November 30, 2011, Introduced by Rep. Horn 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 10d (MCL 460.10d), as amended by 2008 PA 286.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 10d. (1) If an electric utility serving less than
1,000,000 retail customers in this state as of May 1, 2000 issues
securitization
bonds as allowed under this act, it shall have has
the same rights, duties, and obligations under this section as an
electric utility serving 1,000,000 or more retail customers in this
state as of May 1, 2000.
(2) The commission shall take the necessary steps to ensure
that all electrical power generating facilities in this state
comply with all rules, regulations, and standards of the federal
environmental protection agency regarding mercury emissions.
(3) A covered utility may apply to the commission to recover
enhanced security costs for an electric generating facility through
a
security recovery factor. If the commission action under
subsection
(5) is approval of approves a security recovery factor
under subsection (5), the covered utility may recover those
enhanced security costs.
(4) The commission shall require that notice of the
application filed under subsection (3) be published by the covered
utility within 30 days from the date the application was filed. The
initial hearing by the commission shall be held within 20 days of
the date the notice was published in newspapers of general
circulation in the service territory of the covered utility.
(5) The commission may issue an order approving, rejecting, or
modifying the security recovery factor. If the commission issues an
order approving a security recovery factor, that order shall be
issued within 120 days of the initial hearing required under
subsection (4). In determining the security recovery factor, the
commission shall only include costs that the commission determines
are reasonable and prudent and that are jurisdictionally assigned
to retail customers of the covered utility in this state. The costs
included shall be net of any proceeds that have been or will be
received from another source, including, but not limited to, any
applicable insurance settlements received by the covered utility or
any grants or other emergency relief from federal, state, or local
governmental agencies for the purpose of defraying enhanced
security costs. In its order, the commission shall designate a
period for recovery of enhanced security costs, including a
reasonable return on the unamortized balance, over a period not to
exceed 5 years. The security recovery factor shall not be less than
zero.
(6) No later than February 18, 2003, the commission shall by
order prescribe the form for the filing of an application for a
security recovery factor under subsection (3). If the commission or
its designee determines that a filing is incomplete, it shall
notify the covered utility within 10 days of the filing.
(7) Records or other information supplied by the covered
utility in an application for recovery of security costs under
subsection (3) that describe security measures, including, but not
limited to, emergency response plans, risk planning documents,
threat assessments, domestic preparedness strategies, and other
plans for responding to acts of terrorism are not subject to the
freedom of information act, 1976 PA 442, MCL 15.231 to 15.246, and
shall be treated as confidential by the commission.
(8) The commission shall issue protective orders as are
necessary to protect the information found by the commission to be
confidential under this section.
(9) A utility shall not charge a customer to help fund any
low-income and energy efficiency fund. The commission shall not
include a low-income and energy efficiency charge in an electric
utility's or natural gas utility's base rates. Subject to this
subsection, the commission shall refund all money being held in
escrow for the low-income and energy efficiency fund to the
customers from whom it was collected in the manner in which it was
collected. Before refunding the money to customers under this
subsection, the commission shall pay any entity the amount approved
by the commission for an energy efficiency grant if that entity
completed the energy efficiency project before the effective date
of the 2011 amendatory act that amended this section.
(10)
(9) As used in this section:
(a) "Act of terrorism" means a willful and deliberate act that
is all of the following:
(i) An act that would be a violent felony under the laws of
this state, whether or not committed in this state.
(ii) An act that the person knows or has reason to know is
dangerous to human life.
(iii) An act that is intended to intimidate or coerce a civilian
population or influence or affect the conduct of government or a
unit of government through intimidation or coercion.
(b) "Covered utility" means an electric utility with 1,000,000
or more retail customers in this state as of May 1, 2000 or an
electric utility subject to the rate provisions of commission
orders in case numbers U-11181-R and U-12204.
(c) "Enhanced security costs" means reasonable and prudent
costs of new and enhanced security measures incurred before January
1, 2006 for an electric generating facility by a covered utility
that are required by federal or state regulatory security
requirements issued after September 11, 2001 or determined to be
necessary by the commission to provide reasonable security from an
act of terrorism. Enhanced security costs include increases in the
cost of insurance that are attributable to an increased terror
related risk and the costs of maintaining or restoring electric
service as the result of an act of terrorism.
(d) "Security recovery factor" means an unbundled charge for
all retail customers, except for customers of alternative electric
suppliers, to recover enhanced security costs that have been
approved by the commission.