Read the full stored bill text
RMH H06997'26_HB6036_INTR_1 2bi6fp
HOUSE BILL NO. 6036
A bill to amend 1939 PA 3, entitled
"An act to provide for the regulation and control of public and
certain private utilities and other services affected with a public
interest within this state; to provide for alternative energy
suppliers and certain providers of electric vehicle charging
services; to provide for licensing; to include municipally owned
utilities and other providers of energy under certain provisions of
this act; to create a public service commission and to prescribe
and define its powers and duties; to abolish the Michigan public
utilities commission and to confer the powers and duties vested by
law on the public service commission; to provide for the powers and
duties of certain state governmental officers and entities; to
provide for the continuance, transfer, and completion of certain
matters and proceedings; to abolish automatic adjustment clauses;
to prohibit certain rate increases without notice and hearing; to
June 03, 2026, Introduced by Rep. Kunse and referred to Committee on Energy.
2
RMH H06997'26_HB6036_INTR_1 2bi6fp
qualify residential energy conservation programs permitted under
state law for certain federal exemption; to create a fund; to
encourage the utilization of resource recovery facilities; to
prohibit certain acts and practices of providers of energy; to
allow for the securitization of stranded costs; to reduce rates; to
provide for appeals; to provide appropriations; to declare the
effect and purpose of this act; to prescribe remedies and
penalties; and to repeal acts and parts of acts,"
by amending section 6q (MCL 460.6q), as added by 2008 PA 286.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 6q. (1) A person shall not acquire, control, or merge, 1
directly or indirectly, in whole or in part, with a jurisdictional 2
regulated utility nor shall a jurisdictional regulated utility 3
sell, assign, transfer, or encumber its assets to another person 4
without first applying to and receiving the approval of the 5
commission. 6
(2) After notice and hearing, the commission shall issue an 7
order stating that states what constitutes acquisition, transfer of 8
control, merger activities, or encumbrance of assets that are 9
subject to this section. This section does not apply to the 10
encumbrance, assignment, acquisition, or transfer of assets that 11
are encumbered, assigned, acquired, transferred, or sold in the 12
normal course of business or to the issuance of securities or other 13
financing transactions not directly or indirectly involved in an 14
acquisition, merger, encumbrance, or transfer of control that is 15
governed by this section. 16
(3) The commission shall promulgate rules creating that create 17
procedures for the application process required under this section. 18
The application shall must include, but is not limited to, all of 19
the following information: 20
(a) A concise summary of the terms and conditions of the 21
3
RMH H06997'26_HB6036_INTR_1 2bi6fp
proposed acquisition, transfer, merger, or encumbrance. 1
(b) Copies of the material acquisition, transfer, merger, or 2
encumbrance documents if available. 3
(c) A summary of the projected impacts of the acquisition, 4
transfer, merger, or encumbrance on rates and electric service in 5
this state. 6
(d) Pro forma financial statements that are relevant to the 7
acquisition, transfer, merger, or encumbrance. 8
(e) Copies of the parties' public filings with other state or 9
federal regulatory agencies regarding the same acquisition, 10
transfer, merger, or encumbrance, including any regulatory orders 11
issued by the agencies regarding the acquisition, transfer, merger, 12
or encumbrance. 13
(4) Before a jurisdictional regulated utility submits an 14
application under this section to sell, assign, or transfer a 15
hydroelectric facility, the jurisdictional regulated utility shall 16
give the county in which the hydroelectric facility is located a 17
right of first refusal to purchase the hydroelectric facility for 18
$1.00. Not later than 90 days after a jurisdictional regulated 19
utility decides to sell, assign, or transfer a hydroelectric 20
facility, the jurisdictional regulated utility shall send written 21
notice to the county administrator of the county in which the 22
hydroelectric facility is located and offer the county the right of 23
first refusal. The written notice must include the contact 24
information for the jurisdictional regulated utility, including the 25
name, mailing address, telephone number, and email address, and be 26
sent by certified mail with return receipt requested. The county 27
shall exercise the right of first refusal to purchase the 28
hydroelectric facility not later than 90 days after the written 29
4
RMH H06997'26_HB6036_INTR_1 2bi6fp
notice is received. If the county does not exercise the right of 1
first refusal, the jurisdictional regulated utility may procced 2
with the sale, assignment, or transfer of the hydroelectric 3
facility and submit an application as required under this section. 4
When a jurisdictional regulated utility sells, assigns, or 5
transfers a hydroelectric facility under this section, the 6
jurisdictional regulated utility shall include a deed restriction 7
that requires subsequent sales, assignments, or transfers to 8
include that the county in which the hydroelectric facility is 9
located must be offered a right first refusal in accordance with 10
this subsection. This subsection applies only if the jurisdictional 11
regulated utility has voluntarily surrendered a license issued by 12
the Federal Energy Regulatory Commission under the federal power 13
act, 16 USC 791a to 825r. 14
(5) (4) Within Not later than 60 days from after the date an 15
application is filed under this section, interested parties, 16
including the attorney general, may file comments with the 17
commission on the proposed acquisition, transfer, merger, or 18
encumbrance. 19
(6) (5) After notice and hearing and within not later than 180 20
days from after the date an application is filed under this 21
section, the commission shall issue an order approving that 22
approves or rejecting rejects the proposed acquisition, transfer of 23
control, merger, or encumbrance. 24
(7) (6) All parties to an acquisition, transfer, merger, or 25
encumbrance subject to this section shall provide the commission 26
and the attorney general access to all books, records, accounts, 27
documents, and any other data and information the commission 28
considers necessary to effectively assess the impact of the 29
5
RMH H06997'26_HB6036_INTR_1 2bi6fp
proposed acquisition, transfer, merger, or encumbrance. 1
(8) (7) The commission shall consider among other factors all 2
of the following in its evaluation of whether or not to approve a 3
proposed acquisition, transfer, merger, or encumbrance: 4
(a) Whether the proposed action would have an adverse impact 5
on the rates of the customers affected by the acquisition, 6
transfer, merger, or encumbrance. 7
(b) Whether the proposed action would have an adverse impact 8
on the provision of safe, reliable, and adequate energy service in 9
this state. 10
(c) Whether the action will result in the subsidization of a 11
nonregulated activity of the new entity through the rates paid by 12
the customers of the jurisdictional regulated utility. 13
(d) Whether the action will significantly impair the 14
jurisdictional regulated utility's ability to raise necessary 15
capital or to maintain a reasonable capital structure. 16
(e) Whether the action is otherwise inconsistent with public 17
policy and interest. 18
(9) (8) In approving an acquisition, transfer, merger, or 19
encumbrance under this section, the commission may impose 20
reasonable terms and conditions on the acquisition, transfer, 21
merger, or encumbrance to protect the jurisdictional regulated 22
utility, including the division and allocation of the utility's 23
assets. A jurisdictional regulated utility may reject the terms and 24
conditions imposed by the commission and not proceed with the 25
transaction. 26
(10) (9) In approving an acquisition, transfer, merger, or 27
encumbrance under this section, the commission may impose 28
reasonable terms and conditions on the acquisition, transfer, 29
6
Final Page
RMH H06997'26_HB6036_INTR_1 2bi6fp
merger, or encumbrance to protect the customers of the 1
jurisdictional regulated utility. A jurisdictional regulated 2
utility may reject the terms and conditions imposed by the 3
commission and not proceed with the transaction. 4
(11) (10) Nonpublic information and materials submitted by a 5
jurisdictional regulated utility under this section clearly 6
designated by that utility as confidential are exempt from 7
disclosure under the freedom of information act, 1976 PA 442, MCL 8
15.231 to 15.246. The commission shall issue protective orders as 9
necessary to protect information designated by that utility as 10
confidential. 11
(12) (11) Nothing in this This section alters does not alter 12
the authority of the attorney general to enforce federal and state 13
antitrust laws. 14
(13) (12) As used in this section: 15
(a) "Commission" means the Michigan public service commission. 16
(b) "Jurisdictional regulated utility" means a utility whose 17
rates are regulated by the commission. Jurisdictional regulated 18
utility does not include a telecommunication provider as defined in 19
the Michigan telecommunications act, 1991 PA 179, MCL 484.2101 to 20
484.2604, 484.2603, or a motor carrier as defined in the motor 21
carrier act, 1933 PA 254, MCL 475.1 to 479.43.479.42. 22
(c) "Person" means an individual, corporation, association, 23
partnership, utility, or any other legal private or public entity. 24