The bill amends Michigan's laws regarding the regulation of public utilities, particularly focusing on the processes for rate increases and the role of the Public Service Commission (PSC). It requires utilities to obtain PSC approval before raising rates or changing rate schedules that would increase costs for customers. Utilities must also coordinate with commission staff prior to filing rate cases and adhere to a timeline for application completeness notifications. The bill mandates the use of actual costs from a historical test year, adjusted for known changes, rather than projected costs for rate determinations. Additionally, it abolishes automatic adjustment clauses and prohibits certain rate increases without prior notice and a hearing, while allowing for partial and immediate rate relief under specific conditions.

Furthermore, the bill updates references in current law, specifically changing the reference from section 460.1211 to 460.1232 for rate cases filed after June 1, 2018. It requires the PSC to approve a tariff for customers involved in net metering or distributed generation programs, excluding those already participating at their current site before the new tariff is established. The bill also clarifies definitions related to utility proceedings, introducing terms such as "full and complete hearing," "general rate case," and "historical test year," while removing the definition of "steam utility." These amendments aim to improve transparency and accountability in utility rate-setting processes while enhancing consumer protection.

Statutes affected:
Senate Introduced Bill: 460.6