August 23, 2006, Introduced by Reps. Proos and Nofs 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 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,"
(MCL 460.1 to 460.10cc) by adding section 6r.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 6r. (1) A person shall not acquire, control, or merge,
directly or indirectly, in whole or in part, with a regulated
utility nor shall a regulated utility sell, assign, transfer, or
encumber its assets to another person without first complying with
the requirements of this section. This section does not apply
unless the acquisition, transfer, control, or merger results in a
party owning, directly or indirectly, 10% or more of the voting
securities of the regulated utility.
(2) After notice and hearing, the commission shall issue an
order stating what constitutes acquisition, transfer, or merger
activities that are subject to this section.
(3) The commission shall promulgate rules creating procedures
for the review process required under subsection (4) and the
materials necessary for a filing under subsection (5).
(4) Not less than 180 days before the effective date of any
action subject to this section, the party proposing the
acquisition, transfer, or merger shall submit to the commission all
materials required under subsection (5). The commission shall have
120 days from the date that the commission receives all of the
materials required under subsection (5) to conduct such
investigations and hearings to determine the impact of the proposed
action. At the end of the 120-day period, the commission shall
issue an advisory opinion and findings on whether the proposed
acquisition, transfer, or merger is in the best interest of the
ratepayers of the regulated utility and what impact the action may
have on energy service in this state.
(5) All parties to an acquisition, transfer of control, or
merger subject to this section shall provide the commission access
to any books, records, accounts, documents, and other data and
information that is necessary to effectively assess under
subsection (6) or (7) the impact of the proposed acquisition,
transfer, or merger. The commission's review shall be limited to
the factors listed under subsections (6) and (7). A party may
withhold any information that the party can substantiate as not
being germane to the commission's review under this section.
(6) The commission shall not issue a favorable conclusion or
finding if it finds 1 or more of the following:
(a) The proposed action would have an adverse impact on the
rates of the customers affected by the acquisition, transfer, or
merger.
(b) The proposed action would have an adverse impact on the
provision of safe, reliable, and adequate energy service.
(c) The action will result in the subsidization of a
nonregulated activity of the new entity through the rates paid by
the customers of the regulated utility.
(7) In addition to the factors listed under subsection (6),
the commission may also consider any of the following:
(a) Whether the action will significantly impair the regulated
utility's ability to raise necessary capital or to maintain a
reasonable capital structure.
(b) The impact the action will have on competition.
(c) Whether the action is otherwise inconsistent with public
policy and interest.
(8) As used in this section:
(a) "Commission" means the Michigan public service commission.
(b) "Person" means an individual, corporation, association,
partnership, utility, or any other legal private or public entity.
(c) "Regulated utility" means a utility subject to the
jurisdiction of the commission. Regulated utility does not include
a telecommunication provider as defined in the Michigan
telecommunications act, 1991 PA 179, MCL 484.2101 to 484.2604, or a
motor carrier as defined in the motor carrier act, 1933 PA 254, MCL
475.1 to 479.43.