LONG-TERM INDUSTRIAL LOAD RATE                                                      H.B. 5902 (S-1):

                                                                                                    SUMMARY OF BILL

                                                                                      REPORTED FROM COMMITTEE

House Bill 5902 (Substitute S-1 as reported)

Sponsor:  Representative Dan Lauwers

House Committee:  Energy Policy

Senate Committee:  Energy and Technology

CONTENT

The bill would amend Public Act 3 of 1939, which created the Michigan Public Service Commission (MPSC), and regulates public and certain private utilities, to do the following:

-- Allow the MPSC to establish long-term industrial load rates for industrial customers.

-- Allow an electric utility to propose a long-term industrial load rate.

-- Require the MPSC to approve the proposed long-term industrial rate, if it found that certain requirements were met.

-- Require the MPSC to approve a contract for a term proposed by an electric utility under a long-term industrialized load rate, if there was a net benefit to the utility's customers.

-- Allow an electric utility to submit a proposal for a rate and a proposed contract for term under the proposed rate in the same proceeding.

-- Prohibit customers from aggregating load from multiple sites to meet the bill's requirements.

                                                                          Legislative Analyst:  Stephen Jackson

FISCAL IMPACT

The bill would not have a significant fiscal impact on State or local government. The bill would create additional responsibilities for the Public Service Commission within the Department of Licensing and Regulatory Affairs, but these functions would be performed and funded by existing staff and appropriations.

Date Completed:  9-26-18                                         Fiscal Analyst:  Elizabeth Raczkowski

This analysis was prepared by nonpartisan Senate staff for use by the Senate in its deliberations and does not constitute an official statement of legislative intent.