Bill Text: MI HB4789 | 2013-2014 | 97th Legislature | Introduced
Bill Title: Public utilities; other; creation and funding of the low-income energy assistance fund; provide for. Amends 1939 PA 3 (MCL 460.1 - 460.11) by adding sec. 9t.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Introduced - Dead) 2013-05-30 - Printed Bill Filed 05/30/2013 [HB4789 Detail]
Download: Michigan-2013-HB4789-Introduced.html
HOUSE BILL No. 4789
May 29, 2013, Introduced by Rep. Nesbitt 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
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 provide for a
restructuring of the manner in which energy is provided in this
state; 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,"
(MCL 460.1 to 460.11) by adding section 9t.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 9t. (1) The low-income energy assistance and
weatherization fund is created within the state treasury.
(2) The state treasurer may receive money or other assets from
any source for deposit into the fund. The state treasurer shall
direct the investment of the fund. The state treasurer shall credit
to the fund interest and earnings from fund investments.
(3) Money in the fund at the close of the fiscal year shall
remain in the fund and shall not lapse to the general fund.
(4) The commission shall be the administrator of the fund for
auditing purposes.
(5) The commission shall expend money from the fund, upon
appropriation, only as provided in this section.
(6) No later than June 30, 2013, a utility may file with the
commission an application to recover funding to operate a 12-month
low-income energy assistance and weatherization program for that
utility. A utility shall include in its application the number of
eligible low-income households to be served by the program. The
commission shall, after notice and hearing, approve funding for a
low-income energy assistance and weatherization program no later
than August 31, 2013 for a future 12-month period. A utility that
collects money under this subsection shall remit that money to the
state treasurer for deposit in the fund on a monthly basis no later
than 30 days after the last day in each calendar month.
(7) Beginning in 2014, a utility may file with the commission
no later than March 31 of each year an application to recover
funding for a 3-year low-income energy assistance and
weatherization program for that utility. A utility shall include in
its application the number of eligible low-income households to be
served by the program. The commission shall, after notice and
hearing, approve funding for a low-income energy assistance and
weatherization program no later than August 31 for a future 3-year
period. A utility that collects money under this subsection shall
remit that money to the state treasurer for deposit in the fund on
a monthly basis no later than 30 days after the last day in each
calendar month.
(8) A utility may not request and the commission shall not
approve an amount under subsection (6) or (7) that exceeds 100% of
the uncollectible expenses anticipated for a utility's residential
customers over the period.
(9) The commission shall commence a proceeding 1 year after a
proceeding under subsection (6) or 3 years after a proceeding under
subsection (7), to be known as a low-income energy assistance and
weatherization program funding reconciliation, as a contested case
pursuant to chapter 4 of the administrative procedures act of 1969,
1969 PA 306, MCL 24.271 to 24.287. At the reconciliation, the
commission shall reconcile the funding collected under the funding
for a low-income energy assistance and weatherization program and
the utility's actual uncollectible expenses over the period. If a
utility collects more than the actual uncollectible expenses over
that period, the commission shall order the utility to refund the
amount each customer overpaid, as reasonably and cost effectively
as possible.
(10) The commission shall use money from the fund only for
low-income energy assistance and weatherization programs.
(11) For each utility that files an application under
subsection (6) or (7), or for a municipally owned utility or
member-regulated cooperative electric utility that deposits money
into the fund, the commission shall contract with public or private
entities to provide low-income energy assistance and weatherization
programs. The commission shall competitively bid any contract to
provide low-income energy assistance and weatherization programs
under this section. A utility, municipally owned utility, or
member-regulated cooperative electric utility may participate in
the competitive bidding to provide low-income energy assistance and
weatherization programs under this section.
(12) A low-income energy assistance and weatherization program
under this section shall do all of the following:
(a) Describe the number of eligible low-income households to
be served by the program.
(b) Describe the method by which eligible low-income
households are to be identified as likely to be in crisis and
eligible for enrollment in the program.
(c) Describe the total number of eligible low-income
households enrolled in the program.
(d) Describe how the program will reduce the incidences of
disconnection and shutoffs, increase the percentage of residential
customers who pay their monthly bill, reduce the number of requests
for energy assistance by customers, and reduce energy consumption.
(e) Ensure that no more than 30% of the money received for the
program is spent outside of the crisis season.
(f) Provide partial payment of an eligible low-income
household's bill or arrearage, require eligible low-income
households to make a contribution to the payment of their bill or
arrearage, and attempt to reduce the amount of lead-based
substances in eligible low-income households.
(g) Ensure that not less than 92% of the money collected from
each utility, municipally owned utility, or member-regulated
cooperative electric utility is spent on energy assistance for that
entity's eligible low-income households.
(13) This section does not prohibit a utility from utilizing
an uncollectible true-up mechanism under the commission's general
rate-making authority.
(14) As used in this section:
(a) "Crisis" means that term as defined in section 2 of the
Michigan energy assistance act, 2012 PA 615, MCL 400.1232.
(b) "Crisis season" means November 1 to May 31.
(c) "Eligible low-income household" means a household with a
household income of not more than 150% of the federal poverty
guidelines.
(d) "Fund" means the low-income energy assistance and
weatherization fund created in subsection (1).
(e) "Utility" means an electric utility, a cooperative
electric utility, or a natural gas utility.
