Association of Businesses Advocating Tariff Equity

The Association of Businesses Advocating Tariff Equity (ABATE) is a business league based in Michigan. As a non-profit organization, it advocates for tariff and regulatory equity within the energy sector, particularly focusing on issues affecting large industrial corporations in Michigan.

Mission and Objectives

ABATE primarily aims to ensure fair and competitive energy pricing by advocating for effective regulatory cost control. The organization seeks to ensure that utility rates are based on the actual cost of service rather than projected costs, allowing utilities to earn a fair rate of return while preventing over-earning. Additionally, ABATE supports the elimination or increase of the existing 10% cap on choice of electricity suppliers to foster market competition and reduce electricity rates[1].

ABATE also advocates for self-generation and co-generation, especially for industrial customers who require both electricity and steam. They promote expanding self-generation to include efficient off-site co-generation close to industrial facilities to enhance energy efficiency and reliability[1].

Membership

ABATE's membership includes prominent industrial corporations such as Dow Chemical Company, General Motors Company, and U.S. Steel Corporation, among others. Other notable members include Cargill, Inc., Cleveland-Cliffs Inc., Corning Inc., and Marathon Petroleum Company[3].

Activities

ABATE actively engages in regulatory proceedings and legal actions to achieve its goals. For instance, they have filed complaints with the Federal Energy Regulatory Commission (FERC), contesting the base rate of return for Midcontinent Independent System Operator, Inc. (MISO) transmission owners, arguing that such rates are unjust and unreasonable[2].

Legal Cases

One notable case involved ABATE and other industrial energy consumers contesting the rate of return for MISO transmission owners. The Administrative Law Judge found the existing rate unjust and ordered a reduction from 12.38% to 10.32%, along with refunds for overcharges[2]. Additionally, ABATE has been involved in proceedings affecting local energy tariffs, such as advocating for refunds in gas cost reconciliations[5].

Notable Position

As a business league with a strong focus on energy regulation, ABATE's activities are directed towards influencing energy policies in Michigan and beyond, aiming to create a more equitable and competitive energy market.