September 26, 2018, Introduced by Senator COLBECK 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 powers and
duties of certain state governmental officers and entities; 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
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 6l, 6m, and 10t (MCL 460.6l, 460.6m, and
460.10t), as amended by 2016 PA 341, and by adding sections 6f, 9e,
and 9g.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 6f. (1) Within 90 days after the effective date of the
amendatory act that added this section, the commission shall
publish and keep current for the public a booklet of residential
customer rights that contains at least all of the following:
(a) How residential customers may request a proceeding before
the commission.
(b) What a customer should do to adequately prepare for a
proceeding before the commission.
(c) What to expect at a proceeding before the commission.
(d) Potential outcomes of a proceeding before the commission.
(e) How and when a customer may appeal a ruling by the
commission.
(2) A residential customer who is a party in a proceeding
before the commission may appear in person, by an attorney licensed
in this state, or by an authorized representative in a proceeding
before the commission. As used in this subsection, "authorized
representative" means a person, other than an attorney licensed in
this state, designated by a residential customer representing or
assisting that residential customer in a proceeding.
Sec. 6l. (1) For purposes of implementing sections 6a, 6h, 6j,
6s, and 6t, this section and section 6m provide a means of insuring
equitable representation of the interests of energy utility
customers.
(2) As used in this section and section 6m:
(a) "Annual receipts" means the payments received by the fund
under section 6m(2)(a), (b), (c), and (d) during a calendar year.
(b) "Board" means the utility consumer participation board
created under subsection (3).
(c) "Commission" means the Michigan public service commission.
(d) "Department" means the department of licensing and
regulatory affairs.
(e) "Energy cost recovery proceeding" means any proceeding to
establish or implement a gas cost recovery clause or a power supply
cost recovery clause as provided in section 6h or 6j, to set gas
cost recovery factors under section 6h(17), or to set power supply
cost recovery factors under section 6j(18).
(f) "Energy utility" means each electric or gas company
regulated by the commission.
(g) "Fund" means the utility consumer representation fund
created in section 6m.
(h) "Household" means a single-family home, duplex, mobile
home, seasonal dwelling, farm home, cooperative, condominium, or
apartment that has normal household facilities such as a bathroom,
individual cooking facilities, and kitchen sink facilities.
Household does not include a penal or corrective institution, or a
motel, hotel, or other similar structure if used as a transient
dwelling.
(i) "Jurisdictional" means subject to rate regulation by the
commission.
(j) "Net grant proceeds" means the annual receipts of the fund
less the amounts reserved for the attorney general's use and the
amounts expended for board expenses and operation.
(k) "Residential energy utility consumer" or "consumer" means
a customer of an energy utility who receives utility service for
use within an individual household or an improvement reasonably
appurtenant to and normally associated with an individual
household.
(l) "Residential tariff sales" means those sales by an energy
utility that are subject to residential tariffs on file with the
commission.
(m) "Utility consuming industry" means a person, sole
proprietorship, partnership, association, corporation, or other
entity that receives utility service ordinarily and primarily for
use in connection with the manufacture, sale, or distribution of
goods or the provision of services, but does not include a
nonprofit organization representing residential utility customers.
(3) The utility consumer participation board is created within
the department and shall exercise its powers and duties under this
act independently of the department. The procurement and related
management functions of the board shall be performed under the
direction
and supervision of the department. The board shall
consist
consists of 5 members appointed by the governor ,
1 of whom
shall
be that includes the
following:
(a) One member chosen from 1 or more lists of qualified
persons submitted by the attorney general.
(b) One member chosen from a list of qualified individuals
submitted by the speaker of the house of representatives.
(c) One member chosen from a list of qualified individuals
submitted by the senate majority leader.
(4) For the purposes of subsection (5) only, "utility" means
an electric or gas company located in or outside of this state.
(5) Each member of the board shall meet the following
requirements:
(a)
Shall be Be an advocate for the interests of residential
utility consumers, as demonstrated by the member's knowledge of and
support for consumer interests and concerns in general or
specifically related to utility matters.
(b)
Shall not Not be, or shall not have been within the 5 10
years preceding appointment, a member of a governing body of, or
employed in a managerial or professional or consulting capacity by
a utility or an association representing utilities; an enterprise
or professional practice that received over $1,500.00 in the year
preceding the appointment as a supplier of goods or services to a
utility or association representing utilities; or an organization
representing employees of such a utility, association, enterprise,
or professional practice, or an association that represents such an
organization.
(c)
Shall not Not have, or shall not have had within 1 year
preceding appointment, a financial interest exceeding $1,500.00 in
a utility, an association representing utilities, or an enterprise
or professional practice that received over $1,500.00 in the year
preceding the appointment as a supplier of goods or services to a
utility or association representing utilities.
(d)
Shall not Not be an officer or director of an applicant
for a grant under section 6m.
(e)
Shall not Not be a member of the immediate family of an
individual who would be ineligible under subdivision (a), (b), (c),
or (d).
(6)
The members of the board shall must
be appointed for 2-
year terms beginning with the first day of a legislative session in
an odd-numbered year and ending on the day before the first day of
the legislative session in the next odd-numbered year or when the
members' successors are appointed, whichever occurs later. The
governor shall not appoint a member to the board for a term
commencing after the governor's term of office has ended. A vacancy
shall
must be filled in the same manner as the original
appointment. If the vacancy is created other than by expiration of
a
term, the member shall must
be appointed for the balance of the
unexpired term of the member to be succeeded.
(7) The governor shall remove a member of the board if that
member is absent for any reason from either 3 consecutive board
meetings or more than 50% of the meetings held by the board in a
calendar year. However, an individual who is removed due to
absenteeism is eligible for reappointment to fill a vacancy that
occurs in the board membership. The governor also shall remove a
member of the board if the member is subsequently determined to be
ineligible under subsection (5).
(8) The board shall hold bimonthly meetings and additional
meetings as necessary. A quorum consists of 3 members. A majority
vote of the members appointed and serving is necessary for a
decision. At its first meeting following the appointment of new
members, or as soon as possible after the first meeting, the board
shall elect biennially from its membership a chairperson and a
vice-chairperson.
(9) The board shall not act directly to represent the
interests of residential utility consumers except through
administration of the fund and grant program under this section.
(10) The business that the board may perform shall
must be
conducted at a public meeting of the board held in compliance with
the open meetings act, 1976 PA 267, MCL 15.261 to 15.275. Public
notice
of the time, date, and place of the meeting shall must be
given in the manner required by the open meetings act, 1976 PA 267,
MCL 15.261 to 15.275.
(11) A writing prepared, owned, used, in the possession of, or
retained by the board in the performance of an official function
shall
must be made available to the public in compliance with
the
freedom of information act, 1976 PA 442, MCL 15.231 to 15.246.
(12) A member of the board may be reimbursed for actual and
necessary expenses, including travel expenses to and from each
meeting held by the board, incurred in discharging the member's
duties under this section and section 6m. In addition to expense
reimbursement, a board member may receive remuneration from the
board of $100.00 per meeting attended, not to exceed $1,000.00 in a
calendar
year. These limits shall must
be adjusted proportionately
to an adjustment in the remittance amounts under section 6m(4) to
allow for changes in the cost of living.
Sec. 6m. (1) The utility consumer representation fund is
created
as a special fund. The state treasurer shall be is the
custodian of the fund and shall maintain a separate account of the
money
in the fund. The money in the fund shall must be invested in
the bonds, notes, and other evidences of indebtedness issued or
insured by the United States government and its agencies, and in
prime commercial paper. The state treasurer shall release money
from the fund, including interest earned, in the manner and at the
time directed by the board.
(2) Except as provided in subsection (5), each energy utility
that has applied to the commission for the initiation of an energy
cost recovery proceeding shall remit to the fund before or upon
filing its initial application for that proceeding, and on or
before the first anniversary of that application, an amount of
money determined by the board in the following manner:
(a) In the case of an energy utility company serving at least
100,000 customers in this state, its proportional share of
$900,000.00 adjusted annually by a factor as provided in subsection
(4).
This adjusted amount shall become becomes the new base amount
to which the factor provided in subsection (4) is applied in the
succeeding
year. A utility's proportional share shall must be
calculated by dividing the company's jurisdictional total operating
revenues for the preceding year, as stated in its annual report, by
the total operating revenues for the preceding year of all energy
utility companies serving at least 100,000 customers in this state.
This
amount shall must be made available by the board for use by
the attorney general for the purposes described in subsection (16).
(b) In the case of an energy utility company serving at least
100,000 residential customers in this state, its proportional share
of $650,000.00 adjusted annually by a factor as provided in
subsection
(4). This adjusted amount shall become becomes the new
base amount to which the factor provided in subsection (4) is
applied in the succeeding year. A utility's proportional share
shall
must be calculated by dividing the company's jurisdictional
gross revenues from residential tariff sales for the preceding year
by the gross revenues from residential tariff sales for the
preceding year of all energy utility companies serving at least
100,000
residential customers in this state. This amount shall must
be used for grants under subsection (10).
(c) In the case of an energy utility company serving fewer
than 100,000 customers in this state, its proportional share of
$100,000.00 adjusted annually by a factor as provided in subsection
(4).
This adjusted amount shall become becomes the new base amount
to which the factor provided in subsection (4) is applied in the
succeeding
year. A utility's proportional share shall must be
calculated by dividing the company's jurisdictional total operating
revenues for the preceding year, as stated in its annual report, by
the total operating revenues for the preceding year of all energy
utility companies serving fewer than 100,000 customers in this
state.
This amount shall must be made available by the board for
use by the attorney general for the purposes described in
subsection (16).
(d) In the case of an energy utility company serving fewer
than 100,000 residential customers in this state, its proportional
share of $100,000.00 adjusted annually by a factor as provided in
subsection
(4). This adjusted amount shall become becomes the new
base amount to which the factor provided in subsection (4) is
applied in the succeeding year. A utility's proportional share
shall
must be calculated by dividing the company's
jurisdictional
gross revenues from residential tariff sales for the preceding year
by the gross revenues from residential tariff sales for the
preceding year of all energy utility companies serving fewer than
100,000
residential customers in this state. This amount shall must
be used for grants under subsection (10).
(3) Payments made by an energy utility under subsection (2)(a)
or (c) are operating expenses of the utility that the commission
shall permit the utility to charge to its customers. Payments made
by a utility under subsection (2)(b) or (d) are operating expenses
of the utility that the commission shall permit the utility to
charge to its residential customers.
(4) For purposes of subsection (2), the board shall set the
factor at a level not to exceed the percentage increase in the
index
known as the consumer price index Consumer Price Index for
urban wage earners and clerical workers, select areas, all items
indexed, for the Detroit standard metropolitan statistical area,
compiled by the Bureau of Labor Statistics of the United States
Department of Labor, or any successor agency, that has occurred
between January of the preceding year and January of the year in
which the payment is required to be made. In the event that more
than 1 such index is compiled, the index yielding the largest
payment
shall be is the maximum allowable factor. The board shall
advise utilities of the factor.
(5) The remittance requirements of this section do not apply
to an energy utility organized as a cooperative corporation under
sections 98 to 109 of 1931 PA 327, MCL 450.98 to 450.109, and
grants
from the fund shall must not be used to participate in an
energy cost recovery proceeding primarily affecting such a utility.
(6) In the event of a dispute between the board and an energy
utility about the amount of payment due, the utility shall pay the
undisputed amount and, if the utility and the board cannot agree,
the board may initiate civil action in the circuit court for Ingham
County for recovery of the disputed amount. If the court determines
in an action under this subsection that the board's proposed
payment was the proper amount of payment due, the court shall order
the utility to pay the board's court costs and attorney fees. The
commission shall not include any costs or attorney fees awarded
under this subsection in any rates for that utility. The commission
shall not accept or take action on an application for an energy
cost recovery proceeding from an energy utility subject to this
section that has not fully paid undisputed remittances required by
this section.
(7) The commission shall not accept or take action on an
application for an energy cost recovery proceeding from an energy
utility subject to this section until 30 days after it has been
notified by the board that the board is ready to process grant
applications, will transfer funds payable to the attorney general
immediately upon the receipt of those funds, and will within 30
days approve grants and remit funds to qualified grant applicants.
(8) The board may accept a gift or grant from any source to be
deposited in the fund if the conditions or purposes of the gift or
grant are consistent with this section.
(9) The costs of operation and expenses incurred by the board
in performing its duties under this section and section 6l,
including
remuneration to board members, shall must be paid from
the fund. A maximum of 5% of the annual receipts of the fund
received under subsection (2) may be budgeted and used to pay
expenses other than grants made under subsection (10).
(10)
The net grant proceeds shall must
finance a grant program
from which the board may award to an applicant an amount that the
board determines shall be used for the purposes set forth in this
section.
(11) The board shall create and make available to applicants
an application form. Each applicant shall indicate on the
application how the applicant meets the eligibility requirements
provided for in this section and how the applicant proposes to use
a grant from the fund to participate in 1 or more proceedings as
authorized in subsection (16) that have been or are expected to be
filed. Each applicant shall also identify on the application any
additional funds or resources, other than the grant funds being
requested, that are to be used to participate in the proceeding for
which the grant is being requested and how those funds or resources
will be utilized. The board shall receive an application requesting
a grant from the fund only from a nonprofit organization or a unit
of local government in this state. The board shall consider only
applications for grants containing proposals that are consistent
with subsections (16) and (17) and that serve the interests of
residential utility consumers. For purposes of making grants, the
board may consider energy conservation, energy waste reduction,
demand response, and rate design options to encourage energy
conservation, energy waste reduction, and demand response, as well
as the maintenance of adequate energy resources and matters related
to the need for or enforcement of commission rules pertaining to
the application for service, involuntary termination of service,
shut-off and restoration protections, meters, or consumer standards
or billing practices. The board shall not consider an application
that primarily benefits the applicant or a service provided or
administered by the applicant. The board shall not consider an
application from a nonprofit organization if 1 of the
organization's principal interests or unifying principles is the
welfare of a utility or its investors or employees, or the welfare
of 1 or more businesses or industries, other than farms not owned
or operated by a corporation, that receive utility service
ordinarily and primarily for use in connection with the profit-
seeking manufacture, sale, or distribution of goods or services.
Mere ownership of securities by a nonprofit organization or its
members does not disqualify an application submitted by that
organization. If the board rejects an application for a grant under
this section, the board shall provide the applicant a detailed
written statement of all of the reasons for the rejection.
(12) The board shall encourage the representation of the
interests of identifiable types of residential utility consumers
whose interests may differ, including various social and economic
classes and areas of the state, and if necessary, may make grants
to more than 1 applicant whose applications are related to a
similar issue to achieve this type of representation. In addition,
the board shall consider and balance the following criteria in
determining whether to make a grant to an applicant:
(a) Evidence of the applicant's competence, experience, and
commitment to advancing the interests of residential utility
consumers.
(b) The anticipated involvement of the attorney general in a
proceeding and whether activities of the applicant will be
duplicative or supplemental to those of the attorney general. An
applicant's activities are not duplicative to those of the attorney
general merely because the attorney general is involved in the same
proceeding.
(c) In the case of a nongovernmental applicant, the extent to
which the applicant is representative of or has a previous history
of advocating the interests of citizens, especially residential
utility consumers.
(d) The anticipated effect of the proposal contained in the
application on residential utility consumers, including the
immediate and long-term impacts of the proposal.
(e) Evidence demonstrating the potential for continuity of
effort and the development of expertise in relation to the proposal
contained in the application.
(f) The uniqueness or innovativeness of an applicant's
position or point of view as it relates to advocating for
residential utility consumers concerning energy costs or rates, and
the probability and desirability of that position or point of view
prevailing.
(13) As an alternative to choosing between 2 or more
applications that have similar proposals, the board may invite 2 or
more of the applicants to file jointly and award a grant to be
managed cooperatively.
(14) The board shall make disbursements pursuant to a grant in
advance of an applicant's proposed actions as set forth in the
application if necessary to enable the applicant to initiate,
continue, or complete the proposed actions.
(15) Any notice to utility customers and the general public of
hearings or other state proceedings in which grants from the fund
may
be used shall must contain a notice of the availability of the
fund and the address of the board.
(16) The annual receipts and interest earned, less
administrative costs, may be used only for participation in
administrative and judicial proceedings under sections 6a, 6h, 6j,
6s, and 6t, and in federal administrative and judicial proceedings
that directly affect the energy costs or rates paid by energy
utility customers in this state and in matters related to consumer
protections and billing practices that apply to residential energy
utility customers in this state. Amounts that have been in the fund
more than 12 months may be retained in the fund for future
proceedings
and any unexpended money in the fund shall must be
reserved to fulfill the purposes for which it was appropriated or
may be returned to energy utility companies or used to offset their
future remittances in proportion to their previous remittances to
the fund, as the board and attorney general determine will best
serve the interests of consumers.
(17) The following conditions apply to all grants from the
fund:
(a)
Disbursements from the fund may be used only to advocate
the
interests of residential energy utility customers concerning
energy
costs or rates and not for representation of merely
individual
interests.as described in
subsection (16).
(b) The board shall attempt to maintain a reasonable
relationship between the payments from a particular energy utility
and the benefits to consumers of that utility.
(c) The board shall coordinate the funded activities of grant
recipients with those of the attorney general to avoid duplication
of effort, particularly as it relates to the hiring of expert
witnesses, to promote supplementation of effort, and to maximize
the number of hearings and proceedings with intervenor
participation.
(18) A recipient of a grant under subsection (10) may use the
grant only for the advancement of the proposed action approved by
the board, including, but not limited to, costs of staff, hired
consultants and counsel, and research.
(19) A recipient of a grant under subsection (10) shall
prepare for and participate in all discussions among the parties
designed to facilitate settlement or narrowing of the contested
issues before a hearing in order to minimize litigation costs for
all parties.
(20) A recipient of a grant under subsection (10) shall file a
report with the board within 90 days following the end of the year
or
a shorter period for which the grant is made. The report shall
must be made in a form prescribed by the board and is subject to
audit by the board. The board shall include each report received
under this subsection as part of the board's annual report required
under
subsection (22). The report under this subsection shall must
include the following information:
(a) An account of all grant expenditures made by the grant
recipient.
Expenditures shall must be reported within the following
categories:
(i) Employee and contract for services costs.
(ii) Costs of materials and supplies.
(iii) Filing fees and other costs required to effectively
represent residential utility consumers as provided in this
section.
(b) A detailed list of the regulatory issues raised by the
grant recipient and how each issue was determined by the
commission, court, or other tribunal.
(c) Any additional information concerning uses of the grant
required by the board.
(21) On or before July 1 of each year, the attorney general
shall file a report with the house and senate committees on
appropriations and the house and senate committees with
jurisdiction over energy and utility policy issues. The report
shall
must include the following information:
(a) An account of all expenditures made by the attorney
general
of money received under this section. Expenditures shall
must be reported within the following categories:
(i) Employee and contract for services costs.
(ii) Costs of materials and supplies.
(iii) Filing fees and other costs required to effectively
represent utility consumers as provided in this section.
(b) Any additional information concerning uses of the money
received under this section required by the committees.
(22) On or before July 1 of each calendar year, the board
shall submit a detailed report to the house and senate committees
with jurisdiction over energy and utility policy issues regarding
the discharge of duties and responsibilities under this section and
section 6l during the preceding calendar year.
Sec. 9e. (1) A utility shall file with the commission at least
quarterly reports that disclose at least all of the following:
(a) The payment performance of its customers in relation to
established due and payable periods.
(b) The number and general description of all complaints
registered with the utility.
(c) The number of shut-off notices issued by the utility and
the reasons for the notices.
(d) The number of hearings held by the utility, the types of
disputes involved, and the number of complaint determinations
issued.
(e) The number of written settlement agreements entered into
by the utility.
(f) The number of shutoffs of service, the number of
reconnections, and the reasons for the shutoffs, minimally broken
down by voluntary shutoffs, involuntary shutoffs, safety-related
shutoffs, non-safety-related shutoffs, meter-choice-related
shutoffs, and payment-related shutoffs. If a shutoff is due to an
unsafe connection, the utility shall uniquely explain each of those
shutoffs, fully detailing the reason the connection was unsafe and
the action taken to cure or address that unsafe connection.
(g) The average time for the utility to restore service to a
customer following a shutoff, the amount of time for a utility to
restore service to each customer, and how many times the utility's
restoration of service violated this act or rules promulgated by
the commission.
(h) Any other customer service quality information requested
by the commission staff.
(2) In addition to the routine reports required under
subsection (1), a utility shall comply with any additional
commission staff requests for nonaggregated customer service
quality information at any time, with the utility providing that
individual customer-related information within 1 week after the
request.
(3) If a utility or its agents have shut-off service, the
utility or its agents shall restore service promptly upon the
customer's request when the cause has been cured or credit
arrangements satisfactory to the utility have been made, or when a
utility discovers that the utility has erroneously or illegally
disconnected service. When a utility is required to restore service
at the customer's meter manually, the utility shall make every
effort to restore service on the day the customer requests
restoration. Except when prevented by a disaster, the utility shall
restore service not later than the first working day after the
customer's request. For utilities using meter technology with
remote shutoff and restoration capability, service must be restored
on the day the customer requests restoration, except in the case of
documented equipment failure where a utility is required to restore
at the customer's meter manually.
(4) A utility that shuts off service to a customer, except at
the customer's request or for the reasons allowed by law, shall
provide to any affected customer a bill credit on the customer's
next bill. The amount of the credit provided to a residential
customer is at least $100.00 per day for each full or partial day
that the customer's service is not restored. If requested by the
customer, the utility shall provide a payment to the customer
instead of a bill credit under this subsection. A customer's
acceptance of a bill credit under this subsection does not limit
any rights or remedies available to that customer under any other
law.
(5) A utility is disqualified from receiving an incentive
under commission rules if the commission issues an order finding
that the utility's residential customer service levels were
unsatisfactory due to multiple violations of this section or rules
pertaining to the application for service, involuntary termination
of service, shut-off and restoration protections, meters, or
consumer standards or billing practices.
(6) A gas utility shall not shut off service to an eligible
senior citizen customer during the heating season. At the
customer's request, a gas utility shall restore service to an
eligible senior citizen customer's documented personal residence
during the heating season without payment of any amount due,
deposits, reconnection fees, or other charges. At the conclusion of
the heating season, the gas utility shall reconcile the accounts of
eligible senior citizen customers and permit them to pay any
amounts owing in equal monthly installments between April 1 and
October 31. This subsection does not relieve the customer of his or
her obligation to pay for utility service. This subsection does not
prohibit a gas utility that observes an unsafe connection at a
customer's location that is caused by unauthorized use of natural
gas service from implementing measures to cure or address the
unsafe connection under section 9d. The use of an analog meter does
not create, and shall not be construed to create, an unsafe
connection or condition.
(7) As used in this section:
(a) "Disaster" means widespread or severe damage to utility
infrastructure beyond the utility's control resulting from a
natural or man-made cause, including, but not limited to, an act of
war, earthquake, wildfire, flood, ice storm, snowstorm, terrorist
attack, tornado, or windstorm. Widespread or severe damage to
utility infrastructure that is the result of improper equipment,
poor maintenance, employee error, or other personnel issues is not
a disaster.
(b) "Eligible senior citizen customer" means a utility
customer who meets both of the following criteria:
(i) Has an individual in that customer's residence who is 65
years of age or older.
(ii) The utility knows or should know of his or her
eligibility or the customer advises the utility of his or her
eligibility.
(c) "Heating season" means the period between November 1 and
March 31, or additional periods of time more protective of
customers in rules promulgated by the commission.
(d) "Utility" means an electric or natural gas utility
regulated by the commission.
Sec. 10t. (1) An electric utility or alternative electric
supplier
shall not shut off service to an either of the following:
(a) An eligible low-income customer during the heating season
for
nonpayment of a delinquent account if the customer is an
eligible
senior citizen customer or if the customer pays to the
utility or supplier a monthly amount equal to 7% of the estimated
annual bill for the eligible low-income customer and the eligible
low-income customer demonstrates, within 14 days of requesting
shutoff
shut-off protection, that he or she has applied for state
or federal heating assistance. If an arrearage exists at the time
an eligible low-income customer applies for protection from shutoff
of service during the heating season, the utility or supplier shall
permit the customer to pay the arrearage in equal monthly
installments between the date of application and the start of the
subsequent heating season.
(b) An eligible senior citizen customer during the heating
season or cooling season. At the customer's request, an electric
utility or alternative electric supplier shall restore service to
an eligible senior citizen customer's documented personal residence
during the heating season or cooling season without payment of any
amount due, deposits, reconnection fees, or other charges. At the
conclusion of the heating season or cooling season, the electric
utility or alternative electric supplier shall reconcile the
accounts of eligible senior citizen customers and permit them to
pay any amounts owing in equal monthly installments outside of
otherwise protected periods of time. This subsection does not
relieve the customer of his or her obligation to pay for utility
service. This subsection does not prohibit an electric utility that
observes an unsafe connection at a customer's location that is
caused by unauthorized use of electric service from implementing
measures to cure or address the unsafe connection under section 9d.
The use of an analog meter does not create, and shall not be
construed to create, an unsafe connection or condition.
(2) An electric utility or alternative electric supplier may
shut
off service to a an
eligible low-income customer as
provided
in part 7 of the clean and renewable energy and energy waste
reduction act, 2008 PA 295, MCL 460.1201 to 460.1211, or to an
eligible low-income customer who does not pay the monthly amounts
required under subsection (1) after giving notice in the manner
required by rules. The utility or supplier is not required to offer
a settlement agreement to an eligible low-income customer who fails
to make the monthly payments required under subsection (1).
(3)
If a an eligible
low-income customer fails to comply
with
the terms and conditions of this section, an electric utility may
shut off service on its own behalf or on behalf of an alternative
electric supplier after giving the customer a notice, by personal
service or first-class mail, that contains all of the following
information:
(a) That the customer has not paid the per-meter charge
described in section 205 of the clean and renewable energy and
energy waste reduction act, 2008 PA 295, MCL 460.1205, or the
customer has defaulted on the winter protection plan.
(b) The nature of the default.
(c) That unless the customer makes the payments that are past
due within 10 days of the date of mailing, the utility or supplier
may shut off service.
(d) The date on or after which the utility or supplier may
shut off service, unless the customer takes appropriate action.
(e) That the customer has the right to file a complaint
disputing the claim of the utility or supplier before the date of
the proposed shutoff of service.
(f) That the customer has the right to request a hearing
before a hearing officer if the complaint cannot be otherwise
resolved and that the customer shall pay to the utility or supplier
that portion of the bill that is not in dispute within 3 days of
the date that the customer requests a hearing.
(g) That the customer has the right to represent himself or
herself, to be represented by an attorney, or to be assisted by any
other person of his or her choice in the complaint process.
(h) That the utility or supplier will not shut off service
pending the resolution of a complaint that is filed with the
utility in accordance with this section.
(i) The telephone number and address of the utility or
supplier where the customer may make inquiry, enter into a
settlement agreement, or file a complaint.
(j) That the customer should contact a social services agency
immediately if the customer believes he or she might be eligible
for emergency economic assistance.
(k) That the utility or supplier will postpone shutoff of
service if a medical emergency exists at the customer's residence.
(l) That the utility or supplier may require a deposit and
restoration charge if the supplier shuts off service for nonpayment
of a delinquent account.
(4) An electric utility is not required to shut off service
under this section to an eligible customer for nonpayment to an
alternative electric supplier.
(5) The commission shall establish an educational program to
ensure that eligible customers are informed of the requirements and
benefits of this section.
(6) As used in this section:
(a) "Cooling season" means the period between July 1 and
August 31, or additional periods of time more protective of
customers in rules promulgated by the commission.
(b) (a)
"Eligible customer" means
either an eligible low-
income customer or an eligible senior citizen customer.
(c) (b)
"Eligible low-income
customer" means a customer whose
household income does not exceed 150% of the poverty level, as
published by the United States Department of Health and Human
Services, or who receives any of the following:
(i) Assistance from a state emergency relief program.
(ii) Food stamps.
(iii) Medicaid.
(d) (c)
"Eligible senior citizen
customer" means a utility or
supplier customer who meets both of the following criteria:
(i) Has an individual in that customer's residence who is 65
years
of age or older. and who
(ii) The utility knows or should know of his or her
eligibility or the customer advises the utility of his or her
eligibility.
(e) "Heating season" means the period between November 1 and
March 31, or additional periods of time more protective of
customers in rules promulgated by the commission.