Clark Hill has represented utility customers in all phases of developing the open access programs required under Michigan law. This has included the development of Open Access Transmission Tariffs before the Federal Energy Regulatory Commission, the local distribution tariffs, securitization bond repayment charges, stranded cost estimates. It is the total of these charges, together with negotiated generation charges from alternative electric suppliers, that will determine whether a customer should participate in open access. The Energy Team has also negotiated energy supply contracts for clients who have participated in open access programs that have been in existence for the last several years.
There are several bypass alternatives such as the creation of a municipal utility to replace, or compete with the existing monopoly electricity provider and participating in the open access programs mandated by Michigan law. The Clark Hill Energy Team has expertise in utility franchise laws and the organization of municipal utilities, and they know how to obtain wholesale power, sources of municipal financing as well as understand the procedures that must be followed in order to secure voter approval of a new municipal utility. Municipal feasibility studies developed by Clark Hill have been, and are being, used to secure lower retail electric rates.
Industrial customers with good thermal loads also have the alternative of totally or partially bypassing the local electric utility through the installation of cogeneration equipment which produces both useful thermal energy and electricity from one fuel source. The Energy Team has assisted in the preparation of feasibility studies and dealt with air permitting issues and contracts with third party owner-operators. The Energy Team has also negotiated standby rates for utility service when cogeneration equipment is not available for operation or is turned off in order to perform maintenance.
Increasingly, electric utilities are willing to negotiate special contracts with large industrial customers containing rate discounts in exchange for the customer agreeing to remain with that utility company for a set period of time. The Energy Team has successfully negotiated special contracts that, when fully implemented, will save clients in excess of $60 million per year over what they were paying for electric service prior to the effective date of the contracts.