HB 4477 Summary

• Amends the Public Service Commission Act to establish a framework for microgrids in Michigan, allowing municipally owned utilities, electric utilities, and private entities to create microgrids to serve critical facilities.

• Requires the Public Service Commission to issue orders within 270 days establishing microgrid standards, interconnection procedures, rates, and operational requirements, including uniform interconnection standards across all electric utilities.

• Prohibits electric utilities from charging standby rates to microgrids owned by entities other than the utility, and ensures non-microgrid customers do not bear costs for microgrid establishment and maintenance.

• Allows microgrids to operate during emergencies and serve non-critical facilities that are electrically contiguous to critical facilities while in island mode; includes definitions for critical facilities (hospitals, police/fire stations, water treatment plants, emergency centers, and others).

• Requires the Public Service Commission to issue a report by December 31, 2019 analyzing electric distribution system reliability and identifying best practices for resilience, and establish an advisory panel with representatives from utilities, governments, environmental organizations, labor groups, and customer classes.