Legislative Analysis
Phone: (517) 373-8080
LONG-TERM INDUSTRIAL LOAD RATES http://www.house.mi.gov/hfa
Senate Bill 504 as reported from House committee 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 11-14-24
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 and contractual parameters are met,
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:
Senate Bill 504 would not have a fiscal impact on any units of state or local government.
POSITIONS:
Representatives of Hemlock Semiconductor testified in support of the bill. (6-5-24)
The following entities indicated support for the bill (6-5-24):
• Great Lakes Bay Region Alliance
• Saginaw County Chamber of Commerce
• Dow
1
https://www.legislature.mi.gov/documents/2017-2018/billanalysis/House/pdf/2017-HLA-5902-0E65F4CE.pdf
House Fiscal Agency Page 1 of 2
 • Consumers Energy
• Midland Business Alliance
Legislative Analyst: Rick Yuille
Fiscal Analyst: Una Jakupovic
■ 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.
House Fiscal Agency SB 504 as reported Page 2 of 2


Statutes affected:
Senate Introduced Bill: 460.10
As Passed by the Senate: 460.10
As Passed by the House: 460.10
Public Act: 460.10
Senate Enrolled Bill: 460.10