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HB 5982

Public utilities: other; contracts to service data centers; require to be treated as a contested case. Amends 1939 PA 3 (MCL 460.1 - 460.11) by adding sec. 6bb.

2025-2026 Regular Session Introduced by Erin Byrnes and 3 co-sponsors

The bill requires a contested-case review by the Michigan Public Service Commission for any covered request giving preferential terms to large-load data centers before those terms

bill electronically reproduced 05/14/2026
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Bill Summary · HB 5982

Overview

House Bill 5982 (2025-2026, Michigan) would add a new provision (Sec. 6bb) to 1939 PA 3 (the Public Utilities Act) to impose procedural requirements on “covered requests” involving large-load data centers. Specifically, it requires the Michigan Public Service Commission (the commission) to review certain preferential or individualized contracting terms for large-load data centers as a contested case, ensuring these terms are not approved on an ex parte basis and are not effective until the contested case is resolved.

Main purpose and intent

  • To enhance regulatory scrutiny over contracts, tariffs, or other arrangements that provide preferential or individualized rates or terms to large-load data centers.
  • To ensure that any such deviations from generally applicable tariffs receive formal, public, contested-case review rather than immediate approval or ex parte consideration.
  • To clarify that this procedural review does not alter substantive ratemaking standards or the commission’s discretion on whether to approve or deny a covered request, nor does it prohibit data centers from receiving service or expanding.

Key provisions and changes

  • Definition and scope (Sec. 6bb(4)):

    • Affiliated: entities under common ownership or operational control.
    • Covered request: a contract, tariff, rate, rider, amendment, or approval that provides preferential or individualized terms materially deviating from generally applicable tariffs for a large-load data center.
    • Covered utility: any electric utility, including municipally owned electric utilities, cooperative electric utilities, or gas utilities.
    • Data center: facility or campus primarily housing IT equipment, cooling, power conversion, and backup systems.
    • Large-load data center: projected coincidence peak electric demand of 100 MW or more within 36 months after service begins (including potential expansions).

  • Procedural requirement (Sec. 6bb(2)):

    • Any covered request that provides preferential or individualized terms deviating from general tariffs must be reviewed by the commission as a contested case under the Administrative Procedures Act (APA), Chapter 4 (MCL 24.271–24.288).
    • The covered request cannot be approved on an ex parte basis, has no legal effect until the contested case is completed, and cannot be implemented or enforced until the commission issues a final order approving the request.

  • Non-substantive limitation (Sec. 6bb(3)):

    • The section does not alter substantive ratemaking standards, does not limit the commission’s discretion to approve or deny a covered request, and does not prohibit data centers from receiving service or expanding.

Who would be affected

  • Large-load data centers (defined as 100 MW peak demand or more within 36 months).
  • Covered utilities: electric utilities, municipally owned electric utilities, cooperative electric utilities, and gas utilities that could enter into covered requests with large-load data centers.
  • The commission, as the regulatory body, would conduct contested-case proceedings for these specific contracts or arrangements.

Procedural and timeline aspects

  • Trigger: A covered request involving preferential or individualized terms for a large-load data center.
  • Process: Mandatory contested-case review under the APA, Chapter 4, before any such terms can take effect.
  • Effect of review: No ex parte approval; no legal effect until a final order after the contested case.
  • Scope: Procedural change only; does not modify substantive rate standards or the overall ability to serve or expand.

Additional notes

  • Introduced May 14, 2026, by Rep. Reggie Miller; multiple co-sponsors.
  • The bill emphasizes transparency and due process for large-load data-center contracts, aligning regulatory oversight with potentially substantial consumer and market impacts from favorable terms.

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

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