MI HB5476

Requires the Public Service Commission to phase in electric rates equal to the cost of providing service to each customer class over 5 years from October 6, 2008, using the 50-25-25 method of cost allocation, with the ability to extend the timeline for industrial metal melting customers if rate impacts exceed 2.5% annually.

Mandates that affected electric utilities file proposals within 60 days to modify existing cost allocation and rate design methods, with the Commission issuing final orders within 270 days and implementing new rates by December 1, 2015.

Requires the Commission to submit an interim report to the legislature within 150 days describing proceedings, cost allocation proposals, estimated customer impacts, and methods supporting affordable and competitive rates for all customer classes.

Allows the Commission to establish special rates for eligible low-income and senior citizen customers, and requires schools, universities, and community colleges to be charged retail electric rates reflecting actual cost of service.

Applies phased rate implementation requirements to utilities with 1,000,000 or more retail customers, while smaller utilities must file applications to modify cost allocation methods with a 2.5% annual rate impact cap.