SB 437 Summary

• Requires electric utilities to file integrated resource plans every 5 years projecting 5-year, 10-year, and 15-year load obligations and resource needs, subject to Public Service Commission approval through a contested case process.

• Establishes capacity charge requirements for alternative electric suppliers to meet local resource zone and planning reserve margin obligations, with options for prevailing state compensation mechanism or state reliability mechanism.

• Limits retail open access to 10% of an electric utility's average weather-adjusted retail sales, with exceptions for existing customers and certain industrial operations in the Upper Peninsula.

• Creates shared savings mechanisms allowing electric utilities to earn incentives of 25-30% of net benefits from energy waste reduction programs that achieve savings targets.

• Establishes an energy ombudsman position to monitor regulatory activities affecting energy costs for businesses and individuals, and track renewable energy, efficiency, net metering, and distributed generation issues.