The bill amends Michigan's laws regarding the regulation of public utilities, specifically addressing the processes for rate increases by gas, electric, and steam utilities. It requires utilities to obtain commission approval before raising rates or changing rate schedules that would increase customer costs. The bill mandates coordination with commission staff prior to filing rate increase applications, ensures that affected parties are notified and allowed to participate in hearings, and requires the commission to inform utilities within 30 days about the completeness of their applications. It also abolishes automatic adjustment clauses, prohibits rate increases without proper notice and hearings, and includes provisions for customer refunds if utilities implement rate increases prematurely.

Additionally, the bill mandates a study by April 20, 2018, to establish a tariff that reflects equitable cost of service for customers involved in net metering or distributed generation programs. It specifies that any rate case filed after June 1, 2018, must include this tariff for participating customers, while clarifying that the tariff will not apply to those already in a net metering program before the new tariff is set. The bill updates legal references and defines key terms, while excluding municipally owned electric utilities from the definitions of "utility" and "electric utility." Overall, these amendments aim to enhance transparency, accountability, and customer protection in the utility rate-setting process.

Statutes affected:
Senate Introduced Bill: 460.6