HOUSE BILL No. 4790 June 11, 1999, Introduced by Reps. Garcia, Jellema, Byl and Birkholz and referred to the Committee on Energy and Technology. A bill to amend 1909 PA 106, entitled "An act to regulate the transmission of electricity through the public highways, streets and places of this state, where the source of supply and place of use are in the same or different counties; to regulate the charges to be made for electricity so transmitted; to regulate the rules and conditions of service under which said electricity shall be furnished and to confer upon the Michigan public utilities commission certain powers and duties in regard thereto," (MCL 460.551 to 460.559) by amending the title and by adding sec- tions 10, 16, 17, 22, 24, 25, 28, 29, and 32. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: 1 TITLE 2 An act to regulate the transmission AND DELIVERY of 3electricity through the public highways, streets and places of4 ELECTRIC SERVICE IN this state;, where the source of supply and5place of use are in the same or different counties;to regulate 6theCERTAIN charges to be made for electricity so transmitted; 01725'99 b ** SAT 2 1 to regulate the rules and conditions of PROVIDING ELECTRIC 2 service;under which said electricity shall be furnished and to3confer upon the Michigan public utilities commission certain4powers and duties in regard theretoTO RESTRUCTURE THE ELECTRIC 5 INDUSTRY AND PROMOTE COMPETITION; TO PRESCRIBE THE POWERS AND 6 DUTIES OF CERTAIN STATE AGENCIES AND OFFICIALS; AND TO PROVIDE 7 PENALTIES AND OTHER REMEDIES FOR A VIOLATION OF THIS ACT. 8 SEC. 10. THE PURPOSE OF SECTIONS 11 THROUGH 32 IS TO DO ALL 9 OF THE FOLLOWING: 10 (A) CREATE COMPETITIVE MARKETS TO LOWER THE COST OF ELECTRIC 11 ENERGY AND IMPROVE THE QUALITY AND CHOICES OF SERVICE FOR RESI- 12 DENTIAL, COMMERCIAL, AND INDUSTRIAL CONSUMERS IN THIS STATE. 13 (B) IMPROVE THIS STATE'S COMPETITIVE ECONOMIC POSITION IN 14 REGIONAL, NATIONAL, AND INTERNATIONAL MARKETS. 15 (C) PLACE GREATER RELIANCE ON COMPETITIVE MARKETS, WHEN SUCH 16 MARKETS EXIST, TO DELIVER ELECTRIC SERVICES IN GREATER VARIETY 17 AND AT LOWER COST THAN TRADITIONAL, BUNDLED ELECTRIC SERVICES. 18 (D) MAINTAIN ADEQUATE REGULATORY OVERSIGHT OVER COMPETITIVE 19 PROVIDERS OF ELECTRIC SERVICES TO ASSURE THAT CONSUMER PROTECTION 20 SAFEGUARDS INHERENT TO TRADITIONAL ELECTRIC REGULATION ARE MAIN- 21 TAINED, WITHOUT UNDULY IMPEDING COMPETITIVE MARKETS. 22 (E) MAINTAIN REGULATORY AUTHORITY OVER NONCOMPETITIVE ELEC- 23 TRIC DELIVERY SERVICES. 24 (F) ENSURE THAT RATES FOR NONCOMPETITIVE ELECTRIC SERVICES 25 DO NOT SUBSIDIZE THE PROVISION OF COMPETITIVE ELECTRIC SERVICES 26 BY PROVIDERS OF DELIVERY SERVICES OR THEIR AFFILIATES. 01725'99 b ** 3 1 (G) AUTHORIZE THE COMMISSION TO MODIFY THE REGULATION OF 2 COMPETITIVE ELECTRIC SERVICES, AND TO PROMOTE ECONOMIC 3 DEVELOPMENT IN THIS STATE. 4 (H) IMPROVE THE RELIABILITY OF ELECTRIC POWER SUPPLY AND 5 DELIVERY SYSTEMS AS THE MARKETPLACE IS TRANSFORMED FROM A MONOP- 6 OLY TO A COMPETITIVE ENVIRONMENT. 7 SEC. 16. (1) AGGREGATION OF CUSTOMERS FOR THE PURPOSE OF 8 PURCHASING ELECTRICITY AND RELATED SERVICES FROM AN ALTERNATIVE 9 ELECTRIC SUPPLIER SHALL BE ENCOURAGED BY THE COMMISSION. 10 (2) LOCAL UNITS OF GOVERNMENT MAY AGGREGATE CUSTOMER LOAD 11 FOR THE PURPOSE OF PURCHASING ELECTRICITY FOR CUSTOMERS WITHIN 12 THEIR BOUNDARIES WITH THE WRITTEN CONSENT OF EACH CUSTOMER 13 AGGREGATED. CUSTOMERS WITHIN A LOCAL UNIT OF GOVERNMENT SHALL 14 CONTINUE TO HAVE THE RIGHT TO CHOOSE THEIR ELECTRICITY SUPPLIER 15 AND ARE NOT REQUIRED TO PURCHASE ELECTRICITY THROUGH THE 16 AGGREGATOR. 17 SEC. 17. (1) NO LATER THAN 30 DAYS AFTER THE EFFECTIVE DATE 18 OF THE AMENDATORY ACT THAT ADDED THIS SECTION, THE COMMISSION 19 SHALL ORDER AN ELECTRIC UTILITY TO DO ALL OF THE FOLLOWING: 20 (A) FUNCTIONALLY SEPARATE ITS NONCOMPETITIVE BUSINESS FUNC- 21 TIONS FROM ITS COMPETITIVE ELECTRICITY GENERATION SERVICES OR ITS 22 ELECTRIC POWER GENERATOR FUNCTIONS SO THAT SUCH SERVICES OR FUNC- 23 TIONS ARE PROVIDED BY A RELATED COMPETITIVE BUSINESS SEGMENT OF 24 THE UTILITY OR THE UTILITY'S HOLDING COMPANY. 25 (B) NO LATER THAN JANUARY 1, 2000, IF AN ELECTRIC UTILITY 26 WAS SERVICING MORE THAN 1,000,000 CUSTOMERS AS OF DECEMBER 31, 27 1998, IT SHALL SEPARATE ITS BUSINESS ACTIVITIES FROM ONE ANOTHER 01725'99 b ** 4 1 EITHER THROUGH THE CREATION OF UNAFFILIATED COMPANIES, AFFILIATED 2 COMPANIES OWNED BY A COMMON HOLDING COMPANY, OR THROUGH THE SALE 3 OF ASSETS TO AN UNAFFILIATED THIRD PARTY. DELIVERY SERVICES 4 SHALL NOT BE PROVIDED BY THE SAME COMPANY THAT PROVIDES GENERA- 5 TION SERVICES. 6 (C) FOR ALL ELECTRIC UTILITIES SERVING MORE THAN 1,000,000 7 CUSTOMERS AS OF DECEMBER 31, 1998, UPGRADE ITS TRANSMISSION FIRM 8 IMPORT CAPACITY AT PEAK BY 1,000 MW BY JULY 1, 2000 AND ADDI- 9 TIONAL 1,250 MW BY JANUARY 1, 2002. AN ELECTRIC UTILITY OR ITS 10 AFFILIATES SHALL NOT RESERVE THE INCREMENTAL INCREASES IN TRANS- 11 MISSION CAPACITY DESCRIBED IN THIS SECTION. THE COMMISSION SHALL 12 APPORTION THE TRANSMISSION INCREASES REQUIRED BY THIS SECTION 13 BETWEEN THE AFFECTED ELECTRIC UTILITIES. 14 (D) IN ADDITION TO THE REQUIREMENTS OF SUBDIVISION (C), FOR 15 ALL ELECTRIC UTILITIES SERVING MORE THAN 1,000,000 CUSTOMERS AS 16 OF DECEMBER 31, 1998, IF, BY JUNE 1, 2000, A MINIMUM OF 1,000 MW 17 OF NEW GENERATING CAPACITY IS NOT UNDER ACTIVE DEVELOPMENT IN 18 THIS STATE BY A THIRD PARTY NONAFFILIATED WITH AN ELECTRIC UTIL- 19 ITY OR A PROVIDER OF DELIVERY SERVICE, AT THE ELECTRIC UTILITY'S 20 OPTION, EITHER PROPOSE OR RECOMMEND BY JULY 1, 2000, TO THE 21 APPLICABLE REGIONAL TRANSMISSION OPERATOR, OR OTHER TRANSMISSION 22 PLANNING ENTITY, TRANSMISSION UPGRADES THAT WOULD INCREASE WITHIN 23 1 YEAR THEIR TRANSMISSION FIRM IMPORT CAPACITY AT PEAK BY THE 24 AMOUNT NEEDED TO ACHIEVE THE 1,000 MW INCREASE DESCRIBED ABOVE, 25 OR DIVEST WITHIN 1 YEAR A SIMILAR AMOUNT OF CURRENTLY LICENSED, 26 PERMITTED, AND OPERABLE FOSSIL FUEL POWERED GENERATING CAPACITY 27 TO A NONAFFILIATED THIRD PARTY. IF, BY JUNE 1, 2002, 1,250 MW, 01725'99 b ** 5 1 IN ADDITION TO THE 1,000 MW REFERENCED ABOVE, OF NEW GENERATING 2 CAPACITY IS NOT UNDER ACTIVE DEVELOPMENT IN THIS STATE BY A THIRD 3 PARTY NONAFFILIATED WITH AN ELECTRIC UTILITY OR A PROVIDER OF 4 DELIVERY SERVICE, AT THE ELECTRIC UTILITY'S OPTION, EITHER PRO- 5 POSE OR RECOMMEND BY JULY 1, 2002, TO THE APPLICABLE REGIONAL 6 TRANSMISSION OPERATOR, OR OTHER TRANSMISSION PLANNING ENTITY, 7 TRANSMISSION UPGRADES THAT WOULD INCREASE WITHIN 1 YEAR THEIR 8 TRANSMISSION FIRM IMPORT CAPACITY AT PEAK BY THE AMOUNT NEEDED TO 9 ACHIEVE THE 1,250 MW INCREASE DESCRIBED ABOVE, OR DIVEST WITHIN 1 10 YEAR A SIMILAR AMOUNT OF CURRENTLY LICENSED, PERMITTED, AND OPER- 11 ABLE FOSSIL FUEL POWERED GENERATING CAPACITY TO A NONAFFILIATED 12 THIRD PARTY. AN ELECTRIC UTILITY OR ITS AFFILIATES SHALL NOT 13 RESERVE THE INCREMENTAL INCREASES IN TRANSMISSION CAPACITY 14 DESCRIBED IN THIS SECTION. THE COMMISSION SHALL APPORTION THE 15 REQUIREMENTS OF THIS SECTION BETWEEN THE AFFECTED ELECTRIC 16 UTILITIES. AS USED IN THIS SECTION, "ACTIVE DEVELOPMENT" MEANS 17 GENERATING CAPACITY THAT IS UNDER CONSTRUCTION AND WILL BE AVAIL- 18 ABLE TO CUSTOMERS WITHIN 12 CALENDAR MONTHS. 19 (2) IF AN ELECTRIC UTILITY DOES NOT COMPLY WITH THIS SEC- 20 TION, THE COMMISSION SHALL ORDER THE UTILITY CONSISTENT WITH SEC- 21 TION 15 TO DIVEST TO AN UNAFFILIATED COMPANY ALL OR A PORTION OF 22 ITS ELECTRIC GENERATION ASSETS AND OPERATIONS SUFFICIENT TO 23 INSURE THAT THE GENERATION FACILITIES UNDER THE ELECTRIC 24 UTILITY'S OWNERSHIP OR CONTROL DO NOT ENABLE THE UTILITY TO EXER- 25 CISE MARKET CONTROL THAT ADVERSELY AFFECTS THE FORMATION OF A 26 COMPETITIVE ELECTRIC GENERATION MARKET OR TO GAIN AN UNFAIR 27 COMPETITIVE ADVANTAGE OR OTHERWISE CHARGE NONCOMPETITIVE PRICES. 01725'99 b ** 6 1 (3) AN ELECTRIC UTILITY SHALL NOT BE ELIGIBLE TO RECOVER 2 TRANSITION CHARGES UNDER SECTIONS 14 AND 15 UNLESS THE UTILITY 3 HAS COMPLIED WITH AN ORDER UNDER THIS SECTION. 4 SEC. 22. (1) A CUSTOMER OF AN ELECTRIC SUPPLIER SHALL NOT 5 BE SWITCHED TO ANOTHER SUPPLIER WITHOUT THE AUTHORIZATION OF THE 6 CUSTOMER. 7 (2) THE COMMISSION SHALL ISSUE ORDERS TO ENSURE THAT A CUS- 8 TOMER OF AN ELECTRIC SUPPLIER IS NOT SWITCHED TO ANOTHER SUPPLIER 9 WITHOUT THE CUSTOMER'S ORAL AUTHORIZATION, WRITTEN CONFIRMATION, 10 CONFIRMATION THROUGH AN INDEPENDENT THIRD PARTY, OR OTHER VERIFI- 11 CATION PROCEDURES SUBJECT TO COMMISSION APPROVAL, CONFIRMING THE 12 CUSTOMER'S INTENT TO MAKE A SWITCH AND THAT THE CUSTOMER HAS 13 APPROVED THE SPECIFIC DETAILS OF THE SWITCH. 14 (3) THE COMMISSION SHALL ESTABLISH A REASONABLE PERIOD 15 WITHIN WHICH A RETAIL CUSTOMER MAY CANCEL, WITHOUT PENALTY OR 16 COST, A CONTRACT ENTERED INTO WITH AN ELECTRIC SUPPLIER. 17 (4) A PROVIDER OF DELIVERY SERVICES SHALL NOT UNREASONABLY 18 DELAY OR REFUSE TO SWITCH A CUSTOMER TO ANOTHER SUPPLIER IF PROP- 19 ERLY AUTHORIZED. 20 SEC. 24. (1) AS USED IN THIS SECTION: 21 (A) "ELIGIBLE CUSTOMER" MEANS EITHER AN ELIGIBLE LOW-INCOME 22 CUSTOMER OR AN ELIGIBLE SENIOR CITIZEN CUSTOMER. 23 (B) "ELIGIBLE LOW-INCOME CUSTOMER" MEANS A CUSTOMER WHOSE 24 HOUSEHOLD INCOME DOES NOT EXCEED 150% OF THE POVERTY LEVEL, AS 25 PUBLISHED BY THE UNITED STATES DEPARTMENT OF HEALTH AND HUMAN 26 SERVICES, OR WHO RECEIVES ANY OF THE FOLLOWING: 01725'99 b ** 7 1 (i) ASSISTANCE FROM A STATE EMERGENCY RELIEF PROGRAM 2 (ii) FOOD STAMPS. 3 (iii) MEDICAID. 4 (C) "ELIGIBLE SENIOR CITIZEN CUSTOMER" MEANS A UTILITY OR 5 SUPPLIER CUSTOMER WHO IS 65 YEARS OF AGE OR OLDER AND WHO ADVISES 6 THE UTILITY OF HIS OR HER ELIGIBILITY. 7 (2) AN ELECTRIC UTILITY OR ALTERNATIVE ELECTRIC SUPPLIER 8 SHALL NOT SHUT OFF SERVICE TO AN ELIGIBLE CUSTOMER DURING THE 9 HEATING SEASON FOR NONPAYMENT OF A DELINQUENT ACCOUNT IF THE CUS- 10 TOMER IS AN ELIGIBLE SENIOR CITIZEN CUSTOMER OR IF THE CUSTOMER 11 PAYS TO THE UTILITY OR SUPPLIER A MONTHLY AMOUNT EQUAL TO 7% OF 12 THE ESTIMATED ANNUAL BILL FOR THE ELIGIBLE CUSTOMER AND THE ELI- 13 GIBLE CUSTOMER DEMONSTRATES, WITHIN 14 DAYS OF REQUESTING SHUTOFF 14 PROTECTION, THAT HE OR SHE HAS APPLIED FOR STATE OR FEDERAL HEAT- 15 ING ASSISTANCE. IF AN ARREARAGE EXISTS AT THE TIME AN ELIGIBLE 16 CUSTOMER APPLIES FOR PROTECTION FROM SHUTOFF OF SERVICE DURING 17 THE HEATING SEASON, THE UTILITY OR SUPPLIER SHALL PERMIT THE CUS- 18 TOMER TO PAY THE ARREARAGE IN EQUAL MONTHLY INSTALLMENTS BETWEEN 19 THE DATE OF APPLICATION AND THE START OF THE SUBSEQUENT SPACE 20 HEATING SEASON. 21 (3) AN ELECTRIC UTILITY OR ALTERNATIVE ELECTRIC SUPPLIER MAY 22 SHUT OFF SERVICE TO AN ELIGIBLE LOW-INCOME CUSTOMER WHO DOES NOT 23 PAY THE MONTHLY AMOUNTS REFERRED TO IN SUBSECTION (2) AFTER 24 GIVING NOTICE IN THE MANNER REQUIRED BY RULES. THE UTILITY OR 25 SUPPLIER IS NOT REQUIRED TO OFFER A SETTLEMENT AGREEMENT TO AN 26 ELIGIBLE LOW-INCOME CUSTOMER WHO FAILS TO MAKE THE MONTHLY 27 PAYMENTS REFERRED TO IN SUBSECTION (2). 01725'99 b ** 8 1 (4) IF A CUSTOMER FAILS TO COMPLY WITH THE TERMS AND 2 CONDITIONS OF THIS SECTION, AN ELECTRIC UTILITY OR ALTERNATIVE 3 ELECTRIC SUPPLIER MAY SHUT OFF SERVICE AFTER GIVING THE CUSTOMER 4 A NOTICE, BY PERSONAL SERVICE OR FIRST-CLASS MAIL, THAT CONTAINS 5 ALL OF THE FOLLOWING INFORMATION: 6 (A) THAT THE CUSTOMER HAS DEFAULTED ON THE WINTER PROTECTION 7 PLAN. 8 (B) THE NATURE OF THE DEFAULT. 9 (C) THAT UNLESS THE CUSTOMER MAKES THE PAYMENTS THAT ARE 10 PAST DUE UNDER THIS PART WITHIN 10 DAYS OF THE DATE OF MAILING, 11 THE UTILITY OR SUPPLIER MAY SHUT OFF SERVICE. 12 (D) THE DATE ON OR AFTER WHICH THE UTILITY OR SUPPLIER MAY 13 SHUT OFF SERVICE, UNLESS THE CUSTOMER TAKES APPROPRIATE ACTION. 14 (E) THAT THE CUSTOMER HAS THE RIGHT TO FILE A COMPLAINT DIS- 15 PUTING THE CLAIM OF THE UTILITY OR SUPPLIER BEFORE THE DATE OF 16 THE PROPOSED SHUTOFF OF SERVICE. 17 (F) THAT THE CUSTOMER HAS THE RIGHT TO REQUEST A HEARING 18 BEFORE A HEARING OFFICER IF THE COMPLAINT CANNOT BE OTHERWISE 19 RESOLVED AND THAT THE CUSTOMER MUST PAY TO THE UTILITY OR SUP- 20 PLIER THAT PORTION OF THE BILL THAT IS NOT IN DISPUTE WITHIN 3 21 DAYS OF THE DATE THAT THE CUSTOMER REQUESTS A HEARING. 22 (G) THAT THE CUSTOMER HAS THE RIGHT TO REPRESENT HIMSELF OR 23 HERSELF, TO BE REPRESENTED BY COUNSEL, OR TO BE ASSISTED BY OTHER 24 PERSONS OF HIS OR HER CHOICE IN THE COMPLAINT PROCESS. 25 (H) THAT THE UTILITY OR SUPPLIER WILL NOT SHUT OFF SERVICE 26 PENDING THE RESOLUTION OF A COMPLAINT THAT IS FILED WITH THE 27 UTILITY IN ACCORDANCE WITH THIS PART. 01725'99 b ** 9 1 (I) THE TELEPHONE NUMBER AND ADDRESS OF THE UTILITY OR 2 SUPPLIER WHERE THE CUSTOMER MAY MAKE INQUIRY, ENTER INTO A SET- 3 TLEMENT AGREEMENT, OR FILE A COMPLAINT. 4 (J) THAT THE CUSTOMER SHOULD CONTACT A SOCIAL SERVICES 5 AGENCY IMMEDIATELY IF THE CUSTOMER BELIEVES HE OR SHE MIGHT BE 6 ELIGIBLE FOR EMERGENCY ECONOMIC ASSISTANCE. 7 (K) THAT THE UTILITY OR SUPPLIER WILL POSTPONE SHUTOFF OF 8 SERVICE IF A MEDICAL EMERGENCY EXISTS AT THE CUSTOMER'S 9 RESIDENCE. 10 (l) THAT THE UTILITY OR SUPPLIER MAY REQUIRE A DEPOSIT AND 11 RESTORATION CHARGE IF THE SUPPLIER SHUTS OFF SERVICE FOR NONPAY- 12 MENT OF A DELINQUENT ACCOUNT. 13 SEC. 25. IN ADDITION TO THE PROVISIONS PROVIDED FOR UNDER 14 THE MICHIGAN CONSUMER PROTECTION ACT, 1976 PA 331, MCL 445.901 TO 15 445.922, THE COMMISSION MAY ADOPT ANY OTHER RULES IT CONSIDERS 16 NECESSARY TO PROTECT RETAIL CUSTOMERS FROM FRAUD AND OTHER UNFAIR 17 AND DECEPTIVE BUSINESS PRACTICES. 18 SEC. 28. (1) BEFORE DECEMBER 31, 2000, EACH UTILITY OPERAT- 19 ING IN THIS STATE SHALL FILE WITH THE FERC AN UNCONDITIONAL 20 APPLICATION, CONSISTENT WITH THE APPLICABLE REGIONAL TRANSMISSION 21 ORGANIZATION'S AGREEMENT AND TARIFF, TO DO EITHER OF THE 22 FOLLOWING: 23 (A) TRANSFER THE OPERATION AND CONTROL OF ITS BULK TRANSMIS- 24 SION FACILITIES IN MICHIGAN TO A FERC APPROVED REGIONAL TRANSMIS- 25 SION ORGANIZATION. 26 (B) DIVEST ITS INTEREST IN ITS BULK TRANSMISSION FACILITIES 27 TO AN INDEPENDENT TRANSMISSION OWNER APPROVED BY THE FERC. 01725'99 b ** 10 1 (2) IF BY JUNE 30, 2000 THERE IS PENDING BEFORE THE FERC FOR 2 APPROVAL A REGIONAL TRANSMISSION ORGANIZATION OR INDEPENDENT 3 TRANSMISSION OWNER TO WHICH A UTILITY IS A SIGNATORY THAT 4 INCLUDES 2 OR MORE DIRECTLY INTERCONNECTED CONTROL AREAS, AT 5 LEAST 1 OF WHICH IS NOT AFFILIATED WITH THAT SAME UTILITY, THE 6 DECEMBER 31, 2000 DEADLINE UNDER SUBSECTION (1) SHALL BE EXTENDED 7 FOR THAT UTILITY TO THE DATE THAT IS 75 DAYS AFTER THE DATE ON 8 WHICH THE FERC ISSUES AN ORDER EITHER APPROVING OR DISAPPROVING 9 THE REGIONAL TRANSMISSION ORGANIZATION OR INDEPENDENT TRANSMIS- 10 SION OWNER. FOR PURPOSES OF THIS SUBSECTION, THE MICHIGAN ELEC- 11 TRICAL COORDINATING SYSTEM SHALL CONTINUE TO BE TREATED AS A SIN- 12 GULAR CONTROL AREA. 13 (3) AN ELECTRIC UTILITY THAT HAS NOT BY JANUARY 1, 2002 14 EITHER JOINED A FERC APPROVED REGIONAL INDEPENDENT SYSTEM OPERA- 15 TOR OR OTHER FERC APPROVED MULTISTATE INDEPENDENT TRANSMISSION 16 ORGANIZATION OR DIVESTED ITS INTEREST IN ITS TRANSMISSION FACILI- 17 TIES TO AN INDEPENDENT TRANSMISSION OWNER APPROVED BY THE FERC IS 18 NOT ELIGIBLE TO RECOVER TRANSITION CHARGES UNDER SECTIONS 14 AND 19 15. 20 SEC. 29. (1) NOTWITHSTANDING ANY OTHER PROVISIONS OF THIS 21 ACT, REGULATED ELECTRIC UTILITIES SERVING LESS THAN 100,000 CUS- 22 TOMERS IN THIS STATE OR A COOPERATIVE ELECTRIC UTILITY SHALL 23 FILE, WITHIN 180 DAYS OF THE EFFECTIVE DATE OF THE AMENDATORY ACT 24 THAT ADDED THIS SECTION, OR BY JANUARY 1, 2000, WHICHEVER IS 25 LATER, RESTRUCTURING PLANS FOR REVIEW AND APPROVAL BY THE 26 COMMISSION. 01725'99 b ** 11 1 (2) EACH RESTRUCTURING PLAN FILED UNDER SUBSECTION (1) SHALL 2 INCLUDE PROPOSALS TO CLASSIFY FACILITIES IN ACCORDANCE WITH 3 CRITERIA ESTABLISHED BY THE FERC AND SUCH CLASSIFICATION SHALL BE 4 BASED ON GENERALLY ACCEPTED ACCOUNTING PRINCIPLES. AN ELECTRIC 5 UTILITY SHALL NOT BE REQUIRED TO PHYSICALLY OR ORGANIZATIONALLY 6 SEPARATE FACILITIES TO ACCOMPLISH THE CLASSIFICATION. 7 (3) PRIOR TO OFFERING ITS CUSTOMERS A CHOICE OF ALTERNATIVE 8 ELECTRIC SUPPLIERS UNDER THIS ACT, EACH ELECTRIC UTILITY SERVING 9 LESS THAN 100,000 CUSTOMERS IN THIS STATE MAY ADJUST ITS RATES 10 AND CHARGES IN A CONTESTED CASE UNDER THE ADMINISTRATIVE PROCE- 11 DURES ACT OF 1969, 1969 PA 306, MCL 24.201 TO 24.328. 12 (4) FOR ELECTRIC UTILITIES SERVING LESS THAN 100,000 CUSTOM- 13 ERS, PROPOSED TARIFFS FOR CUSTOMERS IN THIS STATE OR A COOPERA- 14 TIVE ELECTRIC UTILITY CHOOSING AN ALTERNATIVE ELECTRIC SUPPLIER 15 SHALL BE FILED ON OR BEFORE 180 DAYS AFTER APPROVAL OF RETAIL 16 ACCESS TARIFFS FOR ELECTRIC UTILITIES SERVING MORE THAN 1,000,000 17 CUSTOMERS IN THIS STATE OR JUNE 30, 2000, WHICHEVER IS LATER. 18 (5) AN ELECTRIC UTILITY WITH LESS THAN 1,000,000 CUSTOMERS 19 IN THIS STATE MAY APPLY TO THE COMMISSION TO ACCELERATE THE 20 DEPRECIATION OF A NUCLEAR POWER PLANT. THE COMMISSION SHALL 21 GRANT THE APPLICATION IF THE COMMISSION FINDS THAT THE DEPRECIA- 22 TION WILL NOT RAISE THE UTILITY'S BASE RATES ABOVE THE RATES IN 23 EFFECT ON NOVEMBER 1, 1998, WILL EFFECTIVELY MITIGATE STRANDED 24 COSTS OF THE UTILITY, AND WILL PROMOTE COMPETITION. 25 SEC. 32. (1) AN ELECTRIC UTILITY OR ITS AFFILIATE SHALL NOT 26 PROVIDE DELIVERY SERVICE TO A CUSTOMER OF A MUNICIPALLY OWNED 01725'99 b ** 12 1 UTILITY WITHOUT THE WRITTEN CONSENT OF THE MUNICIPALLY OWNED 2 UTILITY. 3 (2) SUBSECTION (1) DOES NOT APPLY IF A MUNICIPALLY OWNED 4 UTILITY HAS NOT ADOPTED A PLAN TO ALLOW CUSTOMERS LOCATED OUTSIDE 5 THE MUNICIPAL BOUNDARIES OF THE MUNICIPALLY OWNED UTILITY THE 6 OPPORTUNITY TO SELECT AN ALTERNATIVE ELECTRIC SUPPLIER BY 7 DECEMBER 31, 2007. 8 (3) NOTWITHSTANDING SUBSECTIONS (1) AND (2), IF AFTER 9 DECEMBER 31, 2007 A MUNICIPALLY OWNED UTILITY IS UNABLE TO PRO- 10 VIDE HEAT, POWER, OR LIGHT TO A CUSTOMER, WHEREVER LOCATED, OF 11 ANOTHER ELECTRIC UTILITY WITHOUT THE WRITTEN CONSENT OF THE OTHER 12 ELECTRIC UTILITY, THE OTHER UTILITY OR ITS AFFILIATE SHALL NOT 13 RENDER HEAT, POWER, OR LIGHT TO A CUSTOMER OF A MUNICIPALLY OWNED 14 UTILITY UNLESS THE MUNICIPALLY OWNED UTILITY CONSENTS IN 15 WRITING. 16 (4) THIS ACT SHALL NOT BE CONSTRUED TO PREVENT OR LIMIT A 17 MUNICIPALLY OWNED ELECTRIC UTILITY FROM SELLING ELECTRICITY AT 18 WHOLESALE. 19 (5) SECTIONS 10 THROUGH 33 DO NOT APPLY TO A MUNICIPALLY 20 OWNED UTILITY. 21 Enacting section 1. This amendatory act does not take 22 effect unless all of the following bills of the 90th Legislature 23 are enacted into law: 24 (a) Senate Bill No. _____ or House Bill No. _____ (request 25 no. 01725'99 **). 26 (b) Senate Bill No. _____ or House Bill No. _____ (request 27 no. 01725'99 a **). 01725'99 b **