HOUSE BILL No. 5003


     July 10, 2001, Introduced by Reps. Birkholz, Howell, Vander Veen, Bradstreet, Voorhees, Richardville, Hart and Jansen 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 util-
   ities and other services affected with a public interest within
   this state; to provide for alternative energy suppliers; to pro-
   vide 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 cer-
   tain 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 facili-
   ties; 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 reme-
   dies and penalties; and to repeal acts and parts of acts,"

   by amending section 10q (MCL 460.10q), as added by 2000 PA 141.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:




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           Sec. 10q.  (1) A person shall not engage in the business of

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      an alternative electric supplier in this state unless the person

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      obtains and maintains a license issued under section 10a.

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           (2) In addition to any other information required by the

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      commission in connection with a licensing application, the appli-

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      cant  shall be  IS required to do  both  ALL of the following:

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           (a) Provide information, including information as to the

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      applicant's safety record and its history of service quality and

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      reliability, as to the applicant's technical ability, as defined

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      under regulations of the commission, to safely and reliably gen-

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      erate or otherwise obtain and deliver electricity and provide any

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      other proposed services.

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           (b) Demonstrate that the employees of the applicant that

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      will be installing, operating, and maintaining generation or

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      transmission facilities within this state, or any entity with

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      which the applicant has contracted to perform those functions

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      within this state, have the requisite knowledge, skills, and com-

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      petence to perform those functions in a safe and responsible

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      manner in order to provide safe and reliable service.

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           (C) NOTIFY THE COMMISSION, PRIOR TO SOLICITING ANY CUSTOM-

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      ERS, OF WHICH CITIES, VILLAGES, AND TOWNSHIPS THE ALTERNATIVE

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      ELECTRIC SUPPLIER INTENDS TO PROVIDE SERVICE.  THE COMMISSION

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      SHALL POST THE INFORMATION REQUIRED UNDER THIS SUBDIVISION ON ITS

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      INTERNET WEBSITE.  IF REQUESTED BY A CITY, VILLAGE, OR TOWNSHIP,

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      THE COMMISSION SHALL, ON A SEMIANNUAL BASIS, PROVIDE IN WRITING

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      NOTICE OF ANY ALTERNATIVE ELECTRIC SUPPLIER THAT HAS INDICATED IT





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      INTENDS TO PROVIDE SERVICE TO THE CITY, VILLAGE, OR TOWNSHIP.

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      THIS SUBDIVISION DOES NOT APPLY AFTER JANUARY 1, 2004.

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           (3) The commission shall order the applicant to post a bond

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      or provide a letter of credit or other financial guarantee in a

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      reasonable amount established by the commission of not less than

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      $40,000.00, if the commission finds after an investigation and

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      review that the requirement of a bond would be in the public

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      interest.

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           (4) Only investor-owned, cooperative, or municipal electric

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      utilities shall own, construct, or operate electric distribution

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      facilities or electric meter equipment used in the distribution

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      of electricity in this state.  This subsection does not prohibit

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      a self-service power provider from owning, constructing, or oper-

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      ating electric distribution facilities or electric metering

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      equipment for the sole purpose of providing or utilizing

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      self-service power.  This act does not affect the current rights,

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      if any, of a nonutility to construct or operate a private distri-

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      bution system on private property or private easements.  This

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      does not preclude crossing of public rights-of-way.

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           (5) The commission shall not prohibit an electric utility

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      from metering and billing its customers for services provided by

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      the electric utility.













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