This bill amends the existing law governing public and private utilities in Michigan, specifically focusing on the regulation of tariffs and contracts for new or expanding data centers and large energy use facilities. It mandates that covered utilities submit a tariff or contract to the commission or governing board within 180 days, which must include provisions such as a minimum 20-year contract, a minimum monthly billing charge based on 90% of the facility's contracted demand, and fees for early termination of service. Additionally, the bill requires collateral for projected service costs, ensures that all costs associated with the facility are recovered from it rather than existing customers, and includes terms to limit electricity use during energy emergencies.

The bill also outlines specific requirements for data centers and large energy use facilities, including participation in demand response programs, procurement of clean energy equivalent to 90% of their forecasted usage, and payment for decommissioning costs. It defines "covered utility" as electric utilities, municipally owned electric utilities, and cooperative electric utilities, while specifying that a "data center" or "large energy use facility" must have a maximum aggregate demand of 20 megawatts or more. Overall, the bill aims to ensure that the expansion of large energy users does not negatively impact existing customers or the reliability of the electricity supply.

Statutes affected:
Senate Introduced Bill: 460.1, 460.11