December 7, 2005, Introduced by Rep. Farhat 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
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,"
by amending section 6g (MCL 460.6g), as added by 1980 PA 470.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 6g. (1) As used in this section:
(a) "Attaching party" means any person, firm, corporation,
partnership,
or cooperatively organized association, other than a
an electric utility or a municipality, which seeks to construct
attachments upon, along, under, or across public ways or private
rights of way. An attaching party does include a school or
educational institution and an entity entitled to pole attachment
under 47 USC 224.
(b) "Attachment" means any wire, cable, facility, or apparatus
for the transmission of writing, signs, signals, pictures, sounds,
or other forms of intelligence or for the transmission of
electricity for light, heat, or power, installed by an attaching
party upon any pole or in any duct or conduit owned or controlled,
in whole or in part, by 1 or more utilities.
(c) "Commission" means the Michigan public service commission
created in section 1.
(d) "Make ready costs" means the actual additional direct cost
of attaching a party's facilities to the utility's pole or facility
and does not include any costs to remediate preexisting violations
of applicable codes or regulations.
(e) "School" or "educational institution" means that term as
defined in section 102 of the Michigan telecommunications act, 1991
PA 179, MCL 484.2102.
(f) (d)
"Utility" means any public utility subject
to the
regulation and control of the commission that owns or controls an
extensive contiguous network of poles, or shares ownership or
control of an extensive contiguous network of poles, ducts, or
conduits used or useful, in whole or in part, for supporting or
enclosing wires, cables, or other facilities or apparatus for the
transmission of writing, signs, signals, pictures, sounds, or other
forms of intelligence, or for the transmission of electricity for
light, heat, or power.
(2) The commission shall regulate the rates, terms, and
conditions of attachments by attaching parties. The commission, in
regulating the rates, terms, and conditions of attachments by
attaching
parties, shall not require a hearing when approving the
rates,
terms, and conditions unless when
the attaching party or
utility petitions the commission for a hearing. The commission
shall ensure that the rates, terms, and conditions are just and
reasonable and shall consider the interests of the attaching
parties' customers or users, if any, as well as the utility and its
customers. The commission shall have jurisdiction and authority to
fully enforce this section and to impose the remedies, fines, and
penalties provided for in section 10c of this act for a violation
of this section.
(3) A utility pole owner shall ensure all of the following:
(a) That schools, educational institutions, and other
attaching parties are able to promptly attach telecommunications
and technology facilities to utility poles and facilities at just
and reasonable rates, terms, and conditions within 120 days of an
initial request to attach.
(b) That all attachment fees, charges, make ready costs, by
whatever description, practices, and procedures are specifically
provided for in its tariffs on file with and approved by the
commission.
(c) That the utility cooperates with schools, educational
institutions, and other attaching parties and does not delay any
attaching from promptly attaching to the utility's poles or
facilities within the time period required under subdivision (a).
(d) That the utility provides reliable make ready cost
estimates within 45 days from the date an attaching party makes an
application for attachment, and that once the make ready cost
estimates have been provided, no greater amount may be charged to a
school or educational institution even for subsequently arising
make ready issues or pole modifications for at least 5 years,
unless the changes were planned at the time of the school's or
educational institution's attachment application and fully
disclosed to the school or educational institution before the
attachment was made.
(e) That the utility performs all necessary make ready work
within 60 days from the date the attaching party applicant approves
the make ready cost estimate.
(f) That the utility continuously maintains all poles and
facilities, as required by law, rule, or safety regulations, so as
to facilitate prompt attachments as provided under this section.
(g) That the utility does not require attaching parties to
enter into separate pole attachment agreements.
(h) That the utility does not attempt to shift liability or
responsibility, or secure indemnification for its negligent,
reckless, or intentional misconduct from the attaching party.
(i) That the utility does not require or maintain any secret
or confidential agreements or arrangements regarding pole
attachments, nor maintain any pole attachment agreements or
arrangements that are not in conformance with this section.
(j) That the utility does not charge any further fees or
charges, other than pole rental fees, to an attaching party after
its attachments have been made for subsequent construction, pole
changes, or modifications unless the attaching party was given
specific notice of the additional charges before placing its
attachments, a new party seeks to attach to the pole, or the
subsequent charges are reasonably allocated among all users of the
pole, including the utility itself, based upon the proportional use
of the pole, and the attaching party has been given a reasonable
opportunity to leave the pole rather than pay the subsequent
charges.
(4) The commission shall require a hearing when approving or
changing the rates, terms, and conditions of attaching to utility
poles and facilities. Upon its own motion or a petition or
complaint of an interested party, the commission shall require a
hearing to review any attachment rate, term, or condition, or any
provision in a contract related to pole attachments, or any
practice or conduct of a utility pole owner. The utility shall have
the burden or proving any existing or proposed contract provision,
rate, term, or condition of attachment is just, reasonable, and in
the public interest.
(5) The commission shall ensure that all attachment rates,
fees, make ready costs, terms, conditions, practices, and
procedures are just and reasonable and in the public interest.
(6) A rate, fee, cost, or charge to a school, educational
institution, or other attaching party is not just and reasonable if
it is more than the direct actual cost related to the attaching
party's attachment to the utility's pole or facility.
(7) (3)
An attaching party shall obtain any necessary
authorization before occupying public ways or private rights of way
with its attachment.
(8) (4)
Procedures under this section shall be those
applicable to any utility whose rates charged its customers are
regulated by the commission, including the right to appeal a final
decision of the commission to the courts.
(9) A utility that imposes or attempts to impose a rate, term,
or condition inconsistent with this section, or inconsistent with a
commission order issued under this section, or which by action,
failure to act, or delay, violates this section, or an order of the
commission issued under this section, shall be subject to all
remedies, fines, and penalties set forth in section 10c. In
addition, the commission shall strictly enforce this section to
ensure that schools and educational institutions are made
completely whole for all costs if they incur any costs to enforce
this section.
(10) Within 12 months of the effective date of the amendatory
act that added this subsection, utility pole owners shall review
their pole attachment arrangements and conform all arrangements to
comply with this section.