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Law that capped energy deregulation in Michigan hampering growth, report finds

A recent report commissioned by a group of several industry bodies has found that a Michigan law that was passed in 2008 is keeping the state's competitive energy market from thriving, The Detroit Free Press reports.

According to the news source, the report discusses the effects of the October 2008 law signed by former governor Jennifer Granholm that capped the amount of electricity that could be sold in the competitive energy market at 10 percent. Before the law, Michigan residents and business owners could compare electricity suppliers and choose exactly which power plan they wanted.

After the law was passed, businesses quickly hit the 10 percent mark, and now, 9,600 businesses are waiting to purchase their electricity from retail energy providers. The report found that the 7,000 businesses that have been allowed to purchase electricity from retail providers have paid $350 million less than those who did not switch power companies.

Before the law took effect, Michigan residents and businesses enjoyed eight years of a deregulated energy market, which many hope will return following the report.