HOUSE BILL No. 5323


     February 8, 2000, Introduced by Reps. Vear, Rocca, Sheltrown, Richner, Van Woerkom, Bishop, Bovin and Birkholz and
referred to the Committee on Energy and Technology.


        A bill to prohibit the switching of a customer's natural gas

   supplier without the customer's authorization; to prescribe the

   powers and duties of certain state agencies and officials; and to

   provide penalties and other remedies.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

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           Sec. 1.  As used in this act:

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           (a) "Commission" means the Michigan public service commis-

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      sion in the department of consumer and industry services.

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           (b) "Customer" means an end-user of natural gas.

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           (c) "Natural gas supplier" or "supplier" means a person that

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      sells natural gas and related services at retail to customers

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      located in this state.

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           Sec. 2.  (1) A customer of a natural gas supplier shall not

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      be switched to another supplier without the authorization of the

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      customer.


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           (2) The commission shall issue orders to ensure that a

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      customer of a natural gas supplier is not switched to another

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      supplier without the customer's written confirmation confirming

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      the customer's intent to make a switch and that the customer has

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      approved the specific details of the switch.

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           (3) A natural gas supplier shall not unreasonably delay or

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      refuse to switch a customer to another supplier if properly

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      authorized.

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           Sec. 3.  (1) Upon the receipt of a complaint filed by a

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      person alleging a violation of this act or upon the commission's

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      own motion, the commission may conduct a contested case under the

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      administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to

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      24.328.

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           (2) If the commission finds that a person has violated this

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      act or an order issued under this act, the commission shall order

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      remedies and penalties to protect and make whole customers and

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      other persons who have suffered damages as a result of the viola-

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      tion, including, but not limited to, 1 or more of the following:

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           (a) Order the person to pay a fine for the first offense of

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      not less than $10,000.00 or more than $20,000.00.  For a second

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      and any subsequent offense, the commission shall order the person

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      to pay a fine of not less than $25,000.00 or more than

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      $40,000.00.  If the commission finds that the second or any of

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      the subsequent offenses were knowingly made in violation of this

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      act, the commission shall order the person to pay a fine of not

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      more than $50,000.00.





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           (b) Order the natural gas supplier to refund to the customer

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      any amount the customer paid to the supplier.

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           (c) Issue cease and desist orders.


















































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