The bill amends Michigan's existing laws on the regulation of public utilities, particularly concerning the approval process for rate increases and the responsibilities of the Public Service Commission (PSC). It requires gas, electric, or steam utilities to obtain PSC approval before raising rates or altering rate schedules that would increase costs for customers. The bill mandates utilities to coordinate with PSC staff prior to filing rate cases and to notify affected parties in the service area. It also establishes specific timelines for the PSC to assess the completeness of applications and to issue final orders on rate cases. Notably, the time frame for filing general rate case applications is extended from 12 months to 36 months, with exceptions for extraordinary circumstances, and automatic adjustment clauses are abolished.

Additionally, the bill introduces a study requirement for the PSC to establish a tariff reflecting equitable costs for customers involved in net metering or distributed generation programs by April 20, 2018. It specifies conditions under which the PSC cannot approve a general rate increase, such as violations of service quality standards and excessive cumulative rate increases. The bill also requires a plain language summary of proposed rate increases, detailing compliance with service quality standards and projected energy burdens. Furthermore, it clarifies definitions related to utility proceedings and explicitly excludes municipally owned electric utilities from the definitions of "utility" and "electric utility."

Statutes affected:
House Introduced Bill: 460.6