2010 House Bill 6407

Allow utility rate hikes to subsidize special Hemlock Semiconductor utility deal

Introduced in the House

Sept. 1, 2010

Introduced by Reps. Ken Horn (R-94) and Douglas Geiss (D-22)

To prohibit the Public Service Commission from altering the special "economic development" rates granted by a utility to a particular company. In particular, the bill insulates the special rates granted by Consumers Energy to the Hemlock Semiconductor subsidiary of Dow Corning from a ban on cross-subsidization between residential and commercial/industrial customers; in effect it would cause residential and other business customers to subsidize Hemlock's below-cost rates. This ban on cross-subsidization ("deskewing") was part of <a href="http://www.michiganvotes.org/2007-HB-5524">a 2008 bill</a> that mostly ended the ability of non-residential customers to buy power from a generator other than Detroit Edison or Consumers Power, essentially restoring their monopoly status. See also <a href="http://www.michiganvotes.org/SearchLegislation.aspx?CategoryID=0&Keywords=Hemlock&StartMonth=1&StartYear=2001&EndMonth=12&EndYear=2010&Results=50&Laws=True&op=Search">2008 bills</a> that granted millions in tax breaks and subsidies to Hemlock. See also Senate Bill 1456.

Referred to the Committee on Energy and Technology

Nov. 9, 2010

Reported without amendment

With the recommendation that the substitute (H-1) be adopted and that the bill then pass.

Nov. 10, 2010

Substitute offered

To replace the previous version of the bill with one that revises various details, but does not change its substance. This version was subsequently superseded by another substitute with more minor changes.

The substitute failed by voice vote

Substitute offered by Rep. Douglas Geiss (D-22)

The substitute passed by voice vote

Substitute offered by Rep. Tom McMillin (R-45)

To require that any electricity rate increases the bill might impose on consumers be paid instead from state "21st Century Jobs Fund" business subsidy program funds.

The substitute failed by voice vote

Substitute offered by Rep. Tom McMillin (R-45)

To require that any electricity rate increases the bill might impose on consumers be disclosed through a notice on monthly bills that reads, "this fee is being imposed to collect lost revenues resulting from a special electric rate contract with Hemlock Semiconductor".

The substitute failed by voice vote

Passed in the House 82 to 19 (details)

Received in the Senate

Nov. 30, 2010

Referred to the Committee on Energy Policy and Public Utilities