Bill Text: MI SB0535 | 2009-2010 | 95th Legislature | Engrossed

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Bill Title: Public utilities; consumer services; public service commission rules on shutoffs; require municipally owned utilities to comply with. Amends 1939 PA 3 (MCL 460.1 - 460.11) by adding sec. 9q.

Spectrum: Partisan Bill (Democrat 5-0)

Status: (Engrossed - Dead) 2010-01-21 - Re-referred To Committee On Energy And Technology [SB0535 Detail]

Download: Michigan-2009-SB0535-Engrossed.html

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SB-0535, As Passed Senate, October 8, 2009

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

SENATE BILL NO. 535

 

 

 

 

 

 

 

 

 

 

 

     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) A municipally owned electric utility shall not

 

shut off service to an eligible customer during the heating season

 

for nonpayment of a delinquent account if the customer is an

 

eligible senior citizen customer or if the eligible customer enters

 

into a winter protection payment plan to pay to the utility a

 

monthly amount equal to 7% of the estimated annual bill for the

 

eligible customer or the eligible customer and the utility mutually

 

agree upon a winter protection payment plan with different terms

 

and the eligible customer demonstrates, within 14 days of

 

requesting shut-off protection, that he or she has applied for

 

state or federal heating assistance. If an arrearage exists at the

 

time an eligible customer applies for protection from shutoff of

 

service during the heating season, the utility 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.

 

     (2) If a customer fails to comply with the terms and

 

conditions of a winter protection payment plan, a municipally owned

 

electric utility may shut off service 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 defaulted on the winter protection

 

payment 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 municipally owned

 

electric utility may shut off service.

 

     (d) The date on or after which the municipally owned electric

 

utility may shut off service, unless the customer takes appropriate

 

action.

 

     (e) That the customer may petition the municipally owned

 

electric utility in accordance with the utility's rules disputing

 

the claim before the date of the proposed shutoff of service, or

 

bring an action pursuant to section 9p.

 

     (f) That the utility will not shut off service pending the

 

resolution of a dispute that is filed with the utility in

 

accordance with this section.

 

     (g) The telephone number and address of the utility where the

 

customer may make inquiry, enter into a payment plan, or file a

 

complaint.

 

     (h) The energy assistance telephone line number at the

 

department of human services or an operating 2-1-1 system telephone

 

number.

 

     (i) That the utility will postpone shutoff of service if a

 

medical emergency exists at the customer's residence.

 

     (j) That the utility may require a deposit and restoration

 

charge if the supplier shuts off service for nonpayment of a

 

delinquent account.

 

     (3) As used in this section:

 

     (a) "Eligible customer" means either an eligible low-income

 

customer or an eligible senior citizen customer who demonstrates to

 

the utility his or her eligibility.

 

     (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.

 

     (c) "Eligible senior citizen customer" means a utility

 

customer who is 65 years of age or older and who advises the

 

utility of his or her eligibility.

 

     (d) "Heating season" means November 1 through March 31.

 

     Enacting section 1. This amendatory act takes effect November

 

1, 2009.