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SB 915

Public utilities: public service commission; competitive bidding for certain utility contracts; require. Amends 1939 PA 3 (MCL 460.1 - 460.11) by adding sec. 6bb.

2025-2026 Regular Session Introduced by Mary Cavanagh and 2 co-sponsors

Michigan electric and natural gas utilities must use competitive bidding for major contracts, with noncompliant costs unrecoverable and bids publicly accessible.

REFERRED TO COMMITTEE ON ENERGY AND ENVIRONMENT
#publicutilities:publicservicecommission
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Bill Summary · SB 915

Summary of SB 915 (2025-2026) – Michigan

Purpose and intent

SB 915 would require electric and natural gas utilities in Michigan to use a competitive procurement process for certain construction, operations, maintenance, or capital improvement projects. The bill adds a new Section 6bb to 1939 PA 3 (Public Utilities Act) and aims to ensure bid-based contracting, enhance transparency, and provide remedies for noncompliance. The measure aligns utility contracting practices with standardized competitive bidding requirements and introduces penalties and public-records access provisions.

Key provisions

  1. Mandatory competitive procurement (Section 6bb(1))

    • Effective on the act’s date of enactment, every electric utility and natural gas utility must implement a competitive procurement process before entering into contracts for:
      • Construction
      • Operations
      • Maintenance
      • Capital improvement work
    • The process must be used for all covered contracts moving forward from the effective date.

  2. Prohibition on cost recovery for non-competitive contracts (Section 6bb(2))

    • Utilities are prohibited from recovering expenses for contracts that were not subject to a competitive procurement process.
    • This creates a financial incentive for utilities to bid competitively and adhere to the procurement requirement.

  3. Enforcement and remedies (Section 6bb(3))

    • Bidders or ratepayers may pursue civil actions to enforce compliance.
    • Available remedies include:
      • Injunctive relief
      • Declaratory relief
      • Damages
    • Prevailing plaintiffs may recover:
      • Actual damages or $1,000 (whichever is greater)
      • Reasonable attorney fees and costs
    • The provision preserves other remedies available under law.

  4. Public record access (Section 6bb(4))

    • All bids and supporting documentation submitted to electric or natural gas utilities are public records.
    • Utilities must make bids and related materials available for inspection and copying, following procedures akin to the Michigan Freedom of Information Act (FOIA).

  5. Definitions (Section 6bb(5))

    • Clarifies that terms such as “competitive procurement process,” “competitively bid,” and “competitive solicitation” align with procurement requirements used by local governments under 2 CFR 200.319, 200.320, and 200.326.

Who is affected

  • Electric utilities in Michigan
  • Natural gas utilities in Michigan
  • Bidders (potential contractors) seeking utility contracts
  • Ratepayers who may benefit from increased transparency and competitive pricing
  • The public, through access to bids and procurement documents

Procedural and timeline aspects

  • The bill was introduced on April 22, 2026, and referred to the Committee on Energy and Environment.
  • The competitive procurement requirement becomes effective on the amendatory act’s effective date.
  • The prohibition on cost recovery for non-competitive contracts takes effect concurrently with the procurement requirement.
  • The enforcement provisions enable civil actions after the effective date for noncompliance.

Potential impact and considerations

  • Increased transparency in utility contracting through mandatory public disclosure of bids.
  • Potential cost savings or ratepayer protections through competitive bidding for major projects.
  • Greater regulatory oversight by discouraging non-competitive awards and promoting uniform bidding standards.
  • Administrative and compliance costs for utilities to implement formal competitive procurement processes.

Overall, SB 915 seeks to modernize utility contracting by mandating competitive bidding for significant projects and enabling enforcement and public disclosure to safeguard ratepayers.

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

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