Electricity. Under Michigan's current regulated electric industry, the price charged for electricity reflects the costs incurred to generate, transmit, and distribute the electricity, and the sales tax is assessed on this total price. If the electric industry in Michigan were deregulated as proposed in other legislation, the generation, transmission, distribution, and other aspects of providing electricity, plus any new transition charges, would be unbundled and appear as separate items on customers' bills. Under current sales tax law, an unbundled structure would allow the sales tax to be assessed only on the charge for purchasing electricity, a tangible product, from an in-State company, assuming the unbundled items would be provided by different businesses. The sales tax could not presently be assessed on electricity purchased from an out-of-State company, on the prices charged for the services of transmitting and distributing the electricity, or on the transition charge. Assuming a scenario was in place in FY 2000-01 that included, 1) unbundled electricity prices (at current levels), 2) the current sales tax law, and 3) the purchase of all electricity from in-State companies, then sales tax revenue would be reduced an estimated $131 million, which would reduce School Aid Fund revenue $87 million, revenue sharing $40 million, and General Fund/General Purpose revenue $4 million. Under the provisions in these bills, the sales and use taxes would continue to be assessed on the price of generating, transmitting, and distributing electricity even if the electric industry were deregulated; however, other current components of the price of electricity related to billing and ancillary charges, would not be taxed. Therefore, the bills would reduce the potential loss in sales tax revenue from the sale of electricity from $131 million to an estimated $20 million.