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HB 4974

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

2025-2026 Regular Session Introduced by Erin Byrnes and 18 co-sponsors

The bill requires electric utilities to reimburse eligible tenants, landlords, and local governments for outage-related costs, with a formal 90-day claims process and a determinate

bill electronically reproduced 09/17/2025
#publicutilities:consumerservices #publicutilities:electricutilities #publicutilities:publicservicecommission
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Bill Summary · HB 4974

Summary of Michigan HB 4974 (Public utilities: consumer services; eligibility for utility power outage credits)

Purpose and intent

HB 4974 adds a new section (Sec. 9f) to 1939 PA 3 to establish state-level reimbursement credits related to electric service outages. The bill requires electric utilities to compensate eligible individuals and local governments for certain costs incurred during service interruptions, with a streamlined process for submitting, reviewing, and paying those costs. The overarching aim is to offset financial and operational impacts of power outages on tenants, property owners, and local communities.

Key provisions

  • Outage reimbursement for individuals (landlord-paid utilities):

    • If an electric service interruption lasts more than 4 but not more than 24 hours: the utility must reimburse the individual at least $50 or the actual costs incurred for spoiled food, lodging, or other costs due to the outage, whichever is larger.
    • If the interruption lasts more than 24 hours: the utility must reimburse at least $200 or the actual costs incurred for spoiled food, lodging, or other costs due to the outage, whichever is larger.

  • Outage reimbursement for local governments:

    • The utility must reimburse local governments for costs incurred because of the service interruption, including:
    • Dispatch of emergency services (police, fire, ambulances, etc.).
    • Operating warming or cooling centers during unsafe weather.
    • Operating backup generation.
    • Other costs incurred to respond to and mitigate the outage’s harmful effects.

  • Claim submission and review process:

    • Individuals or local governments must submit actual cost accounts to the Michigan Public Service Commission (the commission) within 90 days after the service interruption.
    • The commission reviews the submitted costs and determines what the utility must reimburse.
    • The utility must pay the determined amount to the claimant within 30 days after the commission’s decision.

  • Relationship to other remedies: The section explicitly states that these reimbursements are in addition to any other remedies provided by law.

  • Definitions (as used in Sec. 9f):

    • “Emergency services” means services provided by police, fire, ambulance, or other first responders.
    • “Service interruption” means a full or partial loss of electric service.

Who would be affected

  • Electric utilities would be obligated to reimburse eligible individuals and local governments and to submit information to the commission as part of the cost determination process.
  • Tenants or residents whose utilities are paid for by a landlord and experience outages could be eligible for monetary reimbursements.
  • Landlords (as payors of tenant utilities) may be involved in reimbursement scenarios.
  • Local units of government would be eligible to receive reimbursements for outage-related costs such as emergency services, warming/cooling centers, and backup generation.
  • The Michigan Public Service Commission would administer the claims process, determine reimbursements, and oversee payment timeliness.

Procedural and timeline aspects

  • Status and timeline: Introduced March 13, 2025; introduced by Rep. Jason Morgan; referred to the Committee on Energy; bill reproduced September 17–18, 2025. The bill’s current legislative path appears to be advancing through committee review.
  • Submission deadlines: Claims must be filed within 90 days of the outage; the commission has up to 30 days post-determination to ensure payment.

Potential impact and considerations

  • Could impose additional cost recovery obligations on electric utilities, potentially affecting rates or riders if approved through the regulatory process.
  • Provides a defined, formal mechanism to assist tenants, landlords, and local governments in outage-related expenses, potentially increasing resilience and rapid response during outages.
  • Establishes a clear state-level standard for outage credits that complements existing remedies under Michigan utility regulation.

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

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