2011 House Bill 5190 / Public Act 276

Prohibit utility surcharge subsidy for delinquent low income customers

Introduced in the House

Nov. 30, 2011

Introduced by Rep. Ken Horn (R-94)

To prohibit utilities from charging customers extra to pay the delinquent bills of low income households, which had been authorized in a provision of an earlier statute that was later repealed. Money the utilities have already collected for this would be returned to customers. House Bill 5189 appropriates federal welfare money for the same purpose.

Referred to the Committee on Energy and Technology

Dec. 6, 2011

Reported without amendment

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

Dec. 7, 2011

Substitute offered

The substitute passed by voice vote

Amendment offered by Rep. Jeff Irwin (D-53)

To authorize payment of state subsidies to certain energy efficiency projects that had been previously approved.

The amendment failed by voice vote

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

To clarify details of how refunds will be allocated to customers from whom utility surcharges were collected after authority to do so was repealed.

The amendment passed by voice vote

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

To clarify that the bill applies to natural gas and electric utilities.

The amendment passed by voice vote

Passed in the House 62 to 46 (details)

To prohibit utilities from charging customers extra to pay the delinquent bills of low income households, which had been authorized in a provision of an earlier statute that was later repealed. Money the utilities have already collected for this would be returned to customers. House Bill 5189 appropriates $62 million in federal welfare money for the same purpose.

Received in the Senate

Dec. 8, 2011

Dec. 15, 2011

Substitute offered

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

The substitute passed by voice vote

Passed in the Senate 36 to 1 (details)

To prohibit utilities from charging customers extra to pay the delinquent bills of low income households, but only starting nine months after the bill becomes law. The surcharge had been authorized in a provision of an earlier statute that was later repealed. Money the utilities have already collected for this would be returned to customers. The final version of this bill, plus Senate Bill 364 and 864, 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 House

Dec. 15, 2011

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

Passed in the House 100 to 6 (details)

Signed by Gov. Rick Snyder

Dec. 20, 2011