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Purpose
Association of Businesses Advocating Tariff Equity ("ABATE")
is a non-profit coalition formed to represent industrial and other large
volume energy customers in gas and electric regulatory and legislative
matters. ABATE is concerned about the rising costs of energy and utility
rates and their impact on the business climate in Michigan.
Michigan currently faces, and will continue to encounter, intense competition
from other states for industrial growth and development. In order to
ensure our economic future, Michigan utility rates must be equitable
so as to attract new industry and retain existing business jobs.
ABATE works with the Michigan Public Service Commission ("MPSC")
and other regulatory agencies and legislative bodies at the State and
Federal level to assure energy rates are just, reasonable, nondiscriminatory
and non-preferential. ABATE also monitors and keeps its members advised
of developments in utility matters affecting the availability and cost
of utility services and energy in Michigan.
In order to build an attractive business climate, ABATE believes that
industrial utility customers must not be required to subsidize other
classes of utility customers through rates based on concepts such as
incremental or marginal cost-based pricing. Industrial energy customers
also should not be required to pay for social/welfare programs or for
programs which provide no direct benefit through their utility bills.
ABATE believes gas curtailment and interruption priorities should be
based upon the end use of the utility service rather than upon other
criteria, such as the end product of the user or the asserted "social
utility" of its product. Electric curtailment and interruptions
should be based upon criteria which will result in the lowest degree
of business interruptions consistent with the continuation of essential
service.
It is also essential that utility companies be financially sound and
efficiently managed in order to provide adequate and reliable services.
They should be given and opportunity to earn a fair return on investment,
based upon efficient operations and must be able to attract capital.
ABATE supports the move to deregulation of certain aspects of utility
only when the result will be true competition. There is a major concern
that the incumbent monopoly utilities will dominate the new deregulated
markets which requires initial regulatory oversight. The outcome
that must be avoided is to permit deregulated monopolies to dominate
a particular
market.
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