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2010 Senate Bill 1456: Allow utility rate hikes to subsidize special Hemlock Semiconductor utility deal

Public Act 297 of 2010

Introduced by Sen. Tony Stamas (R) on August 17, 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. The bill is cosponsored by Sens. Barcia and Kahn; Reps. Geiss and Horn cosponsored the House version.   Official Text and Analysis.
Referred to the Senate Energy Policy & Public Utilities Committee on August 17, 2010
Reported in the Senate on November 9, 2010
With the recommendation that the substitute (S-1) be adopted and that the bill then pass.
Substitute offered in the Senate on November 9, 2010
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 in the Senate on November 9, 2010
Passed 38 to 0 in the Senate on November 9, 2010.
    See Who Voted "Yes" and Who Voted "No".
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.
Received in the House on November 9, 2010
Referred to the House Energy and Technology Committee on November 9, 2010
Substitute offered by Rep. Douglas Geiss (D) on December 1, 2010
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 in the House on December 1, 2010
Passed 82 to 18 in the House on December 1, 2010.
    See Who Voted "Yes" and Who Voted "No".
(same description)
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.
Received in the Senate on December 3, 2010
Passed 33 to 0 in the Senate on December 3, 2010.
    See Who Voted "Yes" and Who Voted "No".
To concur with the House-passed version of the bill.
Signed by Gov. Jennifer Granholm on December 16, 2010

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