Public utilities: public service commission; moratorium on approvals by the Michigan public service commission of any new enterprise data centers; provide for. Amends 1939 PA 3 (MCL 460.1 - 460.11) by adding sec. 10ii.

2025-2026 Regular Session Introduced by Ruth Johnson and 1 co-sponsor

Michigan would temporarily bar the MPSC from approving any electric utility contracts or favorable rates with qualified data centers from now until April 1, 2027.

REFERRED TO COMMITTEE ON GOVERNMENT OPERATIONS

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Summary of SB 1020 (2025-2026) – Michigan

Purpose and intent

Proposes a temporary moratorium on the Michigan Public Service Commission’s (MPSC) approval of any contracts, tariffs, discounts, or rates between electric utilities and “qualified data centers.”

The moratorium would apply from the act’s effective date until April 1, 2027.

The bill defines the term “data center” for purposes of the moratorium.

Key provisions

Sec. 10ii(1): Beginning on the act’s effective date and ending April 1, 2027, the MPSC shall not approve any contract, tariff, discount, or rate between an electric utility and a qualified data center.

Sec. 10ii(2): Defines “data center” as a facility in Michigan consisting of one or more buildings designed and used to house data center equipment for centralizing storage and processing of data.

Who/what is affected

Electric utilities regulated by the Michigan Public Service Commission.

Qualified data centers operating in Michigan that would otherwise seek favorable contracts or rate arrangements with electric utilities (e.g., incentives, discounts, or special tariffs).

The MPSC, as the regulatory body responsible for approving utility-facing agreements.

Procedural and timeline aspects

Introduces a time-limited prohibition on approving utility-data center agreements from the act’s effective date through April 1, 2027.

The bill’s action history shows introduction on June 4, 2026 and referral to the Committee on Government Operations; no further legislative actions listed in the provided text.

The measure adds a new section (Sec. 10ii) to the existing 1939 Public Acts (Public Utilities Act) and operates as a temporary policy pause during the specified period.

Practical implications

If enacted, data-center developers or operators seeking utility incentive arrangements would not receive MPSC approval for the duration of the moratorium.

Utilities would be barred from formalizing new favorable terms with data centers during the moratorium window.

The policy aims to pause such arrangements for a defined period, potentially to reassess state energy policy, rate design, or data-center impacts on the grid.

Notes

No explicit exemptions or carve-outs are stated in the provided text.

The broader fiscal, energy, or economic rationale is not included in the summary text; further committee analysis and fiscal notes would clarify potential impacts on utility rates, state energy policy, and data-center industry development.

If you’d like, I can highlight potential policy questions for lawmakers or draft a one-page briefing for stakeholders (utilities, data-center developers, and local governments).