SB-0864, As Passed House, December 15, 2011

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 864

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 sections 6e, 9q, and 10u (MCL 460.6e, 460.9q, and

460.10u), section 6e as added by 1980 PA 50, section 9q as added by

2009 PA 171, and section 10u as added by 2000 PA 141.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 6e. (1) ~~Three years after the effective date of section~~

~~6d,~~ By March 25, 1983, the standing committees of the legislature

responsible for energy issues shall undertake a review and

evaluation of the impact of section 6d and report to the

legislature.

(2) The legislative committees shall hold a public hearing.

Notice of the public hearing shall be given to interested parties

who shall be given an opportunity to testify. Following the public

hearing, the legislative committees shall prepare a report.

(3) The report shall be submitted to the clerk of the house

and secretary of the senate and made available to all members of

the legislature.

Sec. 9q. (1) A provider may shut off service temporarily for

reasons of health or safety or in a state or national emergency.

When a provider shuts off service for reasons of health or safety,

the provider shall leave a notice at the premises.

(2) Subject to the requirements of this act, a provider may

shut off or terminate service to a residential customer for any of

the following reasons:

(a) The customer has not paid a delinquent account that

accrued within the last 6 years.

(b) The customer has failed to provide a deposit or guarantee

as required by the provider.

provider's service.

(d) The customer has failed to comply with the terms and

conditions of a payment plan entered into with the provider in

accordance with the provider's rules.

(e) The customer has refused to arrange access at reasonable

times for the purpose of inspection, meter reading, maintenance, or

replacement of equipment that is installed upon the premises or for

the removal of a meter.

(f) The customer misrepresented his or her identity for the

purpose of obtaining a provider service or put service in another

person's name without permission of the other person.

(g) The customer has violated any rules of the provider so as

to adversely affect the safety of the customer or other ~~persons~~

individuals or the integrity of the provider's system.

(h) ~~A person~~ An individual living in the customer's residence

meets both of the following:

(i) Has a delinquent account for service with the provider

within the past 3 years that remains unpaid.

(ii) The ~~customer~~ individual lived in the ~~person's~~ customer's

residence when all or part of the debt was incurred. The provider

may transfer a prorated amount of the debt to the customer's

account, based upon the length of time that the ~~customer~~ individual

resided at the ~~person's~~ customer's residence. This subdivision does

not apply if the ~~customer~~ individual was a minor while living in

the ~~person's~~ customer's residence.

(3) A provider shall not shut off service unless it sends a

notice to the customer by first-class mail or personally serves the

notice not less than 10 days before the date of the proposed

shutoff. A provider shall maintain a record of the date the notice

was sent.

(4) Subject to the requirements of sections 9r and 9s, ~~and 9r,~~

a provider's governing body shall establish a policy to allow a

customer the opportunity to enter into a payment plan for an amount

owed to the provider that is not in dispute, if a customer claims

an inability to pay in full. A provider is not required to enter

into a subsequent payment plan with a customer until the customer

has complied fully with the terms of an existing or previous

payment plan unless the customer demonstrates a significant change

in economic circumstances and requests a modification of the

payment plan. A provider is not required to enter into a subsequent

payment plan with a customer who defaulted on the terms and

conditions of a payment plan within the last 12 months.

(5) A notice of shutoff under subsection (3) shall contain all

of the following information:

(a) The name and address of the customer, and the address at

which service is provided, if different.

(b) A clear and concise statement of the reason for the

proposed shutoff of service.

service, unless the customer takes appropriate action.

(d) That the customer has the right to enter into a payment

plan with the provider for an amount owed to the provider that is

not in dispute and that the customer is presently unable to pay in

full.

(e) The telephone number and address of the provider where the

customer may make inquiry, enter into a payment plan, or file a

complaint.

(f) That the provider will postpone the shutoff of service if

a certified medical emergency exists at the customer's residence

and the customer informs and provides documentation to the provider

of that medical emergency.

(g) That during the heating season the provider will postpone

shutoff of service if a customer is an eligible low-income customer

that enters into a winter protection payment plan with the provider

and the customer provides documentation that the customer is

actively seeking emergency assistance from an energy assistance

program.

(h) The energy assistance telephone line number at the

department of human services or an operating 2-1-1 system telephone

number.

(6) Subject to the requirements of this act, a provider may

shut off service to a customer on the date specified in the notice

of shutoff or at a reasonable time following that date. If a

provider does not shut off service and mails a subsequent notice,

then the provider shall not shut off service before the date

specified in the subsequent notice. Shutoff shall occur only

between the hours of 8 a.m. and 4 p.m.

(7) A provider shall not shut off service on a day, or a day

immediately preceding a day, when the services of the provider are

not available to the general public for the purpose of restoring

service.

(8) For an involuntary shutoff, at least 1 day before shutoff

of service, the provider shall make ~~not fewer than~~ at least 2

attempts to contact the customer by 1 or more of the following

methods:

(a) A personal or automated telephone call where direct

contact is made with a member of the customer's household or a

message is recorded on an answering machine or voice mail.

(b) First-class mail.

(d) A written notice left at or on the customer's door.

(e) Any other method approved by the commission for regulated

utilities.

(9) A notice of shutoff sent under subsection (3) shall be

considered as 1 attempt under subsection (8).

(10) The provider shall document all attempts to contact the

customer under subsection (8).

(11) Immediately ~~preceding~~ before the shutoff of service, an

employee of the provider who is designated to perform that function

may identify himself or herself to the customer or another

responsible ~~person~~ individual at the premises and may announce the

purpose of his or her presence.

(12) When a provider employee shuts off service, the employee

shall leave a notice. The notice shall state that service has been

shut off and shall contain the address and telephone number of the

provider where the customer may arrange to have service restored.

(13) For an involuntary shutoff using meters with remote

shutoff and restoration ability, at least 1 day before shutoff of

service, the provider shall make at least 2 attempts to contact the

customer by 1 of the methods listed in subsection (8). Any notice

shall state that the disconnection of service will be done remotely

and that a provider representative will not return to the premises

before disconnection. The provider shall document all attempts to

contact the customer. If the provider contacts the customer or

other responsible ~~person~~ individual in the customer's household by

telephone on the day service is to be shut off, the provider shall

inform the customer or other responsible ~~person~~ individual that

shutoff of service is imminent and of the steps necessary to avoid

shutoff. Unless the customer presents evidence that reasonably

demonstrates that the claim is satisfied or is in dispute, or the

customer makes payment, the employee may shut off service. If the

provider complies with the notice requirements of this subsection,

no further customer contact is required on the day service is to be

shut off and the provider may shut off service.

(14) A provider shall not shut off service for any of the

following reasons:

(a) The customer has not paid for concurrent service received

at a separate metering point, residence, or location.

(b) The customer has not paid for service at a premises

occupied by another person. A provider may shut off service in any

of the following circumstances where proper notice has been given:

(i) If the customer supplies a written, notarized statement

that the premises are unoccupied.

(ii) If the premises are occupied and the occupant agrees, in

writing, to the shutoff of service.

(iii) If it is not feasible to provide service to the occupant

as a customer without a major revision of existing distribution

facilities.

(iv) If it is feasible to provide service to the occupant as a

customer without a major revision of existing distribution

facilities and the occupant refuses to put the account in their

name.

(15) After a provider has shut off service, it shall restore

service upon the customer's request when the cause has been cured

or credit arrangements satisfactory to the provider have been made.

(16) When a provider is required to restore service at the

customer's meter manually, the provider shall make reasonable

efforts to restore service on the day the customer requests

restoration. Except for reasons beyond its control, the provider

shall restore service not later than the first working day after

the customer's request.

(17) For providers using meter technology with remote shutoff

and restoration capability, service shall be restored on the first

working day after the customer requests restoration, except in the

case of documented equipment failure.

(18) The provider may assess the customer a charge for

restoring service or relocating the customer's meter.

(19) The vulnerable household warmth fund is created within

the state treasury. The state treasurer may receive money or other

assets from any source for deposit into the fund. The state

treasurer shall direct the investment of the fund. The state

treasurer shall credit to the fund interest and earnings from fund

investments. Money in the fund at the close of the fiscal year

shall be refunded among each rate schedule, based on the rate

schedules in effect when the money was collected, proportional to

the amount paid by each rate schedule. The commission shall ensure

that each utility refunds those amounts to its customers. The

commission shall be the administrator of the fund for auditing

purposes.

(20) Money from the fund, upon appropriation, shall be used to

provide payment or partial payment of bills for electricity,

natural gas, propane, heating oil, or any other type of fuel used

to heat the primary residence of a vulnerable customer during the

2011-2012 heating season. A payment under this subsection shall be

in the form of a voucher or direct payment to the utility,

provider, cooperative, or distributor of fuel. The amount

accumulated in the fund shall not exceed $48,000,000.00.

(21) The department of human services and the commission shall

ensure that, in distributing money from the fund, first priority is

given to households that contain at least 1 of the following:

(a) A minor child.

(b) An eligible senior citizen.

permanently disabled individual.

(22) Amounts that were, before the amendatory act that added

this subsection, authorized by the commission to be collected in

retail rates from the customers of an electric utility or natural

gas utility with more than 1,000,000 customers in this state for

contribution by the electric utility or natural gas utility to fund

grants authorized by the commission in the June 28, 2011 order

awarding low-income energy assistance grants in docket no. U-13129

Senate Bill No. 864 (H-3) as amended December 15, 2011

are authorized for a period commencing with the effective date of

the amendatory act that added this subsection, and continuing

through September 30, 2012, or until $48,000,000.00 is accumulated

in the fund from retail rates or appropriated funds, whichever

occurs first. An electric utility or natural gas utility that

collects money under this subsection shall remit that money to the

state treasurer for deposit in the fund on a monthly basis no later

than 30 days after the last day in each calendar month. The

commission shall issue orders no later than September 30, 2012

reducing the retail rates of an electric utility or natural gas

utility that collects money under this subsection by the annualized

amount [authorized for collection by this subsection and] included in the

retail rates of each electric utility or

natural gas utility as established by the most recently completed

rate case of the electric utility or natural gas utility before the

effective date of the amendatory act that added this subsection.

(23) ~~(19)~~ As used in this section: ~~, "provider"~~

(a) "Eligible senior citizen" means an individual who is 65

years of age or older.

(b) "Fund" means the vulnerable household warmth fund created

in subsection (19).

(d) "Provider" means a municipally owned electric or natural

gas utility.

(e) "Totally and permanently disabled" means a disability as

defined in 42 USC 416.

(f) "Vulnerable customer" means either of the following:

(i) For an electric utility, provider, cooperative, or natural

gas utility customer, a customer who meets both of the following:

(A) Has a household income that does not exceed 60% of the

state median income, or receives any of the following:

(I) Assistance from a state emergency relief program.

(II) Food stamps.

(III) Medicaid.

(B) Has received a shut-off notice from the energy provider.

(ii) For a customer who uses a fuel other than electricity or

natural gas to heat his or her residence, a customer who meets both

of the following:

(A) Has a household income that does not exceed 60% of the

state median income, or receives any of the following:

(I) Assistance from a state emergency relief program.

(II) Food stamps.

(III) Medicaid.

(B) Has received notice from their distributor of fuel that no

further deliveries will be made to his or her residence due to

nonpayment of prior bills.

Sec. 10u. The commission shall ~~file~~ compile a report ~~with the~~

~~governor and legislature~~ by February 1 of each year that shall be

posted on the commission's internet website and disseminated by any

other means that the commission determines will properly notify the

citizens of this state. A copy of the report shall be provided to

the governor and the legislature. The report shall include all of

the following:

(a) The status of competition for the supplying of electricity

in this state.

(b) Recommendations for legislation, if any.

necessary to protect consumers from unfair or deceptive business

practices by utilities, alternative electric suppliers, and other

market participants.

(d) Information regarding consumer education programs,

approved by the commission, to inform consumers of all relevant

information regarding the purchase of electricity and related

services from alternative electric suppliers.