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MI SB0477

MI SB0477
Public utilities: electric utilities; establishment of microgrids; provide for. Amends sec. 10a of 1939 PA 3 (MCL 460.10a).


summary

Introduced
07/01/2025
In Committee
07/01/2025
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; 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,"by amending section 10a (MCL 460.10a), as amended by 2016 PA 341.

AI Summary

This bill amends Michigan's public utilities law to establish regulations for microgrids and expand electric utility service options. The bill modifies existing rules about alternative electric suppliers, allowing up to 10% of an electric utility's sales to be served by alternative suppliers, with provisions for adjusting this cap based on actual usage. The bill introduces a new concept of "community service power," which allows electricity distribution through microgrids across multiple property lines. The legislation requires the Michigan Public Service Commission to issue orders within 270 days that facilitate microgrid establishment, including ensuring uniform interconnection procedures, allowing microgrid operation, and establishing electricity purchase rates. Key provisions include allowing microgrids to serve multiple customers, ensuring standby tariff service is available (but not mandatory), and waiving standby rates for microgrids under 10 megawatts. The bill defines microgrids as interconnected loads and distributed energy resources with clear electrical boundaries that can operate both connected to and disconnected from the main electrical grid. These changes aim to provide more flexible energy options for customers and support the development of localized, resilient energy systems.

Committee Categories

Agriculture and Natural Resources

Sponsors (7)

Last Action

Referred To Committee On Energy And Environment (on 07/01/2025)

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