2010 Senate Bill 1456 / Public Act 297

Allow utility rate hikes to subsidize special Hemlock Semiconductor utility deal

Introduced in the Senate

Aug. 17, 2010

Introduced by Sen. Tony Stamas (R-36)

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 href="http://www.michiganvotes.org/2007-HB-5524">a 2008 bill</a> 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 <a href="http://www.michiganvotes.org/SearchLegislation.aspx?CategoryID=0&Keywords=Hemlock&StartMonth=1&StartYear=2001&EndMonth=12&EndYear=2010&Results=50&Laws=True&op=Search">2008 bills</a> that granted millions in tax breaks and subsidies to Hemlock. The bill is cosponsored by Sens. Barcia and Kahn; Reps. Geiss and Horn cosponsored the <a href="http://www.michiganvotes.org/2010-HB-6407">House version</a>.

Referred to the Committee on Energy Policy and Public Utilities

Nov. 9, 2010

Reported without amendment

With the recommendation that the substitute (S-1) be adopted and that the bill then pass.

Substitute offered

To replace the previous version of the bill with one that revises details but does not change the substance as previously described.

The substitute passed by voice vote

Passed in the Senate 38 to 0 (details)

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 href="http://www.michiganvotes.org/2007-HB-5524">a 2008 bill</a> 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 <a href="http://www.michiganvotes.org/SearchLegislation.aspx?CategoryID=0&Keywords=Hemlock&StartMonth=1&StartYear=2001&EndMonth=12&EndYear=2010&Results=50&Laws=True&op=Search">2008 bills</a> that granted millions in tax breaks and subsidies to Hemlock.

Received in the House

Nov. 9, 2010

Referred to the Committee on Energy and Technology

Dec. 1, 2010

Substitute offered by Rep. Douglas Geiss (D-22)

To replace the previous version of the bill with one that revises details but does not change the substance as previously described.

The substitute passed by voice vote

Passed in the House 82 to 18 (details)

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 href="http://www.michiganvotes.org/2007-HB-5524">a 2008 bill</a> 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 <a href="http://www.michiganvotes.org/SearchLegislation.aspx?CategoryID=0&Keywords=Hemlock&StartMonth=1&StartYear=2001&EndMonth=12&EndYear=2010&Results=50&Laws=True&op=Search">2008 bills</a> that granted millions in tax breaks and subsidies to Hemlock.

Received in the Senate

Dec. 3, 2010

Passed in the Senate 33 to 0 (details)

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

Signed by Gov. Jennifer Granholm

Dec. 16, 2010