As adopted by senate, September 29, 2020

senate resolution no.142

Senator Lauwers offered the following resolution:

A resolution to encourage the Michigan Public Service Commission to undertake a study into alternative and innovative rate design options for Michigan's electric customers.

Whereas, Energy customers are adopting new and evolving technologies including customer-owned generation, energy storage, electric vehicles, and customer energy management capabilities; and

Whereas, The adoption of these technologies changes the way an energy customer utilizes the grid; and

Whereas, The increasing adoption of these technologies can be expected to result in widespread changes to the use of the grid by utility customers; and

Whereas, Changes in customer utilization of the grid may result in cost shifts relative to a customer’s use of the grid which are not fully accounted for in traditional cost of service ratemaking models; and

Whereas, The traditional ratemaking process, which requires a contested case proceeding that must be concluded within ten months from the date of filing, is not conducive to fully investigating these issues in a collaborative way; and

Whereas, Consideration of these issues can best be done through collaborative discussions and review outside of time-limited rate case proceedings; and

Whereas, The development of policies governing the adoption, implementation, use, and regulation of these technologies will benefit from currently unavailable information regarding the costs and benefits to utilities and their customers of the widespread adoption of these technologies; now, therefore, be it

Resolved by the Senate, That we encourage the Michigan Public Service Commission to undertake a study on rate designs and options, including fixed system access and demand charges and rate design options that will account for the changing customer use of the grid due to the adoption of new energy technologies; and be it further

Resolved, That the study should evaluate options based on factors including, but not limited to, customer charges, fixed charges, demand charges, time of use rates, standby charges, system access charges, and other regulatory mechanisms to provide equitable recovery of utility revenue requirements from customers adopting new energy technologies and address concerns regarding cross-subsidy issues; and be it further

Resolved, That electric utilities and other stakeholders are encouraged to engage in this study; and be it further

Resolved, That we request the results of the study be available by October 31, 2021.