SENATE BILL No. 334

March 22, 2005, Introduced by Senators PATTERSON, GILBERT, BASHAM, BIRKHOLZ, BERNERO, BISHOP, BRATER, SWITALSKI, JACOBS, OLSHOVE, CHERRY, CLARK-COLEMAN, CLARKE, TOY, HAMMERSTROM and GARCIA and referred to the Committee on Technology and Energy.

A bill to amend 1939 PA 3, entitled

"An act to provide for the regulation and control of public

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 10dd.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 10dd. (1) The commission shall, after notice and hearing,

annually approve a low income and energy efficiency factor that

shall be a nonbypassable surcharge payable by every customer

receiving a distribution service from a gas or electric utility

regardless of the identity of the customer's gas or electric

generation supplier. The funding shall not exceed an amount equal

to 2% of commercial and industrial revenues of each utility.

(2) The commission shall administer the distribution of the

funds collected under subsection (1) and direct that the funds

received from the customers of a gas or electric utility shall only

be used to provide energy and conservation assistance to low income

and senior citizen customers who reside in the gas or electric

utility's service area.

(3) As used in this section, "gas utility" means a natural gas

company subject to the jurisdiction of the commission under 1929 PA

9, MCL 483.101 to 483.120.

Enacting section 1. This amendatory act does not take effect

unless all of the following bills of the 93rd Legislature are

enacted into law:

(a) Senate Bill No.____ or House Bill No.____ (request no.

00370'05).

(b) Senate Bill No.____ or House Bill No.____ (request no.

00371'05).

00373'05).