In the US, fourteen states have introduced competition in their electricity markets. In competitive markets, any company can generate electricity and customers can choose from what supplier they receive electricity. Michigan introduced competition in its electricity market in 2000. But in 2008, the state restricted the competitive market to only 10% of its customers. Today, some people want to introduce complete competition again. This paper studies what is the best option for Michigan. First, it analyzes the different existing electricity market structures, and compares their prices to figure out which is the best structure. Then, it studies Michigan prices evolution (and other elements) and compares it to other states, to finally arrive to the conclusion that Michigan should introduce complete competition again. But to succeed in doing so, the state has the big challenge of divesting power plants from utilities.

Outgoing