Bill Text: MI SB1456 | 2009-2010 | 95th Legislature | Engrossed
Bill Title: Public utilities; other; certain actions regarding contract entered into pursuant to economic development tariff; prohibit. Creates new act.
Spectrum: Slight Partisan Bill (Republican 2-1)
Status: (Passed) 2010-12-29 - Assigned Pa 0297'10 With Immediate Effect [SB1456 Detail]
Download: Michigan-2009-SB1456-Engrossed.html
SB-1456, As Passed House, December 2, 2010
HOUSE SUBSTITUTE FOR
SENATE BILL NO. 1456
A bill to provide for the preservation of certain economic
development rates or contracts; to provide for the adoption of
certain rate-making policies for certain electric utilities; to
prescribe the powers and duties of certain state agencies and
officials; and to repeal acts and parts of acts.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 1. This act shall be known and may be cited as the
"energy for economic development act of 2010".
Sec. 3. As used in this act:
(a) "Commission" means the Michigan public service commission
created in section 1 of 1939 PA 3, MCL 460.1.
(b) "Electric utility" means that term as defined in section 2
of the electric transmission line certification act, 1995 PA 30,
MCL 460.562.
Sec. 5. (1) If an electric utility has executed a written
contract with an industrial customer providing for an increase in
connected load at a single premises of at least 70,200,000 kilowatt
hours over 12 consecutive months pursuant to an economic
development tariff provision approved by the commission as of
October 6, 2008, the commission shall not take any action that
would alter the rates, terms, conditions, duration, or
enforceability of that tariff. Such prohibited actions include, but
are not limited to, an order that would eliminate, phase out, or
otherwise modify the economic development tariff provision in a
manner that would allow or require an electric utility to alter the
rates, terms, conditions, duration, or enforceability of a contract
entered into pursuant to the economic development tariff.
(2) If an electric utility has executed a written contract
with a customer as described in subsection (1), the commission
shall, after the effective date of this act, allow the utility to
fully recover in a general rate case using a projected test year
from all of its other electric ratepayers in all classes the full
amount of the difference, if any, between the total projected
revenue pursuant to the economic development tariff and the
utility's cost to provide service to that customer pursuant to the
economic development tariff, both as determined by the commission
using the method in the most recent general rate case for the
utility. The utility's recovery of that difference shall be based
on the cost allocation method identified in section 11(1) of 1939
PA 3, MCL 460.11.
(3) If there is a conflict between this act and any other act
of this state, this act controls.
(4) This act is repealed effective December 1, 2015.
