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Key Votes

HB 5524 - Energy Utility Regulations - Key Vote

Michigan Key Votes

Stages

Family

Issues

Stage Details

Legislation - Became Law Without Governor's Signature (Executive) -

Title: Energy Utility Regulations

Legislation - Conference Report Adopted (House) (78-29) - (Key vote)

Title: Energy Utility Regulations

Vote Smart's Synopsis:

Vote to adopt a conference report that replaces the Public Utilities Commission with the Public Services Commission (PSC), and increases regulations on public utilities with respect to changes in utility rates, mergers, and other elements.

Highlights:
- Prohibits gas or electric utilities from increasing or altering their rates and charges without receiving the PSC's approval, unless the PSC is unable to reach a decision within 12 months of the utilities' filing of the application for a change of rates, at which point the application is considered approved [sec. 6a (1)]. - Requires utilities to apply and receive approval from the PSC before acquiring, controlling, or merging with a jurisdictional regulated utility, and requires jurisdictional regulated utilities to acquire such approval prior to selling, assigning, transferring, or encumbering its assets. In doing so, the PSC is authorized to impose terms and conditions on the acquisition, transfer, merger, or encumbrance to protect both the jurisdictional regulated utility and their customers [sec. 6q (1)]. - Authorizes electric utilities to apply with the PSC for a certificate of necessity for construction, investment, or purchasing costs in excess of $500 million, provided that a portion of the costs is allocable to retail customers, for the following [sec. 6s (1)]:
    - Construction of an electric generation facility; - Significant investment in an existing electric generation facility; - Purchase of an existing electric generation facility; or - Power purchase agreement for the purchase of an existing electric generation facility for a period of six years or longer.
- Authorizes the PSC to establish rates and conditions of service that allow retail customers of electric providers to choose an alternative electric supplier, provided that no more than 10 percent of that provider's average weather-adjusted retail sales from the prior year may take service from an alternative supplier at any time [sec. 10a (1)]. - Requires the PSC to establish rates, terms, and conditions that promote the development of alternative generation, transmission, and distribution technologies [sec. 10b (1)]. - Specifies that if an electric utility that serves less than 1 million retail customers in the state as of May 1, 2000 issues securitization bonds, it will have the same rights, duties and obligations as an electric utility serving more than 1 million customers [sec. 10d (1)]. - Requires each electric utility to create an industry worker transition program that will provide skills upgrades, apprenticeship and training programs, voluntary separation packages, and job banks [sec. 10p (1)]. - Authorizes the PSC to establish electric rates equal to the cost of providing service to each customer class over a five year period, beginning January 1, 2009 (Sec. 11). - Appropriates $2.5 million to the PSC for the fiscal year 2008-2009 to hire 25 new employees to carry out provisions of this Act (Sec. 10dd).
See The Voting Record

Legislation - Conference Report Adopted (Senate) (25-11) - (Key vote)

Title: Energy Utility Regulations

Vote Smart's Synopsis:

Vote to adopt a conference report that replaces the Public Utilities Commission with the Public Services Commission (PSC), and increases regulations on public utilities with respect to changes in utility rates, mergers, and other elements.

Highlights:
- Prohibits gas or electric utilities from increasing or altering their rates and charges without receiving the PSC's approval, unless the PSC is unable to reach a decision within 12 months of the utilities' filing of the application for a change of rates, at which point the application is considered approved [sec. 6a (1)]. - Requires utilities to apply and receive approval from the PSC before acquiring, controlling, or merging with a jurisdictional regulated utility, and requires jurisdictional regulated utilities to acquire such approval prior to selling, assigning, transferring, or encumbering its assets. In doing so, the PSC is authorized to impose terms and conditions on the acquisition, transfer, merger, or encumbrance to protect both the jurisdictional regulated utility and their customers [sec. 6q (1)]. - Authorizes electric utilities to apply with the PSC for a certificate of necessity for construction, investment, or purchasing costs in excess of $500 million, provided that a portion of the costs is allocable to retail customers, for the following [sec. 6s (1)]:
    - Construction of an electric generation facility; - Significant investment in an existing electric generation facility; - Purchase of an existing electric generation facility; or - Power purchase agreement for the purchase of an existing electric generation facility for a period of six years or longer.
- Authorizes the PSC to establish rates and conditions of service that allow retail customers of electric providers to choose an alternative electric supplier, provided that no more than 10 percent of that provider's average weather-adjusted retail sales from the prior year may take service from an alternative supplier at any time [sec. 10a (1)]. - Requires the PSC to establish rates, terms, and conditions that promote the development of alternative generation, transmission, and distribution technologies [sec. 10b (1)]. - Specifies that if an electric utility that serves less than 1 million retail customers in the state as of May 1, 2000 issues securitization bonds, it will have the same rights, duties and obligations as an electric utility serving more than 1 million customers [sec. 10d (1)]. - Requires each electric utility to create an industry worker transition program that will provide skills upgrades, apprenticeship and training programs, voluntary separation packages, and job banks [sec. 10p (1)]. - Authorizes the PSC to establish electric rates equal to the cost of providing service to each customer class over a five year period, beginning January 1, 2009 (Sec. 11). - Appropriates $2.5 million to the PSC for the fiscal year 2008-2009 to hire 25 new employees to carry out provisions of this Act (Sec. 10dd).
See The Voting Record

Legislation - Concurrence Vote Failed (House) (1-105) -
Legislation - Bill Passed (Senate) (13-13) -
Legislation - Bill Passed (Senate) (21-14) -
Note:

NOTE: THIS VOTE RECONSIDERS A PREVIOUS VOTE.

Legislation - Bill Passed (House) (78-30) - (Key vote)

Title: Energy Utility Regulations

Vote Smart's Synopsis:

Vote to pass a bill that revises state policies regarding energy utilities and utility rates.

Highlights:
- Allows the Public Service Commission (PSC) to review and temporarily prevent or delay rate increases for good cause (Sec. 6a). - Requires approval by the PSC for the acquisition or mergers of jurisdictional regulated utilities (Sec. 6q). - Allows utility companies who wish to construct a new electric generation facility, make significant investment in an existing facility, purchase an existing facility, or enter into a power purchase agreement to apply to the PSC for a certificate of necessity. This allows the utility to recover the approved costs of the project from their customers (Sec. 6r). - Requires an integrated resource plan from utilities seeking a certificate of necessity that includes a long-term forecast of utility load growth, type of generation technology to be used, and projected energy efficiency savings (Sec. 6r). - Limits the amount of energy a utility may purchase from an alternative supplier to ten percent. Removes earlier provisions allowing customers to chose an alternative supplier at will (Sec. 10). - Modifies the way utility rates are set to account more for actual energy consumption by customers, including schools, universities, and community colleges. Allows rate changes to be phased in over five years to minimize the impact on customers (Sec. 11). - House Bill 5524 is tie-barred to HB 5383, HB 5525, HB 5548, HB 5549, and HB 5972-5977. Unless all are enacted, the bill will not take effect. - Substitute offered by House Committee on Energy and Technology.
Note:

NOTE: THIS IS A SUBSTITUTE BILL, MEANING THE LANGUAGE OF THE ORIGINAL BILL HAS BEEN REPLACED. THE DEGREE TO WHICH THE SUBSTITUTE BILL TEXT DIFFERS FROM THE PREVIOUS VERSION OF THE TEXT CAN VARY GREATLY.

See The Voting Record

Legislation - Introduced (House) -

Title: Energy Utility Regulations

Sponsors

  • Frank Accavitti Jr. (MI - D) (Out Of Office)

Co-sponsors

  • Kathy Angerer (MI - D) (Out Of Office)
  • Edward J. 'Ed' Gaffney (MI - R) (Out Of Office)
  • Hoon-Yung Hopgood (MI - D) (Out Of Office)
  • Joe Hune (MI - R) (Out Of Office)
  • Philip J. LaJoy (MI - R) (Out Of Office)
  • Jeff C. Mayes (MI - D) (Out Of Office)

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