House Energy & Tech Moves “True Cost of Service” Measure

The House Energy and Technology Committee moved a measure Tuesday that will require Michigan utilities to ascertain true costs of service to each customer class and, over the next year, adjust rates to match those costs. House Bill 5476, sponsored by Representative Jim Stamas (R-Midland), was voted from committee without opposition from members.

The measure is designed to replace the rate currently provided to Hemlock Semi Conductor as part of the economic development package that brought the plant to Michigan.

The bill would do away with ratios of costs currently included in electric utility law and designed to reflect the higher cost of serving residential customers relative to the lower cost of serving large industrial customers and instead examine the actual cost of service.

The plan also requires the Public Service Commission (PSC) to report to the Legislature relative to all of the plans submitted for each utility’s rates, and again when a proposed decision for the PSC had been developed by an administrative law judge.

posted by PAA Online , Friday, May 9, 2014 10:35 AM
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