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KHS H04971'25_HB6093_INTR_1 12aobh
HOUSE BILL NO. 6093
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 16, 2026, Introduced by Reps. Coffia, Miller, Price, Mentzer, McFall, Weiss, Wegela,
Byrnes, Morgan, McKinney, Dievendorf, Rheingans, Myers -Phillips, DeSana, Wilson, Paiz
and MacDonell and referred to Committee on Energy.
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KHS H04971'25_HB6093_INTR_1 12aobh
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 10p (MCL 460.10p), as amended by 2016 PA 341,
and by adding section 6y.
THE PEOPLE OF THE STATE OF MICHIGAN ENACT:
Sec. 6y. (1) Not later than March 1, 2027, each electric 1
utility operating in this state shall consult with an independent 2
third party for the purpose of conducting an engineering audit to 3
review distribution systems, including all equipment and operations 4
of the electric utility. An engineering audit described under this 5
section must be conducted once every 5 years with the goal of 6
addressing the actions necessary to reduce the total number and 7
duration of outages and to address public safety and 2-way 8
generation capacity. 9
(2) An engineering audit conducted under this section must 10
consist of the following components: 11
(a) A physical audit of the existing installed infrastructure 12
to determine whether the infrastructure matches the electric 13
utility's records. A physical audit must include, but is not 14
limited to, both of the following: 15
(i) Measurements of the existing installed infrastructure. 16
(ii) A comparison of the condition of the utility's 17
infrastructure to that of other utilities. 18
(b) A programs and processes audit to determine whether 19
existing programs and processes are sufficient and equitable and 20
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KHS H04971'25_HB6093_INTR_1 12aobh
properly plan for climate change and changing load profiles. A 1
programs and processes audit must include, but is not limited to, a 2
review of all of the following: 3
(i) Emergency preparedness. 4
(ii) Storm restoration. 5
(iii) System maintenance, including maintenance prioritization. 6
(iv) Accounting processes. 7
(v) Personnel and company management, including internal 8
policies and procedures regarding outages, distribution management, 9
safety, and planning. 10
(3) The commission shall develop a report and present it to 11
the house and senate committees with jurisdiction over energy 12
issues on the findings of the engineering audit and how the 13
findings impact the following: 14
(a) Performance-based rate making. 15
(b) Multiyear rates. 16
(c) Grid resiliency. 17
(d) Grid reliability. 18
(e) Accuracy of each utility's grid distribution plans. 19
(f) Identifiable gaps in the state energy plan and current 20
infrastructure. 21
(g) Legislative recommendations. 22
(4) An electric utility shall pay the cost of independent 23
third-party engineering audits. 24
(5) Engineering audits must be completed only in 5-year 25
cycles. 26
Sec. 10p. (1) Each electric utility operating in this state 27
shall establish an industry worker transition program that, in 28
consultation with employees or applicable collective bargaining 29
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KHS H04971'25_HB6093_INTR_1 12aobh
representatives, provides skills upgrades, apprenticeship and 1
training programs, voluntary separation packages consistent with 2
reasonable business practices, and job banks to coordinate and 3
assist placement of employees into comparable employment at no less 4
than the wage rates and substantially equivalent fringe benefits 5
received before the transition. 6
(2) The costs resulting from subsection (1) include audited 7
and verified employee-related restructuring costs that are incurred 8
as a result of 2000 PA 141 or as a result of prior commission 9
restructuring orders, including employee severance costs, employee 10
retraining programs, early retirement programs, outplacement 11
programs, and similar costs and programs, that have been approved 12
and found to be prudently incurred by the commission. 13
(3) In the event of a sale, purchase, or any other transfer of 14
ownership of 1 or more Michigan divisions or business units, or 15
generating stations or generating units, of an electric utility, to 16
either a third party or a utility subsidiary, the electric 17
utility's contract and agreements with the acquiring entity or 18
persons shall must require all of the following for a period of at 19
least 30 months: 20
(a) That the acquiring entity or persons hire a sufficient 21
number of nonsupervisory employees to safely and reliably operate 22
and maintain the station, division, or unit by making offers of 23
employment to the nonsupervisory workforce of the electric 24
utility's division, business unit, generating station, or 25
generating unit. 26
(b) That the acquiring entity or persons not employ 27
nonsupervisory employees from outside the electric utility's 28
workforce unless offers of employment have been made to all 29
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qualified nonsupervisory employees of the acquired business unit or 1
facility. 2
(c) That the acquiring entity or persons have a dispute 3
resolution mechanism culminating in a final and binding decision by 4
a neutral third party for resolving employee complaints or disputes 5
over wages, fringe benefits, and working conditions. 6
(d) That the acquiring entity or persons offer employment at 7
no less than the wage rates and substantially equivalent fringe 8
benefits and terms and conditions of employment that are in effect 9
at the time of transfer of ownership of the division, business 10
unit, generating station, or generating unit. The wage rates and 11
substantially equivalent fringe benefits and terms and conditions 12
of employment shall must continue for at least 30 months from after 13
the time of the transfer of ownership unless the employees, or 14
where applicable collective bargaining representative, and the new 15
employer mutually agree to different terms and conditions of 16
employment within that 30-month period. 17
(4) The electric utility shall offer a transition plan to 18
those employees who are not offered jobs by the entity because the 19
entity has a need for fewer workers. If there is litigation 20
concerning the sale, or other transfer of ownership of the electric 21
utility's divisions, business units, generating stations, or 22
generating units, the 30-month period under subsection (3) begins 23
on the date the acquiring entity or persons take control or 24
management of the divisions, business units, generating stations, 25
or generating units of the electric utility. 26
(5) The commission shall adopt generally applicable service 27
quality and reliability standards for the transmission, generation, 28
and distribution systems of electric utilities and other entities 29
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KHS H04971'25_HB6093_INTR_1 12aobh
subject to its jurisdiction. , including, In setting service 1
quality and reliability standards, the commission shall consider 2
safety, costs, local geography and weather, applicable codes, 3
national electric industry practices, sound engineering judgment, 4
and experience. The service quality and reliability standards 5
adopted under this section must include, but are not limited to, 6
standards the following: 7
(a) Standards for service outages. , distribution 8
(b) Distribution facility upgrades. , repairs 9
(c) Repairs and maintenance. , telephone service, 10
(d) Telephone and billing service. , operational 11
(e) Operational reliability. , and public 12
(f) Public and worker safety. In setting service quality and 13
reliability standards, the commission shall consider safety, costs, 14
local geography and weather, applicable codes, national electric 15
industry practices, sound engineering judgment, and experience. The 16
commission shall also include provisions 17
(g) Provisions to upgrade the service quality of distribution 18
circuits that historically have experienced significantly below-19
average performance in relationship to similar distribution 20
circuits. 21
(h) Procedures and standards for the submission of 22
infrastructure development plans and vegetation management 23
programs. In developing procedures and standards under this 24
subdivision, the commission shall require that infrastructure 25
development plans or vegetation management plans be approved or 26
rejected at the beginning of every multiyear rate case. 27
(6) Annually, each jurisdictional utility or entity shall file 28
its report with the commission detailing actions to be taken to 29
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comply with the service quality and reliability standards during 1
the next calendar year and its performance in relation to the 2
service quality and reliability standards during the prior calendar 3
year. The annual reports shall must contain that data as required 4
by the commission, including the estimated cost of achieving 5
improvements in the jurisdictional utility's or entity's 6
performance with respect to the service quality and reliability 7
standards. 8
(7) The commission shall analyze the data to determine whether 9
the jurisdictional entities are properly operating and maintaining 10
their systems and take corrective action if needed. 11
(8) By December 31, 2009, January 1, 2027, the commission 12
shall review its existing rules under this section and amend the 13
rules, if needed, under the administrative procedures act of 1969, 14
1969 PA 306, MCL 24.201 to 24.328, to implement performance 15
standards for generation facilities and for distribution facilities 16
to protect end-use customers from power quality disturbances. 17
(9) Any standards or rules developed under this section shall 18
must be designed to do the following, as applicable: 19
(a) Establish different requirements for each customer class, 20
whenever those different requirements are appropriate to carry out 21
the provisions of this section, and to reflect different load and 22
service characteristics of each customer class. 23
(b) Consider the availability and associated cost of necessary 24
equipment and labor required to maintain or upgrade distribution 25
and generating facilities. 26
(c) Ensure that the most cost-effective means of addressing 27
power quality disturbances are promoted for each utility, including 28
consideration of the installation of equipment or adoption of 29
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KHS H04971'25_HB6093_INTR_1 12aobh
operating practices at the end-user's location. 1
(d) Take into account the extent to which the benefits 2
associated with achieving a specified standard or improvement are 3
offset by the incremental capital, fuel, and operation and 4
maintenance expenses associated with meeting the specified standard 5
or improvement. 6
(e) Carefully consider the time frame for achieving a 7
specified standard, taking into account the time required to 8
implement needed investments or modify operating practices. 9
(10) The commission shall also create benchmarks for 10
individual jurisdictional entities within their rate-making process 11
in order to accomplish the goals of this section to alleviate end-12
use customer power quality disturbances and promote power plant 13
generating cost efficiency. 14
(11) The commission shall establish a method for gathering 15
data from the industrial customer class to assist in monitoring 16
power quality and reliability standards related to service 17
characteristics of the industrial customer class. 18
(12) The commission may levy financial incentives and 19
penalties upon any jurisdictional entity which exceeds or fails to 20
meet the service quality and reliability standards. 21
(13) As used in this section, "jurisdictional utility" or 22
"jurisdictional entity" means a jurisdictional regulated utility as 23
that term is defined in section 6q. 24