The bill amends Michigan's laws governing public utilities, particularly focusing on the approval processes for rate increases and the responsibilities of the Public Service Commission (PSC). It requires gas, electric, and steam utilities to obtain PSC approval before raising rates or altering rate schedules that would increase customer costs. Utilities must also coordinate with PSC staff prior to filing rate cases to mitigate resource challenges and adhere to a timeline for application completeness notifications. The bill allows for temporary rate increases under certain conditions, ensuring that customers are refunded any excess charges if the PSC later finds the rates unjustified. Additionally, it abolishes automatic adjustment clauses that previously permitted utilities to change rates without public notice and hearings, thereby enhancing consumer protection.

Furthermore, the bill modifies the approval process for tariffs related to net metering and distributed generation programs, mandating PSC approval for new tariffs in rate cases filed after June 1, 2018, while exempting existing participants from these new tariffs if they remain at their current sites. It also requires the PSC to review electric utility investment and maintenance distribution plans as contested cases, clarifies definitions related to "utility" and "electric utility," and removes outdated definitions. Notably, the bill specifies that "utility" and "electric utility" do not encompass municipally owned electric utilities, thereby refining the regulatory framework for utility oversight in Michigan.

Statutes affected:
House Introduced Bill: 460.6