Bill Text: MI HB6428 | 2017-2018 | 99th Legislature | Engrossed
Bill Title: Public utilities; municipal utilities; delivery of electric service outside of corporate limits of a city; modify provisions in MCL 460.10y. Amends sec. 10y of 1939 PA 3 (MCL 460.10y).
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2018-12-31 - Assigned Pa 515'18 With Immediate Effect [HB6428 Detail]
Download: Michigan-2017-HB6428-Engrossed.html
HB-6428, As Passed Senate, December 18, 2018
HOUSE BILL No. 6428
October 4, 2018, Introduced by Reps. Lower and Miller and referred to the Committee on Energy Policy.
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 powers and
duties of certain state governmental officers and entities; 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
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,"
House Bill No. 6428 as amended December 11, 2018
by amending section 10y (MCL 460.10y), as amended by 2008 PA 286.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 10y. (1) The governing body of a municipally owned
utility shall determine whether it will permit retail customers
receiving
delivery service from the municipally owned utility the
opportunity
of choosing to choose an alternative electric supplier,
subject to the implementation of rates, charges, terms, and
conditions referred to in subsection (5).
(2) Except with the written consent of the municipally owned
utility, a person shall not provide delivery service or customer
account
service to a retail customer that was is currently
receiving or within the previous 3 years has received that service
from
a municipally owned utility. as of June 5, 2000, or is
receiving
the service from a municipally owned utility. For
purposes
of As used in this subsection, "customer" means [only] the
building or facilities served rather than the individual,
association,
partnership, corporation, governmental body, or any
other entity taking service.
(3) With respect to any electric utility regarding delivery
service to customers located outside of the municipal boundaries of
the municipality that owns the utility, a governing body of a
municipally owned utility may elect to operate in compliance with R
460.3411
of the Michigan administrative code, Administrative Code,
as in effect on June 5, 2000. However, compliance with R
460.3411(13)
of the Michigan administrative code Administrative
Code is not required for the municipally owned utility. Concurrent
with the filing of an election under this subsection with the
commission, the municipally owned utility shall serve a copy of the
election on the electric utility. Beginning 30 days after service
of the copy of the election, the electric utility shall, as to the
electing municipally owned utility, be subject to the terms of R
460.3411
of the Michigan administrative code Administrative Code as
in effect on June 5, 2000. The commission shall decide disputes
arising under this subsection subject to judicial review and
enforcement.
(4) A municipally owned utility and an electric utility that
provides delivery service in the same municipality as the
municipally owned utility may enter into a written agreement to
define the territorial boundaries of each utility's delivery
service area and any other terms and conditions as necessary to
provide delivery service. The agreement is not effective unless
approved by the governing body of the municipally owned utility and
the commission. The governing body of the municipally owned utility
and the commission shall annually review and supervise compliance
with the terms of the agreement. At the request of a party to the
agreement, disputes arising under the agreement shall be decided by
the commission subject to judicial review and enforcement.
(5) If the governing body of a municipally owned utility
establishes a program to permit any of its customers the
opportunity to choose an alternative electric supplier, the
governing
body of the municipally owned utility shall have has
exclusive jurisdiction to do all of the following:
(a) Set delivery service rates applicable to services provided
by the municipally owned utility that shall not be unduly
discriminatory.
(b) Determine the amount and types of, and recovery mechanism
for, stranded and transition costs that will be charged.
(c) Establish rules, terms of access, and conditions that it
considers appropriate for the implementation of a program to allow
customers
the opportunity of choosing to
choose an alternative
electric supplier.
(6) Complaints alleging unduly discriminatory rates or other
noncompliance
arising under subsection (5) shall must be filed in
the circuit court for the county in which the municipally owned
utility is located.
(7) This section does not prevent or limit a municipally owned
utility from selling electricity at wholesale. A municipally owned
utility selling at wholesale is not considered to be an alternative
electric supplier and is not subject to regulation by the
commission.
(8)
This section shall not be construed to does not impair the
contractual rights of a municipally owned utility or customer under
an existing contract.
(9) Contracts or other records pertaining to the sale of
electricity by a municipally owned utility that are in the
possession of a public body and that contain specific pricing or
other confidential or proprietary information may be exempted from
public disclosure requirements by the governing body of a
municipally owned utility. Upon a showing of good cause, a court or
the commission may order disclosure subject to appropriate
confidentiality
provisions. may be ordered by a court or the
commission.
(10) This section does not affect the validity of the order
relating to the terms and conditions of service in the Traverse
City area that was issued August 25, 1994, by the commission at the
request of consumers power company and the light and power board of
the city of Traverse City.
(11) As provided in section 6, the commission does not have
jurisdiction over a municipally owned utility.
(12)
As used in this section:
(a)
"Delivery service" means the providing of electric
transmission
or distribution to a retail customer.
(b)
"Municipality" means any city, village, or township.
(c)
"Customer account services" means billing and collection,
provision
of a meter, meter maintenance and testing, meter reading,
and
other administrative activity associated with maintaining a
customer
account.
(12) (13)
In the event that If an entity purchases 1 or more
divisions or business units, or generating stations or generating
units, of a municipal electric utility, the acquiring entity's
contract and agreements with the selling municipality shall require
all of the following for a period of at least 30 months:
(a) That the acquiring entity or persons hires a sufficient
number of employees to safely and reliably operate and maintain the
station, division, or unit by first making offers of employment to
the workforce of the municipal electric utility's division,
business unit, or generating unit.
(b) That the acquiring entity or persons not employ employees
from outside the municipal electric utility's workforce unless
offers of employment have been made to all qualified employees of
the acquired business unit or facility.
(c) That the acquiring entity or persons have a dispute
resolution mechanism culminating in a final and binding decision by
a neutral third party for resolving employee complaints or disputes
over wages, fringe benefits, and working conditions.
(d) That the acquiring entity or persons offer employment at
no less than the wage rates and substantially equivalent fringe
benefits and terms and conditions of employment that are in effect
at the time of transfer of ownership of the division, business
unit, generating station, or generating unit. The wage rates and
substantially equivalent fringe benefits and terms and conditions
of
employment shall must continue for at least 30 months from the
time of the transfer of ownership unless the employees, or where
applicable collective bargaining representative, and the new
employer mutually agree to different terms and conditions of the
employment within that 30-month period.
(e) An acquiring entity is exempt from the obligations in this
subsection if the selling municipality transfers all displaced
municipal electric utility employees to positions of employment
within the municipality at no less than the wage rates and
substantially equivalent fringe benefits and terms and conditions
of employment that are in effect at the time of transfer. The wage
rates and substantially equivalent fringe benefits and terms and
conditions
of employment shall must continue for at least 30 months
from the time of the transfer unless the employees, or where
applicable collective bargaining representative, and the
municipality mutually agree to different terms and conditions of
the employment within that 30-month period.
(13) As used in this section:
(a) "Delivery service" means the providing of electric
transmission or distribution to a retail customer.
(b) "Municipality" means any city, village, or township.
(c) "Customer account services" means billing and collection,
provision of a meter, meter maintenance and testing, meter reading,
and other administrative activity associated with maintaining a
customer account.
