Bill Text: MI HB5865 | 2013-2014 | 97th Legislature | Introduced

---

Bill Title: Public utilities; consumer services; shutoff protections; expand to additional customers. Amends secs. 9r & 10t of 1939 PA 3 (MCL 460.9r & 460.10t).

Spectrum: Partisan Bill (Republican 2-0)

Status: (Introduced - Dead) 2014-10-01 - Printed Bill Filed 10/01/2014 [HB5865 Detail]

Download: Michigan-2013-HB5865-Introduced.html

---

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

HOUSE BILL No. 5865

 

 

September 30, 2014, Introduced by Reps. MacMaster and Kelly and referred to the Committee on Energy and Technology.

 

     A bill to amend 1939 PA 3, entitled

 

"An act to provide for the regulation and control of public and

certain private utilities and other services affected with a public

interest within this state; to provide for alternative energy

suppliers; to provide for licensing; to include municipally owned

utilities and other providers of energy under certain provisions of

this act; to create a public service commission and to prescribe

and define its powers and duties; to abolish the Michigan public

utilities commission and to confer the powers and duties vested by

law on the public service commission; to provide for the

continuance, transfer, and completion of certain matters and

proceedings; to abolish automatic adjustment clauses; to prohibit

certain rate increases without notice and hearing; to qualify

residential energy conservation programs permitted under state law

for certain federal exemption; to create a fund; to provide for a

restructuring of the manner in which energy is provided in this

state; to encourage the utilization of resource recovery

facilities; to prohibit certain acts and practices of providers of

energy; to allow for the securitization of stranded costs; to

reduce rates; to provide for appeals; to provide appropriations; to

declare the effect and purpose of this act; to prescribe remedies

and penalties; and to repeal acts and parts of acts,"

 

by amending sections 9r and 10t (MCL 460.9r and 460.10t), section

 

9r as added by 2009 PA 174 and section 10t as added by 2000 PA 141.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 9r. (1) A municipally owned electric utility shall not

 

shut off service to an eligible a customer during the heating

 

season for nonpayment of a delinquent account if the customer is an

 

eligible senior citizen customer or if the eligible customer enters

 

into a winter protection payment plan to pay to the utility a

 

monthly amount equal to 7% of the estimated annual bill for the

 

eligible customer or the eligible customer and the utility mutually

 

agree upon a winter protection payment plan with different terms.

 

and the eligible customer demonstrates, within 14 days of

 

requesting shut-off protection, that he or she has applied for

 

state or federal heating assistance. If an arrearage exists at the

 

time an eligible a customer applies for protection from shutoff of

 

service during the heating season, the utility shall permit the

 

customer to pay the arrearage in equal monthly installments between

 

the date of application and the start of the subsequent heating

 

season.

 

     (2) If a customer fails to comply with the terms and

 

conditions of a winter protection payment plan, a municipally owned

 

electric utility may shut off service after giving the customer a

 

notice, by personal service or first-class mail, that contains all

 

of the following information:

 

     (a) That the customer has defaulted on the winter protection

 

payment plan.

 

     (b) The nature of the default.

 

     (c) That unless the customer makes the payments that are past

 

due within 10 days of the date of the mailing or personal service,

 

the municipally owned electric utility may shut off service.

 

     (d) The date on or after which the municipally owned electric

 

utility may shut off service, unless the customer takes appropriate

 

action.

 

     (e) That the customer may petition the municipally owned

 

electric utility in accordance with the utility's rules disputing

 

the claim before the date of the proposed shutoff of service, or

 

bring an action pursuant to under section 9p.

 

     (f) That the utility will not shut off service pending the

 

resolution of a dispute that is filed with the utility in

 

accordance with this section.

 

     (g) The telephone number and address of the utility where the

 

customer may make inquiry, enter into a payment plan, or file a

 

complaint.

 

     (h) The energy assistance telephone line number at the

 

department of human services or an operating 2-1-1 system telephone

 

number.

 

     (i) That the utility will postpone shutoff of service if a

 

medical emergency exists at the customer's residence.

 

     (j) That the utility may require a deposit and restoration

 

charge if the supplier shuts off service for nonpayment of a

 

delinquent account.

 

     (3) As used in this section:

 

     (a) "Eligible customer" means either an eligible low-income

 

customer or an eligible senior citizen customer who demonstrates to

 

the utility his or her eligibility.

 

     (b) "Eligible low-income customer" means a customer whose

 

household income does not exceed 150% of the poverty level, as

 

published by the United States department of health and human

 

services, or who receives any of the following:

 

     (i) Assistance from a state emergency relief program.

 

     (ii) Food stamps.

 

     (iii) Medicaid.

 

     (a) (c) "Eligible senior citizen customer" means a utility

 

customer who is 65 years of age or older and who advises the

 

utility of his or her eligibility.

 

     (b) (d) "Heating season" means November 1 December 1 through

 

March 31.

 

     Sec. 10t. (1) An electric utility or alternative electric

 

supplier shall not shut off service to an eligible a customer

 

during the heating season for nonpayment of a delinquent account if

 

the customer is an eligible senior citizen customer or if the

 

customer pays to the utility or supplier a monthly amount equal to

 

7% of the estimated annual bill for the eligible customer. and the

 

eligible customer demonstrates, within 14 days of requesting

 

shutoff protection, that he or she has applied for state or federal

 

heating assistance. If an arrearage exists at the time an eligible

 

customer applies for protection from shutoff of service during the

 

heating season, the utility or supplier shall permit the customer

 

to pay the arrearage in equal monthly installments between the date

 

of application and the start of the subsequent heating season.

 

     (2) An electric utility or alternative electric supplier may

 

shut off service to an eligible low-income a customer who does not

 

pay the monthly amounts required under subsection (1) after giving

 

notice in the manner required by rules. The utility or supplier is

 

not required to offer a settlement agreement to an eligible low-

 

income a customer who fails to make the monthly payments required

 

under subsection (1).

 

     (3) If a customer fails to comply with the terms and

 

conditions of this section, an electric utility may shut off

 

service on its own behalf or on behalf of an alternative electric

 

supplier after giving the customer a notice, by personal service or

 

first-class mail, that contains all of the following information:

 

     (a) That the customer has defaulted on the winter protection

 

plan.

 

     (b) The nature of the default.

 

     (c) That unless the customer makes the payments that are past

 

due within 10 days of the date of the mailing or personal service,

 

the utility or supplier may shut off service.

 

     (d) The date on or after which the utility or supplier may

 

shut off service, unless the customer takes appropriate action.

 

     (e) That the customer has the right to file a complaint

 

disputing the claim of the utility or supplier before the date of

 

the proposed shutoff of service.

 

     (f) That the customer has the right to request a hearing

 

before a hearing officer if the complaint cannot be otherwise

 

resolved and that the customer shall pay to the utility or supplier

 

that portion of the bill that is not in dispute within 3 days of

 

the date that the customer requests a hearing.

 

     (g) That the customer has the right to represent himself or

 

herself, to be represented by an attorney, or to be assisted by any

 

other person of his or her choice in the complaint process.

 

     (h) That the utility or supplier will not shut off service

 

pending the resolution of a complaint that is filed with the

 

utility in accordance with this section.

 

     (i) The telephone number and address of the utility or

 

supplier where the customer may make inquiry, enter into a

 

settlement agreement, or file a complaint.

 

     (j) That the customer should contact a social services agency

 

immediately if the customer believes he or she might be eligible

 

for emergency economic assistance.

 

     (k) That the utility or supplier will postpone shutoff of

 

service if a medical emergency exists at the customer's residence.

 

     (l) That the utility or supplier may require a deposit and

 

restoration charge if the supplier shuts off service for nonpayment

 

of a delinquent account.

 

     (4) An electric utility is not required to shut off service

 

under this section to an eligible a customer for nonpayment to an

 

alternative electric supplier.

 

     (5) The commission shall establish an educational program to

 

ensure that eligible customers are informed of the requirements and

 

benefits of this section.

 

     (6) As used in this section:

 

     (a) "Eligible customer" means either an eligible low-income

 

customer or an eligible senior citizen customer.

 

     (b) "Eligible low-income customer" means a customer whose

 

household income does not exceed 150% of the poverty level, as

 

published by the United States department of health and human

 

services, or who receives any of the following:

 

     (i) Assistance from a state emergency relief program.

 

     (ii) Food stamps.

 

     (iii) Medicaid.

 

     (a) (c) "Eligible senior citizen customer" means a utility or

 

supplier customer who is 65 years of age or older and who advises

 

the utility of his or her eligibility.

 

     (b) "Heating season" means December 1 through March 31.