REGULATED UTILITIES & AESs:  COMPLY WITH PSC RULES AND TELL CUSTOMERS ABOUT PROTECTIONS

House Bill 4384 (Substitute H-1)

Sponsor:  Rep.  Dan Scripps

House Bill 4662 (Substitute H-1) 

Sponsor:  Rep. Tim Melton

Committee:  Energy and Technology

Complete to 3-31-09

A SUMMARY OF HOUSE BILLS 4384 & 4662 AS REPORTED FROM COMMITTEE 3-26-09

The bills would amend the Public Service Commission Law to require a provider (defined in these bills as an electric utility, cooperative electric utility, alternative electric supplier, or an investor-owned, rate-regulated natural gas utility) to do the following things: 

House Bill 4662 would require a provider to comply with shut-off protections for senior citizens and low-income customers found in Public Service Commissions rules. (MCL 460.9d)

House Bill 4384 would require a provider to supply information about the following to customers at least twice a year: 

·              Federal and state energy assistance programs and their eligibility requirements.

·              Medical emergency protections.

·              Military shut-off protections.

·              Low-income protections.

·              Senior citizen protections. 

Allowable methods.  In general, a provider could transmit this information in the same manner as the customer's billing, and would be specifically authorized to use any of the following methods:  (1) customer bills, (2) bill inserts, (3) customer newsletters, (4) public forums, (5) newspaper announcements, or (5) electronic communications.  Cooperative electric utilities could also use a rural electric cooperative periodical.  The PSC could add additional methods.   (MCL 460.9j)

FISCAL IMPACT:

A fiscal analysis is in process.

POSITIONS:

The Public Service Commission testified in support of the entire shutoff protection package of bills.  (3-24-09)

The Attorney General indicated support of the entire package.  (3-26-09)

The Department of Human Services indicated support of the entire package.  (3-26-09)

ACORN (Michigan) indicated support of the entire package.  (3-24-09)

The Center for Civil Justice indicated support of the entire package.  (3-24-09)

Clean Water Action testified in support of the entire package, and submitted a letter of support dated 3-24-09, but would also like to see shutoff protections during hot summer weather and a ban on foreclosures due to non-payment of utility bills.   (3-24-09)

Consumers Energy indicated support of the entire package.  (3-24-09)

DTE Energy indicated support of the entire package.  (3-26-09)

Elder Law of Michigan indicated support of the entire package.  (3-24-09)

Indiana Michigan Power indicated support of the entire package.  (3-26-09)

Michigan Advocacy project indicated support of the entire package.  (3-24-09)

The Michigan Catholic Conference indicated support of the entire package.  (3-24-09)

The Michigan Electric Cooperative Association indicated support of the entire package.  (3-24-09)

The Michigan Electric and Gas Association indicated support of the entire package.  (3-26-09)

Michigan Citizen Action indicated support of the entire package.  (3-24-09)

The Michigan Municipal Electric Association testified in support of the entire package.  (3-26-09) 

SEMCO Energy indicated support of the entire package.  (3-26-09)

The AARP opposes House Bill 4390 and House Bill 4392 but is supportive of the rest of the package, including this bill.   (3-24-09)

                                                                                    Legislative Analyst:       Shannan Kane

                                                                                                  Fiscal Analyst:            Mark Wolf

■ This analysis was prepared by nonpartisan House staff for use by House members in their deliberations, and does not constitute an official statement of legislative intent.