November 27, 2018, Introduced by Rep. LaFave and referred to the Committee on Energy Policy.
A bill to amend 2008 PA 295, entitled
"Clean and renewable energy and energy waste reduction act,"
by amending section 71 (MCL 460.1071), as amended by 2016 PA 342.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 71. (1) A provider shall file a proposed energy
optimization plan with the commission within the following time
period:
(a) For a provider whose rates are regulated by the
commission, by March 3, 2009.
(b) For a cooperative electric utility that has elected to
become member-regulated under the electric cooperative member-
regulation act, 2008 PA 167, MCL 460.31 to 460.39, or a municipally
owned electric utility, by April 2, 2009.
(2) Energy optimization plans filed under subsection (1)
remain in effect, subject to any amendments, as energy waste
reduction plans.
(3) The overall goal of an energy waste reduction plan shall
be to help the provider's customers reduce energy waste and to
reduce the future costs of provider service to customers. In
particular, an electric provider's energy waste reduction plan
shall be designed to delay the need for constructing new electric
generating facilities and thereby protect consumers from incurring
the costs of such construction.
(4) An energy waste reduction plan shall do all of the
following:
(a)
Propose Provide for a set of energy waste reduction
programs that include offerings for each customer class, including
low-income residential. The commission shall allow a provider
flexibility to tailor the relative amount of effort devoted to each
customer class based on the specific characteristics of the
provider's service territory.
(b) Specify necessary funding levels.
(c) Describe how energy waste reduction program costs will be
recovered as provided in section 89(2).
(d) Ensure, to the extent feasible, that charges collected
from a particular customer rate class are spent on energy waste
reduction programs that benefit that rate class.
(e) Demonstrate that the proposed energy waste reduction
programs and funding are sufficient to ensure the achievement of
applicable energy waste reduction standards.
(f) Specify whether the number of megawatt hours of
electricity or decatherms or MCFs of natural gas used in the
calculation of incremental energy savings under section 77 will be
weather-normalized or based on the average number of megawatt hours
of electricity or decatherms or MCFs of natural gas sold by the
provider annually during the previous 3 years to retail customers
in this state. Once the plan is approved by the commission, this
option shall not be changed.
(g) Demonstrate that the provider's energy waste reduction
programs, excluding program offerings to low-income residential
customers, will collectively be cost-effective.
(h) Provide for the practical and effective administration of
the proposed energy waste reduction programs. The commission shall
allow providers flexibility in designing their energy waste
reduction programs and administrative approach, including the
flexibility to determine the relative amount of effort to be
devoted to each customer class based on the specific
characteristics of the provider's service territory. A provider's
energy waste reduction programs or any part thereof, may be
administered, at the provider's option, by the provider, alone or
jointly with other providers, by a state agency, or by an
appropriate experienced nonprofit organization selected after a
competitive bid process.
(i) Include a process for obtaining an independent expert
evaluation of the actual energy waste reduction programs to verify
the incremental energy savings from each energy waste reduction
program for purposes of section 77. All such evaluations are
subject to public review and commission oversight.
(5)
Subject to subsection (6), an a
provider's energy waste
reduction
plan may do provide for 1 or more of the following:
(a)
Utilize educational Educational
programs designed to alter
consumer behavior or any other measures that can reasonably be used
to meet the goals set forth in subsection (3).
(b)
Propose to the commission measures Measures that are
designed to meet the goals set forth in subsection (3) and that
provide additional customer benefits. The measures may be
implemented through a partnership with another provider that serves
any of the same customers. The partnership may involve, but is not
limited to, any of the following:
(i) Sharing of incentive credits and other costs of the
measures.
(ii) Incentivizing insulation or other measures that meet the
goals set forth in subsection (3).
(6) Expenditures under subsection (5) shall not exceed 3% of
the costs of implementing the energy waste reduction plan.
Enacting section 1. This amendatory act takes effect 90 days
after the date it is enacted into law.