Michigan Office of Administrative Hearings and Rules

MOAHR-Rules@michigan.gov

AGENCY REPORT TO THE

JOINT COMMITEE ON ADMNINISTRATIVE RULES (JCAR)

1. Agency Information

Agency name:

Licensing and Regulatory Affairs

Division/Bureau/Office:

Public Service Commission

Name of person completing this form:

Barbara Kunkel

Phone number of person completing this form:

517-284-8087

E-mail of person completing this form:

KunkelB1@michigan.gov

Name of Department Regulatory Affairs Officer reviewing this form:

Elizabeth Arasim

2. Rule Set Information

MOAHR assigned rule set number:

2021-76 LR

Title of proposed rule set:

Service Quality and Reliability Standards for Electric Distribution Systems

3. Purpose for the proposed rules and background:

These rules apply to electric utility service provided by utilities that are subject to the jurisdiction of

the Public Service Commission. The rules are intended to promote safe and adequate electric service

to the public, to provide standards for uniform and reasonable electric practices by utilities, and to

encourage efficiency and safety. The word “electric” is being inserted in front of “utility” and the

word “cooperative” is being added after “utility” in every rule that is being amended to clarify that

these rules apply to electric utilities and cooperatives, only, and not alternative electric suppliers.

Several new definitions are being added to R 460.702 to assist with clarification. Part 2 –

Unacceptable Levels of Performance, R 460.721 through R 460.724, and Part 4 – Financial

Incentives and Customer Accommodations, R 460.741 through R 460.748, are being updated to

respond to the recurring sustained outages in the electrical supply to customers. The documentation

and reporting requirements in Part 3 – Records and Reports, R 460.731 through 460.734, are being

updated. R 460.751 is being updated to include a pandemic. Parts of R 460.702 and R 460.724 are

being stricken and moved to the Michigan Public Service Commission’s “Consumer Standards and

Billing Practices for Electrical and Gas Residential Service” rules. Additionally, language in several

rules is being stricken because it involves obsolete technology. The proposed change to these rules

is supported by the Commission and by regulated industry.

4. Summary of proposed rules:

MCL 24.242 and 24.245

Agency Report to JCAR-Page 2

These rules apply to electric utility service provided by utilities that are subject to the jurisdiction of

the Public Service Commission. The rules are intended to promote safe and adequate electric service

to the public, to provide standards for uniform and reasonable electric practices by utilities, and to

encourage efficiency and safety. The word “electric” is being inserted in front of “utility” and the

word “cooperative” is being added after “utility” in every rule that is being amended to clarify that

these rules apply to electric utilities and cooperatives, only, and not alternative electric suppliers.

Several new definitions are being added to R 460.702 to assist with clarification. Part 2 –

Unacceptable Levels of Performance, R 460.721 through R 460.724, and Part 4 – Financial

Incentives and Customer Accommodations, R 460.741 through R 460.748, are being updated to

respond to the recurring sustained outages in the electrical supply to customers. The documentation

and reporting requirements in Part 3 – Records and Reports, R 460.731 through 460.734, are being

updated. R 460.751 is being updated to include a pandemic. Parts of R 460.702 and R 460.724 are

being stricken and moved to the Michigan Public Service Commission’s “Consumer Standards and

Billing Practices for Electrical and Gas Residential Service” rules. Additionally, language in several

rules is being stricken because it involves obsolete technology. The proposed change to these rules is

supported by the Commission and by regulated industry.

5. List names of newspapers in which the notice of public hearing was published and

publication dates:

The Mining Journal, Grand Rapids Press, and Oakland Press all published on November 23, 2021

6. Date of publication of rules and notice of public hearing in Michigan Register:

11/15/2021

7. Date, time, and location of public hearing:

12/9/2021 09:00 AM at Lake Michigan Room or Microsoft Teams https://bit.ly/3BnVe5i , MPSC

7109 W. Saginaw Hwy., Lansing MI 48917 or https://bit.ly/3BnVe5i or call in (audio only) +1 248-

509-0316 Conf. ID 269 161 043#

8. Provide the link the agency used to post the regulatory impact statement and cost-benefit

analysis on its website:

https://ARS.apps.lara.state.mi.us/Transaction/RFRTransaction?TransactionID=1334

9. List of the name and title of agency representative(s) attending public hearing:

Benjamin J. Holwerda, Michigan Attorney General

Charyl Kirkland, Michigan Public Service Commission

10. Persons submitting comments of support:

Joseph Valentine representing the City of Farmington Hills and Mr. Robert Nelson representing

Citizens Utility Board of Michigan (CUB)

11. Persons submitting comments of opposition:

Michael Moody representing the Michigan Department of Attorney General, Joseph Valentine

representing the City of Farmington Hills, Mr. Joe Musallam representing DTE Electric Company

(DTE Energy), Daniel Dundas representing Michigan Electric and Gas Association (MEGA), Mr.

Robert Nelson representing CUB, Jan F. Burgess representing Consumers Energy, and Rick Bunch

representing Michigan Municipal Association for Utility Issues (MI-MAUI)

MCL 24.242 and 24.245

Agency Report to JCAR-Page 3

12. Persons submitting other comments:

Adrian A Laurenzi and Michelle Preston, each an individual represented themselves (these written

comments were submitted after the public comment period deadline had passed).

13. Identify any changes made to the proposed rules based on comments received during the

public comment period:

Name &

Organization public hearing

Comments made at Written

Agency Rationale Rule number

for Rule Change & citation

and Description changed

of Change(s)

Comments

Made

1

DTE Energy – Adding the hourly

Joe Musallam component to credit

payments may

Adopt a change to R 460.744

$35 initial and $35

per day instead of

the $2 per hour

extra

accommodation.

This change was

also adopted for R

460.745 for

introduce negative

impacts to customer

satisfaction due to the

additional complexity

in the credit

calculation and

customers’ potential

lack of full

consistency.

understanding of how

the credit is being

calculated and applied.

DTE Electric has

proposed an

alternative $35 per day

incremental payment

in lieu of the $2 per

hour payment.

MCL 24.242 and 24.245

Agency Report to JCAR-Page 4

2

Consumers

Energy

The Commission Adopt as “all

R 460.722(e)

and (f)

should clarify

whether the

difference

conditions” in

both subrules –

this was an

between the

inadvertent

required data in R omission in the

460.722(e) and R draft.

460.722(f) is

intentional. R

460.722(e)

includes “both

normal and

catastrophic

conditions,”

while R460.722

(f) includes “all

conditions.”

3

Consumers

Energy

Consumers

Energy remains has adopted

The Commission R 460.744,

R 460.745

supportive of the changes to both

increase of an

automated

rules for a $35

initial and $35 per

customer outage day customer

accommodation accommodation

from $25 to $35 for simplicity and

in the proposed clarity.

rules; however,

the Company is

not supportive of

the $2 per-hour

additional

accommodation.

The Company is

also concerned

that the $2 per-

hour customer

credit is overly

complex, will be

challenging for

customers to

understand, and

may lead to

misunderstanding

s between the

Company.

MCL 24.242 and 24.245

Agency Report to JCAR-Page 5

4

MEGA

MEGA comments The Commission R 460.722

companies

that gray sky

conditions are

excluded from

subrule (e) and

included in

subrule (f), and

for consistency

should be the

same in both

subrules.

recognizes this

oversight and

adopts "all

conditions"

language which

includes gray sky

conditions in both

subrules (e) and

(f).

14.Date report completed:

4/25/2022

MCL 24.242 and 24.245

;