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Act 3 of 1939
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MICHIGAN PUBLIC SERVICE COMMISSION

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 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 provide for a restructuring of the manner in which energy is provided in this state; 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


© 2009 Legislative Council, State of Michigan

The People of the State of Michigan enact:

DocumentTypeDescription
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 or electric utility; completed petition or application to increase rates and charges or to amend rate or rate schedules; notice and hearing; issuance of temporary order; refund; interest; automatic fuel or purchased gas adjustment clause; rules and procedures; adjustment clauses operating without notice and hearing abolished; separate hearing to determine cost of fuel, purchased gas, or purchased power; recovery of cost; definitions; final decision; filing time extension; approval of transportation rate schedules or transportation contracts; forms and instructions; recovery of amount by merchant plant; limitation; adjustment; "United States consumer price index" defined; orders to permit recovery under subsections (7) and (8).
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 460.6cSectionEnergy conservation programs, including energy conservation loan programs, for residential customers of electric and gas utilities; approval; costs; conservation devices, services, and materials; cost benefit information; cost of personally installing insulation; rules; public utility as licensed contractor; accepting application for loan or making loan after certain date prohibited.
Section 460.6dSectionOwner of renewable resource power production facility; exemption from regulation and control of public service commission; definition.
Section 460.6eSectionImpact of MCL 460.6d; review and evaluation; public hearing; notice; report.
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 460.6jSectionIncorporation of power supply cost recovery clause in electric rates or rate schedule of utility; definitions; 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; limits; temporary administrator of fund.
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; reviewing relationship between costs and benefits.
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; filing forms and instructions; integrated resource plan; financing interest cost recovery in utility's base rates.
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 460.10 to 460.10bb; title of sections; purpose.
Section 460.10aSectionAlternative electric suppliers; orders establishing rates, terms, and conditions of service; licensing procedure; switching or billing for services without consent; code of conduct; appliance service program; 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; conduct of 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; report to governor and legislature.
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 reports; 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; establishment of Michigan renewables energy program; study, report, and 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 460.11SectionPhase in of electric rates; impact on residential and industrial metal melting rates; commencement of proceeding; examination of cost allocation and rate design methods; scope; proposal; final order; other rate applications; interim report; forwarding proposal for decision to legislature; establishment of eligible low-income customer or senior citizen customer rates; public and private schools, universities, and community colleges; electric utility serving fewer than 120,000 retail customers; approval of rates; retention of independent consultant; analysis of affordable rates.