February 26, 2013, Introduced by Reps. McMillin, Lauwers, Kelly, Hooker, Heise, Somerville, MacMaster and Franz and referred to the Committee on Energy and Technology.


     A bill to amend 1939 PA 3, entitled


"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,"


(MCL 460.1 to 460.11) by adding sections 10ff and 10gg.




     Sec. 10ff. (1) A utility shall not do any of the following:


     (a) Make utility service to a residential customer contingent


on the installation of an advanced meter or use of an advanced


meter function.


     (b) Offer or provide a rate discount, meter price discount,


rebate, bonus, or other incentive to a residential customer for


requesting or accepting the installation of an advanced meter or


use of an advanced meter function.


     (c) Impose any disincentive on a residential customer for not


requesting or accepting the installation of an advanced meter or


use of an advanced meter function.


     (d) Conduct a community installation program during a


moratorium on a community installation program adopted by


resolution of the governing body of the local unit of government.


     (e) Install an advanced meter at a residence unless the


residential customer has expressly requested an advanced meter or,


at least 30 days before the installation, the utility notified the


residential customer of the utility's intention to install an


advanced meter and the customer has not opted out. The utility


shall mail the notice to the customer and place a copy of the


notice at a conspicuous place on the customer's property. The


utility shall keep a copy of each mailed notice on file for review


by the customer or the commission. The notices shall meet all of


the following requirements:


     (i) Include the customer's address.


     (ii) State that the utility intends to install an advanced


meter at the customer's residence.


     (iii) Describe the advanced meter and the functions that the


advanced meter is capable of performing.


     (iv) Explain the process for a customer to opt out of


installation of an advanced meter or use of an advanced meter




     (f) Obtain data from an advanced meter more than once per


month, unless requested by a customer.


     (2) A utility shall mail to a customer who has formally opted


out of installation of an advanced meter or use of an advanced


meter function an acknowledgment of the utility's receipt of the


customer's decision. A residential customer who has not opted out


of installation of a first generation advanced meter or an advanced


meter function may opt out of the installation of a subsequent


generation advanced meter or an advanced meter function that was


not described in the notice required to be given under subsection


(1)(e) before the customer's current advanced meter was installed.


     (3) If a residential customer currently has a meter that is


not an advanced meter and conspicuously posts on or near the meter


a notice not to install an advanced meter, the utility shall,


promptly after the notice comes to the attention of a


representative of the utility and in the manner provided in


subsection (1)(e), notify the customer how the customer can opt out


of the installation or use of an advanced meter.


     (4) Within 15 days after receiving a residential customer's


request that an advanced meter be removed from the customer's


residence, the utility shall remove the advanced meter and replace


it with a meter that is not an advanced meter. The utility may


charge a 1-time all-inclusive fee, not to exceed $50.00, to remove


and replace the advanced meter. However, the utility shall not


charge a fee if the utility has violated this section or section


10gg with respect to the customer.


     (5) The commission shall issue a report each year to the house


and senate standing committees with oversight of public utilities


issues outlining utilities' compliance with this section and


section 10gg.


     (6) As used in this section and section 10gg:


     (a) "Advanced meter" means a meter or other device that,


through the use of equipment owned or leased by the utility or its


agent, meets 1 or more of the following requirements:


     (i) Is capable of measuring, recording, or sending utility


customer data by use of common radio waves or in any other wireless




     (ii) Allows 2-way communications suited for demand-response




     (iii) Allows for a utility's control of a residential




     (b) "Community installation program" means a program to


install advanced meters for a significant number of residential


customers of a local unit of government, either at 1 time or in




     (c) "Utility" means a person that sells natural gas,


electricity, or other energy to retail customers in this state and


either sells the natural gas, electricity, or other energy at rates


regulated by the commission or is owned by a municipality.


     Sec. 10gg. (1) A residential customer's energy use data are


confidential and shall not be sold, rented, shared, or otherwise


disclosed by a utility except to or with the express consent of the


residential customer. However, a utility may report generic data


relating to electric vehicle charging to the department of treasury


if otherwise authorized by law.


     (2) A utility shall not make the installation of an advanced


meter for a residential customer or the customer's use of certain


advanced meter functions contingent on a secondary, independent


decision by the customer pertaining to data sharing or other


advanced meter functions.


     (3) A utility shall ensure that any data from an advanced


meter communicated by wireless networking technology are encrypted


so that the data cannot be intercepted by a wireless device other


than a wireless device used by the utility. A utility shall not


communicate by wireless networking technology meter use data that


include a residential customer's name, social security number,


address, or other identifying information except for a customer


identification number that is assigned by the utility. The customer


identification number shall be assigned in a manner that includes


safeguards to prevent a wireless device not owned by the utility


from linking the number with a particular customer.


     (4) A utility shall not post a residential customer's energy


use data or bill on the internet, except over a secured transfer


protocol or similar secured connection that uses 1 or more


additional security measures, such as a customer-selected password,


to ensure that only the residential customer can access the


information. Energy usage data for specific residential customers


or addresses shall not be accessed by law enforcement officers


unless the access has been approved by a court of competent




     (5) A utility shall not wirelessly shut off service to a


customer unless all of the following requirements are met:


     (a) At least 48 hours before shutoff, a utility representative


visits the property to which the service is to be shut off,


verifies that it is the correct address, and follows all other


shutoff procedures required by law.


     (b) The utility has a commission-approved, comprehensive


security program which reasonably ensures that a customer's service


will be shut off only through authorized access to the utility's


computer system and which is open to inspection and audit by the