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HB 6131

Public utilities: rates; disclosure of uses of increased revenue; require to be provided with rate increase requests.

2025-2026 Regular Session Introduced by Emily Dievendorf and 2 co-sponsors

The bill requires utilities to disclose how proposed rate increases would be spent and enhances public input, hearings, and timelines in rate cases.

bill electronically reproduced 06/25/2026
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Bill Summary · HB 6131

Overview

HB 6131 (Michigan, 2025-2026) proposes amendments to the state’s rate-regulation framework for gas, electric, and steam utilities. The bill emphasizes increased transparency around rate requests, strengthens procedural protections for public input, and requires utilities to disclose how additional revenue would be allocated. It modifies coordination and timing provisions for rate cases and preserves certain existing commission authorities while refining specific filing and hearing requirements.

Main purpose and intent

  • Ensure greater disclosure and public visibility into how a proposed rate increase would be used by utilities.
  • Strengthen the rate-setting process by requiring advance coordination, clearer timelines, and explicit information for stakeholders.
  • Maintain rigorous protections for customers through mandatory notice and full hearings before rate changes take effect.

Key provisions and changes

  • Section 6a requirements for rate approvals:

    • Utilities must not increase rates or alter rate schedules without Michigan Public Service Commission (MPSC) approval.
    • Utilities serving more than 1,000,000 customers may face a 21-day spacing between filings to reduce concurrent application conflicts.
    • Utilities must place in evidence the facts supporting their petition and notify all interested service-area parties to allow a full hearing.
    • Utilities may use projected costs/revenues for a future 12-month period.

  • Application completeness and response timeline:

    • The MPSC must notify the utility within 30 days whether an application is complete; if no notice is given, the filing is deemed complete.
    • Large electric utilities may seek partial and immediate rate relief after filing a complete application; the MPSC must issue a determination within 180 days (and has a 12-month window to issue a final order).

  • Interim rate relief and refunds:

    • If the MPSC does not issue a final order within 180 days, a utility may implement up to the proposed annual rate increase as an equal percentage change, with refunds plus interest if later orders reduce ultimate approved increases.
    • Refunds are allocated among primary customers by pro rata share; residential/other customers’ allocations are determined by the commission. Interest formula: 5% plus LIBOR; portions exceeding certain thresholds may accrue at the utility’s authorized rate of return.

  • General rate case timing:

    • Utilities cannot file a new general rate case within 12 months after a complete prior filing unless a final order has been issued, or the rates are approved under certain circumstances.

  • Special provisions for large or special cases:

    • Load retention transportation rate schedules or contracts may be approved for very large industrial/commercial customers (>500,000 decatherms/year) with conditions to protect utility fixed costs when customers switch to alternative fuels or sources.
    • Provisions related to merchant plants and certain cost recovery under contract terms, including caps and indexing to CPI, exist to govern fuel and O&M cost adjustments.

  • Revenue disclosure requirement (informational, not determinative):

    • Utilities must include an itemized summary of how the proposed additional revenue would be allocated across categories (capital investments, O&M, debt service, executive compensation, shareholder distributions).
    • The summary is for informational purposes and must be public, but cannot be used to approve/deny/condition the rate request.

  • Filing forms and standards:

    • The MPSC must adopt standard rate filing forms and may adjust them for cooperatives; the bill preserves alternative filing mechanisms where applicable.

  • Definitions and scope:

    • The bill clarifies that “utility” and “electric utility” do not include municipally owned electric utilities (with specific subsections addressing terms and processes).

Who/what would be affected

  • Gas, electric, and steam utilities regulated by the Michigan Public Service Commission (excluding municipally owned electric utilities).
  • Ratepayers and consumers within service areas served by these utilities, who would benefit from enhanced notice, hearings, and transparency around rate increases.
  • Industrial/commercial customers with large annual transportation volumes (potentially affected by transportation rate schedules) and those considering switching to alternative fuels.
  • Merchant power plants with contracts involving fuel cost recovery provisions.

Procedural and timeline aspects

  • Mandatory advance coordination with MPSC staff before rate-case filings to avoid overlap.
  • 21-day spacing requirement between filings for the largest electric utilities (to minimize concurrent processing issues).
  • 30-day completeness determinations by the MPSC; deemed complete if not communicated.
  • 180-day window for partial/early relief decisions; 12-month window for final orders in many rate cases.
  • Optional interim refunds with interest if final orders lag, with detailed refund allocations and specified interest rates.
  • Annual rate-case cadence: operators may be restricted from filing new general rate cases until prior cases are resolved or rates are approved under the act.
  • Public disclosure: informational revenue-allocation itemization must appear in rate filings and be publicly accessible in the docket.

Potential impact

  • Increased transparency for customers about how rate increases would be used.
  • More predictable timelines for rate-case processing and potential interim relief decisions.
  • Stronger public participation opportunities through notice and hearing requirements.
  • Administrative burden and compliance requirements for utilities to prepare and disclose detailed informational analyses of revenue use.

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

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