_---_____.. ---, 1, R 'E' \\'*bZ ':'.-)I ;

Tecumseh Public sckobfs I

I No\/ Ld(a 2U05 1

21 2 N. Ottawa Street, Suite 204 0 Tecumseh, Michigan 49286 0 51 71423-2 167 Ext. 1 701 0 FAX 51 71423-7 6 , A , ,L. I ~-,r[ Ly;k~\:t/,l$~

Karen Donahue, Executive Director Financial Services E-mail: kdonahu@tps.kl2.mi.us

November 8,2005

Peter Lark, Chairman, PSC 6545 Mercantile Way Lansing, MI 4891 1

Mr. Lark:

As a member of Michigan Schools Energy Cooperative, and participant in the Retail Open Access Program (ROA), our district has benefited from savings in electricity because ROA has allowed us to stabilize our energy costs long-term.

With the proposed change to not allow electric competition, Administrative Law Judge (ALJ) (Case U-14347 and U-14399), our district along with 200 others will see up to 30% increases in our electric costs. This cannot happen.

Suffering from cuts from the State of Michigan (two years of cuts, one with no increase) rising health care (10% a year) and retirement costs (appr. 4% in two years), this surcharge would devastate our schools. We are unable to focus on student achievement, because these factors detract us from spending monies in instruction.

We ask that you reconsider this action, as we cannot suffer any more hits that affect our abilities to deliver education.

Thank you for your consideration in these matters.

pc: Governor Granholm Laura Chappell, PSC Commissioner Monica Martinez, PSC Commissioner Ray Telman, MlSEC

2390 S. Milford Road + Highland, MI 48357-4934 I l i i j l l li

248.684.8000 + Fax 248.684.8235 + www.huronvalley.kl2.mi.u~ Superintendent Dr. Robert M. O'Brien , .

November 9,2005

Peter Lark, Chairman, PSC 6545 Mercantile Way Lansing, MI 4891 1

RE: Electric Retail Open Access

Dear Mr. Lark:

As a charter member of the Michigan Schools Energy Cooperative (MISEC), Huron Valley Schools has participated in the purchase of both natural gas and electricity at competitive pricing. The result of this competitive purchasing power has been significant savings and increased stability in budgeting (see attachment for annual savings). Recently, MISEC has informed members of an Administrative Law Judge decision (case U-14347) regarding a proposal by Consumers Energy and DTE for a regulatory adjustment charge for retail open access customers. Based on the information provided to us by MISEC regarding this proposal, please understand that Huron Valley Schools is greatly opposed to a regulatory adjustment charge which in all probability will destroy retail open access competition. In an era of great financial turmoil in school districts, this would cause an additional burden to already strained budgets. Thank you for considering this request.

Supervisor of Maintenance Huron Valley Schools

Attachment

C: Laura Chappelle, PSC Commissioner Monica Martinez, PSC Commissioner Ray Telman, MISEC Robert O'Brien, Supt.of Schools, HVS Jackie Johnston, Assist. Supt., HVS John Branstetter, President, Board of Education Michael P. Flanagan, Supt. of Schools, State of Michigan

MISSION STATEMENT Huron Valley Schools, in partnership with our community, will provide excellence in learning for all students to positively shape the future

I MISEC Electric Choice Proaram lCumulative ECC Proaram Savinas 1 I

District =/HURON-- Local Utility = ;=E Energy

I

I

2005 I

, Total Total Location /Facility Address Utility Acct # 2002 2003 Heritage Elementary (21 9 Watkins Blvd 00015153 $ 15,692.82 $ 10,684.67 Bogie Lake Complex 11 570 Bogie Lake 00006410 $ 64,591.78 $ 83,412.36

Total

Spring Mills Elementary 131 50 Harvey Lake Rd. 0001 5085 $ 9,939.80 $ 9,912.96 Oak Valley Middle 4200 White Oak Dr. 0005237 $ 29,216.21 $ 24,393.45 Milford High School 1- 12380 S Milford Rd. 00005282 $ 38,844.45 $ 36,735.90 Oxbow Elementary 1 100 Oxbow Lake Highland Middle School 1305 John Administration l ~ u i r Middle School 1425 Georae / 00016283 Highland Elementary 300 ~iviniston Brooks Elementary - / 1000 Hill Road Kurtz Elementarv / 1 350 Kurtz Drive 0001 6383 Duck Lake center A~ol lo Elementaw 2029 Milford Rd. ~ohnson ~lerneniary '51 5 General Mtr. Rd. 0001 6287 $ 3,996.76 $ 4I493.44 Baker Elementary 71 6 Union 00016410 $ 3,873.02 $ 2,342.68

Total 2005

I $21 8,172.89 $226,075.1 5 I I I I

Cumulative thru 2004 = / $492,058.48 1

450 North Avenue Battle Creek, MI 4901 7-3397 (61 6) 965-3931

November 4,2005

,

Peter Lark, Chairman, PSC 6545 Mercantile Way Lansing, Michigan 4891 1

-- --- - - - --

Dear Mr. Lark ---=a=-L----~- ~~ - -* - - --a-- - .--+---

I am writing to voice my objections to the proposed 100 percent implementation of the Regulatory Adjustment Charge (ROA) to Retail Open Access Choice customers in 2006 in order to prevent taking electrical load fiom the standard utility providers.

Kellogg Community College is a member of the Michigan Schools Energy Cooperative and as such, its participation in the Retail Open Access for electricity has saved our tax payers nearly 9 percent in annual electricity cost and helped stabilize energy cost for our institution. The proposed RAC implementation for Choice customers would result in a 20-30 percent increase in electrical cost, eliminate competition, adversely impact our ability to provide affordable education to district students, and hinder our ability to serve as good stewards of public funds.

Your prompt attention to this matter would be greatly appreciated.

G. Edward Haring, Ph.D. President

,,'- c: Honorable Jennifer M. Granholm, Governor J

Laura Chappelle, PSC Commissioner Monica Martinez, PSC Commissioner

OFFICE OF,BUSINESS AND FINANCE 1885 Packard ~psi lant i , Michigan 481 97 Voice: 734.71 4.1 221 Fax: 734.71 4.1 227 ' - PUBLIC SCHOOLS

- -. - + ---. ---*-*-- =---w- -.=--- --- ----+- ----=--x--?i. .---li7--;. r7mlw3-ya-mb+---m-7r~-.---- - -ZEB@B%W~WI~O~~ P B I ~

Alan Dowdy, Deputy Superintendent1 adowdy@ypsd.org '

November 7,2005

The Honorable Jennifer M. Granholm, Governor State of Michigan State Capitol Building P.O. Box 30013 Lansing, MI 48909

Dear Governor Granholm:

The Ypsilanti Public School District has been a member of the Michigan Schools Energy Cooperative (MISEC) since 1997. Our district participated in the first Retail Open Access (ROA) program. We have saved hundreds of thousand dollars by taking part in this initiative.

Recently, consume^ Fnergyand Michigan Public Service Commission staff proposed a ~e~u la to r~xd jus tmen t Charge (RAC), which would destroy ROA competition. If the Michigan PSC approves this surcharge, the rates for our usage would go up 20-30%. Approval of this proposal would be devastating to our district's budget.

On behalf of Ypsilanti Public Schools, I appeal to you as a friend of education to send a message to the MPSC that the proposal be rejected. I appreciate your interest in our schools.

Sincerely,

Alan Dowdy Deputy SuperintendentICFO

Enclosure

Ypsilanti Public Schools Administrative Office, h t e h Superintendent James Hawkins 1885 Packard Road Ypsilanti, Michigan 481 97-1 81 7 Telephone: 734.71 4.1 21 8 Fax: 734.71 4.1 220 Website address: http://www.ypsd.org

i 1)

SOUTHFIELD PUBLIC SCHOOLS PURCHASING OFFICE - John W. English Administrative Center Martha Ritchie, Purchasing Manager Cindy Martin, Secretary (248) 746-851 8 --

--2+-.c!--- ---- - - --. -- A

-- Southfield, MI 48034 Fax (248) 746-88 12

November 2,2005

Peter Lark, Chairman, PSC 6545 Mercantile Way Lansing, MI 4891 1

We oppose the position of the PSC staff for the following reasons:

Retail Open Access (ROA) for our electricity has saved Southfield Public Schools money;

ROA has allowed us to stabilize our energy costs long term;

Consumers Energy and Michigan Public Service Commission staff is proposing a Regulatory Adjustment Charge (RAC), which would destroy ROA competition;

Our rates would increase by 20-30%. I I

Thank you for your consideration. ---

Purchasing a i d Food Service Manager

*. -9p-

Beal City Public Schools > ,,>", I

+Jeff Jackson Robert Kjolhede Diane Saltarelli High School Principal Superintendent Elementary Principal

(989) 644-3944 (989) 644-2740

31 17 ELlAS ROAD * MOUNT PLEASANT, MICHIGAN 48858 PHONE (989) 644-3901 * FAX (989) 644-5847

1 1-3-05

The Honorable Jennifer M. Granholm, Governor State of Michigan State Capitol Building Lansing, MI 489 17

Dear Honorable Jennifer M. Granholm:

My name is Bob Kjolhede and I am the superintendent of schools at Beal City Public Schools. I am writing to express my concern regarding recent proposals to change the rules in a way that would effectively end competition for electric power by assessing a "Regulatory Adjustment Charge" to all customers.

Retail Open Access for our electricity has saved our district significant money. It also allows us to stabilize our energy costs over longer periods of time. The Regulatory Adjustment Charge would all but eliminate competition and the opportunity for schools to seek and obtain the lowest price available. It would cost us an increase of 20-30% in energy rates. This would force us to redirect funds from student learning to meet these energy costs. Schools (as well as most other public agencies) have been victimized by flat or reduced funding while unfhded mandates continue to drain our revenue. You have asked schools to collaborate and enter into cooperative arrangements to reduce costs during these difficult times and yet you are considering supporting a decision that would regulate (Regulatory Adjustment Charge) energy and would be contradictory to collaborative & cost saving initiatives.

Please consider these concerns when you make this decision. We are fighting for the future of our state.. . our children! - - -

Superintendent of Schools

Beal City Schools "In Harmony with Home and Community" - "No Better Place to Learn" Beal City Public Schools does not discriminate on the basis of race, color, religion, national origin, age, handicap,

or veteran status in the provision of educational opportunities or employment opportunities and benefits

in compliance with Title VII of the Civil Rights Act of 1964, Title IX of the Educational Amendments of 1972, and Section 504 of the

Rehabilitation Act of 1973

fi #a, Arenac

Educational Service Center 4228 Two Mile Road Bay City, MI 48706-2397 Phone: 989.686.4410 Fax: 989.667.3286

November 8,2005

The Honorable Jennifer M. Granholm, Governor State of Michigan State Capitol Building P.O. Box 30013 Lansing, MI 48909

1

,n?.,q \ { ,6kd'. kf@".~j:!-E\g' *

Dear Governor Granholm: -.

Since the early inception of electric deregulation here in Michigan, Bay-Arenac ISD (BAISD) was an active participant. Since then, BAISD has taken advantage of the Retail Open Access Program (ROA). This participation has allowed BAISD the ability to lower overall electric costs by over $41,000 or 7% as of July 2005. These are dollars that go directly back into the education of children.

Another very valuable benefit to all school districts from the ROA program is the ability to enter into long-term, fixed price electric contracts. By entering into a longer-term electric purchase agreement, a district can fix a portion of its operating budget for an extended period, thus allowing the district the ability to better predict its costs. It has proven to be extremely valuable to BAISD as energy prices have begun, and are predicted to continue to escalate over the next two or three years.

Now, just as BAISD is beginning to benefit in the deregulated environment and is beginning to make these "business like" decisions, the Michigan Public Service Commission (MPSC) staff and possibly even the Commissioners want to change the rules and take this very valuable option away from schools.

The MPSC staff is proposing to effectively end electric competition for schools by putting an unnecessary surcharge on those districts participating in the Choice Program. These increases will come at a time when Districts can least afford them.

To prevent this outcome, we urge you to send a message to the MPSC and request that they, at a minimum, reject the utility and MPSC staff recommendations concerning the treatment and phase-in of the RAC and adopt a RAC that is phased in over time and reflects only those costs reasonably associated with ROA programs.

Educational Excellence

- -

I

8

The Honorable Jennifer M. Granholm, Governor November 8,2005

C Page 2

Thank you for your consideration in these matters. I would be pleased to address any questions or comments you may have about this letter.

CHIPPEWA VALLEY SCHOOLS 19 120 Cass Avenue, Clinton Township, MI 48038

(586)-723-2000 FAX (586) 723-2001

"Chippewa Valley Schools ...p reparing students today for the challenges of tomorrow"

Peter Lark, Chairman, PSC Commission 6545 Mercantile Wav Lansing, MI 489 1 1

Dear Mr. Lark:

It is our understanding at Chippewa Valley Schools that the Michigan Public Service Commission will be reviewing and making a decision on Consumers Rate Case U-14347 where an Administrative Law Judge recently upheld the position of Consumers Energy and the PSC staff. Our further understanding is that a per KWH charge described as a "Regulatory Adjustment Charge" (RAC) would be charged to all customers including "Retail Open Access" (ROA) customers. The RAC is being proposed to resolve deskewing problems between residential and commercial customers, The imposition of RAC on Chippewa Valley Schools as a participant in the ROA program would effectively destroy the benefit of participation in the program and result in significant higher costs for Chippewa Valley Schools, higher costs that cannot be afforded in these tight budget times and, if imposed, would certainly result in reductions in educational services to the students of Chippewa Valley Schools.

Chippewa Valley Schools has participated in the ROA program through the Michigan School Energy Cooperative since October 2002. Cumulative savings from October 2002 - September 2005 are $1,097,000. Not only have our costs been reduced through participation in the ROA program but also we have been able to stabilizs long-term costs through participation with -. - MISEC and long-term fixed price contracts for energy. From July 2004 - June 2005 Chippewa Valley Schools used 24,409,019 KWH of electricity. Imposition of a 1-cent per KWH would add $244,090 of cost per year.

We urge you to not approve imposition of the RAC on school districts participating in the ROA program.

Yours truly,

ye""" ark Deldin, Superintendent

. -. -

1

3

Box 6278 Saginaw, MI 48608 (989) 797-1800 FAX (989) 797-1801

November 2,2005

Mr. Peter Lark, Chairman Michigan Public Service Commission 6545 Mercantile Way Lansing, MI 4891 1

Dear Mr. Lark: ' .

Our school district is currently participating in the Michigan Schools Energy Cooperative to purchase electricity through the Retail Open Access (ROA) program. I am writing today to let you know of the district's opposition to the Regulatory Adjustment Charge being proposed by Consumers Energy and Michigan Public Service Commission staff.

By participating in the ROA program, our district has saved more than $97,000 over the last four years. This has allowed us to stabilize our energy costs long-term. If the Regulatory Adjustment Charge is approved, we anticipate our rates for electricity would increase by 20 to 30%.

I ask that you please consider the burden this proposed increase would put on those Michigan school districts participating in the ROA program when you make your decision in Consumers Rate Case U-14347.

Sincerely, -.

&-+LsdL Jerry L. Seese, ~d.~'.,'Superintendent

Cc: Laura Chappelle, PSC Commissioner Monica Martinez, PSC Commissioner The Honorable Jennifer M. Granholm, Governor Ray Telman, Michigan Schools Energy Cooperative

MPSC Letter 11-2-05.doc

.we& u , > -*.-m * ' . . ">"

i\

GROSSE ILE TOWNSHIP SCHOOLS 23276 East River Road - Grosse Ile, Michigan 48138 - (734) 362-2555

FAX (734) 362-2595

Dena A. Dardzinski Anthony Krukowski Superintendent Business Manager

November 4,2005

Peter Lark, Chairman, PSC 6545 Mercantile Way Lansing, MI 489 1 1

-_ __ _- __C III - - -- . ___/___ _ . - - _ 1%- --- , -

Dear Mr. Lark:

We recently were made aware of a proposal by Consumers Energy and the Michigan Public Service Commission to add additional surcharges to those customers who are participating in the Retail Open Access program. If successful, these surcharges would make electric choice uncompetitive.

We think this is a very ill-advised proposal. Retail Open Access has enabled our school district to stabilize our energy costs long-term and has resulted in savings of over $1 80,000 on our electric bills in the last few years.

As you are probably aware, school districts across Michigan have been struggling with very tight budgets over the last several years. These savings on our electric bills have permitted us to spend more on programs and services for kids than we otherwise would have been able to. The proposal, which is estimated to result in 20-30% rate increases for school districts, would only make it even more difficult for us to give our kids the education they deserve.

&&+ Dena A. Dardzinsk Superintendent

c: Laura Chappelle, PSC Commissioner Monica Martinez, PSC Commissioner The Honorable Jennifer M. Granholm, Governor Ray Telman, MISEC

LAWRENCE PUBLIC SCHOOLS 650 WEST ST. JOSEPH ST.

LAWRENCE, MICHIGAN 49064 FAX (269) 674-8206 - -- _ ._--- ---..---

TOM REYNNELLS, President RICHARD STOLL, Superintendent B h M , Tmstee GERRY MARTIN, Vice Pres. Superintendent's Phone (269) 674-8233 JIM SANB~RN, Trustee DAVE NICHOLAS, Secretary JOHN OVERLEY, High School Principal N( ! $E#P'WHN$ON, Tmstee CAROL SJOQUIST, Treasurer PHIL McANDREW, Asst High School PrincipaVA.

High School Phone (269) 674-8232 1A.D. Phone (269) 674-8 SUSAN McQUEEN, Elementary Principal ty*rnqa. !, ~ i j j ~ . ' *~?~@Y:2 ' , " i. J . I.r L- ?Y

Elementary School Phone (269) 64-8231 1 Fax: (269) 674-3545 '

-

Mr. Peter Lark, Chairman, PSC 6545 Mercantile Way Lansing, Michigan 489 1 1

Dear Mr. Lark:

I oppose the position of the PSC staff and Consumers Energy, which were recently upheld by an Administrative Law Judge (ALJ) (Case U14347), which would stop public schools from taking advantage of the services the MISEC - Michigan Schools Energy Cooperative, which save the school districts electrical costs. Retail Open Access (ROA) for our electricity has saved us money. ROA has allowed us to stabilize our energy costs for the long-term period.

The Consumers Energy and Michigan Public Service Commission is proposing a Regulatory Adjustment Charge (RAC), which would destroy ROA competition. As a result, our electricity rates would increase by 20%-30%. MISEC has saved $1 5 million dollars in 2003 and 2004 for its members. If the PSC upholds the decision of the ALJ, these savings will be eliminated.

The Lawrence Public School Board and the school staff highly value the money that MISEC's services has saved our district.

Thank you for your attention to this important matter!

. - Richard Stoll Superintendent

It is the policy of the Lawrence Public Schools District that no person shall, on the basis of race, color, religion, national origin or ancestry, sex, age, disability, height, weight, or marital status be excluded from participation in, be denied the benefits of or be subjected to discrimination during any program or activity or in employment. The following person has been designated to handle inquires regarding nondiscrimination policies: Superintendent, 650 W. St. Joseph St., Lawrence, MI 49064, (269) 674-8233

760 South Van Dyke Road Bad Axe, Michigan 48413-9714

PHONE (989) 269-9938 FAX (989) 269-2739 h

November 3,2005 1 I NCIV k % i t~ki? F I

JAMES L WENCEL Superintendent of schools Mr. Peter Lark

Chairman, PSC ART MICKLASH Business/Accounting Services

6545 Mercantile Way Lansing, MI 4891 1

JAMES D. DUDA Build~ng/Grounds Dear Mr. Lark:

The Bad Axe Public SchoolDistri on of the PSC RONALD LOUKS Transportation

staff and Consumers Energy, which was recently upheld by an Administrative Law Judge (ALJ) (Case U- 14347).

BAD AXE HIGH SCHOOL 200 North Barr~e Road Phone: (989) 269-9593 Fax (989) 269-6947

Wayne Brady, Principal

We are opposed to the position because of the following:

1 .) Retail Open ~ c c e s s for our electricity has saved the Bad Axe Public School District money.

2.) Retail Open Accbss has allowed us to stabilize our energy costs long-term.

BAD AXE JUNIOR HIGH SCHOOL 750 South Van Dyke Road Phone: (989) 269-2735 Fax: (989) 269-9001

3.) Consumers Ener Staff is proposin would destroy R

Vlrginla Lounsbury, Principal 4.) Our electricity r2

Sincerely, - - BAD AXE INTERMEDIATE SCHOOL 404 Hatchet Drive Phone: (989) 269-2736 Fax: (989) 269-2736

James Wencel Greg Newland, Principal ,/ Superintendent

cc: Laura Chappelle GREENE ELEMENTARY SCHOOL Monica Martinez 309 North Outer Drive Phone (989) 269-2737 Fax (989) 269-2737

Honorable Jennifer Gral Ray Telman

Peter M. Batzer, Principal

O U R M I S S I O N

-

y and Michigan Public Service Commission a Regulatory Adjustment Charge which :ail Open Access competition.

2s would increase by 20 - 30%.

S S U C C E S S

I

Administrative Ofice ""pp>*gpy. 1;

Godfrey-Lee Public "W @ or IN 4950g I 6jd1&#$ !

Schools / Fax: (616) 241-4707

,;$ a ~ , ~ ~ ~ y t ; ~ ~ t , ~ ~ ' ~ \ \ ? ~ ~

Jack B. Wallington Superintendent

Roxanne Claxton Finance Director

Laurie MacLaren Administrative

Assistant - -.-- Teresa Neeb PayrolIJBenefits

Coordinator

Kim Williams District Accountant

November 4, 2005

Peter Lark, Chairman Michigan Public Service Commission 6545 Mercantile Way Lansing, MI 4891 1 -- - - i-.- - - - - - -- -- -_ -____- r <-_ -4- --vl ----_w_L_I.

Dear Mr. Lark,

I am writing to voice my opposition to the Michigan Public Service Commission's (MPSC) proposal to effectively end electric competition for schools by putting an unnecessary surcharge on those districts participating in the Michigan Schools Energy Cooperative (MISEC).

Through MISEC, my district has been able to save money and our energy costs have stabilized over the past few years. Our rates would increase 20% to 30% if the Regulatory Adjustment Charge (RAC) were implemented.

Every dollar spent on an increase in our electric costs is a dollar less to spend in the classroom. The proposed increases will come at a time when we can least afford them.

I urge you to send a message to the MPSC and request that they, at a minimum, reject the utility and MPSC Staff recommendations concerning the treatment and phase-in of the RAC and adopt a RAC that is phased in over time and reflects only those costs reasonably associated with ROA programs.

Thank you for your consideration in these matters.

Sincerely,

Roxanne Claxton Finance Director

900 Union Ave NE rn Grand Rapids MI 49503 Phone 616.819.3036 rn Fax 616.819.3012

FACILITIES MANAGEMENT & PLANNING . ENERGY OFFICE

November 8,2005

The Honorable Jennifer M. Granholm, Governor State of Michigan State Capitol Building P. 0. Box 30013 Lansing, MI 48909

Dear Governor Granholm, A--

Grand Rapids Public Schools is one of the districts in Michigan that has benefited from electric deregulation. We have saved over $200,000 in the two years we have participated with the Michigan Schools Energy Cooperative (MISEC) direct purchase program under the Retail Open Access (''Customer Choicep) rates.

GRPS has about 70 buildings and over 100 electric accounts. The program is currently structured so only large facilities qualify for the program. Thirteen of our facilities enjoy the benefits of electric competition. We reviewed this situation last year, and it is still not cost-effective for the normal-sized elementary school. At the participating locations, we have had to make additional investments and provide phone lines so the utility does not have to come out to read the meter.

You know we are going through tough times in Michigan. The plan of the MPSC to impose a Regulatory Adjustment Charge at the full rate in the first year for Choice customers-while phasing it in over 10 years for other ratepayers-is unfair and unbalanced. It seems designed to end competitive electric rates in

- - Michigan. It puts another burden on Michigan school districts when we can least afford it. -

Please send a message to the MPSC and request that they reject the utility and staff recommendations. A better solution would be a regulatory adjustment charge that is phased in for all rate classes, and one that reflects only those costs reasonably associated with Retail Open Access programs.

Sincerely yours,

Supervisor of Energy Management

T H O M A S L. HOSLER 32044 HURON RIVER DRIVE

N E W BOSTON, MICHIGAN 48 164 (734) 782-244 1 (734) 783-0338 - FAX

November 3,2005

Mr. Peter Lark, Chairman, PSC 6545 Mercentile Way Lansing, MI 489 1 1 1 Chairman's Office]

Dear Mr. Lark:

I am writing this 'letter to oppose the position of the PSC staff and current Consumers Energy Rate Case U-14347.

Since the early inception of electric deregulation, Huron Schools has saved 20% to 30% on its electric usage. This Retail Open Access (ROA) has saved thousands of dollars for Huron School District. Without this electricity saving, we could not provide the educational programs that we have, since the State of Michigan has frozen the foundation and made executive order reductions in our revenues over the past three years.

The Consumers Energy and Michigan Public Service Commission Staff are proposing a Regulatory Adjustment Charge (RAC) which would destroy the current Retail Open Access (ROA) competition. Our rates would increase 20% to 30% and we would have to eliminate more educational programs over and above what we already have cut, because of State of Michigan revenues freezes and reductions that were imposed on school district.

Thanks you for your consideration in this matter.

Sincerely,

Carol J. Miles Chief Operation Officer

cc Laura Chappelle, PSC Commissioner Monica Martinez, PSC Commissioner Honorable Jennifer M. Granholm, Governor Ray Telman, MISEC

B O A R D OF E D U C A T I O N

DONNA MENDRYSA, PRESIDENT KENNETH APPLEBY, VICE PRESIDENT ALICE FERGUSON, SECRETARY - RICHARD ZAVODSKY, TREASURER COLLEEN LAZERE, TRUSTEE

TOM MARTIN, TRUSTEE JACK RICHERT, TRUSTEE

Dennis M. McComb Superintendent

Mr. Peter Lark, Chairman Public Service Commission 6545 Mercantile Way Lansing, MI 4891 1

Dear Mr. Lark:

100 Big Red Drive, Milan, MI. 48160

Phone: 734-439-5050 Fax 734-439-5083

Brvan M. Girbach Diana L. Fleszar ~ssistant Superintendent Finance Director

I I

As the superintendent of a small district in Southeaster Michigan, I am very concerned about the changes being considered that would impact the Retail Open Access program. Milan Area Schools has been a member of the Michigan School Energy Cooperative (MISEC) since its inception in 1997. During that time the district has realized over $125,000 in savings in electrical costs. And, MISEC, as a cooperative, has saved public school districts over $1 5 million in 2003 and 2004.

What have those savings meant for us? What impact will the upholding of the decision made by the Administrative Law Judge (ALJ) (Case U-14347) have on Milan Area Schools? Let me explain.

First, Milan has a budget of about $20 million. Our fund balance as of June 30,2005 is just over $300,000. That is under 2%. Any additional increase in utility rates will cause us to have to reduce costs. The savings we now realize through the Retail Open Access program on a yearly basis pay the salary and benefits for one teacher. The loss of those savings will mean the reduction of personnel. That would be tragic!

I strongly urge you and the other commissioners to reject the ALJ decision and MPSC staff proposal. Deregulation is working for public schools. We are saving money that can then be put into the classroom. Since we are already facing increased natural gas costs don't affect our students education by creating a program that will cause our electrical rates to increase by 20 - 30%. We cannot afZord to take on another utility rate increase.

Thank you for your consideration. I hope you do what is right for the students in Michigan schools.

Sinjmqly,

L Superintendent

C: L. Chappelle, PSC Commissioner M. Martinex, PSC Commissioner J. Granholm, Governor R. Telman, MISEC K. Angerer, State Representative

- --- - ._ _

B A T T L E CREEK I I;;"F;;ICFRB"~A !

PUBLIC SCHOOLS I I * 2 , I 1

I 3 West VanBuren Street Battle Creek, Michigan 49017-3079

Date: November 7,2005

Peter Lark, Chairman, PSC

STEPHEN OSBORN .-",, 2 - + - i t I&& .K: ~f I y~c:?,; i + d , . \!;,,,

Energy Manager

PhoneNoice Mall: 616-965-9456 Cellular Phone: 616-317-3832

Fax: 616-965-9474 sosborn@battle-creek.kl2.mi.u~

6545 Mercantile Way Lansing, MI 4891 1

Dear Peter Lark,

I am writing as Energy Manger of the Battle Creek Public Schools I understand the Michigan Public Service Commission is considering surcharges to be added that would increase the Michigan Schools Energy Cooperative current electric choice rates 20%- 30%. This will inevitably cancel any savings we have received through MISEC.

Purchasing through the Retail Open Access program for our electricity has saved our district $204,766 in the last four years. At this time when school districts are feeling a extreme financial crunch, it is adventitious to have the benefit of saving in our electric purchase.

I am opposed to the position of the Michigan Public Service Commission staff and Consumers Energy, which was recently upheld by an Administrative Law Judge (Case U-14347). I am asking you to reconsider your position and allow Michigan's 400 school districts to continue receiving the savings that help hnd our classrooms.

Thank you for your consideration in this matter.

Sincerely,

k Qk-% Stephen R. Osborn, Energy Manager Battle Creek Public Schools

cc: Governor Jennifer M. Granholrn Laura Chappelle Monica Martinez

....................................... '................. Listening Responding Working Together

I 7