HB-5807, As Passed Senate, June 23, 2004                                    

SENATE SUBSTITUTE FOR

HOUSE BILL NO. 5807

                                                                             A bill to amend 1923 PA 238, entitled                                             

"An act authorizing the formation of corporations for the purpose           

of generating, manufacturing, producing, gathering, storing,                

transmitting, distributing, transforming, selling and supplying             

electric energy or gas, either artificial or natural, or both               

electric energy and gas, to the public generally, or to public              

utilities or natural gas companies, and providing for and giving            

to such corporations and also to corporations heretofore lawfully           

organized, among other things, for such purposes; to corporations           

heretofore lawfully organized, or that may hereafter be lawfully            

organized and duly authorized to carry on the electric or gas               

business as a public utility in the state of Michigan; and to               

foreign corporations heretofore lawfully organized or that may              

hereafter be lawfully organized, among other things, for such               

purposes, and duly authorized to carry on business in the state             

of Michigan, the right to condemn private property for the uses             

provided for herein,"                                                       

by amending section 3 (MCL 486.253) and by adding section 5.                

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1       Sec. 3.  (1)  Such A corporation formed under this act

2   shall  furnish and   sell to the public  generally such the

3   electric energy  as it shall generate or transmit and such gas as           

4   it shall manufacture, produce, store or transmit, in the carrying           

1   on of its business it generates or transmits and the gas it                

2   manufactures, produces, stores, or transmits, upon such                     

3   reasonable terms, rates, and conditions as  shall be  determined            

4   from time to time  by the Michigan public service commission.  ,           

5   and said commission may for that purpose, The Michigan public              

6   service commission may examine all books and records of  such

7   the corporation and audit the  same, and any corporation.  Any

8   order of  said the commission may be reviewed, set aside,                  

9   modified, or affirmed in the manner provided by law.  for the               

10  review of orders of said commission pertaining to steam railroad            

11  companies.  In any case where either Act No.  9 or Act No.  69 of           

12  the Public Acts of 1929, as amended,

13  (2) If 1929 PA 9, MCL 483.101 to 483.120, 1929 PA 69, MCL                   

14  460.501 to 460.506, or the electric transmission line                       

15  certification act, 1995 PA 30, MCL 460.561 to 460.575, requires a           

16  certificate of necessity to be obtained from the Michigan public            

17  service commission, then  in such instance any such the

18  corporation shall, before commencing any condemnation                       

19  proceedings, first make application to, and obtain from  said

20  the commission  such certificate as is now or may hereafter, by             

21  amendment, be required by the provisions of said acts, and shall,           

22  in all other respects, comply with the requirements of said acts

23  a certificate as required under those acts.                                 

24  Sec. 5.  (1) Subject to the electric transmission line                      

25  certification act, 1995 PA 30, MCL 460.561 to 460.575, and the              

26  uniform condemnation procedures act, 1980 PA 87, MCL 213.51 to              

27  213.75, an independent transmission company or an affiliated                

1   transmission company shall have the power to condemn property               

2   that is necessary to transmit electric energy for public use                

3   except for both of the following:                                           

4       (a) An independent transmission company or affiliated                       

5   transmission company shall not circumvent a private agreement               

6   that existed on the effective date of the amendatory act that               

7   added this subsection under which the independent transmission              

8   company or affiliated transmission company leases rights-of-way             

9   for its electric transmission facilities from the utility.                  

10      (b) An independent transmission company or affiliated                       

11  transmission company shall not condemn property owned by an                 

12  electric or gas utility or municipally owned utility in a manner            

13  which unreasonably disrupts the ability of the electric or gas              

14  utility or municipally owned utility to continue to provide                 

15  service to its customers.  If a dispute exists under this                   

16  subdivision, the condemnation shall not proceed until the                   

17  Michigan public service commission determines that no                       

18  unreasonable disruption is involved.  The commission shall make             

19  its determination under this subdivision pursuant to a contested            

20  case under the administrative procedures act of 1969, 1969 PA               

21  306, MCL 24.201 to 24.328, within 180 days of the date an                   

22  application or petition requesting a determination is filed with            

23  the commission.  If the principal parties of record agree that              

24  the complexity of dispute involved requires additional time, the            

25  commission may have up to 210 days from the date the application            

26  or petition was filed.                                                      

27  (2) Except as otherwise provided under this section, in                     

1   condemning property under subsection (1), an independent                    

2   transmission company or affiliated transmission company is                  

3   subject to the same procedures and requirements under this act as           

4   a corporation formed under this act.                                        

5       (3) Section 3(1) and any procedure or requirement under this                

6   act that is inconsistent with the electric transmission line                

7   certification act, 1995 PA 30, MCL 460.561 to 460.575, or the               

8   uniform condemnation procedures act, 1980 PA 87, MCL 213.51 to              

9   213.75, do not apply to an independent transmission company or              

10  affiliated transmission company.                                            

11      (4) As used in this act:                                                    

12      (a) "Affiliated transmission company" means a person,                       

13  partnership, corporation, association, or other legal entity, or            

14  its successors or assigns, which has fully satisfied the                    

15  requirements to join a regional transmission organization as                

16  determined by the federal energy regulatory commission, is                  

17  engaged in this state in the transmission of electricity using              

18  facilities it owns that were transferred to the entity by an                

19  electric utility that was engaged in the generation,                        

20  transmission, and distribution of electricity in this state on              

21  December 31, 2000, and is not independent of an electric utility            

22  or an affiliate of the utility, generating or distributing                  

23  electricity to retail customers in this state.                              

24      (b) "Independent transmission company" means a person,                      

25  partnership, corporation, association, or other legal entity, or            

26  its successors or assigns, engaged in this state in the                     

27  transmission of electricity using facilities it owns that have              

1   been divested to the entity by an electric utility that was                 

2   engaged in the generation, transmission, and distribution of                

3   electricity in this state on December 31, 2000, and is                      

4   independent of an electric utility or an affiliate of the                   

5   utility, generating or distributing electricity to retail                   

6   customers in this state.

7       Enacting section 1.  This amendatory act does not take                      

8   effect unless House Bill No. 5808 of the 92nd Legislature is                

9   enacted into law.