HOUSE BILL No. 4485


     March 15, 2001, Introduced by Reps. Richardville, Raczkowski, Pappageorge, Gilbert, Birkholz, Middaugh, Voorhees,
Sanborn, Van Woerkom, Woronchak, Bradstreet, Julian, Schauer, Kooiman, Vander Veen, Toy, Allen, Ruth Johnson, Vander Roest,
Shackleton, Faunce, Wojno and Garcia 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 util-
   ities and other services affected with a public interest within
   this state; to provide for alternative energy suppliers; to pro-
   vide 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 cer-
   tain 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 facili-
   ties; 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 reme-
   dies and penalties; and to repeal acts and parts of acts,"

   (MCL 460.1 to 460.10cc) by adding section 9.

               THE PEOPLE OF THE STATE OF MICHIGAN ENACT:




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           SEC. 9.  (1) A NATURAL GAS DISTRIBUTOR OR SUPPLIER SHALL NOT

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      TERMINATE SERVICE TO AN ELIGIBLE CUSTOMER DURING THE HEATING

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      SEASON FOR NONPAYMENT OF A DELINQUENT ACCOUNT IF THE CUSTOMER IS

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      AN ELIGIBLE SENIOR CITIZEN CUSTOMER OR IF THE CUSTOMER PAYS TO

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      THE DISTRIBUTOR OR SUPPLIER A MONTHLY AMOUNT EQUAL TO 5% OF THE

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      ESTIMATED ANNUAL BILL FOR THE ELIGIBLE CUSTOMER AND THE ELIGIBLE

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      CUSTOMER DEMONSTRATES, WITHIN 14 DAYS OF REQUESTING SHUTOFF PRO-

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      TECTION, THAT HE OR SHE HAS APPLIED FOR STATE OR FEDERAL HEATING

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      ASSISTANCE.  IF AN ARREARAGE EXISTS AT THE TIME AN ELIGIBLE CUS-

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      TOMER APPLIES FOR PROTECTION FROM SHUTOFF OF SERVICE DURING THE

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      HEATING SEASON, THE DISTRIBUTOR OR SUPPLIER SHALL PERMIT THE CUS-

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      TOMER TO PAY THE ARREARAGE IN EQUAL MONTHLY INSTALLMENTS BETWEEN

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      THE DATE OF APPLICATION AND THE START OF THE SUBSEQUENT HEATING

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      SEASON.

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           (2) A NATURAL GAS DISTRIBUTOR OR SUPPLIER MAY TERMINATE

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      SERVICE TO AN ELIGIBLE LOW-INCOME CUSTOMER WHO DOES NOT PAY THE

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      MONTHLY AMOUNTS REQUIRED UNDER SUBSECTION (1) AFTER GIVING NOTICE

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      IN THE MANNER REQUIRED UNDER SUBSECTION (3).  THE DISTRIBUTOR OR

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      SUPPLIER IS NOT REQUIRED TO OFFER A SETTLEMENT AGREEMENT TO AN

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      ELIGIBLE LOW-INCOME CUSTOMER WHO FAILS TO MAKE THE MONTHLY PAY-

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      MENTS REQUIRED UNDER SUBSECTION (1).

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           (3) IF A CUSTOMER FAILS TO COMPLY WITH THE TERMS AND CONDI-

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      TIONS OF THIS SECTION, A DISTRIBUTOR OR SUPPLIER MAY TERMINATE

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      SERVICE AFTER GIVING THE CUSTOMER NOTICE, BY PERSONAL SERVICE OR

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      FIRST-CLASS MAIL, THAT CONTAINS ALL OF THE FOLLOWING

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      INFORMATION:





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           (A) THAT THE CUSTOMER HAS DEFAULTED.

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           (B) THE NATURE OF THE DEFAULT.

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           (C) THAT UNLESS THE CUSTOMER MAKES THE PAYMENTS THAT ARE

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      PAST DUE WITHIN 10 DAYS OF THE DATE OF MAILING, THE DISTRIBUTOR

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      OR SUPPLIER MAY SHUT OFF SERVICE.

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           (D) THE DATE ON OR AFTER WHICH THE DISTRIBUTOR OR SUPPLIER

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      MAY TERMINATE SERVICE, UNLESS THE CUSTOMER TAKES APPROPRIATE

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      ACTION.

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           (E) THE TELEPHONE NUMBER AND ADDRESS OF THE DISTRIBUTOR OR

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      SUPPLIER.

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           (F) THAT THE CUSTOMER SHOULD CONTACT A SOCIAL SERVICES

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      AGENCY IMMEDIATELY IF THE CUSTOMER BELIEVES HE OR SHE MIGHT BE

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      ELIGIBLE FOR EMERGENCY ECONOMIC ASSISTANCE.

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           (G) THAT THE DISTRIBUTOR OR SUPPLIER WILL POSTPONE TERMINA-

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      TION OF SERVICE IF A MEDICAL EMERGENCY EXISTS AT THE CUSTOMER'S

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      RESIDENCE.

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           (H) THAT THE DISTRIBUTOR OR SUPPLIER MAY REQUIRE A DEPOSIT

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      AND RESTORATION CHARGE IF THE DISTRIBUTOR OR SUPPLIER SHUTS OFF

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      SERVICE FOR NONPAYMENT OF A DELINQUENT ACCOUNT.

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           (4) AS USED IN THIS SECTION:

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           (A) "ELIGIBLE CUSTOMER" MEANS EITHER AN ELIGIBLE LOW-INCOME

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      CUSTOMER OR AN ELIGIBLE SENIOR CITIZEN CUSTOMER.

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           (B) "ELIGIBLE LOW-INCOME CUSTOMER" MEANS A CUSTOMER WHOSE

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      HOUSEHOLD INCOME DOES NOT EXCEED 175% OF THE POVERTY LEVEL, AS

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      PUBLISHED BY THE UNITED STATES DEPARTMENT OF HEALTH AND HUMAN

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      SERVICES, OR WHO RECEIVES ANY OF THE FOLLOWING:





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           (i) ASSISTANCE FROM A STATE EMERGENCY RELIEF PROGRAM.

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           (ii) FOOD STAMPS.

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           (iii) MEDICAID.

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           (C) "ELIGIBLE SENIOR CITIZEN CUSTOMER" MEANS A DISTRIBUTOR

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      OR SUPPLIER CUSTOMER WHO IS 65 YEARS OF AGE OR OLDER AND WHO

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      ADVISES THE DISTRIBUTOR OR SUPPLIER OF HIS OR HER ELIGIBILITY.












































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