Senator Jim Runestad (R-White Lake) introduced legislation requiring utility companies to adhere to actual cost data instead of anecdotal future projections when seeking rate increase approval from the Michigan Public Service Commission (MPSC).
Key Points:
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- When a utility provider seeks a rate increase, it files an application with the MPSC, including a list of all costs and revenues over a 12-month period.
- Utilities can utilize a future test year based on projected costs and revenues.
- Under SB 812, utility companies would have to rely on actual costs when requesting approval from the MPSC instead of future projections.
- According to data from the U.S. Energy Information Administration, Michigan’s residential utility customers pay the 11thhighest electricity rates in the nation.
Next Step:
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- The bill was referred to the Senate Energy and Environment Committee for consideration.
