Michigan electric utilities would automatically credit customers for power outages

Electric utilities would automatically put outage credits on customers’ next bills and carry unused balances forward until fully used. Automatic credits would cover electric utility customers. The listed dollar amounts would apply to residential customers. Exceptions in section 9f would apply. Residential amounts would be $5 for the first hour, $7 per hour above one but below five hours, $10 per hour from five to below 12 hours, and $12 per hour from 12 to below 24 hours. Residential amounts would be $15 per hour from 24 to below 48 hours, $18 per hour from 48 to below 72 hours, and $25 per hour at 72 hours or longer. SB 1170 would take effect only if SB 1171 of the 103rd Legislature also becomes law. An interruption during a billing cycle would trigger a credit on the next electric bill.

Michigan’s public service commission would set a formula multiplying outage hours by a multiple of the customer’s average hourly electricity use. The formula would cover nonresidential customers, such as businesses, and use their average hourly electricity use over the preceding 12 months. Exceptions in section 9f would apply. SB 1170 would take effect only if SB 1171 of the 103rd Legislature also becomes law. The commission would have to set the formula within 12 months after the act takes effect.

Michigan’s public service commission would adjust outage credits using the five-year percentage change in a local index that tracks consumer prices. The adjustment requirement would apply to the outage credits described in this section. The calculation would compare the preceding year’s Detroit-Warren-Dearborn Consumer Price Index with the corresponding index five years earlier. The commission would multiply that percentage increase or decrease by the credit amounts and round each dollar adjustment up to the nearest dollar. SB 1170 would take effect only if SB 1171 of the 103rd Legislature also becomes law. Adjustments would begin five years after the act takes effect and repeat every five years. The commission would announce them by June 1.