Introduced
by
To establish that if a court ruling prevents incumbent electric utilities from issuing the “securitization” bonds authorized by the 2000 law that was intended to create a competitive electricity market in Michigan, then the utilities would be allowed to raise rates to the levels in effect before that law went into effect. The state-guaranteed, low interest “securitization” bonds were to compensate these previously regulated utilities for what they called “stranded costs,” or costs incurred in providing plant and equipment under the previous regulatory regime. The electric “competition” law also imposed temporary price controls on residential rates, and it is these that would be rolled back if a court throws out the securitization fees.
Referred to the Committee on Technology and Energy
