MI SB0773

Amends the Clean and Renewable Energy Act by adding Part 8 to establish a program for distributed generation and energy storage systems connected to the electric distribution system.

Requires the Michigan Public Service Commission to initiate a proceeding within 60 days and adopt program requirements within 180 days that compensate aggregators and individual customers for behind-the-meter generators and storage systems providing distribution system benefits.

Mandates program requirements ensure fair compensation for grid services including energy, demand response, load shifting, voltage support, and other ancillary services, with enhanced compensation available for low-to-moderate income customers, environmental justice communities, and areas with higher outage rates.

Prohibits electric utilities from owning, controlling, or directly accessing behind-the-meter systems and prevents utilities from imposing discriminatory charges or insurance requirements on distributed generation system owners.

Requires each regulated electric provider to propose a compliant program in their next general rate case filing, and mandates the Commission submit biennial reports to the legislature beginning January 1, 2025 with findings and recommendations.