HOUSE BILL No. 4315

 

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.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     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

 

function.

 

     (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

 

manner.

 

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

 

programs.

 

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

 

thermostat.

 

     (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

 

phases.

 

     (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

 

jurisdiction.

 

     (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

 

commission.