April 24, 2007, Introduced by Reps. Moolenaar and Opsommer 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,"
by amending the title and section 6j (MCL 460.6j), the title as
amended by 2005 PA 190 and section 6j as amended by 1987 PA 81, and
by adding section 6q.
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 require the public service commission to assess
future capacity and energy needs; to require certain electric
utilities to secure needed capacity and energy; to require
competitive procurement of capacity and energy; 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. 6j. (1) As used in this act:
(a) "Power supply cost recovery clause" means a clause in the
electric rates or rate schedule of a utility which permits the
monthly adjustment of rates for power supply to allow the utility
to recover the booked costs, including transportation costs,
reclamation costs, and disposal and reprocessing costs, of fuel
burned by the utility for electric generation and the booked costs
of purchased and net interchanged power transactions by the utility
incurred under reasonable and prudent policies and practices.
(b) "Power supply cost recovery factor" means that element of
the rates to be charged for electric service to reflect power
supply costs incurred by an electric utility and made pursuant to a
power supply cost recovery clause incorporated in the rates or rate
schedule of an electric utility.
(c) "Resource supplier" means a person with the capability to
develop and provide electric generating capacity, electric energy,
electric transmission service, or electric load reduction service.
(2) Pursuant to its authority under this act, the public
service commission may incorporate a power supply cost recovery
clause in the electric rates or rate schedule of a utility, but is
not required to do so. Any order incorporating a power supply cost
recovery clause shall be as a result of a hearing solely on the
question of the inclusion of the clause in the rates or rate
schedule, which hearing shall be conducted as a contested case
pursuant to chapter 4 of the administrative procedures act of 1969,
Act
No. 306 of the Public Acts of 1969, being sections 24.271 to
24.287
of the Michigan Compiled Laws 1969
PA 306, MCL 24.271 to
24.287, or, pursuant to subsection (18), as a result of a general
rate case. Any order incorporating a power supply cost recovery
clause shall replace and rescind any previous fuel cost adjustment
clause or purchased and net interchanged power adjustment clause
incorporated in the electric rates of the utility upon the
effective date of the first power supply cost recovery factor
authorized for the utility under its power supply cost recovery
clause.
(3) In order to implement the power supply cost recovery
clause established pursuant to subsection (2), a utility annually
shall file, pursuant to procedures established by the commission,
if any, a complete power supply cost recovery plan describing the
expected sources of electric power supply and changes in the cost
of power supply anticipated over a future 12-month period specified
by the commission and requesting for each of those 12 months a
specific power supply cost recovery factor. The plan shall be filed
not less than 3 months before the beginning of the 12-month period
covered by the plan. The plan shall describe all major contracts
and power supply arrangements entered into by the utility for
providing power supply during the specified 12-month period. The
description of the major contracts and arrangements shall include
the price of fuel, the duration of the contract or arrangement, and
an explanation or description of any other term or provision as
required by the commission. The plan shall also include the
utility's evaluation of the reasonableness and prudence of its
decisions to provide power supply in the manner described in the
plan, in light of its existing sources of electrical generation,
and an explanation of the actions taken by the utility to minimize
the cost of fuel to the utility.
(4) In order to implement the power supply cost recovery
clause established pursuant to subsection (2), a utility shall
file, contemporaneously with the power supply cost recovery plan
required by subsection (3), a 5-year forecast of the power supply
requirements of its customers, its anticipated sources of supply,
and projections of power supply costs, in light of its existing
sources of electrical generation and sources of electrical
generation under construction. The forecast shall include a
description of all relevant major contracts and power supply
arrangements entered into or contemplated by the utility, and such
other information as the commission may require.
(5) If a utility files a power supply cost recovery plan and a
5-year forecast as provided in subsections (3) and (4), the
commission shall conduct a proceeding, to be known as a power
supply and cost review, for the purpose of evaluating the
reasonableness and prudence of the power supply cost recovery plan
filed by a utility pursuant to subsection (3), and establishing the
power supply cost recovery factors to implement a power supply cost
recovery clause incorporated in the electric rates or rate schedule
of the utility. The power supply and cost review shall be conducted
as a contested case pursuant to chapter 4 of the administrative
procedures
act of 1969, Act No. 306 of the Public Acts of 1969 1969
PA 306, MCL 24.271 to 24.287.
(6) In its final order in a power supply and cost review, the
commission shall evaluate the reasonableness and prudence of the
decisions underlying the power supply cost recovery plan filed by
the utility pursuant to subsection (3), and shall approve,
disapprove, or amend the power supply cost recovery plan
accordingly. In evaluating the decisions underlying the power
supply cost recovery plan, the commission shall consider the cost
and availability of the electrical generation available to the
utility; the cost of short-term firm purchases available to the
utility; the availability of interruptible service; the ability of
the utility to reduce or to eliminate any firm sales to out-of-
state customers if the utility is not a multi-state utility whose
firm sales are subject to other regulatory authority; whether the
utility has taken all appropriate actions to minimize the cost of
fuel; and other relevant factors. The commission shall approve,
reject, or amend the 12 monthly power supply cost recovery factors
requested by the utility in its power supply cost recovery plan.
The factors shall not reflect items the commission could reasonably
anticipate would be disallowed under subsection (13). The factors
ordered shall be described in fixed dollar amounts per unit of
electricity, but may include specific amounts contingent on future
events.
(7) In its final order in a power supply and cost review, the
commission shall evaluate the decisions underlying the 5-year
forecast filed by a utility pursuant to subsection (4). The
commission may also indicate any cost items in the 5-year forecast
that, on the basis of present evidence, the commission would be
unlikely to permit the utility to recover from its customers in
rates, rate schedules, or power supply cost recovery factors
established in the future.
(8) The commission, on its own motion or the motion of any
party, may make a finding and enter a temporary order granting
approval or partial approval of a power supply cost recovery plan
in a power supply and cost recovery review, after first having
given notice to the parties to the review, and after having
afforded to the parties to the review a reasonable opportunity for
a full and complete hearing. A temporary order made pursuant to
this subsection shall be considered a final order for purposes of
judicial review.
(9) If the commission has made a final or temporary order in a
power supply and cost review, the utility may each month
incorporate in its rates for the period covered by the order any
amounts up to the power supply cost recovery factors permitted in
that order. If the commission has not made a final or temporary
order within 3 months of the submission of a complete power supply
cost recovery plan, or by the beginning of the period covered in
the plan, whichever comes later, or if a temporary order has
expired without being extended or replaced, then pending an order
which determines the power supply cost recovery factors, a utility
may each month adjust its rates to incorporate all or a part of the
power supply cost recovery factors requested in its plan. Any
amounts collected under the power supply cost recovery factors
before the commission makes its final order shall be subject to
prompt refund with interest to the extent that the total amounts
collected exceed the total amounts determined in the commission's
final order to be reasonable and prudent for the same period of
time.
(10) Not less than 3 months before the beginning of the third
quarter of the 12-month period, the utility may file a revised
power supply cost recovery plan which shall cover the remainder of
the 12-month period. Upon receipt of the revised power supply cost
recovery plan, the commission shall reopen the power supply and
cost review. In addition, the commission may reopen the power
supply and cost review on its own motion or on the showing of good
cause by any party if at least 6 months have elapsed since the
utility submitted its complete filing and if there are at least 60
days remaining in the 12-month period under consideration. A
reopened power supply and cost review shall be conducted as a
contested case pursuant to chapter 4 of the administrative
procedures
act of 1969, Act No. 306 of the Public Acts of 1969 1969
PA 306, MCL 24.271 to 24.287, and in accordance with subsections
(3), (6), (8), and (9).
(11) Not more than 45 days following the last day of each
billing month in which a power supply cost recovery factor has been
applied to customers' bills, the utility shall file with the
commission a detailed statement for that month of the revenues
recorded pursuant to the power supply cost recovery factor and the
allowance for cost of power supply included in the base rates
established in the latest commission order for the utility, and the
cost of power supply. The detailed statement shall be in the manner
and form prescribed by the commission. The commission shall
establish procedures for insuring that the detailed statement is
promptly verified and corrected if necessary.
(12) Not less than once a year, and not later than 3 months
after the end of the 12-month period covered by a utility's power
supply cost recovery plan, the commission shall commence a
proceeding, to be known as a power supply cost reconciliation, as a
contested case pursuant to chapter 4 of the administrative
procedures
act of 1969, Act No. 306 of the Public Acts of 1969 1969
PA 306, MCL 24.271 to 24.287. Reasonable discovery shall be
permitted before and during the reconciliation proceeding in order
to assist parties and interested persons in obtaining evidence
concerning reconciliation issues including, but not limited to, the
reasonableness and prudence of expenditures and the amounts
collected pursuant to the clause. At the power supply cost
reconciliation the commission shall reconcile the revenues recorded
pursuant to the power supply cost recovery factors and the
allowance for cost of power supply included in the base rates
established in the latest commission order for the utility with the
amounts actually expensed and included in the cost of power supply
by the utility. The commission shall consider any issue regarding
the reasonableness and prudence of expenses for which customers
were charged if the issue was not considered adequately at a
previously conducted power supply and cost review.
(13) In its order in a power supply cost reconciliation, the
commission shall:
(a) Disallow cost increases resulting from changes in
accounting or rate-making expense treatment not previously approved
by the commission. The commission may order the utility to pay a
penalty not to exceed 25% of the amount improperly collected. Costs
incurred by the utility for penalty payments shall not be charged
to customers.
(b)
Disallow any capacity charges associated with power either
of the following:
(i) Power purchased by a utility with fewer than 1,000,000
customers in this state for periods in excess of 6 months unless
the utility has obtained the prior approval of the commission.
(ii) Power purchased by a utility with 1,000,000 or more
customers in this state for periods in excess of 6 months unless
the charges have been incurred under a contract entered into by the
utility for capacity or energy under section 6q and procured
pursuant to a request for proposals made in accordance with the
procedures established by the commission in section 6q(6). If the
commission has approved capacity charges in a contract with a
qualifying facility, as defined by the federal energy regulatory
commission pursuant to the public utilities regulatory policies act
of 1978, Public Law 95-617, 92 Stat. 3117, the commission shall not
disallow the capacity charges for the facility in the power supply
cost reconciliation unless the commission has ordered revised
capacity charges upon reconsideration pursuant to this subsection.
A contract shall be valid and binding in accordance with its terms
and capacity charges paid pursuant to such a contract shall be
recoverable costs of the utility for rate-making purposes
notwithstanding that the order approving such a contract is later
vacated, modified, or otherwise held to be invalid in whole or in
part if the order approving the contract has not been stayed or
suspended by a competent court within 30 days after the date of the
order,
or within 30 days of the effective date of the 1987
amendatory
act that added subsection (19) June
29, 1987 if the
order
was issued after September 1, 1986, and before the effective
date
of the 1987 amendatory act that added subsection (19) June 29,
1987. The scope and manner of the review of capacity charges for a
qualifying facility shall be determined by the commission. Except
as to approvals for qualifying facilities granted by the commission
prior to June 1, 1987, proceedings before the commission seeking
such approvals shall be conducted as a contested case pursuant to
chapter
4 of the administrative procedures act of 1969, Act No. 306
of
the Public Acts of 1969 1969
PA 306, MCL 24.271 to 24.287. The
commission, upon its own motion or upon application of any person,
may reconsider its approval of capacity charges in a contested case
hearing after passage of a period necessary for financing the
qualifying facility, provided that:
(A) (i) The
commission has first issued an order making a
finding based on evidence presented in a contested case that there
has been a substantial change in circumstances since the
commission's initial approval; and
(B) (ii) Such a
commission finding shall be set forth in a
commission order subject to immediate judicial review.
The financing period for a qualifying facility during which
previously approved capacity charges shall not be subject to
commission reconsideration shall be 17.5 years, beginning with the
date of commercial operation, for all qualifying facilities, except
that the minimum financing period before reconsideration of the
previously approved capacity charges shall be for the duration of
the financing for a qualifying facility which produces electric
energy by the use of biomass, waste, wood, hydroelectric, wind, and
other renewable resources, or any combination of renewable
resources, as the primary energy source.
(c) Disallow net increased costs attributable to a generating
plant outage of more than 90 days in duration unless the utility
demonstrates by clear and satisfactory evidence that the outage, or
any part of the outage, was not caused or prolonged by the
utility's negligence or by unreasonable or imprudent management.
(d) Disallow transportation costs attributable to capital
investments to develop a utility's capability to transport fuel or
relocate fuel at the utility's facilities and disallow unloading
and handling expenses incurred after receipt of fuel by the
utility.
(e) Disallow the cost of fuel purchased from an affiliated
company to the extent that such fuel is more costly than fuel of
requisite quality available at or about the same time from other
suppliers with whom it would be comparably cost beneficial to deal.
(f) Disallow charges unreasonably or imprudently incurred for
fuel not taken.
(g) Disallow additional costs resulting from unreasonably or
imprudently renegotiated fuel contracts.
(h) Disallow penalty charges unreasonably or imprudently
incurred.
(i) Disallow demurrage charges.
(j) Disallow increases in charges for nuclear fuel disposal
unless the utility has received the prior approval of the
commission.
(k) Allow all costs which do not exceed the limitations on
compensation set forth in section 6q(6)(g) incurred by the utility
under a contract to secure electric generating capacity or to
purchase electricity found to be needed under section 6q(1) and
entered into by the utility pursuant to a request for proposals
under section 6q(6) including all reasonable costs incurred in
connection with the issuance, administration, and award of a
contract pursuant to section 6q(6).
(14) In its order in a power supply cost reconciliation, the
commission shall require a utility to refund to customers or credit
to customers' bills any net amount determined to have been
recovered over the period covered in excess of the amounts
determined to have been actually expensed by the utility for power
supply, and to have been incurred through reasonable and prudent
actions not precluded by the commission order in the power supply
and cost review. Such refunds or credits shall be apportioned among
the customers of the utility utilizing procedures that the
commission determines to be reasonable. The commission may adopt
different procedures with respect to customers served under the
various rate schedules of the utility and may, in appropriate
circumstances, order refunds or credits in proportion to the excess
amounts actually collected from each such customer during the
period covered.
(15) In its order in a power supply cost reconciliation, the
commission shall authorize a utility to recover from customers any
net amount by which the amount determined to have been recovered
over the period covered was less than the amount determined to have
been actually expensed by the utility for power supply, and to have
been incurred through reasonable and prudent actions not precluded
by the commission order in the power supply and cost review. For
excess costs incurred through management actions contrary to the
commission's power supply and cost review order, the commission
shall authorize a utility to recover costs incurred for power
supply in the reconciliation period in excess of the amount
recovered over the period only if the utility demonstrates by clear
and convincing evidence that the excess expenses were beyond the
ability of the utility to control through reasonable and prudent
actions. For excess costs incurred through management actions
consistent with the commission's power supply and cost review
order, the commission shall authorize a utility to recover costs
incurred for power supply in the reconciliation period in excess of
the amount recovered over the period only if the utility
demonstrates that the level of such expenses resulted from
reasonable and prudent management actions. Such amounts in excess
of the amounts actually recovered by the utility for power supply
shall be apportioned among and charged to the customers of the
utility utilizing procedures that the commission determines to be
reasonable. The commission may adopt different procedures with
respect to customers served under the various rate schedules of the
utility and may, in appropriate circumstances, order charges to be
made in proportion to the amounts which would have been paid by
such customers if the amounts in excess of the amounts actually
recovered by the utility for cost of power supply had been included
in the power supply cost recovery factors with respect to such
customers during the period covered. Charges for such excess
amounts shall be spread over a period that the commission
determines to be appropriate.
(16) If the commission orders refunds or credits pursuant to
subsection (14), or additional charges to customers pursuant to
subsection (15), in its final order in a power supply cost
reconciliation, the refunds, credits, or additional charges shall
include interest. In determining the interest included in a refund,
credit, or additional charge pursuant to this subsection, the
commission shall consider, to the extent material and practicable,
the time at which the excess recoveries or insufficient recoveries,
or both occurred. The commission shall determine a rate of interest
for excess recoveries, refunds, and credits equal to the greater of
the average short-term borrowing rate available to the utility
during the appropriate period, or the authorized rate of return on
the common stock of the utility during that same period. Costs
incurred by the utility for refunds and interest on refunds shall
not be charged to customers. The commission shall determine a rate
of interest for insufficient recoveries and additional charges
equal to the average short-term borrowing rate available to the
utility during the appropriate period.
(17) To avoid undue hardship or unduly burdensome or excessive
cost, the commission may:
(a) Exempt an electric utility with fewer than 200,000
customers in the state of Michigan from 1 or more of the procedural
provisions of this section or may modify the filing requirements of
this section.
(b) Exempt an energy utility organized as a cooperative
corporation
pursuant to sections 98 to 109 of Act No. 327 of the
Public
Acts of 1931, being sections 450.98 to 450.109 of the
Michigan
Compiled Laws 1931 PA 327,
MCL 450.98 to 450.109, from 1
or more of the provisions of this section.
(18) Notwithstanding any other provision of this act, the
commission may, upon application by an electric utility, set power
supply cost recovery factors, in a manner otherwise consistent with
this act, in an order resulting from a general rate case. Within
120 days following the effective date of this section, for the
purpose of setting power supply cost recovery factors, the
commission shall permit an electric utility to reopen a general
rate case in which a final order was issued within 120 days before
or after the effective date of this section or to amend an
application or reopen the evidentiary record in a pending general
rate case. If the commission sets power supply cost recovery
factors in an order resulting from a general rate case:
(a) The power supply cost recovery factors shall cover a
future period of 48 months or the number of months which elapse
until the commission orders new power supply cost recovery factors
in a general rate case, whichever is the shorter period.
(b) Annual reconciliation proceedings shall be conducted
pursuant to subsection (12) and if an annual reconciliation
proceeding shows a recoverable amount pursuant to subsection (15),
the commission shall authorize the electric utility to defer the
amount and to accumulate interest on the amount pursuant to
subsection (16), and in the next order resulting from a general
rate case authorize the utility to recover the amount and interest
from its customers in the manner provided in subsection (15).
(c) The power supply cost recovery factors shall not be
subject to revision pursuant to subsection (10).
(19)
Five years after the effective date of the amendatory act
that
added this subsection June
29, 1987, and every 5 years
thereafter, the standing committees of the house and senate that
deal with public utilities shall review the amendatory act that
added this subsection.
Sec. 6q. (1) For an electric utility with more than 1,000,000
customers in this state, as part of the first power supply and cost
review proceeding conducted by the commission under section 6j(5)
after the effective date of the act which added this section, and
every 2 years thereafter, the commission shall, no later than 180
days after the commencement of the proceeding, determine the
electric utility's requirements for resources to meet the
electricity needs of its full-service customers for the next 10
years.
(2) No later than 15 days before the commencement of any
proceeding under subsection (1), the commission shall provide
notice to each regional transmission organization serving any
portion of the utility's service area. The regional transmission
organization shall have standing to intervene in any proceeding
under subsection (1).
(3) In addition to any other person authorized by statute,
rule, or regulation, any electric customer, alternative electric
supplier, or resource supplier has standing to intervene in any
power supply cost review proceeding and in any power supply cost
reconciliation proceeding.
(4) In its determination under subsection (1), the commission
shall consider and make specific findings with respect to each of
the following:
(a) The projected annual electric load requirements for all
customers connected to the electric utility's distribution system
for the next 10 years.
(b) The electric utility's projected wholesale sales and
purchases of electricity.
(c) The electric generating capacity located within the
electric utility's service area, including electric generating
facilities not owned by the electric utility.
(d) The available transmission capacity and the cost of
additional transmission capacity that can be used to serve
customers within the utility's distribution service area.
(e) The cost and reliability of resources located outside the
electric utility's distribution service area that can be used to
serve customers within the service area.
(f) The portion of the electric load connected to the electric
utility's distribution system projected to be served by alternative
electric suppliers.
(g) An analysis of the projected market prices for power
purchased under the rules of the midwest independent system
operator as compared to the costs of new electric generation
facilities and new electric transmission facilities.
(h) The relative costs to the electric utility's full-service
customers of maintaining a 1-day interruption in 10 years
reliability standard and more or less stringent standards of
reliability.
(i) The need for additional generating or transmission
capacity to maintain electric reliability or secure economic
advantages to the utility's full-service customers.
(j) A regional and statewide evaluation of electric supply and
demand to identify sources outside of the electric utility service
territory where power may be available or where there may be a
particularly favorable site for building transmission or generation
facilities.
(k) The quantity and type of resources, including reserves,
required by the open access transmission and energy markets tariffs
of the regional transmission organization or the tariff of any
successor organization in which the electric utility participates,
and resources required by reliability standards or other
requirements imposed under the authority of an electric reliability
organization to which the electric utility is subject.
(5) If the commission concludes under subsection (1) that
there is a need for additional resources to serve the electric
utility's full-service customers at any time within the next 10
years, the electric utility shall, according to the procedures
established under subsection (6) and within the time ordered by the
commission, secure the resources the commission determines are
required.
(6) In a proceeding under subsection (1), if the commission
finds additional resources are needed, the commission shall
establish or revise the procedures by which the electric utility
shall acquire the resources. The procedures shall do all of the
following:
(a) Include a form of request for proposals to be employed by
the utility for the purpose of procuring needed resources.
(b) Specify the evaluation criteria by which the preferred
proposal received under subdivision (a) will be determined.
(c) Establish a preferred form of contract or standardized
contract terms to be entered into by the selected resource supplier
and the electric utility.
(d) Prescribe the following:
(i) The responsibilities and duties of an independent third-
party evaluator selected by the commission to issue requests for
proposals, administer the request for proposals process, receive
proposals submitted in response to a request for proposals,
identify the proposal which best meets the evaluation criteria, and
recommend to the commission the selection of 1 or more proposals.
(ii) The means by which the evaluator is selected and the time
following submission of proposals within which the independent
evaluator shall recommend a proposal for selection.
(e) Prescribe conditions under which the electric utility may
submit a proposal in response to its own request for proposals
designed to assure that utility use of ratepayer-funded assets does
not result in placing resource suppliers submitting proposals at a
disadvantage and to assure that the participation of the electric
utility will be consistent with the electric utility's code of
conduct.
(f) Prescribe the process for identification and approval of
proposals.
(g) Prescribe terms to be included in any contract between an
electric utility and a resource supplier which will limit
compensation to be received by the resource supplier to no more
than the compensation proposed.
(h) Clearly identify in the request for proposals which risks
are to be assumed by utility customers and which risks are to be
borne by persons submitting proposals in connection with each
resource to be procured.
(i) Prescribe criteria which will permit persons proposing to
provide demand-side management, transmission service, or generating
capacity, including renewable and distributed generating capacity,
to fairly compete to provide required resources.
(j) Provide reasonable means to assure that the request for
proposals process will be open and fair to all participating
parties.
(k) Provide that, after the commission has selected a
proposal, all proposals submitted, except the selected proposal, be
afforded confidential treatment to the extent permitted by law.
(l) Provide that demand-side management resources and renewable
generating resources are selected if the cost of those resources
does not exceed the cost of competing proposals.
(m) Provide that, in considering the relative cost of new
generating resources, all costs of transmitting power to the
electric utility are considered a part of the cost of generation.
(n) Provide for the following:
(i) Within the time prescribed by the commission, the
independent evaluator will recommend to the commission 1 or more
proposals for selection.
(ii) The recommendation be posted on the commission's internet
site and mail copies to each party to the proceeding in which the
commission determined the utility's resource needs and to each
supplier submitting a proposal.
(iii) Any person or supplier notified under subparagraph (ii)
may, within 15 days of the date the recommendation is posted,
submit comments on the independent evaluator's recommendation or
request commission review of the process of requesting, receiving,
and selecting proposals.
(iv) Within 30 days of the date the recommendation is posted,
the commission shall by order select the proposal most advantageous
to the utility's customers unless the utility or supplier committed
fraud or the independent evaluator failed to follow commission
procedures and the failure was materially detrimental to the
utility's customers.
(v) That the utility and the supplier submitting the selected
proposal shall, not later than 5 days after the commission's order
selecting a proposal, execute a contract setting forth all terms
and conditions of the request for proposals except to the extent
they have been modified in the selected proposal.
(vi) That if the order has not been stayed or suspended by a
competent court within 30 days after the date of the order, the
contract will be valid and binding according to its terms
notwithstanding that the commission's procedures or selection is
later vacated, modified, or otherwise held to be invalid in whole
or in part.