhibit 4): PSC compiled data from Michigan Public Service Commission Reports on the Status of Electric Competition in Michigan Available at https://www.michigan.gov/ mpsc/0,4639,7-159-16377_17111-68257--,00.html Source (exhibit 5): U.S. EIA. November 30, 2018. Data 1: Natural Gas Electric Power Price. Accessed December 14, 2018. https://www.eia.gov/dnav/ng/ng_pri_sum_dcu_nus_m.htm Source (exhibit 5): U.S. EIA. November 30, 2018. Wholesale Electricity and Natural Gas Market Data. Accessed December 14, 2018 https://www.eia.gov/electricity/wholesale/