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2022 Michigan Compiled Laws
Chapter 460 - Public Utilities
Act 3 of 1939 - Michigan Public Service Commission (460.1 - 460.11)
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 powers and duties of certain state governmental officers and entities; 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 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.
History: 1939, Act 3, Imd. Eff. Feb. 15, 1939 ;-- Am. 1978, Act 211, Imd. Eff. June 5, 1978 ;-- Am. 1980, Act 139, Imd. Eff. May 29, 1980 ;-- Am. 1982, Act 304, Imd. Eff. Oct. 13, 1982 ;-- Am. 1982, Initiated Law, Eff. Dec. 2, 1982 ;-- Am. 1982, Act 212, Eff. Nov. 22, 1982 ;-- Am. 1989, Act 2, Imd. Eff. Apr. 3, 1989 ;-- Am. 2000, Act 141, Imd. Eff. June 5, 2000 ;-- Am. 2005, Act 190, Imd. Eff. Nov. 7, 2005 ;-- Am. 2016, Act 341, Eff. Apr. 20, 2017
- Section 460.1 - Public Service Commission; Creation; Members, Appointment, Qualifications, Terms, Vacancies.
- Section 460.2 - Public Service Commission; Oath, Chairman, Removal, Quorum, Seal, Offices.
- Section 460.3 - Public Service Commission; Salary and Expenses of Members; Appointment of Secretary, Deputies, Clerks, Assistants, Inspectors, Heads of Divisions, and Employees; Payment of Salaries and Expenses; Employment and Compensation of Engineers and Experts; Actual and Necessary Expenses; Duties.
- Section 460.4 - Michigan Public Service Commission; Rights, Privileges, and Jurisdiction; Meaning of Certain References; Review of Order or Decree.
- Section 460.4a - Effect of Executive Reorganization Orders; Funding; Commission as Autonomous Entity; Appointment of Chairperson; Transfers of Authority.
- Section 460.5 - Public Service Commission; Books, Records, Files.
- Section 460.5a - Annual Report.
- Section 460.6 - Public Service Commission; Power and Jurisdiction; "Private, Investor-Owned Wastewater Utilities" Defined.
- Section 460.6a - Gas, Electric, or Steam Utility; Commission Approval to Increase Rates and Charges or to Amend Rate or Rate Schedules; Petition or Application; Notice and Hearing; Partial and Immediate Relief; Issuance of Temporary Order; Refund; Interest; Automatic Fuel, Purchased Gas, or Purchased Steam Adjustment Clause; Rules and Procedures; Adjustment Clauses Operating Without Notice and Hearing Abolished; Separate Hearing; Recovery of Cost; Final Decision; Filing Time Extension; Approval of Transportation Rate Schedules or Transportation Contracts; Forms and Instructions; Recovery of Amount by Merchant Plant; Limitation; Adjustment; Orders to Permit Recovery Under Subsections (9) and (10); Revenue Decoupling Mechanism; Tariff; Definitions.
- Section 460.6b - Gas Utility Rates Based Upon Cost of Purchased Natural Gas; Authority of Commission; Acceptance of Employment With Utility by Member of Legislature.
- Section 460.6c - Repealed. 2016, Act 341, Eff. Apr. 20, 2017.
- Section 460.6d - Owner of Renewable Resource Power Production Facility; Exemption From Regulation and Control of Public Service Commission; Definition.
- Section 460.6e - Repealed. 2016, Act 341, Eff. Apr. 20, 2017.
- Section 460.6f - Repealed. 1984, Act 49, Imd. Eff. Apr. 12, 1984.
- Section 460.6g - Definitions; Regulation of Rates, Terms, and Conditions of Attachments by Attaching Parties; Hearing; Authorization; Applicable Procedures.
- Section 460.6h - Incorporation of Gas Cost Recovery Clause in Rate or Rate Schedule of Gas Utility; Definitions; Order and Hearing; Filing Gas Cost Recovery Plan and 5-Year Forecast; Gas Supply and Cost Review; Final or Temporary Order; Incorporating Gas Cost Recovery Factors in Rates; Filing Revised Gas Cost Recovery Plan; Reopening Gas Supply and Cost Review; Monthly Statement of Revenues; Gas Cost Reconciliation; Commission Order; Refunds, Credits, or Additional Charges to Include Interest; Apportionment; Exemption; Setting Gas Cost Recovery Factors in General Rate Case Order.
- Section 460.6i - Initial Gas Cost Recovery Plan; Filing; Alteration of Rate Schedule in Accordance With Existing Purchased Gas Adjustment Clause; Charges in Excess of Base Rates; Revenues Subject to Existing Reconciliation Proceedings; Purchased Gas Revenues Subject to Annual Reconciliation; Procedures; Adjustment of Rates Pending Approval or Disapproval of Gas Cost Recovery Clause in Final Commission Order.
- Section 460.6j - Definitions; Incorporation of Power Supply Cost Recovery Clause in Electric Rates or Rate Schedule of Electric Utility; Order and Hearing; Filing Power Supply Cost Recovery Plan and 5-Year Forecast; Power Supply and Cost Review; Final or Temporary Order; Incorporating Power Supply Cost Recovery Factors in Rates; Filing Revised Power Supply Cost Recovery Plan; Reopening Power Supply and Cost Review; Monthly Statement of Revenues; Power Supply Cost Reconciliation; Commission Order; Refunds or Credits or Additional Charges to Customers; Apportionment; Interest; Exemption; Setting Power Supply Cost Recovery Factors in General Rate Case Order.
- Section 460.6k - Initial Power Supply Cost Recovery Plan; Filing; Alteration of Rate Schedule in Accordance With Adjustment Clause; Charges in Excess of Base Rate; Revenues Subject to Existing Reconciliation Proceedings; Revenues Resulting From Certain Adjustment Clauses Subject to Existing Reconciliation Proceedings; Revenues Subject to Annual Reconciliation; Procedures; Lag Correction Provision; Adjustment of Rates Pending Approval or Disapproval of Power Supply Cost Recovery Clause.
- Section 460.6l - Insuring Equitable Representation of Interests of Energy Utility Customers; Definitions; Utility Consumer Participation Board; Creation; Powers and Duties; Number and Appointment of Members; “Utility” Defined; Member Requirements; Terms; Vacancy; Removal of Member; Meetings; Quorum; Election of Chairperson and Vice-Chairperson; Conducting Business of Board at Public Meeting; Public Notice; Availability of Writings to Public; Expense Reimbursement and Remuneration.
- Section 460.6m - Utility Consumer Representation Fund; Creation as Special Fund; Investment and Release of Money; Remittance by Energy Utility; Factor; Action for Recovery of Disputed Amount; Action on Application for Energy Cost Recovery Proceedings; Conditions; Acceptance of Gift or Grant; Payment of Operating Costs and Expenses; Net Grant Proceeds to Finance Grant Program; Application Form; Consideration; Encouraging Representation of Different Consumer Interests; Criteria; Joint Filing; Disbursements; Notice of Availability of Fund; Use of Annual Receipts and Interest; Retention of Certain Amounts; Conditions Applicable to Grants; Reports.
- Section 460.6n - Restructuring of Residential Electric Rates; Hearings; Revenue Impact; Purpose and Basis of Restructured Rates; Penalizing Residential Customers Prohibited; Informing Public of Conservation Advantages; Contents of Customer's Bill; Costs; Applicability of Section.
- Section 460.6o - Definitions; Power Purchase Agreements for Purchase of Capacity and Energy From Resource Recovery Facilities; Rates, Charges, Terms, and Conditions of Service; Scrap Tire; Applicability of Section; Dispute Provisions; Filing Agreement; Commencement of Contested Case Proceeding; Approval of Agreement; Energy Rate Component; Capacity Rate Component; Determination of Reserve Margin, Reserve Capacity, or Other Resource Capability Measurement; Annual Accounting.
- Section 460.6p - Rates Subject to Electric Transmission Line Certification Act.
- Section 460.6q - Acquisition, Control, or Merger With Jurisdictional Regulated Utility; Approval of Commission; Notice and Hearing; Issuance of Order; Rules; Filing Comments; Access to Data and Information; Evaluation Factors; Terms and Conditions; Confidential Information; Definitions.
- Section 460.6r - Definitions; Steam Supply Cost Recovery Clause; Filing Steam Supply Cost Recovery Plan and 3-Year Forecast; Requirements; Steam Supply and Cost Review; Temporary or Final Order; Filing Detailed Statement; Commencement of Steam Supply Cost Reconciliation; Order of Refunds or Credits; Rate of Interest; Filing Report With Governor and Legislature.
- Section 460.6s - Electric Generation Facility; Application; Review Criteria and Approval Standards; Order Granting or Denying Certificate of Necessity; Hearing; Reports; Inclusion of Costs in Utility's Retail Rates; Refunds; Interest; Modifying or Canceling Approval of Certificate of Necessity; Filing Forms and Instructions; Integrated Resource Plan; Financing Interest Cost Recovery in Utility's Base Rates; Submission of Alternative Proposal; Order Subject to Judicial Review.
- Section 460.6t - Integrated Resource Plan.
- Section 460.6u - Study; Review of Performance-Based Regulation Systems; Report; Authority of Commission.
- Section 460.6v - Proceeding to Reevaluate Procedures and Rates Schedules; Report; Definitions.
- Section 460.6w - Resource Adequacy Tariff That Provides for Capacity Forward Auction; Option for State to Implement Prevailing State Compensation Mechanism for Capacity; Order to Implement Prevailing State Compensation Mechanism; Contested Case Proceeding; Finding; Order to Implement State Reliability Mechanism; Capacity Charge; Establishment; Determination; Failure to Meet Requirements in Subsection (8)(b); Civil Action for Injunctive Relief; Definitions.
- Section 460.6x - Shared Saving Mechanism.
- Section 460.6z - Discontinuing Utility Service to Geographic Area; Abandonment Application; Proposal to Retire Electric Generating Plant; Proposal to Revise Existing Load Balancing Authority.
- Section 460.7 - Railroad Labor Unions; Representatives; Right to Participate in Hearings.
- Section 460.8 - Voluntary Associations; Hearings; Persons Entitled to Appear; Industrial Representative.
- Section 460.9 - Definitions; Customer Switched to Alternative Gas Supplier or Natural Gas Utility; Prohibitions; Standards; Rules; Violation; Remedies and Penalties.
- Section 460.9b - Alternative Gas Suppliers; Licensing Procedure; Maintenance of Office; Capabilities; Records; Tax Remittance.
- Section 460.9c - Customer on Active Duty in Military; Shut-Off Protection.
- Section 460.9d - Unauthorized Use of Electric or Natural Gas Service Causing Unsafe Connection; Action to Be Taken by Utility; Reestablishment of Service; Abandonment or Surrender of Property; Scope of Section; Definitions.
- Section 460.9m - Service Shutoff Resulting in Death or Serious Injury; Notice to Commission; Investigation; Civil Action; "Provider" Defined.
- Section 460.9o - Identification of Senior Citizen Customers; Methods; Compliance Within Certain Time Period; Extension; Definitions.
- Section 460.9p - Failure of Utility to Meet Requirements of Act; Commencement of Civil Action; Notice; Compliance Agreement; Final Order; Costs of Litigation; Fines; Construction and Limitation of Act.
- Section 460.9q - Shut Off or Termination of Service; Conditions; Reasons; Notice Requirements; Prohibitions; Attempts to Contact Customer; Documentation; Restoration of Service; Vulnerable Household Warmth Fund; Creation; Use of Funds; Payments; Distribution; Priority; Definitions.
- Section 460.9r - Shut Off of Service by Municipally Owned Electric Utility; Prohibitions; Requirements; Definitions.
- Section 460.9s - Postponement of Service Shutoff; Conditions; Definitions.
- Section 460.9t - Low-Income Energy Assistance Fund.
- Section 460.10 - MCL 460.10a to 460.10bb; Purpose.
- Section 460.10a - Alternative Electric Suppliers; Orders Establishing Rates, Terms, and Conditions of Service; Licensing Procedure; Switching or Billing for Services Without Consent; Self-Service Power; Affiliate Wheeling; Rights of Parties to Existing Contracts and Agreements; Receipt of Standard Tariff Service; Recovery of Costs by Electric Utility Offering Retail Open Access Service; Definitions.
- Section 460.10b - Rates, Terms, and Conditions of New Technologies; Application to Unbundle Existing Rate Schedules; Providing Reliable and Lower Cost Competitive Rates; Standby Generation Service; Identification of Retail Market Prices.
- Section 460.10c - Determination of Noncompliance; Order of Remedies and Penalties; Contested Case; Violation as Unintentional and Bona Fide Error; Finding of Frivolous Complaint.
- Section 460.10d - Electric Utility Serving Less Than 1,000,000 Retail Customers; Utility Issuing Securitization Bonds; Compliance With Federal Rules, Regulations, and Standards; Security Recovery Factor; Protective Orders; Low-Income and Energy Efficiency Fund; Refund; Definitions.
- Section 460.10e - Connection of Merchant Plants to Transmission and Distribution Systems; Finding of Prevention or Delay; Remedies; Merchant Plant; Standards; Exception.
- Section 460.10f - Generation Capacity in Excess of Utility's Retail Sales Load; Determination of Total Generating Capacity; Market Power Mitigation Plan; Application; Approval; Requirements of Independent Brokering Trustee.
- Section 460.10g - Definitions; School Properties.
- Section 460.10h - Definitions.
- Section 460.10i - Financing Order; Recovery of Qualified Costs; Conditions; Amount; Limitation on Period for Recovery of Securitization Charges; Financing Order as Effective and Irrevocable; Evidence of Indebtedness; Time Period to Issue or Reject; Rehearing; Appeal; Retiring and Refunding Securitization Bonds; Retention of Financial or Legal Services by Commission.
- Section 460.10j - Securitization Property; Rights and Interests.
- Section 460.10k - Financing Order; Effect in Connection With Bankruptcy.
- Section 460.10l - Agreement to Transfer Securitization Property as True Sale.
- Section 460.10m - Lien and Security Interest; Creation; Changes in Order or Charges Attachment; Perfection; Priority; Sequestration and Payment of Revenues.
- Section 460.10n - Securitization Bonds; State Pledge of Certain Conduct.
- Section 460.10o - Securitization Bond; Direct Interest in Acquisition, Ownership, and Disposition Not Used in Determining Tax; Obligations of Electric Utility Successor; Assignee or Financing Party as Public Utility.
- Section 460.10p - Establishment of Industry Worker Transition Program; Adoption of Service Quality and Reliability Standards; Compliance Report; Rules; Benchmarks; Method for Gathering Data; Incentives and Penalties; "Jurisdictional Utility" or "Jurisdictional Entity" Defined.
- Section 460.10q - Alternative Electric Supplier; License Requirements.
- Section 460.10r - Dissemination of Disclosures, Explanations, or Sales Information; Standards; Establishment of Michigan Renewables Energy Program; Plan.
- Section 460.10s - Low-Income and Energy Assistance Programs; Availability of Federal Funds.
- Section 460.10t - Shut Off of Service; Conditions; Procedures; Definitions.
- Section 460.10u - Report.
- Section 460.10v - Joint Plan to Expand Available Transmission Capability.
- Section 460.10w - Investor-Owned Electric Utility; Ferc Approval.
- Section 460.10x - Cooperative Electric Utility; Requirements.
- Section 460.10y - Municipally Owned Utility; Requirements.
- Section 460.10z - Provisions of Act as Severable.
- Section 460.10aa - Impairment of Contractual Rights Under Existing Contract.
- Section 460.10bb - Aggregation; Use; Definition.
- Section 460.10cc - Provisions as Severable; Certain Rate Reductions as Void.
- Section 460.10dd - Appropriation; Hiring Full-Time Positions to Implement Act.
- Section 460.10ee - Code of Conduct; Value-Added Programs and Services; Definitions.
- Section 460.10ff - Energy Ombudsman.
- Section 460.10gg - Long-Term Industrial Load Rate; Findings of Commission.
- Section 460.10hh - Nuclear Energy Generation Feasibility Study.
- Section 460.11 - Establishment of Electric Rates; Establishment of Eligible Low-Income Customer or Senior Citizen Customer Rates; Public and Private Schools, Universities, and Community Colleges Rate Schedules.
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