Legislation watch
Mackinac Center for Public Policy
Capitol Building

2010 House Bill 6407: Allow utility rate hikes to subsidize special Hemlock Semiconductor utility deal
  1. Introduced by Rep. Douglas Geiss (D) and Rep. Kenneth Horn (R) on September 1, 2010, to prohibit the Public Service Commission from altering the special "economic development" rates granted by a utility to a particular company. In particular, the bill insulates the special rates granted by Consumers Energy to the Hemlock Semiconductor subsidiary of Dow Corning from a ban on cross-subsidization between residential and commercial/industrial customers; in effect it would cause residential and other business customers to subsidize Hemlock's below-cost rates. This ban on cross-subsidization ("deskewing") was part of a 2008 bill that mostly ended the ability of non-residential customers to buy power from a generator other than Detroit Edison or Consumers Power, essentially restoring their monopoly status. See also 2008 bills that granted millions in tax breaks and subsidies to Hemlock. See also Senate Bill 1456.
    • Referred to the House Energy and Technology Committee on September 1, 2010.
      • Reported in the House on November 9, 2010, with the recommendation that the substitute (H-1) be adopted and that the bill then pass.
    • Substitute offered in the House on November 10, 2010, to replace the previous version of the bill with one that revises various details, but does not change its substance. This version was subsequently superseded by another substitute with more minor changes. The substitute failed by voice vote in the House on November 10, 2010.
    • Substitute offered by Rep. Douglas Geiss (D) on November 10, 2010. The substitute passed by voice vote in the House on November 10, 2010.
    • Substitute offered by Rep. Tom McMillin (R) on November 10, 2010, to require that any electricity rate increases the bill might impose on consumers be paid instead from state "21st Century Jobs Fund" business subsidy program funds. The substitute failed by voice vote in the House on November 10, 2010.
    • Substitute offered by Rep. Tom McMillin (R) on November 10, 2010, to require that any electricity rate increases the bill might impose on consumers be disclosed through a notice on monthly bills that reads, "this fee is being imposed to collect lost revenues resulting from a special electric rate contract with Hemlock Semiconductor". The substitute failed by voice vote in the House on November 10, 2010.
  2. Passed 82 to 19 in the House on November 10, 2010.
    Who Voted "Yes" and Who Voted "No"

  3. Received in the Senate on November 30, 2010.
    • Referred to the Senate Energy Policy & Public Utilities Committee on November 30, 2010.

Comments

2010 House Bill 6407 (Restrict revisions to utility “economic development tariffs” )  by admin on January 1, 2001 
Introduced in the House on September 1, 2010

The vote was 82 in favor, 19 opposed and 6 not voting

(House Roll Call 455 at House Journal 0)

Click here to view bill details.

View These pre-2013 Comments on the Forum.
Your new comments should be made in the box below.