Michigan Compiled Laws Act 3 Of 1939 Michigan Public Service Commission (460.1 - 460.11)

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.

History: 1939, Act 3, Imd. Eff. Feb. 15, 1939 ;-- Am. 1978, Act 211, Imd. Eff. June 5, 1978 ;-- Am. 1980, Act 139, Imd. Eff. May 29, 1980 ;-- Am. 1982, Act 304, Imd. Eff. Oct. 13, 1982 ;-- Am. 1982, Initiated Law, Eff. Dec. 2, 1982 ;-- Am. 1982, Act 212, Eff. Nov. 22, 1982 ;-- Am. 1989, Act 2, Imd. Eff. Apr. 3, 1989 ;-- Am. 2000, Act 141, Imd. Eff. June 5, 2000 ;-- Am. 2005, Act 190, Imd. Eff. Nov. 7, 2005

Section 460.1 Public Service Commission; Creation; Members, Appointment, Qualifications, Terms, Vacancies.
A commission to be known and designated as the “Michigan public service commission” is hereby created, which shall consist of 3 members, not more...
Section 460.2 Public Service Commission; Oath, Chairman, Removal, Quorum, Seal, Offices.
Members of said commission shall qualify by taking and subscribing to the constitutional oath of office, and shall hold office until the appointment and...
Section 460.3 Public Service Commission; Salary And Expenses Of Members; Appointment Of Secretary, Deputies, Clerks, Assistants, Inspectors, Heads Of Divisions, And Employees; Payment Of Salaries And Expenses; Employment And Compensation Of Engineers And Experts; Actual And Necessary Expenses; Duties.
The salary of the chairman of the commission and of each of the other members and the schedule for reimbursement of expenses shall be...
Section 460.4 Michigan Public Service Commission; Rights, Privileges, And Jurisdiction; Meaning Of Certain References; Review Of Order Or Decree.
The Michigan public service commission shall have and exercise all rights, privileges, and the jurisdiction in all respects as has been conferred by law...
Section 460.4a Effect Of Executive Reorganization Orders; Funding; Commission As Autonomous Entity; Appointment Of Chairperson; Transfers Of Authority.
(1) Except as otherwise provided under this act, the commission is subject to Executive Reorganization Order No. 2003-1, MCL 445.2011. (2) Funding for the...
Section 460.5 Public Service Commission; Books, Records, Files.
All books, records, files, papers, documents, and other property belonging to the Michigan public utilities commission shall be forthwith turned over to the Michigan...
Section 460.5a Annual Report.
The Michigan public service commission shall make an annual report, summarizing the activities of the commission, to the governor and the legislature on or...
Section 460.6 Public Service Commission; Power And Jurisdiction; "Private, Investor-owned Wastewater Utilities" Defined.
(1) The public service commission is vested with complete power and jurisdiction to regulate all public utilities in the state except a municipally owned...
Section 460.6a Gas Or Electric Utility; Completed Petition Or Application To Increase Rates And Charges Or To Amend Rate Or Rate Schedules; Notice And Hearing; Issuance Of Temporary Order; Refund; Interest; Automatic Fuel Or Purchased Gas Adjustment Clause; Rules And Procedures; Adjustment Clauses Operating Without Notice And Hearing Abolished; Separate Hearing To Determine Cost Of Fuel, Purchased Gas, Or Purchased Power; Recovery Of Cost; Definitions; Final Decision; Filing Time Extension; Approval Of Transportation Rate Schedules Or Transportation Contracts; Forms And Instructions; Recovery Of Amount By Merchant Plant; Limitation; Adjustment; "United States Consumer Price Index" Defined; Orders To Permit Recovery Under Subsections (7) And (8).
(1) A gas or electric utility shall not increase its rates and charges or alter, change, or amend any rate or rate schedules, the...
Section 460.6b Gas Utility Rates Based Upon Cost Of Purchased Natural Gas; Authority Of Commission; Acceptance Of Employment With Utility By Member Of Legislature.
If the rates of any gas utility shall be based, among other considerations, upon the cost of natural gas purchased by said gas utility...
Section 460.6c Energy Conservation Programs, Including Energy Conservation Loan Programs, For Residential Customers Of Electric And Gas Utilities; Approval; Costs; Conservation Devices, Services, And Materials; Cost Benefit Information; Cost Of Personally Installing Insulation; Rules; Public Utility As Licensed Contractor; Accepting Application For Loan Or Making Loan After Certain Date Prohibited.
(1) The Michigan public service commission may approve energy conservation programs, including energy conservation loan programs, for residential customers of electric and gas utilities....
Section 460.6d Owner Of Renewable Resource Power Production Facility; Exemption From Regulation And Control Of Public Service Commission; Definition.
(1) Notwithstanding any other provision of this act, the owner of a renewable resource power production facility shall not be subject to the regulation...
Section 460.6e Impact Of Mcl 460.6d; Review And Evaluation; Public Hearing; Notice; Report.
(1) By March 25, 1983, the standing committees of the legislature responsible for energy issues shall undertake a review and evaluation of the impact...
Section 460.6f Repealed. 1984, Act 49, Imd. Eff. Apr. 12, 1984.
Compiler's Notes: The repealed section pertained to electric utility rates.
Section 460.6g Definitions; Regulation Of Rates, Terms, And Conditions Of Attachments By Attaching Parties; Hearing; Authorization; Applicable Procedures.
(1) As used in this section: (a) “Attaching party” means any person, firm, corporation, partnership, or cooperatively organized association, other than a utility or...
Section 460.6h Incorporation Of Gas Cost Recovery Clause In Rate Or Rate Schedule Of Gas Utility; Definitions; Order And Hearing; Filing Gas Cost Recovery Plan And 5-year Forecast; Gas Supply And Cost Review; Final Or Temporary Order; Incorporating Gas Cost Recovery Factors In Rates; Filing Revised Gas Cost Recovery Plan; Reopening Gas Supply And Cost Review; Monthly Statement Of Revenues; Gas Cost Reconciliation; Commission Order; Refunds, Credits, Or Additional Charges To Include Interest; Apportionment; Exemption; Setting Gas Cost Recovery Factors In General Rate Case Order.
(1) As used in this act: (a) “Commission” or “public service commission” means the Michigan public service commission created in section 1. (b) “Gas...
Section 460.6i Initial Gas Cost Recovery Plan; Filing; Alteration Of Rate Schedule In Accordance With Existing Purchased Gas Adjustment Clause; Charges In Excess Of Base Rates; Revenues Subject To Existing Reconciliation Proceedings; Purchased Gas Revenues Subject To Annual Reconciliation; Procedures; Adjustment Of Rates Pending Approval Or Disapproval Of Gas Cost Recovery Clause In Final Commission Order.
(1) This section shall govern the initial filing and implementation of a gas cost recovery plan under section 6h(3). (2) The initial gas cost...
Section 460.6j Incorporation Of Power Supply Cost Recovery Clause In Electric Rates Or Rate Schedule Of Utility; Definitions; Order And Hearing; Filing Power Supply Cost Recovery Plan And 5-year Forecast; Power Supply And Cost Review; Final Or Temporary Order; Incorporating Power Supply Cost Recovery Factors In Rates; Filing Revised Power Supply Cost Recovery Plan; Reopening Power Supply And Cost Review; Monthly Statement Of Revenues; Power Supply Cost Reconciliation; Commission Order; Refunds Or Credits Or Additional Charges To Customers; Apportionment; Interest; Exemption; Setting Power Supply Cost Recovery Factors In General Rate Case Order.
(1) As used in this act: (a) “Power supply cost recovery clause” means a clause in the electric rates or rate schedule of a...
Section 460.6k Initial Power Supply Cost Recovery Plan; Filing; Alteration Of Rate Schedule In Accordance With Adjustment Clause; Charges In Excess Of Base Rate; Revenues Subject To Existing Reconciliation Proceedings; Revenues Resulting From Certain Adjustment Clauses Subject To Existing Reconciliation Proceedings; Revenues Subject To Annual Reconciliation; Procedures; Lag Correction Provision; Adjustment Of Rates Pending Approval Or Disapproval Of Power Supply Cost Recovery Clause.
(1) This section shall govern the initial filing and implementation of a power supply cost recovery plan under section 6j(3). (2) The initial power...
Section 460.6l Insuring Equitable Representation Of Interests Of Energy Utility Customers; Definitions; Utility Consumer Participation Board; Creation; Powers And Duties; Number And Appointment Of Members; “utility” Defined; Member Requirements; Terms; Vacancy; Removal Of Member; Meetings; Quorum; Election Of Chairperson And Vice-chairperson; Conducting Business Of Board At Public Meeting; Public Notice; Availability Of Writings To Public; Expense Reimbursement And Remuneration; Limits; Temporary Administrator Of Fund.
(1) For purposes of implementing sections 6h, 6i, 6j, and 6k, this section and section 6m shall provide means of insuring equitable representation of...
Section 460.6m Utility Consumer Representation Fund; Creation As Special Fund; Investment And Release Of Money; Remittance By Energy Utility; Factor; Action For Recovery Of Disputed Amount; Action On Application For Energy Cost Recovery Proceedings; Conditions; Acceptance Of Gift Or Grant; Payment Of Operating Costs And Expenses; Net Grant Proceeds To Finance Grant Program; Application Form; Consideration; Encouraging Representation Of Different Consumer Interests; Criteria; Joint Filing; Disbursements; Notice Of Availability Of Fund; Use Of Annual Receipts And Interest; Retention Of Certain Amounts; Conditions Applicable To Grants; Reports; Reviewing Relationship Between Costs And Benefits.
(1) The utility consumer representation fund is created as a special fund. The state treasurer shall be the custodian of the fund and shall...
Section 460.6n Restructuring Of Residential Electric Rates; Hearings; Revenue Impact; Purpose And Basis Of Restructured Rates; Penalizing Residential Customers Prohibited; Informing Public Of Conservation Advantages; Contents Of Customer's Bill; Costs; Applicability Of Section.
(1) Not later than 4 months after the effective date of this section, the commission shall commence hearings to restructure residential electric rates established...
Section 460.6o Definitions; Power Purchase Agreements For Purchase Of Capacity And Energy From Resource Recovery Facilities; Rates, Charges, Terms, And Conditions Of Service; Scrap Tire; Applicability Of Section; Dispute Provisions; Filing Agreement; Commencement Of Contested Case Proceeding; Approval Of Agreement; Energy Rate Component; Capacity Rate Component; Determination Of Reserve Margin, Reserve Capacity, Or Other Resource Capability Measurement; Annual Accounting.
(1) As used in this section: (a) “Resource recovery facility” means a facility that meets all of the following requirements: (i) Has machinery, equipment,...
Section 460.6p Rates Subject To Electric Transmission Line Certification Act.
The rates of an electric utility are subject to the electric transmission line certification act. History: Add. 1995, Act 32, Imd. Eff. May 17,
Section 460.6q Acquisition, Control, Or Merger With Jurisdictional Regulated Utility; Approval Of Commission; Notice And Hearing; Issuance Of Order; Rules; Filing Comments; Access To Data And Information; Evaluation Factors; Terms And Conditions; Confidential Information; Definitions.
(1) A person shall not acquire, control, or merge, directly or indirectly, in whole or in part, with a jurisdictional regulated utility nor shall...
Section 460.6r Definitions; Steam Supply Cost Recovery Clause; Filing Steam Supply Cost Recovery Plan And 3-year Forecast; Requirements; Steam Supply And Cost Review; Temporary Or Final Order; Filing Detailed Statement; Commencement Of Steam Supply Cost Reconciliation; Order Of Refunds Or Credits; Rate Of Interest; Filing Report With Governor And Legislature.
(1) As used in this section: (a) "Booked cost of steam" includes all of the following: (i) Retail gas purchases consisting of all costs...
Section 460.6s Electric Generation Facility; Application; Review Criteria And Approval Standards; Order Granting Or Denying Certificate Of Necessity; Hearing; Reports; Inclusion Of Costs In Utility's Retail Rates; Filing Forms And Instructions; Integrated Resource Plan; Financing Interest Cost Recovery In Utility's Base Rates.
(1) An electric utility that proposes to construct an electric generation facility, make a significant investment in an existing electric generation facility, purchase an...
Section 460.7 Railroad Labor Unions; Representatives; Right To Participate In Hearings.
Any elected or designated representatives of a recognized labor organization in the railroad industry which has a fiduciary relationship with its members and the...
Section 460.8 Voluntary Associations; Hearings; Persons Entitled To Appear; Industrial Representative.
Any elected or designated representative of a voluntary association in the industry whose members have an economic interest in any matters covered by Act...
Section 460.9 Definitions; Customer Switched To Alternative Gas Supplier Or Natural Gas Utility; Prohibitions; Standards; Rules; Violation; Remedies And Penalties.
(1) As used in this section: (a) “Alternative gas supplier” or “supplier” means a person who sells natural gas at unregulated retail rates to...
Section 460.9b Alternative Gas Suppliers; Licensing Procedure; Maintenance Of Office; Capabilities; Records; Tax Remittance.
(1) The commission shall issue orders establishing a licensing procedure for all alternative gas suppliers participating in any natural gas customer choice program approved...
Section 460.9c Customer On Active Duty In Military; Shut-off Protection.
(1) Except as otherwise provided by this section, a provider of electric or gas service shall not discontinue the service to the residence of...
Section 460.9d Unauthorized Use Of Electric Or Natural Gas Service Causing Unsafe Connection; Action To Be Taken By Utility; Reestablishment Of Service; Abandonment Or Surrender Of Property; Scope Of Section; Definitions.
(1) If a utility observes an unsafe electric or natural gas service connection at a customer's location caused by unauthorized use of electric or...
Section 460.9m Service Shutoff Resulting In Death Or Serious Injury; Notice To Commission; Investigation; Civil Action; "Provider" Defined.
(1) A provider shall notify the commission of any shutoff of service that results in death or serious injury. A provider shall supply to...
Section 460.9o Identification Of Senior Citizen Customers; Methods; Compliance Within Certain Time Period; Extension; Definitions.
(1) A provider shall, in the ordinary course of business, make efforts to identify senior citizen customers by at least 1 of the following...
Section 460.9p Failure Of Utility To Meet Requirements Of Act; Commencement Of Civil Action; Notice; Compliance Agreement; Final Order; Costs Of Litigation; Fines; Construction And Limitation Of Act.
(1) The attorney general, on his or her own motion or upon a referral from the commission in a case of serious injury or...
Section 460.9q Shut Off Or Termination Of Service; Conditions; Reasons; Notice Requirements; Prohibitions; Attempts To Contact Customer; Documentation; Restoration Of Service; Vulnerable Household Warmth Fund; Creation; Use Of Funds; Payments; Distribution; Priority; Definitions.
(1) A provider may shut off service temporarily for reasons of health or safety or in a state or national emergency. When a provider...
Section 460.9r Shut Off Of Service By Municipally Owned Electric Utility; Prohibitions; Requirements; Definitions.
(1) A municipally owned electric utility shall not shut off service to an eligible customer during the heating season for nonpayment of a delinquent...
Section 460.9s Postponement Of Service Shutoff; Conditions; Definitions.
(1) A provider shall postpone a shutoff of service for not more than 21 days if the customer or a member of the customer's...
Section 460.9t Low-income Energy Assistance Fund.
(1) The low-income energy assistance fund is created within the state treasury. (2) The state treasurer may receive money or other assets from any...
Section 460.10 Mcl 460.10 To 460.10bb; Title Of Sections; Purpose.
(1) Sections 10 through 10bb shall be known and may be cited as the "customer choice and electricity reliability act". (2) The purpose of...
Section 460.10a Alternative Electric Suppliers; Orders Establishing Rates, Terms, And Conditions Of Service; Licensing Procedure; Switching Or Billing For Services Without Consent; Code Of Conduct; Appliance Service Program; Self-service Power; Affiliate Wheeling; Rights Of Parties To Existing Contracts And Agreements; Receipt Of Standard Tariff Service; Recovery Of Costs By Electric Utility Offering Retail Open Access Service; Definitions.
(1) The commission shall issue orders establishing the rates, terms, and conditions of service that allow all retail customers of an electric utility or...
Section 460.10b Rates, Terms, And Conditions Of New Technologies; Application To Unbundle Existing Rate Schedules; Providing Reliable And Lower Cost Competitive Rates; Standby Generation Service; Identification Of Retail Market Prices.
(1) The commission shall establish rates, terms, and conditions of electric service that promote and enhance the development of new generation, transmission, and distribution...
Section 460.10c Determination Of Noncompliance; Order Of Remedies And Penalties; Conduct Of Contested Case; Violation As Unintentional And Bona Fide Error; Finding Of Frivolous Complaint.
(1) Except for a violation under section 10a(3) and as otherwise provided under this section, upon a complaint or on the commission's own motion,...
Section 460.10d Electric Utility Serving Less Than 1,000,000 Retail Customers; Utility Issuing Securitization Bonds; Compliance With Federal Rules, Regulations, And Standards; Security Recovery Factor; Protective Orders; Low-income And Energy Efficiency Fund; Refund; Definitions.
(1) If an electric utility serving less than 1,000,000 retail customers in this state as of May 1, 2000 issues securitization bonds as allowed...
Section 460.10e Connection Of Merchant Plants To Transmission And Distribution Systems; Finding Of Prevention Or Delay; Remedies; Merchant Plant; Standards; Exception.
(1) An electric utility shall take all necessary steps to ensure that merchant plants are connected to the transmission and distribution systems within their...
Section 460.10f Generation Capacity In Excess Of Utility's Retail Sales Load; Determination Of Total Generating Capacity; Market Power Mitigation Plan; Application; Approval; Requirements Of Independent Brokering Trustee; Report To Governor And Legislature.
(1) If, After subtracting the average demand for each retail customer under contract that exceeds 15% of the utility's retail load in the relevant...
Section 460.10g Definitions; School Properties.
(1) As used in sections 10 through 10bb: (a) "Alternative electric supplier" means a person selling electric generation service to retail customers in this...
Section 460.10h Definitions.
As used in this act: (a) “Assignee” means an individual, corporation, or other legally recognized entity to which an interest in securitization property is...
Section 460.10i Financing Order; Recovery Of Qualified Costs; Conditions; Amount; Limitation On Period For Recovery Of Securitization Charges; Financing Order As Effective And Irrevocable; Evidence Of Indebtedness; Time Period To Issue Or Reject; Rehearing; Appeal; Retiring And Refunding Securitization Bonds; Retention Of Financial Or Legal Services By Commission.
(1) Upon the application of an electric utility, if the commission finds that the net present value of the revenues to be collected under...
Section 460.10j Securitization Property; Rights And Interests.
(1) Securitization property shall consist of the rights and interests of an electric utility, or its successor, under a financing order, including without limitation...
Section 460.10k Financing Order; Effect In Connection With Bankruptcy.
(1) The interest of an assignee or pledgee in securitization property and in the revenues and collections arising from that property are not subject...
Section 460.10l Agreement To Transfer Securitization Property As True Sale.
(1) An agreement by an electric utility or assignee to transfer securitization property that expressly states that the transfer is a sale or other...
Section 460.10m Lien And Security Interest; Creation; Changes In Order Or Charges Attachment; Perfection; Priority; Sequestration And Payment Of Revenues.
(1) A valid and enforceable lien and security interest in securitization property may be created only by a financing order and the execution and...
Section 460.10n Securitization Bonds; State Pledge Of Certain Conduct.
(1) Securitization bonds are not a debt or obligation of the state and are not a charge on its full faith and credit or...
Section 460.10o Securitization Bond; Direct Interest In Acquisition, Ownership, And Disposition Not Used In Determining Tax; Obligations Of Electric Utility Successor; Assignee Or Financing Party As Public Utility.
(1) The acquisition, ownership, and disposition of any direct interest in any securitization bond shall not be taken into account in determining whether a...
Section 460.10p Establishment Of Industry Worker Transition Program; Adoption Of Service Quality And Reliability Standards; Compliance Reports; Rules; Benchmarks; Method For Gathering Data; Incentives And Penalties; "Jurisdictional Utility" Or "Jurisdictional Entity" Defined.
(1) Each electric utility operating in this state shall establish an industry worker transition program that shall, in consultation with employees or applicable collective...
Section 460.10q Alternative Electric Supplier; License Requirements.
(1) A person shall not engage in the business of an alternative electric supplier in this state unless the person obtains and maintains a...
Section 460.10r Dissemination Of Disclosures, Explanations, Or Sales Information; Establishment Of Michigan Renewables Energy Program; Study, Report, And Plan.
(1) The commission shall establish minimum standards for the form and content of all disclosures, explanations, or sales information disseminated by a person selling...
Section 460.10s Low-income And Energy Assistance Programs; Availability Of Federal Funds.
The commission shall monitor the extent to which federal funds are available for low-income and energy assistance programs. If there is a reduction in...
Section 460.10t Shut Off Of Service; Conditions; Procedures; Definitions.
(1) An electric utility or alternative electric supplier shall not shut off service to an eligible customer during the heating season for nonpayment of...
Section 460.10u Report.
The commission shall compile a report by February 1 of each year that shall be posted on the commission's internet website and disseminated by...
Section 460.10v Joint Plan To Expand Available Transmission Capability.
(1) Electric utilities serving more than 100,000 retail customers in this state shall file, by January 1, 2001, a joint plan with the commission...
Section 460.10w Investor-owned Electric Utility; Ferc Approval.
(1) Each investor-owned electric utility in this state shall, at the utility's option, either join a FERC approved multistate regional transmission system organization or...
Section 460.10x Cooperative Electric Utility; Requirements.
(1) Any retail customer of a cooperative with a peak load of 1 megawatt or greater shall be provided the opportunity to choose an...
Section 460.10y Municipally Owned Utility; Requirements.
(1) The governing body of a municipally owned utility shall determine whether it will permit retail customers receiving delivery service from the municipally owned...
Section 460.10z Provisions Of Act As Severable.
Effective on the date the first securitization bonds are issued under this act, if any provision of this act or portion of this act...
Section 460.10aa Impairment Of Contractual Rights Under Existing Contract.
Nothing in this act impairs the contractual rights of electric utilities or customers under an existing contract that has been approved by the commission...
Section 460.10bb Aggregation; Use; Definition.
(1) Aggregation may be used for the purchasing of electricity and related services from an alternative electric supplier. (2) Local units of government, public...
Section 460.10cc Provisions As Severable; Certain Rate Reductions As Void.
(1) Except as otherwise provided under subsection (2), if any provision of this act is found to be invalid or unconstitutional, the remaining provisions...
Section 460.10dd Appropriation; Hiring Full-time Positions To Implement Act.
For the fiscal year ending September 30, 2009, there is appropriated to the commission from the assessments imposed under 1972 PA 299, MCL 460.111...
Section 460.11 Phase In Of Electric Rates; Impact On Residential And Industrial Metal Melting Rates; Commencement Of Proceeding; Examination Of Cost Allocation And Rate Design Methods; Scope; Proposal; Final Order; Other Rate Applications; Interim Report; Forwarding Proposal For Decision To Legislature; Establishment Of Eligible Low-income Customer Or Senior Citizen Customer Rates; Public And Private Schools, Universities, And Community Colleges; Electric Utility Serving Fewer Than 120,000 Retail Customers; Approval Of Rates; Retention Of Independent Consultant; Analysis Of Affordable Rates.
(1) Except as otherwise provided in this subsection, the commission shall phase in electric rates equal to the cost of providing service to each...

Last modified: October 10, 2016