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Michigan Legislature
Michigan Compiled Laws Complete Through PA 6 of 2023

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Act 3 of 1939
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Act 3 of 1939

AN ACT to provide for the regulation and control of public and certain private utilities and other services affected with a public interest within this state; to provide for alternative energy suppliers; to provide for licensing; to include municipally owned utilities and other providers of energy under certain provisions of this act; to create a public service commission and to prescribe and define its powers and duties; to abolish the Michigan public utilities commission and to confer the powers and duties vested by law on the public service commission; to provide for the powers and duties of certain state governmental officers and entities; to provide for the continuance, transfer, and completion of certain matters and proceedings; to abolish automatic adjustment clauses; to prohibit certain rate increases without notice and hearing; to qualify residential energy conservation programs permitted under state law for certain federal exemption; to create a fund; to encourage the utilization of resource recovery facilities; to prohibit certain acts and practices of providers of energy; to allow for the securitization of stranded costs; to reduce rates; to provide for appeals; to provide appropriations; to declare the effect and purpose of this act; to prescribe remedies and penalties; and to repeal acts and parts of acts.

History: 1939, Act 3, Imd. Eff. Feb. 15, 1939 ;-- Am. 1978, Act 211, Imd. Eff. June 5, 1978 ;-- Am. 1980, Act 139, Imd. Eff. May 29, 1980 ;-- Am. 1982, Act 304, Imd. Eff. Oct. 13, 1982 ;-- Am. 1982, Initiated Law, Eff. Dec. 2, 1982 ;-- Am. 1982, Act 212, Eff. Nov. 22, 1982 ;-- Am. 1989, Act 2, Imd. Eff. Apr. 3, 1989 ;-- Am. 2000, Act 141, Imd. Eff. June 5, 2000 ;-- Am. 2005, Act 190, Imd. Eff. Nov. 7, 2005 ;-- Am. 2016, Act 341, Eff. Apr. 20, 2017

The People of the State of Michigan enact:

Section 460.1SectionPublic service commission; creation; members, appointment, qualifications, terms, vacancies.
Section 460.2SectionPublic service commission; oath, chairman, removal, quorum, seal, offices.
Section 460.3SectionPublic service commission; salary and expenses of members; appointment of secretary, deputies, clerks, assistants, inspectors, heads of divisions, and employees; payment of salaries and expenses; employment and compensation of engineers and experts; actual and necessary expenses; duties.
Section 460.4SectionMichigan public service commission; rights, privileges, and jurisdiction; meaning of certain references; review of order or decree.
Section 460.4aSectionEffect of executive reorganization orders; funding; commission as autonomous entity; appointment of chairperson; transfers of authority.
Section 460.5SectionPublic service commission; books, records, files.
Section 460.5aSectionAnnual report.
Section 460.6SectionPublic service commission; power and jurisdiction; "private, investor-owned wastewater utilities" defined.
Section 460.6aSectionGas, electric, or steam utility; commission approval to increase rates and charges or to amend rate or rate schedules; petition or application; notice and hearing; partial and immediate relief; issuance of temporary order; refund; interest; automatic fuel, purchased gas, or purchased steam adjustment clause; rules and procedures; adjustment clauses operating without notice and hearing abolished; separate hearing; recovery of cost; final decision; filing time extension; approval of transportation rate schedules or transportation contracts; forms and instructions; recovery of amount by merchant plant; limitation; adjustment; orders to permit recovery under subsections (9) and (10); revenue decoupling mechanism; tariff; definitions.
Section 460.6bSectionGas utility rates based upon cost of purchased natural gas; authority of commission; acceptance of employment with utility by member of legislature.
Section 460.6cSectionRepealed. 2016, Act 341, Eff. Apr. 20, 2017.
Section 460.6dSectionOwner of renewable resource power production facility; exemption from regulation and control of public service commission; definition.
Section 460.6eSectionRepealed. 2016, Act 341, Eff. Apr. 20, 2017.
Section 460.6fSectionRepealed. 1984, Act 49, Imd. Eff. Apr. 12, 1984.
Section 460.6gSectionDefinitions; regulation of rates, terms, and conditions of attachments by attaching parties; hearing; authorization; applicable procedures.
Section 460.6hSectionIncorporation of gas cost recovery clause in rate or rate schedule of gas utility; definitions; order and hearing; filing gas cost recovery plan and 5-year forecast; gas supply and cost review; final or temporary order; incorporating gas cost recovery factors in rates; filing revised gas cost recovery plan; reopening gas supply and cost review; monthly statement of revenues; gas cost reconciliation; commission order; refunds, credits, or additional charges to include interest; apportionment; exemption; setting gas cost recovery factors in general rate case order.
Section 460.6iSectionInitial gas cost recovery plan; filing; alteration of rate schedule in accordance with existing purchased gas adjustment clause; charges in excess of base rates; revenues subject to existing reconciliation proceedings; purchased gas revenues subject to annual reconciliation; procedures; adjustment of rates pending approval or disapproval of gas cost recovery clause in final commission order.
Section 460.6jSectionDefinitions; incorporation of power supply cost recovery clause in electric rates or rate schedule of electric utility; order and hearing; filing power supply cost recovery plan and 5-year forecast; power supply and cost review; final or temporary order; incorporating power supply cost recovery factors in rates; filing revised power supply cost recovery plan; reopening power supply and cost review; monthly statement of revenues; power supply cost reconciliation; commission order; refunds or credits or additional charges to customers; apportionment; interest; exemption; setting power supply cost recovery factors in general rate case order.
Section 460.6kSectionInitial power supply cost recovery plan; filing; alteration of rate schedule in accordance with adjustment clause; charges in excess of base rate; revenues subject to existing reconciliation proceedings; revenues resulting from certain adjustment clauses subject to existing reconciliation proceedings; revenues subject to annual reconciliation; procedures; lag correction provision; adjustment of rates pending approval or disapproval of power supply cost recovery clause.
Section 460.6lSectionInsuring equitable representation of interests of energy utility customers; definitions; utility consumer participation board; creation; powers and duties; number and appointment of members; “utility” defined; member requirements; terms; vacancy; removal of member; meetings; quorum; election of chairperson and vice-chairperson; conducting business of board at public meeting; public notice; availability of writings to public; expense reimbursement and remuneration.
Section 460.6mSectionUtility consumer representation fund; creation as special fund; investment and release of money; remittance by energy utility; factor; action for recovery of disputed amount; action on application for energy cost recovery proceedings; conditions; acceptance of gift or grant; payment of operating costs and expenses; net grant proceeds to finance grant program; application form; consideration; encouraging representation of different consumer interests; criteria; joint filing; disbursements; notice of availability of fund; use of annual receipts and interest; retention of certain amounts; conditions applicable to grants; reports.
Section 460.6nSectionRestructuring of residential electric rates; hearings; revenue impact; purpose and basis of restructured rates; penalizing residential customers prohibited; informing public of conservation advantages; contents of customer's bill; costs; applicability of section.
Section 460.6oSectionDefinitions; power purchase agreements for purchase of capacity and energy from resource recovery facilities; rates, charges, terms, and conditions of service; scrap tire; applicability of section; dispute provisions; filing agreement; commencement of contested case proceeding; approval of agreement; energy rate component; capacity rate component; determination of reserve margin, reserve capacity, or other resource capability measurement; annual accounting.
Section 460.6pSectionRates subject to electric transmission line certification act.
Section 460.6qSectionAcquisition, control, or merger with jurisdictional regulated utility; approval of commission; notice and hearing; issuance of order; rules; filing comments; access to data and information; evaluation factors; terms and conditions; confidential information; definitions.
Section 460.6rSectionDefinitions; steam supply cost recovery clause; filing steam supply cost recovery plan and 3-year forecast; requirements; steam supply and cost review; temporary or final order; filing detailed statement; commencement of steam supply cost reconciliation; order of refunds or credits; rate of interest; filing report with governor and legislature.
Section 460.6sSectionElectric generation facility; application; review criteria and approval standards; order granting or denying certificate of necessity; hearing; reports; inclusion of costs in utility's retail rates; refunds; interest; modifying or canceling approval of certificate of necessity; filing forms and instructions; integrated resource plan; financing interest cost recovery in utility's base rates; submission of alternative proposal; order subject to judicial review.
Section 460.6tSectionIntegrated resource plan.
Section 460.6uSectionStudy; review of performance-based regulation systems; report; authority of commission.
Section 460.6vSectionProceeding to reevaluate procedures and rates schedules; report; definitions.
Section 460.6wSectionResource adequacy tariff that provides for capacity forward auction; option for state to implement prevailing state compensation mechanism for capacity; order to implement prevailing state compensation mechanism; contested case proceeding; finding; order to implement state reliability mechanism; capacity charge; establishment; determination; failure to meet requirements in subsection (8)(b); civil action for injunctive relief; definitions.
Section 460.6xSectionShared saving mechanism.
Section 460.6zSectionDiscontinuing utility service to geographic area; abandonment application; proposal to retire electric generating plant; proposal to revise existing load balancing authority.
Section 460.7SectionRailroad labor unions; representatives; right to participate in hearings.
Section 460.8SectionVoluntary associations; hearings; persons entitled to appear; industrial representative.
Section 460.9SectionDefinitions; customer switched to alternative gas supplier or natural gas utility; prohibitions; standards; rules; violation; remedies and penalties.
Section 460.9bSectionAlternative gas suppliers; licensing procedure; maintenance of office; capabilities; records; tax remittance.
Section 460.9cSectionCustomer on active duty in military; shut-off protection.
Section 460.9dSectionUnauthorized use of electric or natural gas service causing unsafe connection; action to be taken by utility; reestablishment of service; abandonment or surrender of property; scope of section; definitions.
Section 460.9mSectionService shutoff resulting in death or serious injury; notice to commission; investigation; civil action; "provider" defined.
Section 460.9oSectionIdentification of senior citizen customers; methods; compliance within certain time period; extension; definitions.
Section 460.9pSectionFailure of utility to meet requirements of act; commencement of civil action; notice; compliance agreement; final order; costs of litigation; fines; construction and limitation of act.
Section 460.9qSectionShut off or termination of service; conditions; reasons; notice requirements; prohibitions; attempts to contact customer; documentation; restoration of service; vulnerable household warmth fund; creation; use of funds; payments; distribution; priority; definitions.
Section 460.9rSectionShut off of service by municipally owned electric utility; prohibitions; requirements; definitions.
Section 460.9sSectionPostponement of service shutoff; conditions; definitions.
Section 460.9tSectionLow-income energy assistance fund.
Section 460.10SectionMCL 460.10a to 460.10bb; purpose.
Section 460.10aSectionAlternative electric suppliers; orders establishing rates, terms, and conditions of service; licensing procedure; switching or billing for services without consent; self-service power; affiliate wheeling; rights of parties to existing contracts and agreements; receipt of standard tariff service; recovery of costs by electric utility offering retail open access service; definitions.
Section 460.10bSectionRates, terms, and conditions of new technologies; application to unbundle existing rate schedules; providing reliable and lower cost competitive rates; standby generation service; identification of retail market prices.
Section 460.10cSectionDetermination of noncompliance; order of remedies and penalties; contested case; violation as unintentional and bona fide error; finding of frivolous complaint.
Section 460.10dSectionElectric utility serving less than 1,000,000 retail customers; utility issuing securitization bonds; compliance with federal rules, regulations, and standards; security recovery factor; protective orders; low-income and energy efficiency fund; refund; definitions.
Section 460.10eSectionConnection of merchant plants to transmission and distribution systems; finding of prevention or delay; remedies; merchant plant; standards; exception.
Section 460.10fSectionGeneration capacity in excess of utility's retail sales load; determination of total generating capacity; market power mitigation plan; application; approval; requirements of independent brokering trustee.
Section 460.10gSectionDefinitions; school properties.
Section 460.10hSectionDefinitions.
Section 460.10iSectionFinancing order; recovery of qualified costs; conditions; amount; limitation on period for recovery of securitization charges; financing order as effective and irrevocable; evidence of indebtedness; time period to issue or reject; rehearing; appeal; retiring and refunding securitization bonds; retention of financial or legal services by commission.
Section 460.10jSectionSecuritization property; rights and interests.
Section 460.10kSectionFinancing order; effect in connection with bankruptcy.
Section 460.10lSectionAgreement to transfer securitization property as true sale.
Section 460.10mSectionLien and security interest; creation; changes in order or charges attachment; perfection; priority; sequestration and payment of revenues.
Section 460.10nSectionSecuritization bonds; state pledge of certain conduct.
Section 460.10oSectionSecuritization bond; direct interest in acquisition, ownership, and disposition not used in determining tax; obligations of electric utility successor; assignee or financing party as public utility.
Section 460.10pSectionEstablishment of industry worker transition program; adoption of service quality and reliability standards; compliance report; rules; benchmarks; method for gathering data; incentives and penalties; "jurisdictional utility" or "jurisdictional entity" defined.
Section 460.10qSectionAlternative electric supplier; license requirements.
Section 460.10rSectionDissemination of disclosures, explanations, or sales information; standards; establishment of Michigan renewables energy program; plan.
Section 460.10sSectionLow-income and energy assistance programs; availability of federal funds.
Section 460.10tSectionShut off of service; conditions; procedures; definitions.
Section 460.10uSectionReport.
Section 460.10vSectionJoint plan to expand available transmission capability.
Section 460.10wSectionInvestor-owned electric utility; FERC approval.
Section 460.10xSectionCooperative electric utility; requirements.
Section 460.10ySectionMunicipally owned utility; requirements.
Section 460.10zSectionProvisions of act as severable.
Section 460.10aaSectionImpairment of contractual rights under existing contract.
Section 460.10bbSectionAggregation; use; definition.
Section 460.10ccSectionProvisions as severable; certain rate reductions as void.
Section 460.10ddSectionAppropriation; hiring full-time positions to implement act.
Section 460.10eeSectionCode of conduct; value-added programs and services; definitions.
Section 460.10ffSectionEnergy ombudsman.
Section 460.10ggSectionLong-term industrial load rate; findings of commission.
Section 460.10hhSectionNuclear energy generation feasibility study.
Section 460.11SectionEstablishment of electric rates; establishment of eligible low-income customer or senior citizen customer rates; public and private schools, universities, and community colleges rate schedules.
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