SB-1456, As Passed Senate, November 9, 2010

SUBSTITUTE FOR

SENATE BILL NO. 1456

     A bill to provide for the preservation of certain economic

development rates or contracts; to provide for the adoption of

certain rate-making policies for certain electric utilities; and to

prescribe the powers and duties of certain state agencies and

officials.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

     Sec. 1. This act shall be known and may be cited as the

"energy for economic development act of 2010".

     Sec. 3. As used in this act:

     (a) "Commission" means the Michigan public service commission

created in section 1 of 1939 PA 3, MCL 460.1.

     (b) "Electric utility" means that term as defined in section 2

of the electric transmission line certification act, 1995 PA 30,

MCL 460.562.

     Sec. 5. (1) If an electric utility has executed a written

contract with an industrial customer providing for an increase in

connected load at a single premises of at least 70,200,000 kilowatt

hours over 12 consecutive months pursuant to an economic

development tariff provision approved by the commission as of

October 6, 2008, the commission shall not take any action that

would alter the rates, terms, conditions, duration, or

enforceability of that tariff. Such prohibited actions include, but

are not limited to, an order that would eliminate, phase out, or

otherwise modify the economic development tariff provision in a

manner that would allow or require an electric utility to alter the

rates, terms, conditions, duration, or enforceability of a contract

entered into pursuant to the economic development tariff.

     (2) If an electric utility has executed a written contract

with a customer as described in subsection (1), the commission

shall allow the utility to fully recover from all of its other

electric ratepayers in all classes the full amount of the

difference, if any, between the revenue generated pursuant to the

economic development tariff and the utility’s cost to provide

service to that customer pursuant to the economic development

tariff, as determined by the commission. The utility’s recovery of

such difference shall be based on the cost allocation method

identified in section 11(1) of 1939 PA 3, MCL 460.11.

     (3) If there is a conflict between this act and any other act

of this state, this act controls.