The bill amends Michigan's laws regarding public and private utilities, particularly focusing on the regulation of alternative electric suppliers. It requires the Michigan Public Service Commission (PSC) to set rates, terms, and conditions for retail customers accessing these suppliers, capping their service to no more than 10% of an electric utility's average weather-adjusted retail sales. The legislation introduces annual energy allotments, limits on supplier access based on historical sales, and allows customers with existing contracts to increase their usage without reverting to utility service. It also provides exemptions for specific customers, such as those operating iron ore facilities in the Upper Peninsula, and outlines procedures for customers on waiting lists for retail open access service.

Additionally, the bill establishes new requirements for alternative electric suppliers, including maintaining a state office and adhering to local tax obligations. It emphasizes the necessity of customer consent for supplier changes and introduces guidelines for self-service and community service power, promoting localized energy generation. The PSC is tasked with creating regulations for microgrids, ensuring consistent interconnection procedures, and setting rates for electricity purchased by these microgrids. The bill also clarifies definitions related to electric utilities and microgrids, including terms like "Customer," "Island mode," and "Microgrid," thereby enhancing the regulatory framework and ensuring clarity in the roles of various entities in the electric utility sector.

Statutes affected:
Senate Introduced Bill: 460.10