HOUSE BILL No. 5520

December 4, 2007, Introduced by Reps. Miller, Angerer, Mayes, Accavitti, Hopgood, Gaffney, LaJoy 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 460.10cc) by adding section 6q.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 6q. (1) An electric utility shall obtain the approval of


 

the commission as provided in this section before completing the

 

sale of an existing electric generating plant with a capacity of

 

200 megawatts or more that is used in providing regulated electric

 

utility service in this state. For the purpose of computing the

 

200-megawatt threshold under this section, sale includes any series

 

of transfers of electric generating units that take place within a

 

12-month period and are associated with a single transaction.

 

     (2) An electric utility shall submit an application to the

 

commission for approval of a sale under subsection (1). The

 

application shall include the following information:

 

     (a) A concise summary of the terms and conditions of the

 

proposed transaction.

 

     (b) Copies of the material transaction documents if available.

 

     (c) A summary of the projected impacts of the transaction on

 

rates and regulated electric utility service in this state.

 

     (d) Pro forma financial statements that are relevant to the

 

transaction.

 

     (e) Copies of the parties' public filings with other state or

 

federal regulatory agencies regarding the same transaction,

 

including any regulatory orders issued by the agencies regarding

 

the transaction.

 

     (3) Within 60 days from the date an application is filed under

 

this section, interested parties may file comments with the

 

commission on the proposed transaction.

 

     (4) Within 180 days from the date an application is filed

 

under this section, the commission shall issue an order approving

 

or rejecting the proposed transaction.


 

     (5) If retail customers of the electric utility submitting an

 

application are eligible to take retail generation service from an

 

alternative electric supplier, the commission shall issue an order

 

approving the proposed transaction.

 

     (6) If retail customers of the electric utility submitting an

 

application are not eligible to take retail generation service from

 

an alternative electric supplier, the commission shall issue an

 

order approving the proposed transaction unless it finds 1 of the

 

following:

 

     (a) The proposed transaction is likely to have a material

 

adverse impact on the rates regulated by the commission under

 

section 6a.

 

     (b) The proposed transaction is likely to have a material

 

adverse impact on the provision of safe, reliable, and adequate

 

electric service in this state.

 

     (c) The proposed transaction is likely to significantly impair

 

an electric utility's ability to raise necessary capital or to

 

maintain a reasonable capital structure.

 

     (d) The proposed transaction is likely to have a material

 

adverse impact on competition in this state.

 

     (7) Nonpublic information and materials submitted by an

 

electric utility under this section clearly designated by that

 

utility as confidential are exempt from the freedom of information

 

act, 1976 PA 442, MCL 15.231 to 15.246. The commission shall issue

 

protective orders as necessary to protect information designated by

 

that utility as confidential.

 

     Enacting section 1. This amendatory act does not take effect


 

unless all of the following bills of the 94th Legislature are

 

enacted into law:

 

     (a) Senate Bill No. _____ or House Bill No. 5524(request

 

no. 02552'07*).

 

     (b) Senate Bill No. _____ or House Bill No. 5521(request

 

no. 04883'07*).

 

     (c) Senate Bill No. _____ or House Bill No. 5522(request

 

no. 04884'07*).

 

     (d) Senate Bill No. _____ or House Bill No. 5523(request

 

no. 05023'07*).

 

     (e) Senate Bill No. ______ or House Bill No.    (request

 

no. 05570'07).

 

     (f) Senate Bill No. ______ or House Bill No.    (request

 

no. 05919'07).

 

     (g) Senate Bill No. ______ or House Bill No. 5525(request

 

no. 05920'07).

 

     (h) House Bill No. 5383.

 

     (i) House Bill No. 5384.