September 26, 2018, Introduced by Senator COLBECK 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 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,"


(MCL 460.1 to 460.11) by adding section 10gg.




     Sec. 10gg. (1) A utility customer may choose between the


placement or use of a traditional meter or an advanced meter


regardless of the utility that provides service to that customer. A


utility shall honor the direction of any customer with an advanced


meter who chooses to instead be serviced by a traditional meter or


to not accept new advanced meter functionality, including in


situations when a customer had not previously opted out of that


placement or use.


     (2) A utility shall not do any of the following:


     (a) Make the provision of any portion of utility service to a


customer contingent on the customer receiving service through any


meter or similar device other than a traditional meter. A utility


may prohibit a customer with a traditional meter from participating


in certain time-of-day tariff discounts.


     (b) Except as otherwise provided in this section, impose any


fee or disincentive on a customer for opting out of or not choosing


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


use of a hub meter, or the acceptance or use of an advanced meter




     (c) Install an advanced meter or upgrade the functionality of


an existing advanced meter after the effective date of the


amendatory act that added this section unless the customer has been


properly notified and has not opted out of the installation or


upgrade. If a customer has not opted out of the installation or


upgrade, an on-site utility worker or his or her agent shall


nevertheless not install an advanced meter or upgrade the


functionality of the advanced meter if the customer has posted a

sign on the current meter forbidding the installation or upgrade of


an advanced meter or the customer verbally informs the worker at


the time of installation not to install or upgrade the advanced




     (3) A utility shall notify a customer in writing of the


utility's desire to install an advanced meter at the customer's


address or to upgrade the functionality of a previously installed


advanced meter. The utility shall send the notice by first-class


mail separate from any billing mailing. The utility shall keep a


copy of each mailed notice on file for review by the customer or


the commission. Each notice must do all of the following:


     (a) Include the customer's name, service address, and


anticipated date of installation.


     (b) State the utility's desire to install an advanced meter or


change the meter's functionality at the customer's address, as well


as to fully describe the functionality of the advanced meter, its


method of communication, and frequency of data communication.


     (c) If the advanced meter the customer would be receiving is a


hub meter, explain how a hub meter differs from other meters.


     (d) State the customer's ability to choose a traditional meter


or nonhub meter and the customer's rights under this section.


     (e) Clearly explain the process for a customer to opt out of


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


advanced meter function.


     (4) The commission shall promulgate utility customer meter


choice and opt-out procedures that are composed of simple, easy-to-


understand steps that an average customer can easily understand

that do not place any undue burden on the customer. After being


notified under subsection (3), customers must be provided with at


least 45 days to communicate with the utility their desire to opt


out, with a clear deadline listed on the notice. Opt-out procedures


must be free of charge other than the cost of regular mailing. An


opt-out procedure or process must be narrow in construction so as


to inform the utility of the customer's intentions and not be made


contingent upon or contain language that would require the customer


to give up any rights or make any other ancillary agreements. A


customer that does not opt out when first notified does not give up


any rights or options granted to that customer under this section.


     (5) Within 30 days after receiving a customer's direction that


an advanced meter, hub meter, or new functionality be removed from


the customer's residence or business, a utility shall accommodate


the customer and, limited to actual costs, charge a fee not to


exceed $150.00 for the installation of the new meter. However, a


utility shall not charge a fee to remove an advanced meter if the


utility installed the advanced meter in violation of the notice


requirements in this section, installed the advanced meter or


upgraded the functionality of the advanced meter in violation of


subsection (2)(c), or installed the advanced meter before the


effective date of the amendatory act that added this section. A


utility shall not charge a monthly fee for using a traditional


meter unless the customer is offered the opportunity, but is


unwilling, to read and report the customer's usage under subsection


(6). Any monthly fee for using a traditional meter must not exceed


$5.00 per month.

     (6) A utility shall allow each customer to read and report


that customer's service usage if the customer reports reasonably


accurate usage on a regular basis. A utility shall provide a


customer with a preaddressed envelope and form upon request or


permit a customer to report meter readings on a secure website, by


telephone, or by other reasonable means. At least once every 12


months, the utility shall obtain an actual meter reading of a


customer's energy usage to verify the accuracy of readings reported


under this section. Notwithstanding this subsection, a


representative of a utility may manually read a customer's meter on


a regular basis as otherwise permitted by law and correct a reading


as necessary. If a customer fails to report usage or the utility


does not receive a customer's service usage on time, the utility


may manually read a customer's meter or charge that customer based


on an estimate of prior energy use in a manner approved by the


commission. A customer that intentionally reports inaccurate


information may be assessed a reasonable penalty under rules


promulgated by the commission and may be subject to any other


penalties provided by law. As used in this subsection:


     (a) "Inaccurate information" means the intentional


underreporting of meter data in an effort to not pay for provided


services. Inaccurate information does not mean minor differences in


readings by less than 5% to account for variations based on the


time of day that the meter is read and similar factors.


     (b) "Regular basis" means once per billing cycle.


     (7) The commission shall consider the ability to self-read


meters as part of any proceeding and shall fully recognize and

value that customers have a legitimate interest in controlling


third-party equipment placed onto their property that is not


inherently necessary as a condition to receiving service.


     (8) A customer's energy use data and internet user information


are private and confidential and a utility or its agents shall not


sell, rent, or share that data or information except as provided by


competent court order or law. A utility may report data relating to


electric or compressed natural gas vehicle fueling to the


department of treasury. The department of treasury shall use that


information strictly for taxation purposes and shall not share that


information with law enforcement without a warrant, and that


information is not subject to disclosure under the freedom of


information act, 1976 PA 442, MCL 15.231 to 15.246, except for


aggregate data used for research purposes in a nonidentifying




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


meter communicated by networking technology are sufficiently


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


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


by networking technology meter use data that includes a customer's


name, Social Security number, address, or other identifying


information except for an independent and unique customer


identification number that is assigned by the utility. The utility


shall assign a customer identification number in a manner that


includes safeguards to prevent a device not owned by the utility


from associating the number with a particular customer or address.


     (10) A utility shall not post a 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 customer can access the information.


     (11) A utility shall not wirelessly or otherwise remotely shut


off service to a customer unless both 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 that reasonably ensures that a customer's service


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


computer system, that is open to inspection and audit by the


commission, and that is designed to prevent unintentional shutoff


due to network hacking or terrorism. The commission shall


collaborate with the department of state police in approving or


auditing the security program.


     (12) As used in this section:


     (a) "Advanced meter" means a meter or metering device system


that is owned or leased by a utility or its agent and that meets 1


or more of the following requirements:


     (i) Is non-analog in nature.


     (ii) Is a device that measures, records, or sends a customer's


utility usage or other data by use of radio waves or broadband over


power lines.

     (iii) Allows for 2-way communication between the meter and the


utility or its agent.


     (iv) Allows for a utility or its agent to control a customer's


thermostat, appliance, or service.


     (b) "Hub meter" means an advanced meter that receives data


from other customers' meters as a result of the meter serving as


part of a network for other advanced meters it communicates with in


a given area.


     (c) "Traditional meter" means an analog meter. A traditional


meter is not designed to be and is not capable of transmitting


usage data by using radio waves or broadband over power lines,


allowing 2-way communication between the meter and the utility or


its agents, or allowing a utility or its agents to control a


customer's thermostat, appliance, or service. A traditional meter


does not mean a digital meter or an advanced meter that has certain


functionality turned off or deactivated.


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


electricity, or water to retail customers in this state and that


either sells the natural gas, electricity, or water at rates


regulated by the commission or is owned by a municipality.