SB-0419, As Passed Senate, October 18, 2005

HOUSE SUBSTITUTE FOR

SENATE BILL NO. 419

     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 the title and section 6 (MCL 460.6), the title as

amended by 2000 PA 141 and section 6 as amended by 1993 PA 355.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

TITLE

     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.

     Sec. 6. (1) The public service commission is vested with

complete power and jurisdiction to regulate all public utilities in

the state except a municipally owned utility, the owner of a

renewable resource power production facility as provided in section

6d, and except as otherwise restricted by law. The public service

commission is vested with the power and jurisdiction to regulate

all rates, fares, fees, charges, services, rules, conditions of

service, and all other matters pertaining to the formation,

operation, or direction of public utilities. The public service

commission is further granted the power and jurisdiction to hear

and pass upon all matters pertaining to, necessary, or incident to

the regulation of public utilities, including electric light and

power companies, whether private, corporate, or cooperative; water,

telegraph, oil, gas, and pipeline companies; motor carriers;

private wastewater treatment facilities; and all public

transportation and communication agencies other than railroads and

railroad companies.

     (2) A private, investor-owned wastewater utility may apply to

the commission for rate regulation. If an application is filed

under this subsection, the commission is vested with the specific

grant of jurisdictional authority to regulate the rates, fares,

fees, and charges of private, investor-owned wastewater utilities.

As used in this subsection, "private, investor-owned wastewater

utilities" means a utility that delivers wastewater treatment

services through a sewage system and the physical assets of which

are wholly owned by an individual or group of individual

shareholders.