Senate Bill 1035 Summary

• Establishes a 10% electric choice cap limiting the percentage of an electric utility's retail sales that may be served by alternative electric suppliers, with provisions allowing the cap to be increased under specific circumstances.

• Authorizes the Public Service Commission to increase the electric choice cap for utilities that have implemented securitization charges, with automatic 6% annual increases over three years and a mechanism for further increases if demand from customers requesting alternative suppliers exceeds 2% of the utility's sales.

• Requires alternative electric suppliers to be licensed, maintain an in-state office, and comply with a code of conduct; prohibits customers from being switched to another supplier without consent.

• Provides exemptions allowing iron ore mining and processing facilities in Michigan's Upper Peninsula to purchase all electricity from alternative suppliers regardless of the cap, and permits existing customers with continuous alternative supplier service since April 1, 2008 to expand usage without cap restrictions.

• Allows electric utilities to offer appliance service programs with strict requirements including separate accounting, no cross-promotion with regulated services, and customer protections including a 10-day cancellation period.