An act 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 6a, 6m, and 6t (MCL 460.6a, 460.6m, and 460.6t), sections 6a and 6m as amended and section 6t as added by 2016 PA 341, and by adding section 6aa.
Senate Bill 502 amends 1939 PA 3, which is the enabling act for the Michigan Public Service Commission (MPSC), largely to revise certain requirements for electric utilities’ integrated resource plans (IRPs). An IRP is a multiyear plan describing how a utility will provide reliable and cost-effective service to customers under current market and regulatory conditions as well as under modeled scenarios. 1 The bill also increases amounts committed to the attorney general and consumer advocacy groups for participation in utility cost recovery proceedings and provides requirements concerning MPSC public engagement. The bill is part of a package of energy-related bills that includes Senate Bills 271, 273, 277, and 519 and House Bills 5120 and 5121. Senate Bill 502 makes some technical changes (not described below) to reflect changes made by those bills. The bill will take effect February 13, 2024.
Introduced
by
Referred to the Committee on Energy and Environment
Reported with substitute S-4
Referred to the Committee of the Whole
1. Amend page 35, line 21, after “Labor” by inserting a comma and striking “for construction mechanics,”.
Substitute S-6 concurred in by voice vote
1. Amend page 44, line 1, by striking out all of enacting section 1 and inserting:
“Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 102nd Legislature are enacted into law:
(a) Senate Bill No. 296.
(b) Senate Bill No. 297.
(c) Senate Bill No. 298.”.
The amendment failed by voice vote
1. Amend page 44, line 1, by striking out all of enacting section 1 and inserting:
“Enacting section 1. This amendatory act does not take effect unless all of the following bills of the 102nd Legislature are enacted into law:
(a) Senate Bill No. 297.
(b) Senate Bill No. 298.”.
The amendment failed 18 to 20 (details)
1. Amend page 44, line 1, by striking out all of enacting section 1 and inserting:
“Enacting section 1. This amendatory act does not take effect unless Senate Bill No. 296 of the 102nd Legislature is enacted into law.”.
The amendment failed 18 to 20 (details)
1. Amend page 11, following line 26, by inserting:
“(15) Beginning on the effective date of the amendatory act that added section 6aa, the commission shall not increase electric rates for residential customers in this state until January 1, 2040.” and renumbering the remaining subsections.
The amendment failed 18 to 20 (details)
1. Amend page 11, following line 26, by inserting:
“(15) Beginning on the effective date of the amendatory act that added section 6aa, the commission shall not increase electric rates for nonprofit organizations in this state until January 1, 2040.” and renumbering the remaining subsections.
The amendment failed 18 to 20 (details)
1. Amend page 11, following line 26, by inserting:
“(15) Beginning on the effective date of the amendatory act that added section 6aa, the commission shall not increase electric rates for public and private schools in this state until January 1, 2040.” and renumbering the remaining subsections.
The amendment failed 18 to 20 (details)
1. Amend page 43, following line 29, by inserting:
“Sec. 6bb. The commission shall require electric utilities to issue rebates to customers whose service is interrupted for more than 24 hours.”.
The amendment failed 18 to 20 (details)
1. Amend page 43, following line 29, by inserting:
“Enacting section 1. This amendatory act takes effect January 1, 2025.” and renumbering the remaining enacting section.
The amendment failed 18 to 20 (details)
1. Amend page 2, following “THE PEOPLE OF THE STATE OF MICHIGAN ENACT:” by inserting:
“Sec. 1. (1) A commission to be known and designated as the “Michigan public service commission” is hereby created, which shall consist The Michigan public service commission is created in the department of licensing and regulatory affairs.
(2) The commission consists of 3 6 members, not more than 2 3 of whom shall be are members of the same political party, appointed by the governor with the advice and consent of the senate. At least 1 member of the commission must be a resident of the Upper Peninsula.
(3) Each member shall of the commission must be a citizen of the United States, and of the this state. of Michigan, and no member of said A member of the commission shall not be pecuniarily interested in any public utility or public service person subject to the jurisdiction and control of the commission. During his a member’s term, no a member of the commission shall not serve as an officer or committee member of any political party organization, or hold any office, or be employed by any other commission, board, department or institution in this state. No commission
(4) A member of the commission shall not be retained or employed by any public utility or public service person subject to the jurisdiction and control of the commission during the time he while the member is acting as such commissioner, and a member of the commission or for 6 months thereafter, and no after that time.
(5) A member of the commission, who is a member of the bar of the state State Bar of Michigan, shall not practice his profession law or act as counselor or attorney in any court of this state during the time he is while a member of said the commission. : Provided, however, This shall
(6) This section does not require any commissioner member of the commission to retire from, or dissolve any partnership, of which he the individual is a member, but said the partnership, while he is a member of the commission, shall not engage in public utility practice while the individual is a member of the commission. Immediately upon the taking effect of this act, the offices of the present members of the Michigan public service commission are hereby abolished, and the members of the Michigan public service commission as herein created shall be appointed by the governor with the advice and consent of the senate, for terms of 6 years each: Provided, That of the members first appointed, 1 shall be appointed for a term of 2 years, 1 for a term of 4 years, and 1 for a term of 6 years. Upon the expiration of said terms successors shall be appointed with like qualifications and in like manner for terms of 6 years each, and until their successors are appointed and qualified. Vacancies shall be filled in the same manner as is provided for appointment in the first instance.
(7) Members of the commission shall serve for terms of 6 years or until a successor is appointed, whichever is later. If a vacancy occurs on the commission, the governor shall make an appointment for the unexpired term in the same manner as the original appointment.”.
The amendment failed 18 to 20 (details)
1. Amend page 2, following “THE PEOPLE OF THE STATE OF MICHIGAN ENACT:” by inserting:
“Sec. 1. (1) A commission to be known and designated as the “Michigan public service commission” is hereby created, which shall consist The Michigan public service commission is created in the department of licensing and regulatory affairs.
(2) The commission consists of 3 6 members, not more than 2 3 of whom shall be are members of the same political party, appointed by the governor with the advice and consent of the senate. At least 1 member of the commission must be a resident of the Upper Peninsula. In addition to the 1 member who is a resident of the Upper Peninsula, at least 1 member of the commission must be a rate payer who has a residence or business with average yearly energy costs of less than $100,000.00.
(3) Each member shall of the commission must be a citizen of the United States, and of the this state. of Michigan, and no member of said A member of the commission shall not be pecuniarily interested in any public utility or public service person subject to the jurisdiction and control of the commission. During his a member’s term, no a member of the commission shall not serve as an officer or committee member of any political party organization, or hold any office, or be employed by any other commission, board, department, or institution in this state. No commission
(4) A member of the commission shall not be retained or employed by any public utility or public service person subject to the jurisdiction and control of the commission during the time he while the member is acting as such commissioner, and a member of the commission or for 6 months thereafter, and no after that time.
(5) A member of the commission, who is a member of the bar of the state State Bar of Michigan, shall not practice his profession law or act as counselor or attorney in any court of this state during the time he is while a member of said the commission. : Provided, however, This shall
(6) This section does not require any commissioner member of the commission to retire from, or dissolve any partnership, of which he the individual is a member, but said the partnership, while he is a member of the commission, shall not engage in public utility practice while the individual is a member of the commission. Immediately upon the taking effect of this act, the offices of the present members of the Michigan public service commission are hereby abolished, and the members of the Michigan public service commission as herein created shall be appointed by the governor with the advice and consent of the senate, for terms of 6 years each: Provided, That of the members first appointed, 1 shall be appointed for a term of 2 years, 1 for a term of 4 years, and 1 for a term of 6 years. Upon the expiration of said terms successors shall be appointed with like qualifications and in like manner for terms of 6 years each, and until their successors are appointed and qualified. Vacancies shall be filled in the same manner as is provided for appointment in the first instance.
(7) Members of the commission shall serve for terms of 6 years or until a successor is appointed, whichever is later. If a vacancy occurs on the commission, the governor shall make an appointment for the unexpired term in the same manner as the original appointment.”.
The amendment failed 18 to 20 (details)
Passed in the Senate 20 to 18 (details)
Referred to the Committee on Energy, Communications, and Technology
Reported without amendment
1. Amend page 2, following “THE PEOPLE OF THE STATE OF MICHIGAN ENACT:” by inserting:
“Sec. 1. (1) A commission to be known and designated as the “Michigan public service commission” is hereby created, which shall consist The Michigan public service commission is created in the department of licensing and regulatory affairs.
(2) The commission consists of 3 6 members, not more than 2 3 of whom shall be are members of the same political party, appointed by the governor with the advice and consent of the senate. At least 1 member of the commission must be a resident of the Upper Peninsula. In addition to the 1 member who is a resident of the Upper Peninsula, at least 1 member of the commission must be a rate payer who has a residence or business with average yearly energy costs of less than $100,000.00.
(3) Each member shall of the commission must be a citizen of the United States, and of the this state. of Michigan, and no member of said A member of the commission shall not be pecuniarily interested in any public utility or public service person subject to the jurisdiction and control of the commission. During his a member’s term no a member of the commission shall not serve as an officer or committee member of any political party organization, or hold any office, or be employed by any other commission, board, department, or institution in this state. No commission
(4) A member of the commission shall not be retained or employed by any public utility or public service person subject to the jurisdiction and control of the commission during the time he while the member is acting as such commissioner, and a member of the commission or for 6 months thereafter, and no after that time.
(5) A member of the commission, who is a member of the bar of the state State Bar of Michigan, shall not practice his profession law or act as counselor or attorney in any court of this state during the time he is while a member of said the commission. : Provided, however, This shall
(6) This section does not require any commissioner member of the commission to retire from, or dissolve any partnership, of which he the individual is a member, but said the partnership, while he is a member of the commission, shall not engage in public utility practice while the individual is a member of the commission. Immediately upon the taking effect of this act, the offices of the present members of the Michigan public service commission are hereby abolished, and the members of the Michigan public service commission as herein created shall be appointed by the governor with the advice and consent of the senate, for terms of 6 years each: Provided, That of the members first appointed, 1 shall be appointed for a term of 2 years, 1 for a term of 4 years, and 1 for a term of 6 years. Upon the expiration of said terms successors shall be appointed with like qualifications and in like manner for terms of 6 years each, and until their successors are appointed and qualified. Vacancies shall be filled in the same manner as is provided for appointment in the first instance.
(7) Members of the commission shall serve for terms of 6 years or until a successor is appointed, whichever is later. If a vacancy occurs on the commission, the governor shall make an appointment for the unexpired term in the same manner as the original appointment.”.
The amendment failed by voice vote
1. Amend page 2, following “THE PEOPLE OF THE STATE OF MICHIGAN ENACT:” by inserting:
“Sec. 1. (1) A commission to be known and designated as the “Michigan public service commission” is hereby created, which shall consist The Michigan public service commission is created in the department of licensing and regulatory affairs.
(2) The commission consists of 3 6 members, not more than 2 3 of whom shall be are members of the same political party, appointed by the governor with the advice and consent of the senate. At least 1 member of the commission must be a resident of the Upper Peninsula.
(3) Each member shall of the commission must be a citizen of the United States, and of the this state. of Michigan, and no member of said A member of the commission shall not be pecuniarily interested in any public utility or public service person subject to the jurisdiction and control of the commission. During his a member’s term no a member shall not serve as an officer or committee member of any political party organization, or hold any office, or be employed by any other commission, board, department, or institution in this state. No commission
(4) A member of the commission shall not be retained or employed by any public utility or public service person subject to the jurisdiction and control of the commission during the time he while the member is acting as such commissioner, and a member of the commission or for 6 months thereafter, and no after that time.
(5) A member of the commission, who is a member of the bar of the state State Bar of Michigan, shall not practice his profession law or act as counselor or attorney in any court of this state during the time he is while a member of said the commission. : Provided, however, This shall
(6) This section does not require any commissioner member of the commission to retire from, or dissolve any partnership, of which he the individual is a member, but said the partnership, while he is a member of the commission, shall not engage in public utility practice while the individual is a member of the commission. Immediately upon the taking effect of this act, the offices of the present members of the Michigan public service commission are hereby abolished, and the members of the Michigan public service commission as herein created shall be appointed by the governor with the advice and consent of the senate, for terms of 6 years each: Provided, That of the members first appointed, 1 shall be appointed for a term of 2 years, 1 for a term of 4 years, and 1 for a term of 6 years. Upon the expiration of said terms successors shall be appointed with like qualifications and in like manner for terms of 6 years each, and until their successors are appointed and qualified. Vacancies shall be filled in the same manner as is provided for appointment in the first instance.
(7) Members of the commission shall serve for terms of 6 years or until a successor is appointed, whichever is later. If a vacancy occurs on the commission, the governor shall make an appointment for the unexpired term in the same manner as the original appointment.”.
The amendment failed by voice vote
1. Amend page 11, following line 26, by inserting:
“(15) Beginning on the effective date of the amendatory act that added section 6aa, the commission shall not increase electric rates for public and private schools in this state until January 1, 2040.” and renumbering the remaining subsections.
The amendment failed by voice vote
Substitute H-6 offered
by
The substitute passed by voice vote
Passed in the House 56 to 52 (details)
Motion to give immediate effect
by
The motion prevailed by voice vote
1. Amend page 2, following “THE PEOPLE OF THE STATE OF MICHIGAN ENACT:” by inserting:
“Sec. 1. (1) A commission to be known and designated as the “Michigan public service commission” is hereby created, which The Michigan public service commission is created in the department of licensing and regulatory affairs.
(2) Before January 1, 2025, the commission shall consist of 3 members, not more than 2 of whom shall be are members of the same political party, appointed by the governor with the advice and consent of the senate. Beginning January 1, 2025, the existing appointed Michigan public service commission is abolished and replaced with a nonpartisan elected Michigan public service commission as provided in chapter VIA of the Michigan election law, 1954 PA 116, MCL 168.87 to 168.87n.
(3) Each member shall of the commission must be a citizen of the United States, and a resident of the this state, of Michigan, and no member of said commission shall not be pecuniarily interested in any public utility or public service person subject to the jurisdiction and control of the commission.
(4) During his a member’s term, no a member shall not serve as an officer or committee member of any political party organization, or hold any office, or be employed by any other commission, board, department, or institution in this state. No commission
(5) A member of the commission shall not be retained or employed by any public utility or public service person subject to the jurisdiction and control of the commission during the time he while the member is acting as such commissioner, and a member of the commission and for 6 months thereafter, and no after that time.
(6) A member of the commission, who is a member of the bar of the state State Bar of Michigan, shall not practice his profession law or act as counselor or attorney in any court of this state during the time he while the individual is a member of said the commission. : Provided, however, This shall
(7) This section does not require any commissioner to retire from, or dissolve any partnership, of which he the individual is a member, but said the partnership, while he is a member of the commission, shall must not engage in public utility practice . Immediately upon the taking effect of this act, the offices of the present members of the Michigan public service commission are hereby abolished, and the members of the Michigan public service commission as herein created shall be appointed by the governor with the advice and consent of the senate, for terms of 6 years each: Provided, That of the members first appointed, 1 shall be appointed for a term of 2 years, 1 for a term of 4 years, and 1 for a term of 6 years. Upon the expiration of said terms successors shall be appointed with like qualifications and in like manner for terms of 6 years each, and until their successors are appointed and qualified. Vacancies shall while the individual is a member of the commission.
(8) Before January 1, 2025, vacancies must be filled in the same manner as is provided for appointment in the first instance. Beginning January 1, 2025, vacancies must be filled as provided in section 87l of the Michigan election law, 1954 PA 116, MCL 168.87l.
Sec. 2. (1) Members of said the commission shall qualify by taking and subscribing to the constitutional oath of office., and shall hold office until the appointment and qualification of their successor. The
(2) Before January 1, 2025, the governor shall designate 1 member to serve as chairman chairperson of the commission. Any Beginning January 1, 2025, the members of the commission shall select the chairperson of the commission.
(3) The governor may remove any member of the commission may be removed by the governor for misfeasance, malfeasance, or nonfeasance in office after a hearing.
(4) A vacancy in the commission shall does not impair the right of the 2 remaining members to exercise all the powers of the commission. Two members of the commission shall at all times constitute a quorum.
(5) The commission shall adopt an official seal, of which all the courts shall take judicial notice and proceedings, and from which orders and decrees may be authenticated. thereby. It shall be the duty of the
(6) The board of state auditors to shall provide suitable offices, supplies, and equipment for said the commission in the city of Lansing., the The expenses thereof to of the commission shall be audited, allowed, and paid in such a manner and out of such from funds as may be provided by law.”.
2. Amend page 44, following line 24, by inserting:
“(c) Senate Bill No. 298.”.
The amendment failed by voice vote
1. Amend page 44, following line 19, by inserting:
“Sec. 6bb. (1) An electric utility or natural gas utility shall file a report with the commission every year that contains all of the following for that reporting period:
(a) A list of contributions to a separate segregated fund established by that utility.
(b) An itemized list of contributions that a separate segregated fund established by the utility made to, and expenditures that the separate segregated fund made on behalf of, any of the following:
(i) Candidate committees.
(ii) Ballot question committees.
(iii) Political party committees.
(iv) Political committees.
(v) Independent expenditure committees.
(vi) Independent committees.
(vii) Other separate segregated funds.
(c) Any money given to an organization formed under 26 USC 501(c)(4) or 26 USC 501(c)(6), including the amount given and the name of that organization.
(d) Any money given to an organization formed under 26 USC 527, including the amount given and the name of that organization.
(e) Any expenditures made on lobbying.
(f) A list of any contributions or expenditures described in subdivisions (a) to (e) that were made by the parent company or an affiliate of the electric utility or natural gas utility.
(2) The commission shall post a report received under subsection (1) on its website.
(3) As used in this section:
(a) “Ballot question committee” means that term as defined in section 2 of the Michigan campaign finance act, 1976 PA 388, MCL 169.202.
(b) “Candidate committee” means that term as defined in section 3 of the Michigan campaign finance act, 1976 PA 388, MCL 169.203.
(c) “Contribution” means that term as defined in section 4 of the Michigan campaign finance act, 1976 PA 388, MCL 169.204.
(d) “Independent committee” means that term as defined in section 8 of the Michigan campaign finance act, 1976 PA 388, MCL 169.208.
(e) “Independent expenditure committee” means that term as defined in section 9 of the Michigan campaign finance act, 1976 PA 388, MCL 169.209.
(f) “Lobbying” means that term as defined in section 5 of 1978 PA 472, MCL 4.415.
(g) “Political committee” means that term as defined in section 11 of the Michigan campaign finance act, 1976 PA 388, MCL 169.211.
(h) “Political party committee” means that term as defined in section 11 of the Michigan campaign finance act, 1976 PA 388, MCL 169.211.”.
The amendment failed by voice vote
Substitute H-6 concurred in 20 to 17 (details)
