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Governor Granholm Signs Legislation Protecting Customers from Shutoff of Municipal Electric, Natural Gas Utilities

November 23, 2009

LANSING - Governor Jennifer M. Granholm has signed three bills into law that provide increased protection from shutoff for customers of municipal electric and natural gas utilities across the state.  In signing the bills, the governor is urging lawmakers to complete work on the larger legislative package, which is designed to protect citizens from utility shutoffs.

"Electric and natural gas customers of municipal utilities in Michigan now have increased shutoff protection just as the state braces for its first snap of very cold temperatures," said Governor Granholm.  "That is a great first step toward making sure customers of municipal electric and natural gas utilities have the same protection that customers of regulated utilities have."

Under the legislation, municipal utilities are now required to notify the Michigan Public Service Commission (MPSC) of any shutoff of service that resulted in death or serious injury, and they must provide the MPSC with the procedures followed during the shutoff.  In addition, the MPSC is now authorized to investigate any shutoff by a municipal utility that resulted in death or serious injury.  Following the investigation, the MPSC could refer the matter to the attorney general for possible civil action.

In addition, municipal utilities are now required to postpone a shutoff of service for up to 21 days if the customer or a member of the household is a critical-care customer or has a certified medical emergency.  The utility would have to extend the postponement of shutoff under certain conditions.

Further, the Michigan Low Income Heating Assistance and Shut-off Protection Act is amended to require the Department of Human Services (DHS) to operate an electronic payment process with participating utilities to provide for the payment of low-income customer energy bills subject to shutoff.  The DHS is permitted to enter into agreements with energy providers to make direct payments to them on behalf of eligible recipients.

"Shutoffs - especially in winter - can cost lives," added Commissioner Monica Martinez of the Michigan Public Service Commission.  "These new laws will help ensure that municipal utility customers have important, additional protection."

The governor signed House Bill 4386 (PA 152), sponsored by State Representative Bert Johnson (D-Highland Park); House Bill 4650 (PA 153), sponsored by State Representative Dudley Spade (D-Tipton); and House Bill 4655 (PA 154), sponsored by Wayne Schmidt (R-Traverse City).

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