Bill
Bill > SB0324
MI SB0324
MI SB0324Energy: alternative sources; shared savings mechanism; provide for. Amends 1939 PA 3 (MCL 460.1 - 460.11) by adding sec. 6x.
summary
Introduced
05/21/2025
05/21/2025
In Committee
05/21/2025
05/21/2025
Crossed Over
Passed
Dead
Introduced Session
103rd Legislature
Bill Summary
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 and certain providers of electric vehicle charging services; 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 powers and duties of certain state governmental officers and entities; 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 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 460.11) by adding section 6x.
AI Summary
This bill amends Michigan's existing utility regulations by introducing a shared savings mechanism to incentivize electric utilities to invest in energy waste reduction and conservation programs. The bill establishes a tiered system of financial rewards for electric utilities that achieve specific levels of annual energy savings: for utilities saving between 1% and 1.25% of their total annual retail sales, they can receive a 25% shared savings incentive (not exceeding 15% of program expenditures); for utilities saving between 1.25% and 1.5%, they can receive a 27.5% shared savings incentive (not exceeding 17.5% of program expenditures); and for utilities saving more than 1.5%, they can receive a 30% shared savings incentive (not exceeding 20% of program expenditures). The Public Service Commission will calculate these incentives by determining the net present value of lifetime avoided utility costs from energy waste reduction programs, using the utility's weighted average cost of capital as the discount rate. The goal is to encourage electric utilities to implement more aggressive energy conservation and efficiency measures by providing a financial reward for achieving specific energy savings targets.
Committee Categories
Government Affairs
Sponsors (12)
Roger Hauck (R)*,
Thomas Albert (R),
Joe Bellino (R),
Kevin Daley (R),
John Damoose (R),
Michele Hoitenga (R),
Mark Huizenga (R),
Dan Lauwers (R),
Aric Nesbitt (R),
Lana Theis (R),
Roger Victory (R),
Michael Webber (R),
Last Action
Referred To Committee On Government Operations (on 05/21/2025)
Official Document
bill text
bill summary
Loading...
bill summary
Loading...
bill summary
| Document Type | Source Location |
|---|---|
| State Bill Page | https://legislature.mi.gov/Bills/Bill?ObjectName=2025-SB-0324 |
| BillText | https://legislature.mi.gov/documents/2025-2026/billintroduced/Senate/htm/2025-SIB-0324.htm |
Loading...