MI SB0504

Allows electric utilities to establish long-term industrial load rates for customers with annual average electric demand of at least 200 megawatts at a single site and annual load factor of at least 75%.

Requires long-term industrial load rate contracts to be for a minimum term of 15 years (if based on power purchase agreements) or the expected remaining life of utility-owned resources, with minimum 100 megawatts of firm contracted capacity.

Customer must demonstrate it would not purchase standard tariff service except under the long-term industrial load rate by having available self-service power or entering a regional transmission organization's generation interconnection queue.

Public Service Commission must approve the rate if there is a net benefit to other utility customers, which can include system peak demand reduction, avoidance of new production capacity costs, or contribution to fixed distribution or transmission costs.

Long-term industrial load rate contracts are exempt from securitization charges approved by the commission after the act's effective date if the customer was taking service under such a rate when the financing order was issued.