Legislation changing the process of proposing utility rate increases was introduced by Senator Jim Runestad (R-White Lake). This is a reintroduction of the bill, which failed to pass into law during the prior legislative term.
Key Points:
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- Under the bill, when applying for a rate increase with the Michigan Public Service Commission (MPSC), a utility provider must submit a 12-month financial breakdown of its costs and revenues.
- In 2008, the law changed to allow utility companies to use a future test instead of actual, audited past data.
- The change allowed utilities to use speculative projected costs and revenues when requesting to increase rates.
- Senate Bill 1031 would require utility companies to rely on actual costs when requesting rate increase approval from the MPSC instead of future projections.
The legislation was referred to the Senate Energy and Environment Committee for consideration.
