HOUSE BILL No. 5122

 

August 22, 2007, Introduced by Rep. Hune 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,"

 

by amending section 10w (MCL 460.10w), as added by 2000 PA 141.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 


     Sec. 10w. (1) Each investor-owned electric utility in this

 

state shall , at the utility's option, either join a FERC approved

 

multistate regional transmission system organization or other FERC

 

approved multistate independent transmission organization. or

 

divest its interest in its transmission facilities to an

 

independent transmission owner.

 

     (2) An investor-owned electric utility that is party to a

 

legitimate filing that was pending before the FERC on December 31,

 

2001 which is seeking FERC approval of a proposed multistate

 

regional transmission system organization shall be considered to be

 

in compliance with this section. Subsection (3) shall apply if FERC

 

rejects a pending filing or if the electric utility withdraws from

 

the filing or from a regional transmission system organization.

 

This section does not provide guidance to FERC with respect to any

 

pending filing.

 

     (3) If an electric utility has not complied with this section

 

by December 31, 2001, the commission shall direct the electric

 

utility to join a FERC approved multistate regional transmission

 

system organization selected by the commission.

 

     (4) An investor-owned utility shall own, construct, and

 

operate any new transmission facilities used or intended to be used

 

by that utility for the transmission of electricity that are

 

installed in that utility's service area after the effective date

 

of the amendatory act that added this subsection.