Snyder signs bills supporting affordable energy plan

 On Tuesday, Gov. Rick Snyder signed two bills to help ensure Michigan’s rates will accurately reflect the cost of service for all customers.

“In December I laid out my plan for a ‘no regrets’ energy future. A key part of that plan is ensuring affordable energy,” Snyder said. “These bills will help us work toward those goals under the existing law, helping to create an environment that encourages greater job investments while honoring the ‘cost of service’ principle that no user should subsidize other users. The bills represent a good first step in our ongoing efforts to reinvent Michigan’s energy policy.”

The governor’s energy goals are available at

House Bill 5476, sponsored by state Rep. Jim Stamas, provides a timeline for the Michigan Public Service Commission, Consumers Energy and DTE Energy to examine cost allocation and rate design methods used to set energy rates, with a focus on whether customers are appropriately rewarded for having “smooth” energy usage. The bill requires each affected utility to submit a proposal exploring rate allocation for production, transmission, distribution and customer-related costs and overall rate design based on affordable and competitive costs of service. Under the bill, other regulated utilities will have the ability to have such a proceeding as well.

HB 5612, sponsored by state Rep. Mike Shirkey, helps ensure funding for residential rate advocates so all Michigan’s ratepayers will be well represented at the proceedings detailed in HB 5476.

The bills are now Public Acts 169 and 170 of 2014, respectively.

For additional information on legislation, visit