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HB 4975

Public utilities: consumer services; eligibility for utility power outage credits; provide for. Amends 1939 PA 3 (MCL 460.1 - 460.11) by adding sec. 9e.

2025-2026 Regular Session Introduced by Erin Byrnes and 19 co-sponsors

Michigan bill: automatic electric bill credits for outages; $100 after up to 4 interruptions in 12 months, $200 after more than 4; CPI adjusts every 5 years.

bill electronically reproduced 09/17/2025
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WeVote Research Nonpartisan
Bill Summary · HB 4975

Summary: Michigan HB 4975 (2025)

Overview

  • Bill: HB 4975
  • Official title: Public utilities: consumer services; eligibility for utility power outage credits; provide for. Amends 1939 PA 3 (MCL 460.1 - 460.11) by adding sec. 9e.
  • Purpose: Establish automatic electric utility bill credits for residential customers experiencing service interruptions and create a framework for periodic adjustment of those credits based on the Consumer Price Index (CPI).
  • Status: Electronically reproduced September 17, 2025; introduced March 13, 2025; referred to Committee on Energy.
  • Related companion: SB 125

What the bill would do (Key provisions)

  • Sec. 9e(1) – Automatic credits on bills

    • (a) If a customer experiences 4 service interruptions lasting 1 hour or more in the preceding 12 months, the electric utility must automatically credit $100 on that customer's bill.
    • (b) If a customer experiences more than 4 service interruptions lasting 1 hour or more in the preceding 12 months, the electric utility must automatically credit $200 on that customer's bill.
    • Note: “Service interruption” is defined as a full or partial loss of electric service; credits are applied automatically (no separate filing required by the customer).

  • Sec. 9e(2) – CPI-based adjustments

    • Beginning five years after the act’s effective date and every five years thereafter, the Public Service Commission must adjust the credit amounts.
    • Calculation: Multiply the percentage change in the Consumer Price Index (CPI) for the Detroit-Warren-Dearborn area from the preceding year by the corresponding 5-year-ago CPI, applied to the credit amounts in subsection (1).
    • Administrative details: Round up each dollar value adjustment to the nearest dollar; announce adjustments by June 1 of the year the adjustment takes effect.

  • Sec. 9e(3) – Definitions

    • (a) “Consumer Price Index” refers to the most comprehensive Detroit-area CPI published by the U.S. Bureau of Labor Statistics.
    • (b) “Service interruption” means a full or partial loss of electric service.

Who is affected

  • Primary: Electric utilities operating in Michigan (subject to regulation by the Michigan Public Service Commission).
  • Secondary: Residential electric customers who experience qualifying service interruptions (as defined).
  • Regulator: Michigan Public Service Commission would oversee implementation and periodic CPI adjustments.

Procedural and timeline aspects

  • Introduction and referrals
    • Introduced: March 13, 2025
    • Read first time: April 3, 2025
    • Initially referred to Public Health (note: energy-related bills typically proceed to Energy; the committee action shown later is Committee on Energy)
    • September 17–18, 2025: Reproduced and introduced in final form; referred to Committee on Energy
  • Effective date and adjustments
    • The act’s effective date is not specified in the excerpt; typical state practice is an enacted act becoming effective upon publication or a stated date in the act.
    • First CPI adjustment would occur five years after the effective date; subsequent adjustments every five years, with updates announced by June 1 of the adjustment year.
  • Related action
    • Companion bill SB 125 exists

Potential impact and considerations

  • Consumer protections: Provides automatic, baseline bill credits for customers who experience recurring outages, potentially improving consumer relief during reliability gaps.
  • Utility costs: Credits represent a cost to electric utilities, which could influence rate design or ear-marking of credits in future filings.
  • Transparency and predictability: CPI-based adjustments add a predictable mechanism to keep credits aligned with inflation.
  • Administrative aspects: Utilities must track outage events to verify eligibility; the PSC would administer the adjustment formula and publish annual updates.

Notes

  • This summary reflects introduced bill language and the stated provisions. Final status, amendments, or enacted language could change the scope and mechanics of the credits.

Compiled from official sources — confirm details with the bill’s official record.

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