Gov. Rick Snyder Signs Legislation Creating New Long-Term Industrial Load Rate


Date: Oct. 24, 2018
Location: Lansing, MI
Issues: Energy

Large industrial manufacturing companies that meet certain criteria can apply to receive a reduced electricity rate under legislation signed today by Gov. Rick Snyder.

"The availability of this new long-term industrial load rate will allow companies with high energy costs to continue expanding in Michigan, providing opportunities for economic growth and more jobs for Michiganders," Snyder said.

House Bill 5902, sponsored by state Rep. Dan Lauwers, gives authority to the Public Service Commission to allow customized electricity rates for companies meeting certain criteria. Current law requires electricity rates to be based on cost of service. This bill authorizes the commission to make an exception, providing that certain requirements are met, including:

If there is a net benefit to the utility's customers from the implementation of the industrial load rate;
The rate is based on the cost of a specific designated power supply resource;
The customer agrees to a long-term contract to pay the costs for that designated power supply resource for the life of the resource;
The customer's electricity usage is uniquely low cost to serve (minimum load of 200 MW at a single site and an annual load factor of at least 75%); and
The customer can demonstrate that it has a self-service alternative to utility service.
The bill is now Public Act 348 of 2018.

For more information on this and other legislation, visit