Legislative Analysis
Phone: (517) 373-8080
LONG-TERM INDUSTRIAL LOAD RATES
http://www.house.mi.gov/hfa
Senate Bill 504 as passed by the Senate Analysis available at
Sponsor: Sen. Kristen McDonald Rivet http://www.legislature.mi.gov
House Committee: Energy, Communications, and Technology
Senate Committee: Energy and Environment
Complete to 6-4-24
SUMMARY:
Senate Bill 504 would amend 1939 PA 3, the enabling act for the Michigan Public Service
Commission (MPSC), to provide that a long-term industrial load rate is not subject to any
securitization charges approved by the MPSC under a financing order if the customer is taking
service under that rate on the order’s effective date. This would apply to financing orders issued
after the bill takes effect.
MCL 460.10gg
BACKGROUND:
Section 10gg of the act, which provides for long-term industrial load rates for industrial
customers of electricity as long as certain conditions are met and certain contractual parameters
are followed, was added by 2018 PA 348. 1 Among the rate requirements are that the contract
be for at least 15 years or the expected life of a designated resource, that the customer have an
annual average electric demand of at least 200 megawatts at one site, and that the rate ensure
that the utility recovers its direct cost to provide transmission and distribution service to the
industrial customer.
As of May 2024, Hemlock Semiconductor (HSC), located near Saginaw, is the only customer
taking service under the long-term industrial load rate provisions.
FISCAL IMPACT:
A fiscal analysis is in progress.
Legislative Analyst: Rick Yuille
Fiscal Analyst: Marcus Coffin
■ This analysis was prepared by nonpartisan House Fiscal Agency staff for use by House members in their
deliberations and does not constitute an official statement of legislative intent.
1
https://www.legislature.mi.gov/documents/2017-2018/billanalysis/House/pdf/2017-HLA-5902-0E65F4CE.pdf
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Statutes affected:
Senate Introduced Bill: 460.10
As Passed by the Senate: 460.10