The bill amends Michigan's existing laws on public utility regulation, particularly focusing on the processes for rate increases and the responsibilities of the Public Service Commission (PSC). It requires utilities to obtain PSC approval before raising rates or altering rate schedules that would increase costs for customers. Utilities must also coordinate with PSC staff prior to filing rate cases and adhere to a timeline for application completeness notifications. The bill introduces a mechanism for utilities to seek partial and immediate rate relief under specific conditions, while ensuring customer notification and opportunities for hearings on proposed rate changes. Additionally, it abolishes automatic adjustment clauses and prohibits rate increases based on fuel cost changes without prior notice and hearings.

Furthermore, the bill establishes a three-year interval between general rate case applications and grants the PSC authority to approve or deny rate adjustments based on cost reasonableness. It includes provisions for revenue decoupling mechanisms for smaller utilities and mandates studies on equitable cost of service for customers in net metering or distributed generation programs. The bill also clarifies that the definitions of "utility" and "electric utility" exclude municipally owned electric utilities and emphasizes the importance of a "full and complete hearing" for interested parties during rate case hearings. Overall, these amendments aim to enhance transparency, protect consumer interests, and ensure a fair regulatory process for utility rate adjustments.

Statutes affected:
Senate Introduced Bill: 460.6