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2018 House Bill 5902: Allow higher residential utility rates to subsidize Hemlock
Introduced by Rep. Dan Lauwers (R) on May 1, 2018
To allow the indefinite continuation of the special electricity rates granted by Consumers Energy to the Hemlock Semiconductor subsidiary of Dow Corning, which under a 2010 law were exempted from a ban on cross-subsidization between residential and commercial/industrial customers (meaning residential customers pay more so that Hemlock can pay less). The bill restructures the authorization for this discount by styling it a privilege that could potentially be claimed by all industrial customers, but with specific details that limit it to just this one subsidized company; under current law this privilege is structured as a “grandfather” provision of the law that banned electric rate cross-subsidization.   Official Text and Analysis.
Referred to the House Energy Policy Committee on May 1, 2018
Reported in the House on May 15, 2018
With the recommendation that the substitute (H-1) be adopted and that the bill then pass.
Passed 77 to 31 in the House on May 17, 2018.
    See Who Voted "Yes" and Who Voted "No".
To allow the indefinite continuation of special discounted electricity rates granted by Consumers Energy to the Hemlock Semiconductor subsidiary of Dow Corning, which under a 2010 law were exempted from a ban on cross-subsidization between residential and commercial/industrial customers (meaning residential customers pay more so that Hemlock can pay less). The bill restructures the authorization for this discount by styling it a privilege that could potentially be claimed by all industrial customers, but with specific details that limit it to just this one subsidized company; under current law this privilege is structured as a “grandfather” provision of the law that banned electric rate cross-subsidization. Note: Hemlock makes photovoltaic solar cells, which were recently granted tariff protection against foreign competition by the Trump administration..
Received in the Senate on May 22, 2018
Referred to the Senate Energy and Technology Committee on May 22, 2018

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