SENATE BILL No. 919

January 12, 2000, Introduced by Senator SIKKEMA 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 9g.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

1 SEC. 9G. (1) A CUSTOMER OF A NATURAL GAS SUPPLIER SHALL NOT

2 BE SWITCHED TO ANOTHER SUPPLIER WITHOUT THE AUTHORIZATION OF THE

3 CUSTOMER.

04283'99 c * SAT

2

1 (2) THE COMMISSION SHALL ISSUE ORDERS TO ENSURE THAT A

2 CUSTOMER OF A NATURAL GAS SUPPLIER IS NOT SWITCHED TO ANOTHER

3 SUPPLIER WITHOUT THE CUSTOMER'S ORAL AUTHORIZATION, WRITTEN CON-

4 FIRMATION, CONFIRMATION THROUGH AN INDEPENDENT THIRD PARTY, OR

5 OTHER VERIFICATION PROCEDURES APPROVED BY THE COMMISSION, CON-

6 FIRMING THE CUSTOMER'S INTENT TO MAKE A SWITCH AND THAT THE CUS-

7 TOMER HAS APPROVED THE SPECIFIC TERMS OF THE SWITCH.

8 (3) A NATURAL GAS SUPPLIER AND DISTRIBUTOR SHALL USE REASON-

9 ABLE EFFORTS TO SWITCH A CUSTOMER TO ANOTHER SUPPLIER IF PROPERLY

10 AUTHORIZED BY THE CUSTOMER IN ACCORDANCE WITH THE AGREEMENT

11 BETWEEN THE SUPPLIER AND THE CUSTOMER AS PROVIDED UNDER SUBSEC-

12 TION (2).

13 (4) THE COMMISSION SHALL ESTABLISH MINIMUM STANDARDS FOR THE

14 FORM AND CONTENT OF ALL DISCLOSURES, EXPLANATIONS, OR SALES

15 INFORMATION RELATING TO THE SALE OF A NATURAL GAS COMMODITY AND

16 DISSEMINATED BY A NATURAL GAS SUPPLIER OR DISTRIBUTOR TO ENSURE

17 THAT THE DISCLOSURES, EXPLANATIONS, AND SALES INFORMATION CONTAIN

18 ACCURATE AND UNDERSTANDABLE INFORMATION AND ENABLE A CUSTOMER TO

19 MAKE AN INFORMED DECISION RELATING TO THE PURCHASE OF A NATURAL

20 GAS COMMODITY. THE STANDARDS SHALL BE DEVELOPED TO DO ALL OF THE

21 FOLLOWING:

22 (A) NOT BE UNDULY BURDENSOME.

23 (B) NOT UNNECESSARILY DELAY OR INHIBIT THE INITIATION AND

24 DEVELOPMENT OF COMPETITION AMONG NATURAL GAS SUPPLIERS OR DIS-

25 TRIBUTORS IN ANY MARKET.

26 (C) ESTABLISH SEPARATE REQUIREMENTS FOR DISCLOSURES,

27 EXPLANATIONS, OR SALES INFORMATION RELATING TO OTHER PRODUCTS OR

04283'99 c *

3

1 SERVICES OR SIMILAR PRODUCTS OR SERVICES PROVIDED TO RESIDENTIAL,

2 COMMERCIAL, INDUSTRIAL, OR OTHER LARGE VOLUME CUSTOMERS IF THE

3 COMMISSION FINDS THAT THE REQUIREMENTS ARE APPROPRIATE TO CARRY

4 OUT THIS SECTION.

5 (5) THE COMMISSION MAY ADOPT RULES UNDER THE ADMINISTRATIVE

6 PROCEDURES ACT OF 1969, 1969 PA 306, MCL 24.201 TO 24.328, IT

7 CONSIDERS NECESSARY TO IMPLEMENT THIS SECTION AND TO PROTECT CUS-

8 TOMERS FROM FRAUD AND OTHER UNFAIR AND DECEPTIVE BUSINESS

9 PRACTICES.

10 (6) A CUSTOMER IS ENTITLED TO OBTAIN FROM THE CUSTOMER'S

11 NATURAL GAS SUPPLIER OR DISTRIBUTOR THE CUSTOMER'S BILLING HIS-

12 TORY AND ENERGY USAGE OVER THE LAST 12 MONTHS.

13 (7) UPON RECEIPT OF A WRITTEN REQUEST FROM THE CUSTOMER, THE

14 CUSTOMER'S NATURAL GAS SUPPLIER OR DISTRIBUTOR SHALL PROVIDE THE

15 INFORMATION DESCRIBED IN SUBSECTION (6) TO THE CUSTOMER WITHIN 10

16 BUSINESS DAYS FROM THE DATE THE REQUEST WAS RECEIVED.

17 (8) THE NATURAL GAS SUPPLIER OR DISTRIBUTOR IS ENTITLED TO

18 CHARGE A FEE UNDER THIS ACT NOT GREATER THAN THE ACTUAL COST OF

19 PROVIDING THE INFORMATION DESCRIBED IN SUBSECTION (6). THE FEE

20 ALLOWED UNDER THIS SUBSECTION SHALL BE APPROVED BY THE

21 COMMISSION.

22 (9) A NATURAL GAS SUPPLIER OR DISTRIBUTOR MAY NOT RELEASE

23 THE INFORMATION DESCRIBED IN SUBSECTION (6) TO A THIRD PARTY

24 UNLESS THE CUSTOMER HAS PROVIDED CONSENT FOR THE RELEASE OF THE

25 INFORMATION.

26 (10) NOT LESS THAN ONCE ANNUALLY, THE NATURAL GAS SUPPLIER

27 OR DISTRIBUTOR SHALL PROVIDE THE MEANS FOR A CUSTOMER TO GRANT

04283'99 c *

4

1 CONSENT FOR THE RELEASE OF THE INFORMATION DESCRIBED IN

2 SUBSECTION (6).

3 (11) EACH BILL SHALL IDENTIFY THE NAME OF THE CUSTOMER'S

4 NATURAL GAS SUPPLIER OR DISTRIBUTOR AND PROVIDE THE SUPPLIER'S OR

5 DISTRIBUTOR'S ADDRESSES AND TELEPHONE NUMBERS.

6 Enacting section 1. This amendatory act does not take

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

8 are enacted into law:

9 (a) Senate Bill No. 916.

10

11 (b) Senate Bill No. 917.

12

13 (c) Senate Bill No. 918.

14

15 (d) Senate Bill No. 920.

16

17 (e) Senate Bill No. 922.

18

19 (f) Senate Bill No. 921.

20

04283'99 c * Final page. SAT