Bill Text: MI SB0345 | 2021-2022 | 101st 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) 2021-03-25 - Referred To Committee On Environmental Quality [SB0345 Detail]
Download: Michigan-2021-SB0345-Introduced.html
SENATE BILL NO. 345
the people of the state of michigan enact:
(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 health and human services.
(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. Subject to section 7(5), a provider that has less than 50,000 residential water customers 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) 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.
(d) The date on which the rates and charges reported in subdivision (c) took effect.
(e) The following information concerning shutoffs that occurred during that year:
(i) The total number of shutoffs and the total cost to the provider of performing those shutoffs.
(ii) The number of shutoff notices 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.
(iii) The reason or reasons the shutoff notices were issued under this subdivision.
(f) The following information concerning customer accounts:
(i) The total number of delinquent customer accounts.
(ii) The total number of defaulted customer accounts.
(iii) The aggregated dollar amount of arrears on all customer accounts.
(g) The percentage of customers that defaulted on a payment or affordability program.
(h) 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.
(i) The provider's policies and procedures regarding shutoffs of water and sewerage service and dispute resolution.
(j) A list of the provider's current assets and a copy of any current asset management plan, if feasible.
Sec. 3. (1) Subject to section 7(5), a provider that has 50,000 residential water customers or more 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) All of the information required under section 2(a) to (j).
(b) 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.
(c) A list and definitions of the categories of customers and exempt users of the provider, including commercial, residential, nonprofit, and exempt users.
(d) 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.
(e) The regular frequency, if any, at which rates and charges are revised or readopted.
(f) 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.
(g) 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.
(h) 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.
(i) The frequency of customer billing, by category of customer.
(j) 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.
(k) 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.
(l) The process by which the rates and charges reported under section 2(c) 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.
(m) The number of shutoffs that occurred during that year identified in section 2(e), broken down by census tract and zip code.
(n) The number of customer accounts that received 1 or more of the shutoff notices identified in section 2(e), broken down between single-family and multi-family residential dwellings.
(o) For occupied single-family residential dwellings and occupied multi-family residential dwellings, respectively, the number of shutoffs that occurred, the number of 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 5 days or less, in 6 to 15 days, in 16 to 30 days, in 31 to 60 days, and in more than 60 days.
(p) 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 (o) and the number of accounts that were subject to 1 or more of the restorations of service identified in subdivision (o).
(q) 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.
(r) 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.
(s) 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.
(t) The number and aggregate dollar value of liens recorded for unpaid water and sewer bills.
(u) The incidence and dollar value of other forms of debt collection actions besides shutoffs, liens, or foreclosures.
(v) 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.
(w) 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.
(x) 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.
(y) 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.
(z) The cost allocation method currently used by the provider, including the annual amount of water and sewerage rate revenue transferred to expenses other than water and sewerage expenses.
(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.
Sec. 4. A provider shall maintain an internet website 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 or 3 must include the web address for the website.
Sec. 5. If a provider fails to submit the annual report required under section 2 or 3, or fails to make the information required under section 4 available on its website, the provider is subject to a civil fine of not more than $1,000.00.
Sec. 6. A provider shall make the report and information required under sections 2, 3, and 4 available to customers on its website and post a printed copy in its offices.
Sec. 7. (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 section 2 or 3 using the standardized reporting form and online reporting system developed under subsection (1).
(3) The department shall make the reports submitted 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 and facilitates comparisons across utilities. The reports submitted must be 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.
(5) The department may require a provider to submit a report required under section 2 or 3 quarterly if the provider receives coronavirus relief. As used in this subsection, "coronavirus relief" means federal funding through a low-income household water assistance program to assist during the 2020 and 2021 coronavirus pandemic.
