Michigan House Bill HB4973

Michigan 2025-2026 Regular Session

• Introduced: 9/17/25
• Refer: 9/17/25

Caption

Public utilities: consumer services; eligibility for utility power outage credits; provide for. Amends 1939 PA 3 (MCL 460.1 - 460.11) by adding sec. 9g. TIE BAR WITH: HB 4974'25

Impact

The impact of HB 4973 is significant as it establishes clear compensation mechanisms for residential customers affected by power outages. By compelling utility companies to issue automatic bill credits, it introduces a standardized approach to dealing with service disruptions, which could enhance customer satisfaction and trust in utility services. Additionally, the provision for adjusting credits based on the Consumer Price Index every five years indicates an ongoing commitment to adapting the financial impact of outages relative to economic conditions.

Summary

House Bill 4973 aims to amend the 1939 Public Act 3, which regulates public utilities in Michigan. The proposed amendment introduces section 9g, which mandates electric utilities to automatically provide bill credits to customers who experience service interruptions during their billing cycles. The bill stipulates specific amounts of credit for residential customers depending on the duration of the outage, starting at five dollars for the first hour and reaching up to twenty-five dollars for outages lasting 72 hours or more. This measure is designed to enhance consumer protections and ensure that utility companies compensate customers for inconvenience due to service interruptions.

Enactment

It is important to note that the enactment of HB 4973 is contingent upon the passage of complementary bills – specifically, Senate Bill No. ____ or House Bill No. 4974 of the 103rd Legislature. This legislative framework indicates that HB 4973 is part of a broader effort to reform utility regulations and consumer protections within Michigan, suggesting an attempt to ensure that customers receive equitable treatment during service disruptions.

Conclusion

Overall, House Bill 4973 represents a proactive step towards addressing consumer rights in the energy sector by mandating compensatory action for service lapses. By aligning utility practices with consumer expectations, the bill aims to foster a more equitable utility environment while balancing the financial realities faced by service providers.

Contention

There are potential points of contention surrounding HB 4973, particularly regarding the financial implications for utility companies. Critics may argue that the automatic credit system could place an undue burden on utilities, potentially affecting their operational budgets or leading to increased utility rates for consumers to offset these costs. Additionally, there may be debate over the adequacy of the proposed compensation amounts, especially in relation to the costs incurred by customers during prolonged service interruptions. The collaboration with the Public Service Commission to determine rates for non-residential customers also suggests areas for future negotiation and discussion.