The bill amends the 1939 Public Act 3, which governs public and private utilities in Michigan, by introducing new requirements and modifying existing regulations. It mandates that gas, electric, and steam utilities must obtain commission approval before increasing rates or altering rate schedules that would raise service costs for customers. Utilities are required to coordinate with commission staff prior to filing rate cases and must adhere to a timeline for application completeness notifications. The bill prohibits automatic adjustment clauses and ensures that any rate increases based on fuel costs undergo a notice and hearing process. Additionally, it allows for revenue decoupling mechanisms for electric utilities with fewer than 200,000 customers and establishes guidelines for merchant plants to recover costs, while ensuring public hearings for transparency.

Moreover, the bill introduces a utility consumer representation fund to support the attorney general's efforts in representing residential utility consumers, with financial contributions from energy utilities based on their customer base. It outlines new requirements for electric utilities regarding integrated resource plans (IRPs), including long-term forecasts and compliance with environmental regulations. The commission is tasked with reviewing these plans and considering various factors such as resource adequacy and competitive pricing. The bill also emphasizes competitive bidding for electric generation facility construction costs and allows the commission to disallow costs resulting from fraud or mismanagement. Overall, the bill aims to enhance regulatory oversight, promote energy efficiency, and ensure consumer protection in the utility sector.

Statutes affected:
Senate Introduced Bill: 460.6