Legislative Analysis
Phone: (517) 373-8080
SERVICE RESTORATION FEES FOR
http://www.house.mi.gov/hfa
MUNICIPALLY OWNED UTILITIES
Analysis available at
House Bill 5221 as introduced http://www.legislature.mi.gov
Sponsor: Rep. Cynthia Neeley
Committee: Energy, Communications, and Technology
Complete to 11-6-23
SUMMARY:
House Bill 5221 would amend 1939 PA 3, the Michigan Public Service Commission (MPSC)
enabling act, to provide that a municipally owned electric or natural gas utility cannot charge
a customer more than $25 for remote restoration of service that has been shut off. If the
customer has entered into and made at least one payment under a payment plan or has otherwise
provided a deposit or guarantee as required by the utility, the utility would be prohibited from
assessing a charge for remote service restoration.
In addition, under certain circumstances the act now allows a municipally owned electric utility
to shut off service to an eligible customer from November 1 to March 31 after providing the
eligible customer with a notice that contains specified information, including that the utility
may require a deposit and restoration charge if the supplier shuts off service for nonpayment
of a delinquent account. The bill would require the notice to state that the utility may require a
deposit or restoration charge if the utility shuts off service for nonpayment of a delinquent
account (italics indicate changes proposed by the bill). A restoration charge under the bill could
not exceed $25, and the utility could not require a restoration charge from a customer who has
provided the required deposit. 1
Eligible customer would mean either an eligible low-income customer or eligible
senior citizen customer who demonstrates their eligibility to the utility. 2
Eligible low-income customer means a customer whose household income does not
exceed 150% of the poverty level, as published by the United States Department of
Health and Human Services, or who receives any of the following:
• Assistance from a state emergency relief program.
• Food stamps.
• Medicaid.
Eligible senior citizen customer means a utility or supplier customer who is 65 years
of age or older and advises the utility of their eligibility.
MCL 460.9d, 460.9q, and 460.9r
1
For rules regarding other circumstances involving customer deposits and shutting off service, see
https://ars.apps.lara.state.mi.us/AdminCode/DownloadAdminCodeFile?FileName=R%20460.101%20to%20R%204
60.169.pdf&ReturnHTML=True
2
Currently, only eligible senior citizen customers must demonstrate their eligibility to the utility. The bill would
appear to require eligible low-income customers to do so as well.
House Fiscal Agency Page 1 of 2
 The bill cannot take effect unless House Bills 5216, 5217, 5219, 5220, and 5222, and an
unidentified bill currently designated only by its request number, are also enacted.
FISCAL IMPACT:
House Bill 5221 would have an indeterminate fiscal impact on the Michigan Public Service
Commission. It is unclear whether the MPSC’s responsibilities under the bill could be
sufficiently absorbed with existing appropriations and resources, or whether additional
appropriations would be required to offset the costs. In the event that additional resources were
required, the MPSC is financed primarily by public utility assessments levied on the utilities,
so any additional incurred costs would likely be factored into the assessment and sufficiently
mitigated.
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.
House Fiscal Agency HB 5221 as introduced Page 2 of 2


Statutes affected:
Substitute (H-1): 460.9
House Introduced Bill: 460.9