Bill Text: MI SB1125 | 2017-2018 | 99th Legislature | Introduced


Bill Title: Public utilities; public service commission; certain rules; require public service commission to adopt. Amends secs. 6l, 6m & 10t of 1939 PA 3 (MCL 460.6l et seq.) & adds secs. 6f, 9e & 9g.

Spectrum: Partisan Bill (Republican 1-0)

Status: (Introduced - Dead) 2018-09-26 - Referred To Committee On Energy And Technology [SB1125 Detail]

Download: Michigan-2017-SB1125-Introduced.html

 

 

 

 

 

 

 

 

 

 

 

 

 

SENATE BILL No. 1125

 

 

September 26, 2018, Introduced by Senator COLBECK 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 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,"

 

by amending sections 6l, 6m, and 10t (MCL 460.6l, 460.6m, and

 

460.10t), as amended by 2016 PA 341, and by adding sections 6f, 9e,

 


and 9g.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 6f. (1) Within 90 days after the effective date of the

 

amendatory act that added this section, the commission shall

 

publish and keep current for the public a booklet of residential

 

customer rights that contains at least all of the following:

 

     (a) How residential customers may request a proceeding before

 

the commission.

 

     (b) What a customer should do to adequately prepare for a

 

proceeding before the commission.

 

     (c) What to expect at a proceeding before the commission.

 

     (d) Potential outcomes of a proceeding before the commission.

 

     (e) How and when a customer may appeal a ruling by the

 

commission.

 

     (2) A residential customer who is a party in a proceeding

 

before the commission may appear in person, by an attorney licensed

 

in this state, or by an authorized representative in a proceeding

 

before the commission. As used in this subsection, "authorized

 

representative" means a person, other than an attorney licensed in

 

this state, designated by a residential customer representing or

 

assisting that residential customer in a proceeding.

 

     Sec. 6l. (1) For purposes of implementing sections 6a, 6h, 6j,

 

6s, and 6t, this section and section 6m provide a means of insuring

 

equitable representation of the interests of energy utility

 

customers.

 

     (2) As used in this section and section 6m:

 

     (a) "Annual receipts" means the payments received by the fund

 


under section 6m(2)(a), (b), (c), and (d) during a calendar year.

 

     (b) "Board" means the utility consumer participation board

 

created under subsection (3).

 

     (c) "Commission" means the Michigan public service commission.

 

     (d) "Department" means the department of licensing and

 

regulatory affairs.

 

     (e) "Energy cost recovery proceeding" means any proceeding to

 

establish or implement a gas cost recovery clause or a power supply

 

cost recovery clause as provided in section 6h or 6j, to set gas

 

cost recovery factors under section 6h(17), or to set power supply

 

cost recovery factors under section 6j(18).

 

     (f) "Energy utility" means each electric or gas company

 

regulated by the commission.

 

     (g) "Fund" means the utility consumer representation fund

 

created in section 6m.

 

     (h) "Household" means a single-family home, duplex, mobile

 

home, seasonal dwelling, farm home, cooperative, condominium, or

 

apartment that has normal household facilities such as a bathroom,

 

individual cooking facilities, and kitchen sink facilities.

 

Household does not include a penal or corrective institution, or a

 

motel, hotel, or other similar structure if used as a transient

 

dwelling.

 

     (i) "Jurisdictional" means subject to rate regulation by the

 

commission.

 

     (j) "Net grant proceeds" means the annual receipts of the fund

 

less the amounts reserved for the attorney general's use and the

 

amounts expended for board expenses and operation.


     (k) "Residential energy utility consumer" or "consumer" means

 

a customer of an energy utility who receives utility service for

 

use within an individual household or an improvement reasonably

 

appurtenant to and normally associated with an individual

 

household.

 

     (l) "Residential tariff sales" means those sales by an energy

 

utility that are subject to residential tariffs on file with the

 

commission.

 

     (m) "Utility consuming industry" means a person, sole

 

proprietorship, partnership, association, corporation, or other

 

entity that receives utility service ordinarily and primarily for

 

use in connection with the manufacture, sale, or distribution of

 

goods or the provision of services, but does not include a

 

nonprofit organization representing residential utility customers.

 

     (3) The utility consumer participation board is created within

 

the department and shall exercise its powers and duties under this

 

act independently of the department. The procurement and related

 

management functions of the board shall be performed under the

 

direction and supervision of the department. The board shall

 

consist consists of 5 members appointed by the governor , 1 of whom

 

shall be that includes the following:

 

     (a) One member chosen from 1 or more lists of qualified

 

persons submitted by the attorney general.

 

     (b) One member chosen from a list of qualified individuals

 

submitted by the speaker of the house of representatives.

 

     (c) One member chosen from a list of qualified individuals

 

submitted by the senate majority leader.


     (4) For the purposes of subsection (5) only, "utility" means

 

an electric or gas company located in or outside of this state.

 

     (5) Each member of the board shall meet the following

 

requirements:

 

     (a) Shall be Be an advocate for the interests of residential

 

utility consumers, as demonstrated by the member's knowledge of and

 

support for consumer interests and concerns in general or

 

specifically related to utility matters.

 

     (b) Shall not Not be, or shall not have been within the 5 10

 

years preceding appointment, a member of a governing body of, or

 

employed in a managerial or professional or consulting capacity by

 

a utility or an association representing utilities; an enterprise

 

or professional practice that received over $1,500.00 in the year

 

preceding the appointment as a supplier of goods or services to a

 

utility or association representing utilities; or an organization

 

representing employees of such a utility, association, enterprise,

 

or professional practice, or an association that represents such an

 

organization.

 

     (c) Shall not Not have, or shall not have had within 1 year

 

preceding appointment, a financial interest exceeding $1,500.00 in

 

a utility, an association representing utilities, or an enterprise

 

or professional practice that received over $1,500.00 in the year

 

preceding the appointment as a supplier of goods or services to a

 

utility or association representing utilities.

 

     (d) Shall not Not be an officer or director of an applicant

 

for a grant under section 6m.

 

     (e) Shall not Not be a member of the immediate family of an


individual who would be ineligible under subdivision (a), (b), (c),

 

or (d).

 

     (6) The members of the board shall must be appointed for 2-

 

year terms beginning with the first day of a legislative session in

 

an odd-numbered year and ending on the day before the first day of

 

the legislative session in the next odd-numbered year or when the

 

members' successors are appointed, whichever occurs later. The

 

governor shall not appoint a member to the board for a term

 

commencing after the governor's term of office has ended. A vacancy

 

shall must be filled in the same manner as the original

 

appointment. If the vacancy is created other than by expiration of

 

a term, the member shall must be appointed for the balance of the

 

unexpired term of the member to be succeeded.

 

     (7) The governor shall remove a member of the board if that

 

member is absent for any reason from either 3 consecutive board

 

meetings or more than 50% of the meetings held by the board in a

 

calendar year. However, an individual who is removed due to

 

absenteeism is eligible for reappointment to fill a vacancy that

 

occurs in the board membership. The governor also shall remove a

 

member of the board if the member is subsequently determined to be

 

ineligible under subsection (5).

 

     (8) The board shall hold bimonthly meetings and additional

 

meetings as necessary. A quorum consists of 3 members. A majority

 

vote of the members appointed and serving is necessary for a

 

decision. At its first meeting following the appointment of new

 

members, or as soon as possible after the first meeting, the board

 

shall elect biennially from its membership a chairperson and a


vice-chairperson.

 

     (9) The board shall not act directly to represent the

 

interests of residential utility consumers except through

 

administration of the fund and grant program under this section.

 

     (10) The business that the board may perform shall must be

 

conducted at a public meeting of the board held in compliance with

 

the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. Public

 

notice of the time, date, and place of the meeting shall must be

 

given in the manner required by the open meetings act, 1976 PA 267,

 

MCL 15.261 to 15.275.

 

     (11) A writing prepared, owned, used, in the possession of, or

 

retained by the board in the performance of an official function

 

shall must be made available to the public in compliance with the

 

freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.

 

     (12) A member of the board may be reimbursed for actual and

 

necessary expenses, including travel expenses to and from each

 

meeting held by the board, incurred in discharging the member's

 

duties under this section and section 6m. In addition to expense

 

reimbursement, a board member may receive remuneration from the

 

board of $100.00 per meeting attended, not to exceed $1,000.00 in a

 

calendar year. These limits shall must be adjusted proportionately

 

to an adjustment in the remittance amounts under section 6m(4) to

 

allow for changes in the cost of living.

 

     Sec. 6m. (1) The utility consumer representation fund is

 

created as a special fund. The state treasurer shall be is the

 

custodian of the fund and shall maintain a separate account of the

 

money in the fund. The money in the fund shall must be invested in


the bonds, notes, and other evidences of indebtedness issued or

 

insured by the United States government and its agencies, and in

 

prime commercial paper. The state treasurer shall release money

 

from the fund, including interest earned, in the manner and at the

 

time directed by the board.

 

     (2) Except as provided in subsection (5), each energy utility

 

that has applied to the commission for the initiation of an energy

 

cost recovery proceeding shall remit to the fund before or upon

 

filing its initial application for that proceeding, and on or

 

before the first anniversary of that application, an amount of

 

money determined by the board in the following manner:

 

     (a) In the case of an energy utility company serving at least

 

100,000 customers in this state, its proportional share of

 

$900,000.00 adjusted annually by a factor as provided in subsection

 

(4). This adjusted amount shall become becomes the new base amount

 

to which the factor provided in subsection (4) is applied in the

 

succeeding year. A utility's proportional share shall must be

 

calculated by dividing the company's jurisdictional total operating

 

revenues for the preceding year, as stated in its annual report, by

 

the total operating revenues for the preceding year of all energy

 

utility companies serving at least 100,000 customers in this state.

 

This amount shall must be made available by the board for use by

 

the attorney general for the purposes described in subsection (16).

 

     (b) In the case of an energy utility company serving at least

 

100,000 residential customers in this state, its proportional share

 

of $650,000.00 adjusted annually by a factor as provided in

 

subsection (4). This adjusted amount shall become becomes the new


base amount to which the factor provided in subsection (4) is

 

applied in the succeeding year. A utility's proportional share

 

shall must be calculated by dividing the company's jurisdictional

 

gross revenues from residential tariff sales for the preceding year

 

by the gross revenues from residential tariff sales for the

 

preceding year of all energy utility companies serving at least

 

100,000 residential customers in this state. This amount shall must

 

be used for grants under subsection (10).

 

     (c) In the case of an energy utility company serving fewer

 

than 100,000 customers in this state, its proportional share of

 

$100,000.00 adjusted annually by a factor as provided in subsection

 

(4). This adjusted amount shall become becomes the new base amount

 

to which the factor provided in subsection (4) is applied in the

 

succeeding year. A utility's proportional share shall must be

 

calculated by dividing the company's jurisdictional total operating

 

revenues for the preceding year, as stated in its annual report, by

 

the total operating revenues for the preceding year of all energy

 

utility companies serving fewer than 100,000 customers in this

 

state. This amount shall must be made available by the board for

 

use by the attorney general for the purposes described in

 

subsection (16).

 

     (d) In the case of an energy utility company serving fewer

 

than 100,000 residential customers in this state, its proportional

 

share of $100,000.00 adjusted annually by a factor as provided in

 

subsection (4). This adjusted amount shall become becomes the new

 

base amount to which the factor provided in subsection (4) is

 

applied in the succeeding year. A utility's proportional share


shall must be calculated by dividing the company's jurisdictional

 

gross revenues from residential tariff sales for the preceding year

 

by the gross revenues from residential tariff sales for the

 

preceding year of all energy utility companies serving fewer than

 

100,000 residential customers in this state. This amount shall must

 

be used for grants under subsection (10).

 

     (3) Payments made by an energy utility under subsection (2)(a)

 

or (c) are operating expenses of the utility that the commission

 

shall permit the utility to charge to its customers. Payments made

 

by a utility under subsection (2)(b) or (d) are operating expenses

 

of the utility that the commission shall permit the utility to

 

charge to its residential customers.

 

     (4) For purposes of subsection (2), the board shall set the

 

factor at a level not to exceed the percentage increase in the

 

index known as the consumer price index Consumer Price Index for

 

urban wage earners and clerical workers, select areas, all items

 

indexed, for the Detroit standard metropolitan statistical area,

 

compiled by the Bureau of Labor Statistics of the United States

 

Department of Labor, or any successor agency, that has occurred

 

between January of the preceding year and January of the year in

 

which the payment is required to be made. In the event that more

 

than 1 such index is compiled, the index yielding the largest

 

payment shall be is the maximum allowable factor. The board shall

 

advise utilities of the factor.

 

     (5) The remittance requirements of this section do not apply

 

to an energy utility organized as a cooperative corporation under

 

sections 98 to 109 of 1931 PA 327, MCL 450.98 to 450.109, and


grants from the fund shall must not be used to participate in an

 

energy cost recovery proceeding primarily affecting such a utility.

 

     (6) In the event of a dispute between the board and an energy

 

utility about the amount of payment due, the utility shall pay the

 

undisputed amount and, if the utility and the board cannot agree,

 

the board may initiate civil action in the circuit court for Ingham

 

County for recovery of the disputed amount. If the court determines

 

in an action under this subsection that the board's proposed

 

payment was the proper amount of payment due, the court shall order

 

the utility to pay the board's court costs and attorney fees. The

 

commission shall not include any costs or attorney fees awarded

 

under this subsection in any rates for that utility. The commission

 

shall not accept or take action on an application for an energy

 

cost recovery proceeding from an energy utility subject to this

 

section that has not fully paid undisputed remittances required by

 

this section.

 

     (7) The commission shall not accept or take action on an

 

application for an energy cost recovery proceeding from an energy

 

utility subject to this section until 30 days after it has been

 

notified by the board that the board is ready to process grant

 

applications, will transfer funds payable to the attorney general

 

immediately upon the receipt of those funds, and will within 30

 

days approve grants and remit funds to qualified grant applicants.

 

     (8) The board may accept a gift or grant from any source to be

 

deposited in the fund if the conditions or purposes of the gift or

 

grant are consistent with this section.

 

     (9) The costs of operation and expenses incurred by the board


in performing its duties under this section and section 6l,

 

including remuneration to board members, shall must be paid from

 

the fund. A maximum of 5% of the annual receipts of the fund

 

received under subsection (2) may be budgeted and used to pay

 

expenses other than grants made under subsection (10).

 

     (10) The net grant proceeds shall must finance a grant program

 

from which the board may award to an applicant an amount that the

 

board determines shall be used for the purposes set forth in this

 

section.

 

     (11) The board shall create and make available to applicants

 

an application form. Each applicant shall indicate on the

 

application how the applicant meets the eligibility requirements

 

provided for in this section and how the applicant proposes to use

 

a grant from the fund to participate in 1 or more proceedings as

 

authorized in subsection (16) that have been or are expected to be

 

filed. Each applicant shall also identify on the application any

 

additional funds or resources, other than the grant funds being

 

requested, that are to be used to participate in the proceeding for

 

which the grant is being requested and how those funds or resources

 

will be utilized. The board shall receive an application requesting

 

a grant from the fund only from a nonprofit organization or a unit

 

of local government in this state. The board shall consider only

 

applications for grants containing proposals that are consistent

 

with subsections (16) and (17) and that serve the interests of

 

residential utility consumers. For purposes of making grants, the

 

board may consider energy conservation, energy waste reduction,

 

demand response, and rate design options to encourage energy


conservation, energy waste reduction, and demand response, as well

 

as the maintenance of adequate energy resources and matters related

 

to the need for or enforcement of commission rules pertaining to

 

the application for service, involuntary termination of service,

 

shut-off and restoration protections, meters, or consumer standards

 

or billing practices. The board shall not consider an application

 

that primarily benefits the applicant or a service provided or

 

administered by the applicant. The board shall not consider an

 

application from a nonprofit organization if 1 of the

 

organization's principal interests or unifying principles is the

 

welfare of a utility or its investors or employees, or the welfare

 

of 1 or more businesses or industries, other than farms not owned

 

or operated by a corporation, that receive utility service

 

ordinarily and primarily for use in connection with the profit-

 

seeking manufacture, sale, or distribution of goods or services.

 

Mere ownership of securities by a nonprofit organization or its

 

members does not disqualify an application submitted by that

 

organization. If the board rejects an application for a grant under

 

this section, the board shall provide the applicant a detailed

 

written statement of all of the reasons for the rejection.

 

     (12) The board shall encourage the representation of the

 

interests of identifiable types of residential utility consumers

 

whose interests may differ, including various social and economic

 

classes and areas of the state, and if necessary, may make grants

 

to more than 1 applicant whose applications are related to a

 

similar issue to achieve this type of representation. In addition,

 

the board shall consider and balance the following criteria in


determining whether to make a grant to an applicant:

 

     (a) Evidence of the applicant's competence, experience, and

 

commitment to advancing the interests of residential utility

 

consumers.

 

     (b) The anticipated involvement of the attorney general in a

 

proceeding and whether activities of the applicant will be

 

duplicative or supplemental to those of the attorney general. An

 

applicant's activities are not duplicative to those of the attorney

 

general merely because the attorney general is involved in the same

 

proceeding.

 

     (c) In the case of a nongovernmental applicant, the extent to

 

which the applicant is representative of or has a previous history

 

of advocating the interests of citizens, especially residential

 

utility consumers.

 

     (d) The anticipated effect of the proposal contained in the

 

application on residential utility consumers, including the

 

immediate and long-term impacts of the proposal.

 

     (e) Evidence demonstrating the potential for continuity of

 

effort and the development of expertise in relation to the proposal

 

contained in the application.

 

     (f) The uniqueness or innovativeness of an applicant's

 

position or point of view as it relates to advocating for

 

residential utility consumers concerning energy costs or rates, and

 

the probability and desirability of that position or point of view

 

prevailing.

 

     (13) As an alternative to choosing between 2 or more

 

applications that have similar proposals, the board may invite 2 or


more of the applicants to file jointly and award a grant to be

 

managed cooperatively.

 

     (14) The board shall make disbursements pursuant to a grant in

 

advance of an applicant's proposed actions as set forth in the

 

application if necessary to enable the applicant to initiate,

 

continue, or complete the proposed actions.

 

     (15) Any notice to utility customers and the general public of

 

hearings or other state proceedings in which grants from the fund

 

may be used shall must contain a notice of the availability of the

 

fund and the address of the board.

 

     (16) The annual receipts and interest earned, less

 

administrative costs, may be used only for participation in

 

administrative and judicial proceedings under sections 6a, 6h, 6j,

 

6s, and 6t, and in federal administrative and judicial proceedings

 

that directly affect the energy costs or rates paid by energy

 

utility customers in this state and in matters related to consumer

 

protections and billing practices that apply to residential energy

 

utility customers in this state. Amounts that have been in the fund

 

more than 12 months may be retained in the fund for future

 

proceedings and any unexpended money in the fund shall must be

 

reserved to fulfill the purposes for which it was appropriated or

 

may be returned to energy utility companies or used to offset their

 

future remittances in proportion to their previous remittances to

 

the fund, as the board and attorney general determine will best

 

serve the interests of consumers.

 

     (17) The following conditions apply to all grants from the

 

fund:


     (a) Disbursements from the fund may be used only to advocate

 

the interests of residential energy utility customers concerning

 

energy costs or rates and not for representation of merely

 

individual interests.as described in subsection (16).

 

     (b) The board shall attempt to maintain a reasonable

 

relationship between the payments from a particular energy utility

 

and the benefits to consumers of that utility.

 

     (c) The board shall coordinate the funded activities of grant

 

recipients with those of the attorney general to avoid duplication

 

of effort, particularly as it relates to the hiring of expert

 

witnesses, to promote supplementation of effort, and to maximize

 

the number of hearings and proceedings with intervenor

 

participation.

 

     (18) A recipient of a grant under subsection (10) may use the

 

grant only for the advancement of the proposed action approved by

 

the board, including, but not limited to, costs of staff, hired

 

consultants and counsel, and research.

 

     (19) A recipient of a grant under subsection (10) shall

 

prepare for and participate in all discussions among the parties

 

designed to facilitate settlement or narrowing of the contested

 

issues before a hearing in order to minimize litigation costs for

 

all parties.

 

     (20) A recipient of a grant under subsection (10) shall file a

 

report with the board within 90 days following the end of the year

 

or a shorter period for which the grant is made. The report shall

 

must be made in a form prescribed by the board and is subject to

 

audit by the board. The board shall include each report received


under this subsection as part of the board's annual report required

 

under subsection (22). The report under this subsection shall must

 

include the following information:

 

     (a) An account of all grant expenditures made by the grant

 

recipient. Expenditures shall must be reported within the following

 

categories:

 

     (i) Employee and contract for services costs.

 

     (ii) Costs of materials and supplies.

 

     (iii) Filing fees and other costs required to effectively

 

represent residential utility consumers as provided in this

 

section.

 

     (b) A detailed list of the regulatory issues raised by the

 

grant recipient and how each issue was determined by the

 

commission, court, or other tribunal.

 

     (c) Any additional information concerning uses of the grant

 

required by the board.

 

     (21) On or before July 1 of each year, the attorney general

 

shall file a report with the house and senate committees on

 

appropriations and the house and senate committees with

 

jurisdiction over energy and utility policy issues. The report

 

shall must include the following information:

 

     (a) An account of all expenditures made by the attorney

 

general of money received under this section. Expenditures shall

 

must be reported within the following categories:

 

     (i) Employee and contract for services costs.

 

     (ii) Costs of materials and supplies.

 

     (iii) Filing fees and other costs required to effectively


represent utility consumers as provided in this section.

 

     (b) Any additional information concerning uses of the money

 

received under this section required by the committees.

 

     (22) On or before July 1 of each calendar year, the board

 

shall submit a detailed report to the house and senate committees

 

with jurisdiction over energy and utility policy issues regarding

 

the discharge of duties and responsibilities under this section and

 

section 6l during the preceding calendar year.

 

     Sec. 9e. (1) A utility shall file with the commission at least

 

quarterly reports that disclose at least all of the following:

 

     (a) The payment performance of its customers in relation to

 

established due and payable periods.

 

     (b) The number and general description of all complaints

 

registered with the utility.

 

     (c) The number of shut-off notices issued by the utility and

 

the reasons for the notices.

 

     (d) The number of hearings held by the utility, the types of

 

disputes involved, and the number of complaint determinations

 

issued.

 

     (e) The number of written settlement agreements entered into

 

by the utility.

 

     (f) The number of shutoffs of service, the number of

 

reconnections, and the reasons for the shutoffs, minimally broken

 

down by voluntary shutoffs, involuntary shutoffs, safety-related

 

shutoffs, non-safety-related shutoffs, meter-choice-related

 

shutoffs, and payment-related shutoffs. If a shutoff is due to an

 

unsafe connection, the utility shall uniquely explain each of those


shutoffs, fully detailing the reason the connection was unsafe and

 

the action taken to cure or address that unsafe connection.

 

     (g) The average time for the utility to restore service to a

 

customer following a shutoff, the amount of time for a utility to

 

restore service to each customer, and how many times the utility's

 

restoration of service violated this act or rules promulgated by

 

the commission.

 

     (h) Any other customer service quality information requested

 

by the commission staff.

 

     (2) In addition to the routine reports required under

 

subsection (1), a utility shall comply with any additional

 

commission staff requests for nonaggregated customer service

 

quality information at any time, with the utility providing that

 

individual customer-related information within 1 week after the

 

request.

 

     (3) If a utility or its agents have shut-off service, the

 

utility or its agents shall restore service promptly upon the

 

customer's request when the cause has been cured or credit

 

arrangements satisfactory to the utility have been made, or when a

 

utility discovers that the utility has erroneously or illegally

 

disconnected service. When a utility is required to restore service

 

at the customer's meter manually, the utility shall make every

 

effort to restore service on the day the customer requests

 

restoration. Except when prevented by a disaster, the utility shall

 

restore service not later than the first working day after the

 

customer's request. For utilities using meter technology with

 

remote shutoff and restoration capability, service must be restored


on the day the customer requests restoration, except in the case of

 

documented equipment failure where a utility is required to restore

 

at the customer's meter manually.

 

     (4) A utility that shuts off service to a customer, except at

 

the customer's request or for the reasons allowed by law, shall

 

provide to any affected customer a bill credit on the customer's

 

next bill. The amount of the credit provided to a residential

 

customer is at least $100.00 per day for each full or partial day

 

that the customer's service is not restored. If requested by the

 

customer, the utility shall provide a payment to the customer

 

instead of a bill credit under this subsection. A customer's

 

acceptance of a bill credit under this subsection does not limit

 

any rights or remedies available to that customer under any other

 

law.

 

     (5) A utility is disqualified from receiving an incentive

 

under commission rules if the commission issues an order finding

 

that the utility's residential customer service levels were

 

unsatisfactory due to multiple violations of this section or rules

 

pertaining to the application for service, involuntary termination

 

of service, shut-off and restoration protections, meters, or

 

consumer standards or billing practices.

 

     (6) A gas utility shall not shut off service to an eligible

 

senior citizen customer during the heating season. At the

 

customer's request, a gas utility shall restore service to an

 

eligible senior citizen customer's documented personal residence

 

during the heating season without payment of any amount due,

 

deposits, reconnection fees, or other charges. At the conclusion of


the heating season, the gas utility shall reconcile the accounts of

 

eligible senior citizen customers and permit them to pay any

 

amounts owing in equal monthly installments between April 1 and

 

October 31. This subsection does not relieve the customer of his or

 

her obligation to pay for utility service. This subsection does not

 

prohibit a gas utility that observes an unsafe connection at a

 

customer's location that is caused by unauthorized use of natural

 

gas service from implementing measures to cure or address the

 

unsafe connection under section 9d. The use of an analog meter does

 

not create, and shall not be construed to create, an unsafe

 

connection or condition.

 

     (7) As used in this section:

 

     (a) "Disaster" means widespread or severe damage to utility

 

infrastructure beyond the utility's control resulting from a

 

natural or man-made cause, including, but not limited to, an act of

 

war, earthquake, wildfire, flood, ice storm, snowstorm, terrorist

 

attack, tornado, or windstorm. Widespread or severe damage to

 

utility infrastructure that is the result of improper equipment,

 

poor maintenance, employee error, or other personnel issues is not

 

a disaster.

 

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

 

customer who meets both of the following criteria:

 

     (i) Has an individual in that customer's residence who is 65

 

years of age or older.

 

     (ii) The utility knows or should know of his or her

 

eligibility or the customer advises the utility of his or her

 

eligibility.   


     (c) "Heating season" means the period between November 1 and

 

March 31, or additional periods of time more protective of

 

customers in rules promulgated by the commission.

 

     (d) "Utility" means an electric or natural gas utility

 

regulated by the commission.

 

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

 

supplier shall not shut off service to an either of the following:

 

     (a) An eligible low-income 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 low-income customer and the eligible

 

low-income customer demonstrates, within 14 days of requesting

 

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

 

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

 

an eligible low-income 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.

 

     (b) An eligible senior citizen customer during the heating

 

season or cooling season. At the customer's request, an electric

 

utility or alternative electric supplier shall restore service to

 

an eligible senior citizen customer's documented personal residence

 

during the heating season or cooling season without payment of any

 

amount due, deposits, reconnection fees, or other charges. At the

 

conclusion of the heating season or cooling season, the electric


utility or alternative electric supplier shall reconcile the

 

accounts of eligible senior citizen customers and permit them to

 

pay any amounts owing in equal monthly installments outside of

 

otherwise protected periods of time. This subsection does not

 

relieve the customer of his or her obligation to pay for utility

 

service. This subsection does not prohibit an electric utility that

 

observes an unsafe connection at a customer's location that is

 

caused by unauthorized use of electric service from implementing

 

measures to cure or address the unsafe connection under section 9d.

 

The use of an analog meter does not create, and shall not be

 

construed to create, an unsafe connection or condition.

 

     (2) An electric utility or alternative electric supplier may

 

shut off service to a an eligible low-income customer as provided

 

in part 7 of the clean and renewable energy and energy waste

 

reduction act, 2008 PA 295, MCL 460.1201 to 460.1211, or to an

 

eligible low-income 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 customer who fails

 

to make the monthly payments required under subsection (1).

 

     (3) If a an eligible low-income 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 not paid the per-meter charge


described in section 205 of the clean and renewable energy and

 

energy waste reduction act, 2008 PA 295, MCL 460.1205, or 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 mailing, 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 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) "Cooling season" means the period between July 1 and

 

August 31, or additional periods of time more protective of

 

customers in rules promulgated by the commission.

 

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

 

income customer or an eligible senior citizen customer.

 

     (c) (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.

 

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


supplier customer who meets both of the following criteria:

 

     (i) Has an individual in that customer's residence who is 65

 

years of age or older. and who

 

     (ii) The utility knows or should know of his or her

 

eligibility or the customer advises the utility of his or her

 

eligibility.

 

     (e) "Heating season" means the period between November 1 and

 

March 31, or additional periods of time more protective of

 

customers in rules promulgated by the commission.

feedback