Section 285.304 - Definitions; uncollectibles allowance recovery fund; establishment and administration; deposit; recorded amounts; disbursement of money into Michigan clean air fund; allocation to cu - Michigan Statutes

JULIAN-STILLE VALUE-ADDED ACT (EXCERPT)
Act 322 of 2000

285.304 Definitions; uncollectibles allowance recovery fund; establishment and administration; deposit; recorded amounts; disbursement of money into Michigan clean air fund; allocation to customers of cooperative electric utility; rules.

Sec. 4.

(1) As used in this section:

(a) “Commission” means the Michigan public service commission.

(b) “Cooperative electric utility” means an electric utility organized as a cooperative corporation under 1931 PA 327, MCL 450.1 to 450.192.

(c) “Fund” means the uncollectibles allowance recovery fund created in subsection (2).

(d) “Utility” means a person, firm, corporation, cooperative, association, or other agency that is subject to the jurisdiction of the commission and that distributes and sells electricity or natural gas to the public for residential use.

(2) The commission shall require a utility to establish and to administer an uncollectibles allowance recovery fund.

(3) A utility required by the commission to establish and administer an uncollectibles allowance recovery fund shall annually deposit into its fund the difference between the uncollectible provision as recorded in the utility's financial records for 1999 less the provision as recorded on the utility's financial records in each subsequent fiscal year.

(4) Not less than 30 days after the close of the utility's fiscal year, the utility shall inform the commission of the amount of money that the utility recorded into its fund for that year. A dispute regarding the reasonableness of an amount recorded on a utility's financial record as a provision for its uncollectible expenses or the accuracy of the amount deposited into a utility's fund shall be resolved by the commission after notice to the utility and an opportunity for the utility to submit comments.

(5) An investor owned utility shall annually disburse money from its fund to the state treasurer for deposit into the Michigan clean air fund created in section 3 in accordance with the orders and rules of the commission.

(6) A cooperative electric utility shall annually allocate all money from its fund to its customers in proportionate amounts based on each customer's patronage with the cooperative. The money shall be paid to each customer in accordance with the cooperative's capital credit rotation policy.

(7) The commission shall promulgate rules under the administrative procedures act of 1969, 1969 PA 306, MCL 24.201 to 24.328, to implement this section.

History: 2000, Act 322, Imd. Eff. Oct. 26, 2000
Admin Rule: R 460.2601 et seq. of the Michigan Administrative Code.