B. What additional costs will be imposed on businesses and other groups as a result of these proposed rules (i.e.
new equipment, supplies, labor, accounting, or recordkeeping)? Please identify the types and number of businesses
and groups. Be sure to quantify how each entity will be affected.
Electric utilities are already complying with the existing Service Quality Standards for Electric Service rules, and the
proposed changes to incorporate additional resources to improve restoration times—more storm restoration crews,
more wire down guards, more funding to pre-stage resources, etc. These expenses are allocated in their rate making,
and therefore, there are no additional costs associated with the update to the rules.
29. Estimate the actual statewide compliance costs of the proposed rules on individuals (regulated individuals or
the public). Include the costs of education, training, application fees, examination fees, license fees, new
equipment, supplies, labor, accounting, or recordkeeping.
There are no compliance costs for individuals.
A. How many and what category of individuals will be affected by the rules?
The rules affect seven investor-owned utilities and ten cooperative utilities, there are no individuals regulated by
B. What qualitative and quantitative impact do the proposed changes in rules have on these individuals?
No individuals will be affected by the rules.
30. Quantify any cost reductions to businesses, individuals, groups of individuals, or governmental units as a result
of the proposed rules.
Individuals should experience reduced power outages, including frequency and duration. Businesses should
experience reduced loss of product due to power outages. And residential customers should experience reduced
power outages that cause spoiled food or hotel stays, and loss of life saving medical equipment.
31. Estimate the primary and direct benefits and any secondary or indirect benefits of the proposed rules. Please
provide both quantitative and qualitative information, as well as your assumptions.
Reducing the number and duration of power outages will create revenue for the utilities and reduce customer costs
resulting from lost power, spoiled food, and spoiled medications. The proposed rules will also have the indirect
benefit of reducing the need for hotel stays during power outages and the required access to life-saving medical
equipment which requires power to operate.
32. Explain how the proposed rules will impact business growth and job creation (or elimination) in Michigan.
Improving the power quality and reliability of Michigan’s distribution system can make Michigan more attractive for
businesses to invest here which would help the economy and potentially create more jobs. Additional tree-trimming
and line service jobs may become available as the utilities ramp up their efforts to reduce power outages.
33. Identify any individuals or businesses who will be disproportionately affected by the rules as a result of their
industrial sector, segment of the public, business size, or geographic location.
Smaller utilities and cooperatives who have not opted to install smart meters and other technology may be
disproportionally impacted by the new rules. However, they may apply for a rule waiver if they believe that the
proposed rules would be too burdensome to comply with. Therefore, no individuals or businesses will be
disproportionately affected by the rules. The rules are applied uniformly across all businesses engaged in the
provision of electric service in order to protect the health, safety, and welfare of Michigan citizens and businesses.
34. Identify the sources the agency relied upon in compiling the regulatory impact statement, including the
methodology utilized in determining the existence and extent of the impact of the proposed rules and a cost-
benefit analysis of the proposed rules.
The MPSC relied upon the service quality standards for electric service rules from Indiana, Ohio, and Wisconsin to
determine whether the rules exceed standards in those states. The proposed changes will have little to no effect on
the utilities because they are already complying with the current rules. Therefore, a benefit-cost analysis would show
no effect on the utilities. It is impossible to perform a benefit-cost analysis regarding the preparation of the annual
report because the type and quantity of information included in the report may vary significantly from year to year
due to the number and size of incidents. However, because most of the utilities already track this information, it
should not be costly or burdensome to create a report for the MPSC.
A. How were estimates made, and what were your assumptions? Include internal and external sources, published
reports, information provided by associations or organizations, etc., that demonstrate a need for the proposed