May 14, 2014, Introduced by Senators JONES, WHITMER and HUNE 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 460.11) by adding section 9u.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 9u. (1) A provider's governing board shall consist of 8
members. Members of a governing board shall be apportioned among
the municipalities served by that provider based on the percentage
of peak load used by each municipality, but each municipality
served shall have at least 1 member. Each municipality's chief
executive shall appoint the members apportioned to that
municipality. The board shall include each of the following:
(a) At least 1 board member appointed to a board shall be a
professional engineer licensed under article 20 of the occupational
code, 1980 PA 299, MCL 339.2001 to 339.2014.
(b) At least 1 board member appointed to a board shall be a
certified public accountant who is licensed as a certified public
accountant under article 7 of the occupational code, 1980 PA 299,
MCL 339.720 to 339.736.
(c) At least 1 board member appointed to a board shall be an
attorney licensed to practice in this state.
(2) A provider shall apportion any profit made by that
provider among the municipalities served by that provider based on
the percentage of peak load used by each municipality.
(3) Except as otherwise provided in this section, a provider
shall have electric rates equal to the cost of providing service to
each customer class. The cost of providing service to each customer
class shall be based on the allocation of production-related and
transmission costs based on using the 50-25-25 method of cost
allocation. Notwithstanding any other provision of this act, a
provider may establish eligible low-income customer or eligible
senior citizen customer rates.
(4) Beginning on the effective date of the amendatory act that
added this section, a provider shall not enter into a multiyear
contract with the provider's director or any member of the
provider's executive management team.
(5) A provider shall create an emergency response and
communications plan. The plan shall comply with the national
incident management system
(6) As used in this section:
(a) "Eligible low-income customer" means that term as defined
in section 10t.
(b) "Eligible senior citizen customer" means that term as
defined in section 10t.
(c) "Provider" means a municipally owned electric utility
owned by a city with a population of more than 100,000 but less
than 150,000.