November 8, 2012, Introduced by Senator KAHN and referred to the Committee on Energy and Technology.
A bill to provide electricity purchasing options to certain
electric customers that generate self-service power; to require the
adjustment of certain charges by 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 "jobs
preservation, economic development, and ratepayer protection act of
2012".
Sec. 3. As used in this act:
(a) "Alternative electric supplier" means that term as defined
in section 10g of 1939 PA 3, MCL 460.10g.
(b) "Commission" means the Michigan public service commission
created in section 1 of 1939 PA 3, MCL 460.1.
(c) "Electric utility" means that term as defined in section 2
of the electric transmission line certification act, 1995 PA 30,
MCL 460.562.
(d) "Process of constructing" means when an industrial
customer has entered into a binding contract for construction of
electrical generation facilities and has obtained all of the
necessary permits for construction.
Sec. 5. (1) An industrial consumer of electricity that, at a
single site or contiguous sites, meets both of the following
criteria may obtain all or any portion of its electricity from an
alternative electric supplier:
(a) Has an electric load of at least 150 megawatts.
(b) Has installed or is in the process of constructing
electrical generation facilities with a combined gross nameplate
rating of at least 100 megawatts to serve that electric load. The
electrical generation facilities shall meet the requirement of this
subdivision whether the generation facilities are owned by the
industrial consumer of electricity or by an entity other than the
industrial consumer of electricity.
(2) At any time when an industrial consumer of electricity
obtains any portion of its electricity from an alternative electric
supplier under this act, the electric utility that formerly
supplied that portion of the industrial consumer's electricity does
not have any obligation to maintain reserve capacity related to
that portion of the industrial consumer's load.
(3) If an industrial consumer of electricity described in
subsection (1) has paid for the cost of all or any part of the
distribution facilities that the electric utility uses to deliver
the electricity from an alternative electric supplier to the
industrial consumer of electricity, the electric utility shall
adjust its distribution charges so that the industrial consumer of
electricity is not charged for the electric utility's use of those
facilities.
(4) If an electric utility delivers electricity from an
alternative electric supplier to an industrial consumer of
electricity described in subsection (1) from the transmission grid
at 138 kilovolts or greater, the electric utility shall not charge
the industrial consumer of electricity the full tariff rate for
distribution, but shall instead reduce its distribution charges to
reflect only the direct costs of those facilities that were
purchased by the electric utility and that are directly used to
deliver electricity from the transmission grid to the industrial
consumer of electricity.
(5) Nothing in this act limits the existing rights of any
other electric customer to obtain service from an alternative
electric supplier.
(6) The commission has the authority and obligation to enforce
this act.
(7) If there is a conflict between this act and any other act
of this state, this act controls.