Michigan House Bill HB4542

Michigan 2023-2024 Regular Session

• Introduced: 5/10/23
• Refer: 5/10/23

Caption

Public utilities: consumer services; reimbursement to consumer for losses due to a power outage; provide for. Amends 1939 PA 3 (MCL 460.1 - 460.11) by adding sec. 9f.

Impact

The enactment of HB4542 could significantly affect state laws regarding utility regulations, adding a new layer of accountability for electric providers. By formalizing automatic compensation for outages, the bill attempts to mitigate the financial burden on consumers facing prolonged power interruption, thereby enhancing consumer rights and protections in the state. This proactive approach to managing utility service issues may also encourage utilities to invest in infrastructure improvements to minimize service interruptions.

Summary

House Bill 4542 aims to enhance consumer protections related to electric utilities by requiring automatic compensation for customers experiencing service interruptions. Specifically, the bill amends 1939 PA 3 to add a new section (9f) that mandates utilities to provide discounts to customers based on the duration of their service outages. If service is interrupted for at least 48 hours, customers will receive a 5% reduction in their electric rates for the month following the disruption. For outages exceeding 72 hours, additional discounts accumulate at a rate of 5% for each subsequent 24-hour period without service.

Contention

While the bill appears beneficial for consumers, there may be opposing views regarding its impact on electric utility businesses. Some stakeholders might argue that the financial implications of automatic discounts could lead to increased operational costs. This could, in turn, affect utility rates for all customers, leading to concerns about the balance between consumer protection and the financial health of electric service providers. There may also be debates around the feasibility of implementing such measures uniformly across different utility companies.