HB 5889 Summary

• Amends the Public Utilities Act to allow electric utilities to securitize qualified costs through financing orders issued by the Michigan Public Service Commission.

• Requires electric utilities with more than 1,000,000 retail customers in Michigan as of January 1, 2012 to apply for financing orders to finance all new water and air pollution control equipment required by federal EPA or Michigan Department of Environmental Quality regulations installed after the bill's effective date.

• Establishes that securitization charges are nonbypassable charges collected from customers receiving standard tariff service, but customers taking service from alternative electric suppliers and continuing with those suppliers through the bond term will not be assessed charges related to those bonds.

• Provides that financing orders are irrevocable and not subject to reduction or adjustment by the commission except under specific circumstances, with securitization bonds having a maximum term of 15 years.

• Limits commission review of financing orders to an expedited 90-day contested case proceeding, with court of appeals review restricted to whether the order complies with state and federal constitutions and laws.