January 28, 2009, Introduced by Senators CLARK-COLEMAN, CHERRY, HUNTER, CLARKE, SCOTT, BASHAM, BRATER and JACOBS and referred to the Committee on Energy Policy and Public Utilities.
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,"
by amending section 10t (MCL 460.10t), as added by 2000 PA 141.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 10t. (1) An electric utility or alternative electric
supplier shall not shut off service to an eligible customer during
the heating season for nonpayment of a delinquent account if the
customer is an eligible senior citizen customer or if the customer
pays to the utility or supplier a monthly amount equal to 7% of the
estimated annual bill for the eligible customer and the eligible
customer demonstrates, within 14 days of requesting shutoff
protection, that he or she has applied for state or federal heating
assistance. If an arrearage exists at the time an eligible customer
applies for protection from shutoff of service during the heating
season, the utility or supplier shall permit the customer to pay
the arrearage in equal monthly installments between the date of
application and the start of the subsequent heating season.
(2) An electric utility or alternative electric supplier may
shut off service to an eligible low-income customer who does not
pay the monthly amounts required under subsection (1) after giving
notice in the manner required by rules. The utility or supplier is
not required to offer a settlement agreement to an eligible low-
income customer who fails to make the monthly payments required
under subsection (1).
(3) If a customer fails to comply with the terms and
conditions of this section, an electric utility may shut off
service on its own behalf or on behalf of an alternative electric
supplier after giving the customer a notice, by personal service or
first-class mail, that contains all of the following information:
(a) That the customer has defaulted on the winter protection
plan.
(b) The nature of the default.
(c) That unless the customer makes the payments that are past
due within 10 days of the date of mailing, the utility or supplier
may shut off service.
(d) The date on or after which the utility or supplier may
shut off service, unless the customer takes appropriate action.
(e) That the customer has the right to file a complaint
disputing the claim of the utility or supplier before the date of
the proposed shutoff of service.
(f) That the customer has the right to request a hearing
before a hearing officer if the complaint cannot be otherwise
resolved and that the customer shall pay to the utility or supplier
that portion of the bill that is not in dispute within 3 days of
the date that the customer requests a hearing.
(g) That the customer has the right to represent himself or
herself, to be represented by an attorney, or to be assisted by any
other person of his or her choice in the complaint process.
(h) That the utility or supplier will not shut off service
pending the resolution of a complaint that is filed with the
utility in accordance with this section.
(i) The telephone number and address of the utility or
supplier where the customer may make inquiry, enter into a
settlement agreement, or file a complaint.
(j) That the customer should contact a social services agency
immediately if the customer believes he or she might be eligible
for emergency economic assistance.
(k) That the utility or supplier will postpone shutoff of
service if a medical emergency exists at the customer's residence.
(l) That the utility or supplier may require a deposit and
restoration charge if the supplier shuts off service for nonpayment
of a delinquent account.
(4) An electric utility is not required to shut off service
under this section to an eligible customer for nonpayment to an
alternative electric supplier.
(5) If an electric utility provides a residential electric
rate discount program for eligible senior citizens, that program
shall not establish variable rates that require a participating
senior citizen to pay a higher rate for service that exceeds a
designated amount of electric service.
(6) (5)
The commission shall establish an
educational program
to ensure that eligible customers are informed of the requirements
and benefits of this section.
(7) (6)
As used in this section:
(a) "Eligible customer" means either an eligible low-income
customer or an eligible senior citizen customer.
(b) "Eligible low-income customer" means a customer whose
household income does not exceed 150% of the poverty level, as
published by the United States department of health and human
services, or who receives any of the following:
(i) Assistance from a state emergency relief program.
(ii) Food stamps.
(iii) Medicaid.
(c) "Eligible senior citizen customer" means a utility or
supplier customer who is 65 years of age or older and who advises
the utility of his or her eligibility.