The bill amends the 1939 Public Utilities Act to strengthen the regulation of public and private utilities in Michigan, particularly focusing on gas, electric, and steam utilities. It requires utilities to obtain commission approval before increasing rates or altering rate schedules that would raise service costs for customers. Utilities must coordinate with commission staff prior to filing rate cases, and the bill establishes a timeline for the commission to notify utilities about the completeness of their applications. It abolishes automatic adjustment clauses and prohibits rate increases based on fuel cost changes without prior notice and hearings. Additionally, the bill introduces a revenue decoupling mechanism for smaller electric utilities and mandates a study to develop a tariff for customers involved in net metering or distributed generation programs.

Furthermore, the bill outlines new requirements for electric utilities regarding integrated resource plans (IRPs), emphasizing the need for detailed forecasts and analyses, including energy waste reduction and compliance with environmental regulations. It allows for intervention by interested parties in the approval process for IRPs and requires the Department of Environment, Great Lakes, and Energy to provide advisory opinions on emissions reductions. The bill also introduces a shared savings mechanism for utilities achieving specific energy savings thresholds and establishes that costs exceeding those approved by the commission must be justified as reasonable and prudent. Overall, the amendments aim to enhance consumer protection, transparency, and accountability in utility operations while ensuring compliance with environmental standards.

Statutes affected:
Senate Introduced Bill: 460.6