HB 5503 Summary

• Increases the electric choice cap (cap on retail customers who can switch to alternative electric suppliers) from 10% to a variable percentage determined by the Public Service Commission for utilities that have implemented securitization charges.

• Establishes a tiered cap increase schedule where the commission must increase the cap by 6% annually for the 3 calendar years following the bill's effective date.

• Requires the commission to initiate a contested case to further increase the cap beyond those three years if unserved demand from customers exceeds 2% of utility sales, with increases of at least 3% unless substantial harm to full-service customers is demonstrated.

• Permits iron ore mining and processing facilities in Michigan's Upper Peninsula to purchase all or any portion of their electricity from alternative suppliers without being subject to the electric choice cap.

• Ensures utilities pass through any fuel, power purchase, and wholesale revenue savings resulting from increased alternative supplier load to full-service customers through power supply cost recovery proceedings.