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Mackinac Center for Public Policy
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2007 House Bill 5525: Mandate state power production decline
  1. Introduced by Rep. Kathy Angerer (D) on December 4, 2007, to mandate that electric utilities reduce the amount of energy they provide by 1 percent each year beginning in 2012, and 0.75 percent per year for natural gas utilities. Utilities that generated more than this amount would be required to pay an annual tax of two percent of the preceding year’s gross sales. To accomplish the reductions the utilities would be required to adopt programs that “target customer behavior, equipment, or devices without reducing the amount or quality of energy services.” Utilities would be allowed to charge higher rates to pay for these programs.
    • Referred to the House Energy and Technology Committee on December 4, 2007.
      • Reported in the House on January 24, 2008, with the recommendation that the substitute (H-3) be adopted and that the bill then pass.
    • Substitute offered in the House on April 17, 2008, to replace the previous version of the bill with one that revises the sanction for utilities tha don't meet the energy production reduction mandate. This version was bypassed for one that does the same and also revises various other details. The substitute failed by voice vote in the House on April 17, 2008.
    • Substitute offered by Rep. Kathy Angerer (D) on April 17, 2008, to replace the previous version with one that would give the Michigan Public Service Commission the authority to order a utility that does not meet the energy production reduction mandate to lower its prices, rather than imposing a new tax/penalty on the utility. The substitute passed by voice vote in the House on April 17, 2008.
    • Amendment offered by Rep. Phil Pavlov (R) on April 17, 2008, to prohibit a gas company from increasing rates to make up for revenue lost as a result of a decrease in energy consumption (and production) mandated by the bill. The amendment failed by voice vote in the House on April 17, 2008.
  2. Passed 81 to 18 in the House on April 17, 2008, to mandate that electric utilities reduce the amount of energy they provide by 1 percent each year beginning in 2012, and gas utitities reduce production by 0.75 percent per year. To accomplish this they would be required to charge higher rates to pay for programs that “target customer behavior, equipment, or devices without reducing the amount or quality of energy services.” Utilities that fell short of the energy production reduction mandates could potentially be ordered by the Public Service Commission to reduce their prices. See also House Bill 5525, which caps competition between electricity providers in Michigan.
    Who Voted "Yes" and Who Voted "No"

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