Bill Text: MI SB0557 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: Public utilities; municipal utilities; enforcement mechanism for violations by a municipally owned utility; provide for. Amends 1939 PA 3 (MCL 460.1 - 460.11) by adding sec. 9p.
Spectrum: Partisan Bill (Republican 1-0)
Status: (Passed) 2009-12-17 - Assigned Pa 0172'09 With Immediate Effect [SB0557 Detail]
Download: Michigan-2009-SB0557-Engrossed.html
SB-0557, As Passed House, December 2, 2009
SUBSTITUTE FOR
SENATE BILL NO. 557
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 9p.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 9p. (1) The attorney general, on his or her own motion or
upon a referral from the commission in a case of serious injury or
death, or any customer of a municipally owned electric or natural
gas utility may commence a civil action for injunctive relief or
imposition of a civil fine as provided in subsection (3) against
that municipally owned electric or natural gas utility if the
utility fails to meet the applicable requirements of this act. A
municipally owned electric utility shall establish a complaint
resolution process for its customers to resolve any allegations of
violations of this act that have not resulted in a death or serious
injury.
(2) An action under this section shall be commenced in the
circuit court for the circuit in which the principal office of the
municipally owned electric or natural gas utility is located. An
action shall not be filed under this section unless the prospective
plaintiff has given the prospective defendant at least 60 days'
written notice of the prospective plaintiff's intent to sue, the
basis for the suit, and the relief sought. Within 30 days after the
prospective defendant receives written notice of the prospective
plaintiff's intent to sue, the prospective defendant and plaintiff
shall meet and make a good faith attempt to determine if there is a
credible basis for the action. If both parties agree that there is
a credible basis for the action, the prospective defendant shall
take all reasonable and prudent steps necessary to comply with the
applicable requirements of this act within 10 days of the meeting
and may enter into a compliance agreement which may include the
payment of a civil fine.
(3) In issuing a final order in an action brought under this
section, a court may award costs of litigation, including
reasonable attorney and expert witness fees, to the prevailing or
substantially prevailing party. A court may order a municipally
owned electric or natural gas utility to pay a civil fine for the
first offense of not less than $1,000.00 or more than $20,000.00.
For a second offense, the court may order the person to pay a fine
of not less than $2,000.00 or more than $40,000.00. For a third and
any subsequent offense, the court may order the person to pay a
fine of not less than $5,000.00 or more than $50,000.00. A civil
fine ordered under this section shall be deposited in the low
income and energy efficiency fund.
(4) A municipally owned electric or natural gas utility or a
customer of a municipally owned electric or natural gas utility is
subject to this act only as expressly provided in this act. Nothing
in this act shall give the commission the power to regulate a
municipally owned electric or natural gas utility. Nothing in this
section shall be construed to prevent a party from pursuing any
other legal or equitable remedy that may be available to them.
