Bill Text: MI HB4430 | 2019-2020 | 100th Legislature | Introduced
Bill Title: Public utilities; water utilities; annual water rate disclosure; require, and provide specific information regarding shut-off statistics. Creates new act.
Spectrum: Partisan Bill (Democrat 11-0)
Status: (Introduced - Dead) 2019-04-10 - Bill Electronically Reproduced 04/09/2019 [HB4430 Detail]
Download: Michigan-2019-HB4430-Introduced.html
HOUSE BILL No. 4430
April 9, 2019, Introduced by Reps. Hammoud, Cherry, Hope, Garrett, Garza, Neeley, Camilleri, Gay-Dagnogo, Manoogian, Rabhi and Whitsett and referred to the Committee on Local Government and Municipal Finance.
A bill to prescribe the powers and duties of providers of
water, sewerage, and stormwater service in this state; to require
providers of water, sewerage, and stormwater service in this state
to file certain reports with the department of environmental
quality; to provide for the powers and duties of certain state and
local governmental officers and entities; and to provide for civil
fines.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. As used in this act:
(a) "Charges" means amounts that a provider bills to a
customer under specific circumstances that are not included in the
provider's base rate including, but not limited to, late fees,
connection fees, impact fees for new development, deposits for
opening new accounts, and any other fees, surcharges, or penalties.
(b) "Department" means the department of environmental
quality.
(c) "Provider" means any water, sewerage, or stormwater system
that provides retail or wholesale water, sewerage, or stormwater
service in this state.
(d) "Rates" means the fixed component, if any, and the
volumetric or other variable component, if any, of the cost of
water, sewerage, or stormwater service that are applied to a
category of customers.
(e) "Shutoff" means a disconnection of water, sewerage, or
stormwater service due to nonpayment.
Sec. 2. (1) A provider shall by April 1 of each year file with
the department an annual report setting forth all of the following
information for the previous calendar year:
(a) A statement of whether the provider is a governmental or
nongovernmental entity.
(b) A statement of whether the provider provides water
service, sewerage service, stormwater service, or any combination
of those services and, for each service provided, whether the
provider provides that service to retail customers, wholesale
customers, or both.
(c) An identification of the governing body that is
responsible for decisions concerning the provider's rates and
finances, and the individual or individuals comprising that
governing body.
(d) A list and definitions of the categories of customers and
exempt users of the provider, including commercial, residential,
nonprofit, and exempt users.
(e) Whether the provider bills for service as a distinct line
item on a bill received by customers and, if it does, whether that
line item for each service appears on its own bill, on a combined
bill for multiple utility services, or on a property tax or other
nonutility bill.
(f) The rates and charges for water, sewerage, and stormwater
service by that provider in effect on July 1 or any other uniform
date established by the department, including any distinctions
among categories of customer, between retail and wholesale
customers, and among customers in different geographic areas within
the provider's service area.
(g) The date on which the rates and charges reported in
subdivision (f) took effect.
(h) The regular frequency, if any, at which rates and charges
are revised or readopted.
(i) For the first annual report submitted after the effective
date of this act, the rates and charges for water, sewerage, and
stormwater service by that provider in effect on July 1 of the year
that is 6 years before the calendar year in which the report is
submitted, including any distinctions among categories of customer,
between retail and wholesale customers, and among customers in
different geographic areas within the provider's service area.
(j) A statement of whether any volumetric or other variable
component of the provider's rates is structured as a uniform,
inclining block, or declining block rate.
(k) If the provider provides water service, the number and
percentage of retail water service connections without meters,
broken down by categories of customers, and the number and
percentage of metered retail water customer bills based on an
estimate rather than an actual meter reading, broken down by
categories of customers as of July 1 or any other date established
by the department.
(l) If the provider provides sewerage or stormwater service
and the rate for that service includes a volumetric or other
variable component, the method used to determine the quantity of
usage for which a customer is billed for that service as of July 1
or any other date established by the department.
(m) The frequency of customer billing, by category of
customer.
(n) The median monthly usage for retail, single-family
residential accounts and, to the extent possible, for retail
accounts serving 2-, 3-, and 4-family dwellings, respectively.
(o) The bill for a retail residential customer using 1,000
cubic feet per month, 1,500 cubic feet per month, and 3,000 cubic
feet per month.
(p) The process by which the rates and charges reported under
subdivision (f) were determined, including, at a minimum, all of
the following:
(i) Whether the provider publishes public notice of proposed
changes in rates and charges and, if so, how many days' notice is
provided before the date on which a decision on the proposal is
scheduled.
(ii) Whether the provider holds a public hearing on proposed
rate changes.
(iii) The method of notifying customers when a rate change has
been adopted.
(q) The total number of shutoffs that occurred during that
year and the total cost to the provider of performing those
shutoffs.
(r) The number of shutoffs that occurred during that year,
broken down by census tract and zip code.
(s) The number of notices of shutoff issued to occupied
single-family residential dwellings and occupied multi-family
residential dwellings, respectively, and the total cost to the
provider of issuing those shutoff notices.
(t) The number of customer accounts that received 1 or more of
the notices of shutoff identified in subdivision (s), broken down
between single-family and multi-family residential dwellings.
(u) For occupied single-family residential dwellings and
occupied multi-family residential dwellings, respectively, the
number of shutoffs that occurred, the number of such instances of
shutoff in which service was subsequently restored, and for the
instances in which service was restored, the median number of days
between shutoff and restoration of service and the number of
shutoffs where service was restored in under 5 days, in 6 to 15
days, in 16 to 30 days, in 31 to 60 days, and in more than 60 days.
(v) For occupied single-family and multi-family residential
dwellings, respectively, the number of customer accounts that were
subject to 1 or more of the shutoffs identified in subdivision (u)
and the number of such accounts that were subject to 1 or more of
the restorations of service identified in subdivision (u).
(w) The number of shutoffs that occurred for commercial
customers during that year, and the number of customer accounts
that were subject to 1 or more of those shutoffs.
(x) The provider's policies and procedures regarding shutoffs
of water and sewerage service.
(y) The number of proceedings that were initiated to foreclose
on residential properties due to nonpayment of bills, and the
aggregate value of the arrearages sought to be collected through
those foreclosures.
(z) The number of foreclosures on residential properties due
to nonpayment of bills that were completed, and the aggregate net
revenue recovered from those foreclosures, taking into account the
provider's costs of the foreclosure proceedings.
(aa) The number and aggregate dollar value of liens recorded
for unpaid water and sewer bills.
(bb) The incidence and dollar value of other forms of debt
collection actions besides shutoffs, liens, or foreclosures.
(cc) The following information concerning each affordability
program the provider has available for low-income customers or
other customers:
(i) The type of program.
(ii) The benefit level.
(iii) The eligibility criteria.
(iv) The enrollment process.
(v) The number of customers enrolled.
(vi) The average payment amount made by customers enrolled in
each program.
(vii) The aggregate dollar amount that was deferred in each
program.
(viii) The aggregate dollar amount that was collected in each
program.
(ix) The number of customers who defaulted while enrolled in
each program.
(x) The funding source.
(xi) The program cost.
(xii) A description of the program information that the
provider provides to its customers and the means by which it
provides that information.
(xiii) The total number of new deferred payment agreements
entered during the year, the number of deferred payment agreements
completed during the year, the number of deferred payment
agreements that defaulted, and the number of deferred payment
agreements that were active as of December 31.
(dd) If the provider provides stormwater service, any credits
available to reduce bills for that service, and the criteria a
customer must meet to qualify for those credits.
(ee) The following information concerning the provider's
revenues, arrearages, and expenses:
(i) Total dollar amounts billed, including any distinctions
between customer bills and other identified sources of revenue,
among categories of customer, and between retail and wholesale
customers. This should include a breakdown of amounts collected
from base charges and any fees, penalties, or interest.
(ii) Total revenues collected, including any distinctions
between customer bills and other identified sources of revenue,
among categories of customer, and between retail and wholesale
customers.
(iii) The number of customers required to pay a deposit to
initiate water or sewer service, the number of these customers who
paid that deposit, the number of these customers who did not pay
the deposit, and the number of these customers who used other means
to demonstrate their creditworthiness.
(iv) An itemized list of the dollar value of each federal or
state grant for capital improvements that the provider applied for
or received.
(v) An itemized list of the dollar value of each federal or
state loan for capital improvements that the provider applied for
or received.
(vi) The dollar value of any municipal bond revenues raised
for capital improvements.
(vii) The dollar value and source of any additional income
received from sources other than customer rates and charges for the
purpose of making capital improvements.
(viii) For each category of customer, the number of customer
accounts in arrears and the aggregate dollar amount of those
arrears, grouped by age of arrears as of December 31.
(ix) The number of residential customer accounts that are
enrolled in a payment plan and the total dollar amount subject to
those payment plans as of December 31.
(x) For each category of customer, the number of accounts
written off as uncollectible and the total dollar value of customer
bills written off as uncollectible.
(xi) The provider's total operating expenses.
(xii) An itemized list of the amount of each transfer of funds
by the provider to other governmental accounts, including payments
in lieu of taxes, rent, service fees, and other transfers.
(ff) The following information concerning the provider's
customer base:
(i) Identification of the municipalities, or portions of
municipalities, that are in the provider's retail service area.
(ii) The total population of the provider's retail service
area for the most recent year for which a population estimate is
available.
(iii) The number of retail customers in each rate category.
(iv) Identification of the municipalities, or portions of
municipalities, that are in the provider's wholesale service area,
if any.
(v) The total population of the provider's wholesale service
area, if any, for the most recent year for which a population
estimate is available.
(vi) If the provider is owned and operated by a municipality
and provides retail service in any areas outside of that
municipality's boundaries, all of the following:
(A) A list of the municipalities or portions of municipalities
that are within those areas.
(B) The total population served within those areas for the
most recent year for which a population estimate is available.
(C) For each category of customer, the total number of
customers served within those areas.
(vii) A list of any other providers that are wholesale
customers of the provider submitting the report.
(viii) The provider's 10 largest retail customers.
(ix) On the first annual report submitted under this section,
and once every 5 years thereafter, information on the racial and
other demographic composition of the population in the service
area.
(gg) The following information concerning the operations of
the provider's system:
(i) If the provider operates a water system, all of the
following:
(A) The total volume of water produced in each month of the
year.
(B) The total volume of water purchased in each month of the
year, the amounts paid for that water, and to whom those amounts
were paid.
(C) The total volume of retail water sales, in each month of
the year, by category of customer.
(D) The total volume of wholesale water sales, in each month
of the year, and to whom those sales were made.
(E) Real and apparent losses from the water distribution
system, calculated using the method adopted by the American Water
Works Association in the most recent version of "Water Audits and
Loss Control Programs", manual M36 and in the AWWA's free Water
Audit Software.
(F) Any utility functions or services carried out by other
parties under contract.
(ii) If the provider operates a sewerage system, all of the
following:
(A) The total flow in the system for each month of the year.
(B) The total volume of wastewater generated, by each category
of customer, for each month of the year.
(C) The estimated amount of infiltration and inflow, for each
month of the year.
(D) If the provider purchases wastewater conveyance or
treatment services from another sewerage system under a wholesale
contract, the total flow conveyed or treated under that contract in
each month of the year, the dollar amounts paid under the contract,
and to whom those amounts were paid.
(E) If the provider provides wastewater conveyance or
treatment services to another sewerage system under a wholesale
contract, the total flow conveyed or treated under that contract in
each month of the year, the dollar amounts received under that
contract, and from whom those funds were received.
(F) Whether the system is a separate sanitary sewerage system
or a combined sanitary sewerage and stormwater system.
(G) Any utility functions or services carried out by other
parties under contract.
(iii) If the provider operates a stormwater system, all of the
following:
(A) The total amount of impervious area, or other unit of
measure on which the provider's stormwater rates or charges are
based, associated with each category of customer or each major land
use type, to the extent that information is in the possession of
the provider.
(B) Any utility functions or services carried out by other
parties under contract.
(2) If a provider provides some combination of water,
wastewater, and stormwater service, the provider shall report the
required information under subsection (1) separately for each
service.
(3) If a provider fails to submit the annual report required
by this section, the provider is subject to a civil fine of not
more than $1,000.00.
Sec. 3. A provider shall maintain an internet webpage that
provides, at all times, the provider's current schedule of rates
and charges, the provider's current policies and procedures
regarding shutoffs of water and sewerage service, detailed
information on any payment plans that the provider offers to help
customers manage arrears, and detailed information on any
affordability programs that the provider currently has available
for low-income customers. A report under section 2 must include the
web address for the webpage.
Sec. 4. A provider shall make the report and information
required under sections 2 and 3 available to customers on its
website and post a printed copy in its offices.
Sec. 5. (1) The department shall develop standardized
reporting forms and an online reporting system, for purposes of
reporting under sections 2 and 3.
(2) A provider shall submit the report under sections 2 and 3
using the standard form and online reporting system developed under
subsection (1).
(3) The department shall make all information reported by
providers under subsection (2) publicly available on an internet
website in a format that can be easily searched for data on any
individual provider, facilitates comparisons across utilities, and
is capable of being downloaded in a database, spreadsheet, or other
format that would allow members of the public to perform analysis
on the entire dataset.
(4) The department shall annually provide a summary report of
findings and recommendations to the legislature by September 30 and
publish this summary report on its website.
