The bill amends Michigan's existing laws on public utility regulation, particularly focusing on the processes for rate increases and the responsibilities of the Public Service Commission (PSC). It requires utilities to obtain commission approval before raising rates or altering rate schedules that would increase costs for customers. Utilities must also coordinate with commission staff prior to filing rate cases, and the bill establishes a timeline for the commission to notify utilities about the completeness of their applications. A new mechanism is introduced for utilities serving fewer than 1,000,000 customers to seek partial and immediate rate relief, along with specific timelines for commission responses. Additionally, the bill abolishes automatic adjustment clauses and mandates notice and hearings before any rate changes based on fuel costs or other adjustments.

Furthermore, the bill amends the law regarding rate cases filed after June 1, 2018, by requiring the commission to approve a tariff for all customers participating in net metering or distributed generation programs, while exempting those already in the program before the new tariff is established. It prohibits electric utilities from including credits issued under this act in their rate increase applications and clarifies definitions related to utility regulation. The amendments aim to enhance transparency, accountability, and consumer protection in utility rate-setting processes while refining the regulatory framework for electric utilities.

Statutes affected:
Senate Introduced Bill: 460.6