November 13, 2014, Introduced by Reps. Schmidt, Hobbs, Singh and Cavanagh and referred to the Committee on Energy and Technology.
A bill to amend 2008 PA 295, entitled
"Clean, renewable, and efficient energy act,"
by amending the title, sections 7, 71, 73, 75, 77, 83, 89, 91, 95,
191, 193, and 195, and the title to part 6 (MCL 460.1007, 460.1071,
460.1073, 460.1075, 460.1077, 460.1083, 460.1089, 460.1091,
460.1095, 460.1191, 460.1193, and 460.1195) and by adding part 7.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
TITLE
An act to require certain providers of electric service to
establish renewable energy programs; to require certain providers
of electric or natural gas service to establish energy optimization
programs; to authorize the use of certain energy systems to meet
the requirements of those programs; to provide for the approval of
energy optimization service companies; to provide for certain
charges on electric and natural gas bills; to provide for on-bill
financing of customer energy efficiency measures and for funding of
that program by the sale of securities, issuance of debt
obligations, and other means; to promote energy conservation by
state agencies and the public; to create a wind energy resource
zone board and provide for its power and duties; to authorize the
creation and implementation of wind energy resource zones; to
provide for expedited transmission line siting certificates; to
provide for a net metering program and the responsibilities of
certain providers of electric service and customers with respect to
net metering; to provide for fees; to prescribe the powers and
duties of certain state agencies and officials; to require the
promulgation of rules and the issuance of orders; and to provide
for civil sanctions, remedies, and penalties.
Sec. 7. As used in this act:
(a) "Gasification facility" means a facility located in this
state that uses a thermochemical process that does not involve
direct combustion to produce synthesis gas, composed of carbon
monoxide and hydrogen, from carbon-based feedstocks (such as coal,
petroleum coke, wood, biomass, hazardous waste, medical waste,
industrial waste, and solid waste, including, but not limited to,
municipal solid waste, electronic waste, and waste described in
section 11514 of the natural resources and environmental protection
act, 1994 PA 451, MCL 324.11514) and that uses the synthesis gas or
a mixture of the synthesis gas and methane to generate electricity
for commercial use. Gasification facility includes the transmission
lines, gas transportation lines and facilities, and associated
property and equipment specifically attributable to such a
facility. Gasification facility includes, but is not limited to, an
integrated gasification combined cycle facility and a plasma arc
gasification facility.
(b) "Incremental costs of compliance" means the net revenue
required by an electric provider to comply with the renewable
energy standard, calculated as provided under section 47.
(c) "Independent transmission company" means that term as
defined in section 2 of the electric transmission line
certification act, 1995 PA 30, MCL 460.562.
(d) "Industrial cogeneration facility" means a facility that
generates electricity using industrial thermal energy or industrial
waste energy.
(e) "Industrial thermal energy" means thermal energy that is a
by-product of an industrial or manufacturing process and that would
otherwise be wasted. For the purposes of this subdivision,
industrial or manufacturing process does not include the generation
of electricity.
(f) "Industrial waste energy" means exhaust gas or flue gas
that is a by-product of an industrial or manufacturing process and
that would otherwise be wasted. For the purposes of this
subdivision, industrial or manufacturing process does not include
the generation of electricity.
(g) "Integrated gasification combined cycle facility" means a
gasification facility that uses a thermochemical process, including
high temperatures and controlled amounts of air and oxygen, to
break substances down into their molecular structures and that uses
exhaust heat to generate electricity.
(h) "LEED" means the leadership in energy and environmental
design green building rating system developed by the United States
green building council.
(i) "Load management" means measures or programs that target
equipment or devices to result in decreased peak electricity demand
such as by shifting demand from a peak to an off-peak period. Load
management includes, but is not limited to, automated energy
management systems responsive to time-specific pricing or demand
response requests from an electric provider, customer-premise
thermal storage, customer-premise electrochemical storage, electric
vehicle charging control, and conservation voltage regulation.
(j) "Modified net metering" means a utility billing method
that applies the power supply component of the full retail rate to
the net of the bidirectional flow of kilowatt hours across the
customer interconnection with the utility distribution system,
during a billing period or time-of-use pricing period. A negative
net metered quantity during the billing period or during each time-
of-use pricing period within the billing period reflects net excess
generation for which the customer is entitled to receive credit
under section 177(4). Standby charges for modified net metering
customers on an energy rate schedule shall be equal to the retail
distribution charge applied to the imputed customer usage during
the billing period. The imputed customer usage is calculated as the
sum of the metered on-site generation and the net of the
bidirectional flow of power across the customer interconnection
during the billing period. The commission shall establish standby
charges for modified net metering customers on demand-based rate
schedules that provide an equivalent contribution to utility system
costs.
Sec. 71. (1) A provider shall file a proposed energy
optimization plan with the commission within the following time
period:
(a) For a provider whose rates are regulated by the
commission,
90 days after the commission enters a temporary order
under
section 171. by March 3,
2009.
(b) For a cooperative electric utility that has elected to
become member-regulated under the electric cooperative member
regulation act, 2008 PA 167, MCL 460.31 to 460.39, or a
municipally-owned
electric utility, 120 days after the commission
enters
a temporary order under section 171. by April 2, 2009.
(2) The overall goal of an energy optimization plan shall be
to reduce the future costs of provider service to customers and
eliminate the waste of energy. In particular, an EO plan shall be
designed to delay the need for constructing new electric generating
facilities and thereby protect consumers from incurring the costs
of
such that construction. The proposed energy optimization plan
shall
be is subject to approval in the same manner as an
electric
provider's
renewable energy plan under subpart A. A provider may
combine
its energy optimization plan with its renewable energy
plan.
(3) An energy optimization plan shall do all of the following:
(a) Propose a set of energy optimization programs that include
offerings for each customer class, including low income
residential. The commission shall allow providers flexibility to
tailor the relative amount of effort devoted to each customer class
based on the specific characteristics of their service territory.
The set of energy optimization programs shall be designed to do all
of the following:
(i) Encourage and assist customers to adopt all available cost-
effective energy efficiency measures.
(ii) Incorporate all available cost-effective provider load
management measures.
(iii) Encourage and assist customers to adopt all available
cost-effective customer load management.
(b) Specify necessary funding levels.
(c) Describe how energy optimization program costs will be
recovered
as provided in section 89(2).89.
(d) Ensure, to the extent feasible, that charges collected
from a particular customer rate class are spent on energy
optimization programs for that rate class.
(e) Demonstrate that the proposed energy optimization programs
and funding are sufficient to ensure the achievement of applicable
energy optimization standards.
(f) Specify whether the number of megawatt hours of
electricity or decatherms or MCFs of natural gas used in the
calculation of incremental energy savings under section 77 will be
weather-normalized or based on the average number of megawatt hours
of electricity or decatherms or MCFs of natural gas sold by the
provider annually during the previous 3 years to retail customers
in this state. Once the plan is approved by the commission, this
option shall not be changed.
(g) Demonstrate that the provider's energy optimization
programs, excluding program offerings to low income residential
customers, will collectively be cost-effective.
(h) Provide for the practical and effective administration of
the proposed energy optimization programs. The commission shall
allow providers flexibility in designing their energy optimization
programs and administrative approach. A provider's energy
optimization
programs or any part thereof , may be
administered, at
the provider's option, by the provider, alone or jointly with other
providers, by a state agency, or by an appropriate experienced
nonprofit organization selected after a competitive bid process.
(i) Include a process for obtaining an independent expert
evaluation of the actual energy optimization programs to verify the
incremental energy savings from each energy optimization program
for
purposes of section 77. All such evaluations shall be are
subject to public review and commission oversight.
(j) Allocate 1% of energy optimization funding to any of the
following:
(i) Innovation in energy efficiency through research and
development grants to universities, to nonprofit research and
development organizations, or to small businesses receiving funds
from innovation funds of the United States or this state.
(ii) Commercialization of innovation in energy efficiency
through grants, joint ventures, or investments.
(4) Subject to subsection (5), an energy optimization plan may
do 1 or more of the following:
(a) Utilize educational programs designed to alter consumer
behavior or any other measures that can reasonably be used to meet
the goals set forth in subsection (2).
(b) Propose to the commission measures that are designed to
meet
the goals set forth in subsection (1) (2) and that provide
additional customer benefits.
(5) Expenditures under subsection (4) shall not exceed 3% of
the costs of implementing the energy optimization plan.
(6) By January 1, 2017, an energy optimization plan shall
include programs for on-bill financing of energy efficiency
measures. An on-bill financing program shall meet all of the
following requirements:
(a) Be designed so that savings in electricity or natural gas
bills from the energy efficiency measures are greater than the cost
of debt service, on an annual basis.
(b) Limit the period of repayment for a financed energy
efficiency measure to a time not greater than 80% of its expected
useful life.
(c) Provide that any arrearage in bill payment be
proportionally allocated to current electricity or natural gas
service charges and current debt service charges.
(d) Be offered on equal terms for owner-occupied and rented
property.
(e) Provide that the debt service obligation remains with the
metered premises through changes of customers and for the provider
to give notice of the on-bill financing obligations to a new
customer before the account is transferred.
(f) Offer customers financial terms that are superior to those
generally available for unsecured debt to members of the customer
class.
(g) Provide for funding through 1 or more of the following:
(i) Participation in a program under the property assessed
clean energy act, 2010 PA 270, MCL 460.931 to 460.949.
(ii) Debt placement through a nonprofit organization
established for the purpose of financing energy efficiency measures
or other lending institution to which the provider provides funding
for a loan-loss reserve or letter of credit of at least 20% of the
debt balance.
(iii) Sale of securities backed by the aggregated on-bill
repayment obligations of the participating customers.
(iv) Short-term debt obligations of the provider.
Sec. 73. (1) A provider's energy optimization plan shall be
filed, reviewed, and approved or rejected by the commission and
enforced subject to the same procedures that apply to a renewable
energy plan.
(2) The commission shall not approve a proposed energy
optimization plan unless the commission determines that the EO plan
meets the utility system resource cost test and is reasonable and
prudent. In determining whether the EO plan is reasonable and
prudent, the commission shall review each element and consider
whether it would reduce the future cost of service for the
provider's customers. In addition, the commission shall consider at
least all of the following:
(a) The specific changes in customers' consumption patterns
that the proposed EO plan is attempting to influence.
(b) The cost and benefit analysis and other justification for
specific programs and measures included in a proposed EO plan.
(c) Whether the proposed EO plan includes all achievable cost-
effective energy optimization measures.
(d) (c)
Whether the proposed EO plan is
consistent with any
long-range resource plan filed by the provider with the commission.
(e) (d)
Whether the proposed EO plan will
result in any
unreasonable prejudice or disadvantage to any class of customers.
(f) (e)
The extent to which the EO plan
provides programs that
are available, affordable, and useful to all customers.
Sec. 75. An energy optimization plan of a provider whose rates
are regulated by the commission may authorize a commensurate
financial incentive for the provider for exceeding the energy
optimization performance standard. Payment of any financial
incentive authorized in the EO plan is subject to the approval of
the commission. The total amount of a financial incentive shall not
exceed the lesser of the following amounts:
(a) 25% of the net cost reductions experienced by the
provider's customers as a result of implementation of the energy
optimization plan.
(b)
15% percent 20% of the provider's actual energy efficiency
program expenditures for the year.
Sec.
77. (1) Except as provided in section 81, and subject to
the
sales revenue expenditure limits in section 89, an electric
provider's energy optimization programs under this subpart shall
collectively achieve the following minimum energy savings:
(a) Biennial incremental energy savings in 2008-2009
equivalent to 0.3% of total annual retail electricity sales in
megawatt hours in 2007.
(b) Annual incremental energy savings in 2010 equivalent to
0.5% of total annual retail electricity sales in megawatt hours in
2009.
(c) Annual incremental energy savings in 2011 equivalent to
0.75% of total annual retail electricity sales in megawatt hours in
2010.
(d) Annual incremental energy savings in 2012, 2013, 2014, and
2015
and, subject to section 97, each year thereafter equivalent to
1.0% of total annual retail electricity sales in megawatt hours in
the preceding year.
(e) Annual incremental savings in 2016 equivalent to 1.1% of
total annual retail electricity sales in megawatt hours in 2015.
(f) Annual incremental savings in 2017 equivalent to 1.3% of
total annual retail electricity sales in megawatt hours in 2016.
(g) Annual incremental savings in 2018 and each year
thereafter equivalent to 1.5% of total annual retail electricity
sales in megawatt hours in the preceding year.
(2) If an electric provider uses load management to achieve
energy savings under its energy optimization plan, the minimum
energy savings required under subsection (1) shall be adjusted by
an amount such that the ratio of the minimum energy savings to the
sum of maximum expenditures under section 89 and the load
management expenditures remains constant.
(3) A natural gas provider shall meet the following minimum
energy optimization standards using energy efficiency programs
under this subpart:
(a) Biennial incremental energy savings in 2008-2009
equivalent to 0.1% of total annual retail natural gas sales in
decatherms or equivalent MCFs in 2007.
(b) Annual incremental energy savings in 2010 equivalent to
0.25% of total annual retail natural gas sales in decatherms or
equivalent MCFs in 2009.
(c) Annual incremental energy savings in 2011 equivalent to
0.5% of total annual retail natural gas sales in decatherms or
equivalent MCFs in 2010.
(d) Annual incremental energy savings in 2012, 2013, 2014, and
2015
and, subject to section 97, each year thereafter equivalent to
0.75% of total annual retail natural gas sales in decatherms or
equivalent MCFs in the preceding year.
(e) Annual incremental savings in 2016 equivalent to 0.85% of
total annual retail natural gas sales in decatherms or equivalent
MCFs in 2015.
(f) Annual incremental savings in 2017 equivalent to 0.95% of
total annual retail natural gas sales in decatherms or equivalent
MCFs in 2016.
(g) Annual incremental savings in 2018 and each year
thereafter equivalent to 1.0% of total annual retail natural gas
sales in decatherms or equivalent MCFs in the preceding year.
(4) Incremental energy savings under subsection (1) or (3) for
the 2008-2009 biennium or any year thereafter shall be determined
for a provider by adding the energy savings expected to be achieved
during a 1-year period by energy optimization measures implemented
during the 2008-2009 biennium or any year thereafter under any
energy efficiency programs consistent with the provider's energy
efficiency plan.
(5) For purposes of calculations under subsection (1) or (3),
total annual retail electricity or natural gas sales in a year
shall be based on 1 of the following at the option of the provider
as specified in its energy optimization plan:
(a) The number of weather-normalized megawatt hours or
decatherms or equivalent MCFs sold by the provider to retail
customers in this state during the year preceding the biennium or
year for which incremental energy savings are being calculated.
(b) The average number of megawatt hours or decatherms or
equivalent MCFs sold by the provider during the 3 years preceding
the biennium or year for which incremental energy savings are being
calculated.
(6) For any year after 2012, an electric provider may
substitute renewable energy credits associated with renewable
energy generated that year from a renewable energy system
constructed
after the effective date of this act, October 6, 2008,
advanced cleaner energy credits other than credits from industrial
cogeneration using industrial waste energy, load management that
reduces overall energy usage, or a combination thereof for energy
optimization credits otherwise required to meet the energy
optimization performance standard, if the substitution is approved
by the commission. The commission shall not approve a substitution
unless the commission determines that the substitution is cost-
effective and, if the substitution involves advanced cleaner energy
credits, that the advanced cleaner energy system provides carbon
dioxide emissions benefits. In determining whether the substitution
of advanced cleaner energy credits is cost-effective compared to
other available energy optimization measures, the commission shall
consider the environmental costs related to the advanced cleaner
energy system, including the costs of environmental control
equipment or greenhouse gas constraints or taxes. The commission's
determinations shall be made after a contested case hearing that
includes consultation with the department of environmental quality
on the issue of carbon dioxide emissions benefits, if relevant, and
environmental costs.
(7) Renewable energy credits, advanced cleaner energy credits,
load management that reduces overall energy usage, or a combination
thereof shall not be used by a provider to meet more than 10% of
the energy optimization standard. Substitutions for energy
optimization credits shall be made at the following rates per
energy optimization credit:
(a) 1 renewable energy credit.
(b) 1 advanced cleaner energy credit from plasma arc
gasification.
(c) 4 advanced cleaner energy credits other than from plasma
arc gasification.
Sec. 83. (1) One energy optimization credit shall be granted
to a provider for each megawatt hour of annual incremental energy
savings achieved through energy optimization. If an electric
provider accepts electricity from the cogeneration system of a
residential or commercial customer pursuant to a fair-value tariff
or standard-offer contract pursuant to section 173, energy
optimization credits shall be granted only for that portion of
electricity generated with fuel equivalent to the fuel that would
have been used for the purpose of heating or cooling if the
cogeneration system were not capturing waste heat for that purpose.
(2) An energy optimization credit expires as follows:
(a) When used by a provider to comply with its energy
optimization performance standard.
(b) When substituted for a renewable energy credit under
section 27.
(c) As provided in subsection (3).
(3) If a provider's incremental energy savings in the 2008-
2009 biennium or any year thereafter exceed the applicable energy
optimization standard, the associated energy optimization credits
may be carried forward and applied to the next year's energy
optimization standard. However, all of the following apply:
(a) The number of energy optimization credits carried forward
shall not exceed 1/3 of the next year's standard. Any energy
optimization credits carried forward to the next year shall expire
that year. Any remaining energy optimization credits shall expire
at the end of the year in which the incremental energy savings were
achieved, unless substituted, by an electric provider, for
renewable energy credits under section 27.
(b) Energy optimization credits shall not be carried forward
if, for its performance during the same biennium or year, the
provider accepts a financial incentive under section 75. The excess
energy optimization credits shall expire at the end of the year in
which the incremental energy savings were achieved, unless
substituted, by an electric provider, for renewable energy credits
under section 27.
Sec. 89. (1) The commission shall allow a provider whose rates
are regulated by the commission to recover the actual costs of
implementing its approved energy optimization plan. However, costs
exceeding the overall funding levels specified in the energy
optimization plan are not recoverable unless those costs are
reasonable and prudent and meet the utility system resource cost
test. Furthermore, costs for load management undertaken pursuant to
an energy optimization plan are not recoverable as energy
optimization program costs under this section, but may be recovered
as described in section 95.
(2) Under subsection (1), costs shall be recovered from all
natural gas customers and from residential electric customers by
volumetric charges, from all other metered electric customers by
per-meter charges, and from unmetered electric customers by an
appropriate charge, applied to utility bills as an itemized charge.
(3) For the electric primary customer rate class customers of
electric providers and customers of natural gas providers with an
aggregate annual natural gas billing demand of more than 100,000
decatherms or equivalent MCFs for all sites in the natural gas
utility's service territory, the cost recovery under subsection (1)
shall not exceed 1.7% of total retail sales revenue for that
customer class. For electric secondary customers and for
residential customers, the cost recovery shall not exceed 2.2% of
total retail sales revenue for those customer classes. This
subsection does not apply to cost recovery for energy optimization
programs conducted after 2015.
(4) Upon petition by a provider whose rates are regulated by
the commission, the commission shall authorize the provider to
capitalize all energy efficiency and energy conservation equipment,
materials, and installation costs with an expected economic life
greater than 1 year incurred in implementing its energy
optimization plan, including such costs paid to third parties, such
as customer rebates and customer incentives. The provider shall
also propose depreciation treatment with respect to its capitalized
costs in its energy optimization plan, and the commission shall
order reasonable depreciation treatment related to these
capitalized costs. A provider shall not capitalize payments made to
an independent energy optimization program administrator under
section 91.
(5)
The established funding at
the level established for low
income residential programs shall be provided from each customer
rate class in proportion to that customer rate class's funding of
the provider's total energy optimization programs. Charges shall be
applied to distribution customers regardless of the source of their
electricity or natural gas supply.
(6)
The commission shall authorize a natural gas provider that
spends
a minimum of 0.5% of total natural gas retail sales
revenues, including, for a natural gas provider, natural gas
commodity costs, in a year on commission-approved energy
optimization programs to implement a symmetrical revenue decoupling
true-up mechanism that adjusts for sales volumes that are above or
below the projected levels that were used to determine the revenue
requirement
authorized in the natural gas provider's most recent
rate case. In determining the symmetrical revenue decoupling true-
up mechanism utilized for each provider, the commission shall give
deference to the proposed mechanism submitted by the provider. The
commission may approve an alternative mechanism if the commission
determines that the alternative mechanism is reasonable and
prudent.
The commission shall authorize the natural gas provider to
decouple
rates regardless of whether the natural gas provider's
energy optimization programs are administered by the provider or an
independent energy optimization program administrator under section
91.
(7) A natural gas provider or an electric provider shall not
spend more than the following percentage of total utility retail
sales revenues, including electricity or natural gas commodity
costs, in any year to comply with the energy optimization
performance standard without specific approval from the commission:
(a) In 2009, 0.75% of total retail sales revenues for 2007.
(b) In 2010, 1.0% of total retail sales revenues for 2008.
(c) In 2011, 1.5% of total retail sales revenues for 2009.
(d)
In 2012, and each year thereafter, 2013, 2014, and 2015,
2.0% of total retail sales revenues for the 2 years preceding.
Sec. 91. (1) Except for section 89(6), sections 71 to 89 do
not apply to a provider that pays the following percentage of total
utility sales revenues, including electricity or natural gas
commodity costs, each year to an independent energy optimization
program administrator selected by the commission:
(a) In 2009, 0.75% of total retail sales revenues for 2007.
(b) In 2010, 1.0% of total retail sales revenues for 2008.
(c) In 2011, 1.5% of total retail sales revenues for 2009.
(d)
In 2012, and each year thereafter, 2013, 2014, and 2015,
2.0%
of total retail sales revenues for the 2 years second year
preceding.
(e) In 2016 and each year thereafter, a percentage of total
retail sales revenues for the second year preceding determined by
the commission as necessary for the independent energy optimization
program administrator to meet the standards for an approvable
energy optimization plan.
(2) An alternative compliance payment received from a provider
by the energy optimization program administrator under subsection
(1) shall be used to administer energy efficiency programs for the
provider. Money unspent in a year shall be carried forward to be
spent in the subsequent year.
(3) The commission shall allow a provider to recover an
alternative compliance payment under subsection (1). This cost
shall be recovered from residential customers by volumetric
charges, from all other metered customers by per-meter charges, and
from unmetered customers by an appropriate charge, applied to
utility bills.
(4)
An A provider's alternative compliance payment under
subsection (1) shall only be used to fund energy optimization
programs for that provider's customers. To the extent feasible,
charges collected from a particular customer rate class and paid to
the energy optimization program administrator under subsection (1)
shall
be devoted to used for energy optimization programs and
services for that rate class.
(5) Money paid to the energy optimization program
administrator under subsection (1) and not spent by the
administrator that year shall remain available for expenditure the
following year, subject to the requirements of subsection (4).
(6) The commission shall select a qualified nonprofit
organization to serve as an energy optimization program
administrator under this section, through a competitive bid
process.
(7) The commission shall arrange for a biennial independent
audit of the energy optimization program administrator.
Sec. 95. (1) The commission shall do all of the following:
(a) Promote load management in appropriate circumstances.
(b) Actively pursue increasing public awareness of load
management techniques.
(c) Engage in regional load management efforts to reduce the
annual demand for energy whenever possible.
(d) Work with residential, commercial, and industrial
customers to reduce annual demand and conserve energy through load
management techniques and other activities it considers
appropriate.
The commission shall file a report with the
legislature
by December 31, 2010 on the effort to reduce peak
demand.
The report shall also include any recommendations for
legislative
action concerning load management that the commission
considers
necessary.
(2) The commission may allow a provider whose rates are
regulated by the commission to recover costs for load management
undertaken pursuant to an energy optimization plan through base
rates as part of a proceeding under section 6 of 1939 PA 3, MCL
460.6, if the costs are reasonable and prudent and meet the utility
systems resource cost test.
(3) The commission shall do all of the following:
(a) Promote energy efficiency and energy conservation.
(b) Actively pursue increasing public awareness of energy
conservation and energy efficiency.
(c) Actively engage in energy conservation and energy
efficiency efforts with providers.
(d) Engage in regional efforts to reduce demand for energy
through energy conservation and energy efficiency.
(e) By November 30, 2009, and each year thereafter, submit to
the standing committees of the senate and house of representatives
with primary responsibility for energy and environmental issues a
report on the effort to implement energy conservation and energy
efficiency programs or measures. The report may include any
recommendations of the commission for energy conservation
legislation.
(4) This subpart does not limit the authority of the
commission, following an integrated resource plan proceeding and as
part of a rate-making process, to allow a provider whose rates are
regulated by the commission to recover for additional prudent
energy efficiency and energy conservation measures not included in
the provider's energy optimization plan if the provider has met the
requirements of the energy optimization program.
(5) The commission shall establish and maintain a website
referred to as the Michigan energy optimization portal. The
Michigan energy optimization portal shall allow provider customers
in this state to obtain all of the following, after providing
appropriate credentials:
(a) Electric and natural gas metering data for their property.
(b) Reliable energy optimization guidance using the data under
subdivision (a).
(c) A building energy rating showing the relationship between
weather and building energy consumption.
(d) Measurement and verification of energy savings suitable
for use as performance standards in energy efficiency performance
contracts.
(6) The commission, in collaboration and consultation with the
utilities and statewide organizations representing local
governments and school districts, shall develop a uniform statewide
energy optimization program for public infrastructure, including
water and sewer systems, street lighting, traffic signals, parking
garage lighting, public safety communications systems, and
buildings. The program shall be funded by utility energy
optimization programs beginning January 1, 2017. The program shall
incorporate the use of performance contracting to the extent
possible.
(7) Within 2 years after the effective date of the amendatory
act that added this subsection, the commission, in collaboration
and consultation with the department of community health, the
department of human services, the Michigan state housing
development authority, the Michigan economic development
corporation, and representatives of low income weatherization
providers, low income housing providers, and low income
individuals, shall submit to the legislature a comprehensive and
detailed report on low income household energy assistance and
energy efficiency programs. The report shall recommend the most
effective ways to do all of the following:
(a) Ensure that residential customers participate in energy
efficiency programs if the customers are subject to low income or
senior electric or natural gas rates or the customers participate
in low income electric or natural gas bill payment assistance
programs.
(b) Integrate utility low income energy optimization programs
with other housing and health programs for maximum effectiveness in
providing healthy, affordable low income housing.
(8) By October 1, 2018, the commission shall submit to the
legislature a report on the potential for greater energy efficiency
in this state, including recommendations on whether the minimum
annual incremental energy savings requirements for providers in
section 77 should be increased.
PART 6.
MISCELLANEOUS COMMISSION PROVISIONS METERING AND INFORMATION
SERVICES
Sec.
191. (1) Within 60 days after the effective date of this
act,
the commission shall issue a temporary order implementing this
act,
including, but not limited to, all of the following:
(a)
Formats of renewable energy plans for various categories
of
electric providers.
(b)
Guidelines for requests for proposals under this act.
(2)
Within 1 year after the effective date of this act, the
commission
shall promulgate rules to implement this act pursuant to
the
administrative procedures act of 1969, 1969 PA 306, MCL 24.201
to
24.328. Upon promulgation of the rules, the order under
subsection
(1) is rescinded.All
electricity and natural gas
delivery in this state shall be metered by the distribution
utility, unless unmetered service is authorized by the commission.
Meters shall meet technical specifications adopted by the
commission. All electric meters installed on or after January 1,
2018 shall be able to record and report electricity usage in
intervals of 1 hour or less. All electric meters in use by electric
providers subject to regulation by the commission on or after
January 1, 2021 shall record and report electricity usage in
intervals of 1 hour or less, the start and end times of electrical
outages, and power quality parameters as specified by the
commission.
Sec.
193. (1) Any interested party may intervene in a
contested
case proceeding under this act as provided in general
rules
of the commission.
(2)
The commission and a provider shall handle confidential
business
information under this act in a manner consistent with
state
law and general rules of the commission.
(1) Electric or natural gas metering data are owned by the
current customer of record for the property to which the data
apply. The distribution utility providing metering service to the
property is the custodian of that metering data and may use the
metering data for billing, operations, and other internal purposes.
However, the distribution utility shall not convey the metering
data to third parties without permission of the current customer of
record for the property, except as otherwise provided by law. The
distribution utility shall retain metering data for at least 5
years but not more than 7 years. Subject to this subsection, the
distribution utility shall promptly make metering data available
through the utility's website.
(2) Annually, upon account transfer to a new party, and upon
customer request, the distribution utility providing metering
services to a property shall provide to the customer a report in a
format specified by the commission showing electricity or natural
gas usage at the property in total and in relation to weather, time
of day, and such other factors as the commission determines useful
to customers.
Sec.
195. This act does not limit any authority of the
commission
otherwise provided by law.For
distribution utilities
whose rates are regulated by the commission, charges for metering,
billing, and information services shall be uniform by meter class.
However, customers who opt out of remote meter reading may be
charged an additional fee to recover the extra costs of metering
service. A distribution utility may provide to customers metering
services for purposes other than billing on the same terms and
charges as metering services for billing purposes.
PART 7.
MISCELLANEOUS COMMISSION PROVISIONS
Sec. 221. To implement this act, the commission may issue
orders or, pursuant to the administrative procedures act of 1969,
1969 PA 306, MCL 24.201 to 24.328, promulgate rules.
Sec. 223. (1) Any interested party may intervene in a
contested case proceeding under this act as provided in general
rules of the commission.
(2) The commission and a provider shall handle confidential
business information under this act in a manner consistent with
state law and general rules of the commission.
Sec. 225. This act does not limit any authority of the
commission otherwise provided by law.