2011 Senate Bill 864 / Public Act 274

Impose utility surcharge for low income subsidies

Introduced in the Senate

Dec. 1, 2011

Introduced by Sen. Howard Walker (R-37)

To require that certain Public Service Commission reports and delinquent utility bill customer shut-off restrictions be posted on the internet. The Senate substituted and passed a very different version of this bill.

Referred to the Committee on Environment, Energy, and Technology

Dec. 7, 2011

Reported without amendment

With the recommendation that the substitute (S-2) be adopted and that the bill then pass.

Substitute offered

To replace the previous version of the bill with one that instead would impose utility bill surcharges to provide low income subsidies.

The substitute passed by voice vote

Passed in the Senate 34 to 2 (details)

To create a state fund to collect money from a proposed mandate that utilities impose an extra surcharge on customer bills to subsidize paying the delinquent bills of low income households. This had been mandated in an earlier statute that was later repealed, and this bill would also refund money collected after that law expired. Reportedly this will impose around $60 million in extra charges on consumer gas and electric bills. On the same day House passed a rival bill (HB 5189) to use federal welfare money to provide these subsidies this year.

Received in the House

Dec. 7, 2011

Referred to the Committee on Energy and Technology

Dec. 15, 2011

Substitute offered by Rep. Ken Horn (R-94)

To replace the previous version of the bill with one that makes it part of a House-Senate compromise to extend a disallowed utility surcharge for a limited time and also use other state tax revenue to pay these heating bill subsidies.

The substitute passed by voice vote

Amendment offered by Rep. Ken Horn (R-94)

To clarify a detail of the nine-month extension of these utility bill customer surcharges.

The amendment passed by voice vote

Passed in the House 106 to 1 (details)

To create a state fund to collect money from a mandate that will be extended for another nine months that utilities impose an extra surcharge on customer bills to subsidize paying the delinquent bills of low income households. The final version of this bill, plus Senate Bill 364 and House Bill 4190, include different parts of a House-Senate compromise to extend the surcharge as described, plus add $10 million in state "general fund" tax revenue to pay the subsidies this year.

Received in the Senate

Dec. 15, 2011

To concur with the House-passed version of the bill.

Passed in the Senate 37 to 1 (details)

Signed by Gov. Rick Snyder

Dec. 20, 2011