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MABA Hails New Consumers Energy Policies
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The Michigan Agri-Business Association (MABA) hailed new policies announced by Consumers Energy that will make it easier for agricultural operations to access adequate electrical power to expand their businesses and continue growing Michigan’s rural economies.


Source: Michigan Agri-Business Association

Michigan Agri-Business Association Hails New Consumers Energy Policies that Encourage Rural Economic Development


The Michigan Agri-Business Association (MABA) hailed new policies announced by Consumers Energy that will make it easier for agricultural operations to access adequate electrical power to expand their businesses and continue growing Michigan’s rural economies.

 “Agriculture is one of Michigan’s biggest industries, providing jobs, driving rural economic development and growing our economy,” said Jim Byrum, president of MABA. “Access to electrical infrastructure is a major factor in determining whether or not agricultural businesses can expand or open new locations. The decision by Consumers Energy to change their policies will help create a more business-friendly environment in Michigan and make it possible for the agriculture sector to take advantage of new economic opportunities.”

Many farms and agricultural businesses are located in rural areas, literally at the “end of the line” for utilities. For these businesses, lack of access to adequate power can be the deciding factor in whether to expand. Additionally, many rural areas don’t have access to three-phase electrical power, which is particularly important for farmers and agribusinesses that need it to safely run large equipment and irrigation systems.

According to Consumers Energy, the new policy will change how the company determines the cost that business customers would pay up front for electric infrastructure needed for them to open or expand. Under the previous policy, customers would pay a deposit prior to construction and then receive refunds in future years. Under the new policy, Consumers Energy will project each customer's expected revenue to determine the up-front deposit. Typically, that projected revenue is sufficient to cover the cost, and the customer will need to pay nothing up front.