HB 5035 Summary

• Amends Michigan Public Service Commission authority to allow public schools, public school academies, nonpublic schools, state public universities, community colleges, and independent nonprofit degree-granting colleges or universities to purchase all or any portion of their electricity from alternative electric suppliers without counting toward the 10% retail sales cap imposed on other customers.

• Maintains the 10% cap on alternative electric supplier load for standard retail customers of electric utilities, with existing customers and those seeking to expand usage given priority allocation through annual energy allotments on a first-come, first-served basis.

• Allows customers operating iron ore mining or processing facilities in Michigan's Upper Peninsula to purchase electricity from alternative suppliers without restriction, regardless of the 10% limit.

• Establishes licensing requirements for alternative electric suppliers, including maintaining an in-state office, demonstrating financial and technical capability, maintaining separate records, and collecting applicable sales and use taxes.

• Permits electric utilities to offer appliance service programs with separate accounting, restrictions on cross-subsidization through billing inserts, and cost allocation requirements; protects customer regulated utility service from termination for non-payment of appliance service program charges.