SENATE BILL No. 918

January 12, 2000, Introduced by Senator BYRUM 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 util-

ities and other services affected with a public interest within

this state; to create a public service commission and to pre-

scribe and define its powers and duties; to abolish the Michigan

public utilities commission and to confer the powers and duties

vested by law therein on the public service commission; to pro-

vide for the continuance, transfer, and completion of certain

matters and proceedings; to abolish automatic adjustment clauses;

to prohibit rate increases without notice and hearing; to qualify

residential energy conservation programs permitted under state

law for certain federal exemption; to provide for a restructuring

of rates for certain utilities; to encourage the utilization of

resource recovery facilities; to provide for appeals; to provide

appropriations; to declare the effect of this act; to prescribe

penalties; and to repeal all acts contrary to this act,"

(MCL 460.1 to 460.8) by adding section 9f.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 SEC. 9F. (1) BEFORE OFFERING MARKET-BASED GAS COMMODITY

2 SERVICE IN THIS STATE, A PERSON SHALL OBTAIN A LICENSE FROM THE

3 COMMISSION.

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1 (2) A PERSON WHO SEEKS A LICENSE SHALL FILE AN APPLICATION

2 AND A $100.00 APPLICATION FEE WITH THE COMMISSION THAT CONTAINS

3 ALL OF THE FOLLOWING INFORMATION:

4 (A) THE BUSINESS NAME, ADDRESS, TELEPHONE NUMBER, AGENT OR

5 OTHER PERSON AUTHORIZED TO RECEIVE SERVICE, AND ANY OTHER INFOR-

6 MATION THE COMMISSION DETERMINES RELEVANT.

7 (B) EVIDENCE THAT THE APPLICANT HAS A NET WORTH OR AN ESTAB-

8 LISHED LINE OF CREDIT OF AT LEAST $100,000.00.

9 (C) EVIDENCE THAT THE APPLICANT HAS THE BUSINESS CAPABILITY

10 TO RENDER THE PROPOSED SERVICE, AND, IN THE CASE OF A GAS COMMOD-

11 ITY SUPPLIER, THE ABILITY TO ACQUIRE SUFFICIENT NATURAL GAS TO

12 MEET CUSTOMER REQUIREMENTS.

13 (D) A VERIFICATION THAT THE APPLICANT WILL COMPLY WITH THE

14 PROCEDURES FOR ENROLLING CUSTOMERS THAT ARE ESTABLISHED THROUGH

15 THE LOCAL DISTRIBUTION COMPANY CUSTOMER CHOICE PLAN APPROVED BY

16 THE COMMISSION.

17 (E) A VERIFICATION THAT THE APPLICANT HAS ESTABLISHED A

18 MEANS TO RESOLVE DISPUTES WITH CUSTOMERS IN A MANNER SIMILAR TO

19 THAT ESTABLISHED BY LOCAL DISTRIBUTION COMPANIES.

20 (F) A VERIFICATION THAT THE APPLICANT WILL COLLECT AND REMIT

21 ALL APPLICABLE STATE AND LOCAL FEES, CHARGES, AND TAXES, EXCEPT

22 WHEN THE LOCAL FEES, CHARGES, AND TAXES ARE VOLUNTARILY COLLECTED

23 AND REMITTED BY THE LOCAL DISTRIBUTION COMPANY.

24 (G) A VERIFICATION THAT THE APPLICANT WILL COMPLY WITH ALL

25 OTHER RULES AND PROCEDURES ESTABLISHED BY THE COMMISSION, INCLUD-

26 ING, BUT NOT LIMITED TO, CONSUMER STANDARDS AND BILLING PRACTICES

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1 FOR ELECTRIC AND GAS RESIDENTIAL SERVICE, R 460.2101 TO

2 R 460.2199.

3 (H) DISCLOSURE OF ANY INSTANCE WHERE THE APPLICANT OR ANYONE

4 ACTING IN CONCERT WITH THE APPLICANT HAS VIOLATED ANY LAW, RULE,

5 OR REGULATION INTENDED TO PROTECT THE PUBLIC.

6 (3) THE LICENSE SHALL BE ISSUED BY THE COMMISSION UPON A

7 SHOWING BY THE APPLICANT OF ALL OF THE FOLLOWING:

8 (A) THAT IT SATISFACTORILY COMPLIES WITH THE REQUIREMENTS OF

9 SUBSECTION (2).

10 (B) THAT GRANTING THE LICENSE WOULD BE REASONABLE AND IN THE

11 PUBLIC INTEREST.

12 (C) THE APPLICANT HAS OTHERWISE COMPLIED WITH THE REQUIRE-

13 MENTS OF SECTIONS 9A THROUGH 9K.

14 (4) FAILURE TO SUPPLY THE REQUIRED INFORMATION OR FAILURE TO

15 INFORM THE COMMISSION OF MATERIAL CHANGES IN PREVIOUSLY SUPPLIED

16 INFORMATION SHALL BE CONSIDERED GROUNDS FOR DENIAL OR REVOCATION

17 OF A LICENSE ISSUED UNDER THIS SECTION.

18 Enacting section 1. This amendatory act does not take

19 effect unless all of the following bills of the 90th Legislature

20 are enacted into law:

21 (a) Senate Bill No. 916.

22

23 (b) Senate Bill No. 917.

24

25 (c) Senate Bill No. 919.

26

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1 (d) Senate Bill No. 920.

2

3 (e) Senate Bill No. 922.

4

5 (f) Senate Bill No. 921.

6

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