The bill amends Michigan's existing laws on public utility regulation, particularly concerning rate increases and the Public Service Commission's (PSC) responsibilities. It requires utilities to obtain PSC approval before raising rates or changing rate schedules that would increase customer costs. Utilities must also coordinate with commission staff prior to filing rate cases to mitigate resource challenges. The bill introduces a 21-day spacing requirement between applications for large electric utilities and mandates that utilities notify affected parties of rate changes. Additionally, it allows the use of projected costs in rate applications and establishes a timeline for the PSC to issue final orders after reviewing applications.

Significant changes include the elimination of automatic adjustment clauses and the requirement for notice and hearings for rate increases based on fuel costs. The bill also sets a cap on the return on equity for electric and natural gas utilities at 8.2%, requiring refunds with interest for any excess amounts collected. A tiered fine structure is established for utilities that violate this cap, with fines ranging from $1,000 to 0.5% of annual revenue based on the number of offenses, and all collected fines will support the low-income energy assistance fund. Furthermore, the bill modifies the reference from section 460.1211 to 460.1232 and introduces new regulations for tariffs related to net metering or distributed generation programs, ensuring that new tariffs are approved by the commission for customers participating after June 1, 2018.

Statutes affected:
House Introduced Bill: 460.6