The bill amends Michigan's public utility regulations, particularly concerning the approval process for rate increases and the responsibilities of the Public Service Commission (PSC). It requires utilities to obtain PSC approval before raising rates or changing rate schedules that would increase customer costs. Utilities must coordinate with PSC staff prior to filing rate cases and provide evidence to support their applications. The bill establishes a 21-day spacing between filings for large electric utilities and mandates public hearings before any rate changes related to fuel costs. Additionally, it abolishes automatic adjustment clauses and introduces a 10-month deadline for the PSC to make final decisions on rate changes, with applications deemed approved if the commission does not act within this timeframe.

Furthermore, the bill mandates a study by the PSC by April 20, 2018, to create a tariff reflecting the equitable cost of service for customers involved in net metering or distributed generation programs. Rate cases filed after June 1, 2018, must include this tariff for participating customers. Utilities requesting rate increases must also provide a detailed itemized summary of how the additional revenue will be allocated, covering various cost categories. While this information will be included in the PSC's rate case filing instructions, it will serve informational purposes only and will not affect the commission's decisions. The bill also clarifies definitions related to hearings and rate cases, specifically excluding municipally owned electric utilities from the definitions of "utility" and "electric utility."

Statutes affected:
House Introduced Bill: 460.6