The bill amends Michigan's laws regarding the regulation of public utilities, particularly focusing on the processes for rate increases by gas, electric, and steam utilities. It requires utilities to obtain commission approval before raising rates or altering rate schedules that would increase service costs for customers. The bill mandates coordination with commission staff prior to filing rate increase applications and requires the commission to notify affected parties and conduct hearings. If the commission fails to issue a decision within specified timeframes, utilities may implement proposed rate increases, with provisions for refunds if the final order differs from the rates implemented. Key changes include the elimination of automatic adjustment clauses, ensuring that any rate changes due to fuel costs or other factors necessitate notice and hearings.

Additionally, the bill mandates a study by April 20, 2018, to establish a tariff reflecting equitable cost of service for customers involved in net metering or distributed generation programs. It specifies that in any rate case filed after June 1, 2018, the commission must approve this tariff for participating customers, while ensuring it does not apply to those already in the net metering program at their current site. The bill also clarifies definitions related to proceedings, including "full and complete hearing" and "general rate case," and specifies that "utility" and "electric utility" exclude municipally owned electric utilities. These changes aim to enhance transparency, accountability, and fairness in the utility rate-setting process, particularly for customers engaged in renewable energy initiatives.

Statutes affected:
Senate Introduced Bill: 460.6