SENATE BILL No. 976

 

 

February 12, 2004, Introduced by Senators CLARK-COLEMAN, BASHAM, SWITALSKI, THOMAS, PRUSI, LELAND, BRATER, CLARKE, SCOTT, OLSHOVE, CHERRY and EMERSON and referred to the Committee on Technology and Energy.

 

 

        

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                

                                                                                 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 10t (MCL 460.10t), as added by 2000 PA 141.             

                                                                                

                THE PEOPLE OF THE STATE OF MICHIGAN ENACT:                      

                                                                                

1       Sec. 10t.  (1) An electric utility or alternative electric                  

                                                                                


                                                                                

1   supplier shall not shut off service to an eligible customer                 

                                                                                

2   during the heating season for nonpayment of a delinquent account            

                                                                                

3   if the customer is an eligible senior citizen customer or if the            

                                                                                

4   customer pays to the utility or supplier a monthly amount equal             

                                                                                

5   to 7% of the estimated annual bill for the eligible customer and            

                                                                                

6   the eligible customer demonstrates, within 14 days of requesting            

                                                                                

7   shutoff protection, that he or she has applied for state or                 

                                                                                

8   federal heating assistance.  If an arrearage exists at the time             

                                                                                

9   an eligible customer applies for protection from shutoff of                 

                                                                                

10  service during the heating season, the utility or supplier shall            

                                                                                

11  permit the customer to pay the arrearage in equal monthly                   

                                                                                

12  installments between the date of application and the start of the           

                                                                                

13  subsequent heating season.                                                  

                                                                                

14      (2) An electric utility or alternative electric supplier may                

                                                                                

15  shut off service to an eligible low-income customer who does not            

                                                                                

16  pay the monthly amounts required under subsection (1) after                 

                                                                                

17  giving notice in the manner required by rules.  The utility or              

                                                                                

18  supplier is not required to offer a settlement agreement to an              

                                                                                

19  eligible low-income customer who fails to make the monthly                  

                                                                                

20  payments required under subsection (1).                                     

                                                                                

21      (3) If a customer fails to comply with the terms and                        

                                                                                

22  conditions of this section, an electric utility may shut off                

                                                                                

23  service on its own behalf or on behalf of an alternative electric           

                                                                                

24  supplier after giving the customer a notice, by personal service            

                                                                                

25  or first-class mail, that contains all of the following                     

                                                                                

26  information:                                                                

                                                                                

27      (a) That the customer has defaulted on the winter protection                


                                                                                

1   plan.                                                                       

                                                                                

2       (b) The nature of the default.                                              

                                                                                

3       (c) That unless the customer makes the payments that are past               

                                                                                

4   due within 10 days of the date of mailing, the utility or                   

                                                                                

5   supplier may shut off service.                                              

                                                                                

6       (d) The date on or after which the utility or supplier may                  

                                                                                

7   shut off service, unless the customer takes appropriate action.             

                                                                                

8       (e) That the customer has the right to file a complaint                     

                                                                                

9   disputing the claim of the utility or supplier before the date of           

                                                                                

10  the proposed shutoff of service.                                            

                                                                                

11      (f) That the customer has the right to request a hearing                    

                                                                                

12  before a hearing officer if the complaint cannot be otherwise               

                                                                                

13  resolved and that the customer shall pay to the utility or                  

                                                                                

14  supplier that portion of the bill that is not in dispute within 3           

                                                                                

15  days of the date that the customer requests a hearing.                      

                                                                                

16      (g) That the customer has the right to represent himself or                 

                                                                                

17  herself, to be represented by an attorney, or to be assisted by             

                                                                                

18  any other person of his or her choice in the complaint process.             

                                                                                

19      (h) That the utility or supplier will not shut off service                  

                                                                                

20  pending the resolution of a complaint that is filed with the                

                                                                                

21  utility in accordance with this section.                                    

                                                                                

22      (i) The telephone number and address of the utility or                      

                                                                                

23  supplier where the customer may make inquiry, enter into a                  

                                                                                

24  settlement agreement, or file a complaint.                                  

                                                                                

25      (j) That the customer should contact a social services agency               

                                                                                

26  immediately if the customer believes he or she might be eligible            

                                                                                

27  for emergency economic assistance.                                          


                                                                                

1       (k) That the utility or supplier will postpone shutoff of                   

                                                                                

2   service if a medical emergency exists at the customer's                     

                                                                                

3   residence.                                                                  

                                                                                

4                                                                                (l) That the utility or supplier may require a deposit and                          

                                                                                

5   restoration charge if the supplier shuts off service for                    

                                                                                

6   nonpayment of a delinquent account.                                         

                                                                                

7       (4) An electric utility is not required to shut off service                 

                                                                                

8   under this section to an eligible customer for nonpayment to an             

                                                                                

9   alternative electric supplier.                                              

                                                                                

10      (5) If an electric utility provides a residential electric                  

                                                                                

11  rate discount program for eligible senior citizens, that program            

                                                                                

12  shall not establish variable rates that require a participating             

                                                                                

13  senior citizen to pay a higher rate for service that exceeds a              

                                                                                

14  designated amount of electric service.                                      

                                                                                

15      (6)  (5)  The commission shall establish an educational                     

                                                                                

16  program to ensure that eligible customers are informed of the               

                                                                                

17  requirements and benefits of this section.                                  

                                                                                

18      (7)  (6)  As used in this section:                                          

                                                                                

19      (a) "Eligible customer" means either an eligible low-income                 

                                                                                

20  customer or an eligible senior citizen customer.                            

                                                                                

21      (b) "Eligible low-income customer" means a customer whose                   

                                                                                

22  household income does not exceed 150% of the poverty level, as              

                                                                                

23  published by the United States department of health and human               

                                                                                

24  services, or who receives any of the following:                             

                                                                                

25                                                                               (i) Assistance from a state emergency relief program.                               

                                                                                

26      (ii) Food stamps.                                                            

                                                                                

27      (iii) Medicaid.                                                              


                                                                                

1       (c) "Eligible senior citizen customer" means a utility or                   

                                                                                

2   supplier customer who is 65 years of age or older and who advises           

                                                                                

3   the utility of his or her eligibility.