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HB 6094

Public utilities: public service commission; filing of rate cases for recovery of certain costs; prohibit. Amends 1939 PA 3 (MCL 460.1 - 460.11) by adding sec. 6bb.

2025-2026 Regular Session Introduced by Erin Byrnes and 16 co-sponsors

pb: The bill bars electric and natural gas utilities from recovering a wide range of non-operational costs (executive perks, advertising, lobbying, charitable giving, etc.) through

bill electronically reproduced 06/16/2026
#publicutilities:publicservicecommission
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WeVote Research Nonpartisan
Bill Summary · HB 6094

Overview

HB 6094 (2025-2026, Michigan) amends the Public Acts governing public utilities by adding new Sec. 6bb. The core aim is to restrict what electric and natural gas utilities can recover through customer rates, by prohibiting recovery of certain categories of costs and imposing penalties for improper cost recovery. The bill directs refunds with interest if improper charges were collected and establishes a regulatory framework for enforcing these rules.

Primary purpose and intent

  • To ensure that electric and natural gas utilities cannot recover certain non-operational or campaign-related expenses through rates charged to customers.
  • To strengthen accountability of utility finances and protect ratepayers from funding prohibited activities.
  • To create a mechanism for penalties and refunds if the commission finds improper cost recovery, with proceeds potentially directed to low-income energy assistance.

Key provisions and changes

  • Prohibited rate recovery (Sec. 6bb(1)):
    • Utilities may not recover through rates costs related to:
    • Compensation or expense reimbursement for the utility’s board of directors or officers.
    • Tax penalties, fines, or damage awards against the utility.
    • Travel, lodging, or food and beverage expenses for executives/board.
    • Entertainment or gifts for executives/board.
    • Aircraft ownership, leasing, or chartering used by executives/board.
    • Investor relations.
    • Advertising, marketing, communications, or related costs aimed at influencing public opinion, unless the commission expressly approves or orders them.
    • Lobbying.
    • Charitable contributions (including certain 501(c)(3) or 501(c)(4) organizations).
    • Memberships, dues, sponsorships, or contributions to trade associations that engage in advertising, lobbying, or public policy influence.
    • Contributions as defined under Michigan Campaign Finance Act.
  • Penalties and refunds (Sec. 6bb(2)):
    • If the commission determines improper recovery, the utility must refund amounts with interest.
    • First offense: fine between $1,000 and $20,000.
    • Second offense: fine up to 0.1% of the utility’s annual revenue.
    • Third and subsequent offenses: fine between 0.1% and 0.5% of annual revenue.
  • Funds and allocation (Sec. 6bb(3)):
    • Fines collected under this section must be deposited into the Low-Income Energy Assistance Fund (section 9t).
  • Definitions (Sec. 6bb(4)):
    • Advertising: broad definition covering written, online, video, or audio communications intended to induce patronage or influence public opinion, including political or regulatory matters.
    • Lobbying: direct or facilitated attempts to influence policy decisions at local, state, or federal levels; however, formal regulatory proceedings before the commission or similar agencies are exempt from this definition.

Who/what would be affected

  • Electric utilities and natural gas utilities operating in Michigan.
  • Utility ratepayers who would benefit from reduced recovery of non-permitted costs and potential refunds with interest if improper charges occurred.
  • Utility executives, boards, and officers due to prohibitions on reimbursable compensation, travel, entertainment, advertising, lobbying, and related expenditures through rates.
  • The Michigan Public Service Commission (or equivalent) as the enforcement body responsible for determining improper cost recovery, ordering refunds, and imposing fines.
  • The Low-Income Energy Assistance Fund, which would receive fines collected under the bill.

Procedural and timeline aspects

  • The bill was introduced and referred to the Committee on Energy (as of June 2026).
  • It establishes a regulatory enforcement framework but does not specify initial effective dates or transition timelines within the text provided; typical implementation would require rulemaking or order by the Commission.
  • Fines escalate with repetition, creating a graduated penalty structure over multiple offenses.
  • Refunds with interest are required if improper cost recovery is found, indicating retrospective relief to ratepayers.

Additional observations

  • The scope is significant: it targets a broad set of activities (executive compensation, travel, advertising, lobbying, charitable contributions, and trade association spending) that utilities could recover from customers under certain circumstances.
  • By earmarking fines to the Low-Income Energy Assistance Fund, the bill links enforcement to consumer assistance programs.
  • The bill preserves a narrow exception for approved advertising or lobbying activities, requiring explicit Commission authorization for recovery of such costs.

If you’d like, I can provide a side-by-side comparison with current law (1939 PA 3, MCL 460.1–460.11) or draft a one-page briefing for policymakers.

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

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