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DE PARTMEN T OF CONSU MER AND INDUS TRY SER VIC ES PUB LIC SER VIC E COMMI SS ION
UN COLL ECTI BLES ALLOWANCE RECOVERY FUNDS
Filed with th e Secretar y of Stat e on
These ru les tak e effect 7 days after fili ng with th e Secretar y of Stat e
(By auth ority conferr ed on th e public service comm ission by section 4 of 2000 PA 322 , section 7 of 1909 PA 106 , section 5 of 1919 PA 419 , sections 4 an d 6 of 1939 PA 3, an d
sections 3, 9, an d 231 of 1965 PA 380 , MCL 460 .557 , 460 .55, 460 .4, 460 .6, 16.103 , 16.109 ,
an d 16.331)
R 460 .2601 , R 460 .2602 , R 460 .2621 , R 460 .2622 , R 460 .2623 , R 460 .2624 , an d R 460 .2625
ar e added to th e Michigan Administrat ive Code as follows:
PART 1. GENER AL PROVISIONS
R 460 .2601 App li cation of rules.
Rule 1. These ru les apply to every electr ic an d gas ut ili ty that is subject to th e jur isdiction of th e public service comm ission.
R 460 .2602 De finitio ns.
Rule 2. As used in th ese ru les:
(a) “Comm ission” mean s th e Michigan public service comm ission.
(b) “Coope rat ive electr ic ut ili ty” mean s an electr ic ut ili ty organ ized as a coope rat ive corporat ion un der 1931 PA 327 , MCL 450 .1 et seq.
(c) “Fun d” mean s th e un collectible s allowance recove ry fun d.
(d) “Ut ili ty” mean s a person, firm, cor porat ion, coope rat ive, associat ion, or oth er agency which is subject to th e jur isdiction of th e comm ission an d which distr ibut es an d sells electr icity or natura l gas to th e public for reside nt ial use.
PART 2. UN COLL ECTI BLES ALLOWANCE RECOVERY FUND
R 460 .2621 Unco ll ec tibl es all o w ance recove ry fund .
Rule 11. A ut ili ty sha ll es ta blis h an d administer an uncollectible s allowance recove ry fun d.
R 460 .2622 Annua l deposits .
Rule 12. A ut ilit y sha ll annua lly dep osit int o it s fun d th e differ ence between th e un colle ctible provision as recor ded in th e ut ility’s finan cial recor ds for 1999 , less th e provision as recor ded on th e ut ility’s finan cial recor ds in each subseq uent fiscal year .
R 460 .2623 Notice of deposit .
Rule 13. Not less than 30 days after th e close of th e ut ility’s fiscal year , th e ut ility sha ll in form th e comm ission of th e am ount of money that th e ut ility recor ded on it s finan cial recor ds for that year .
R 460 .2624 Disputes ; procedu re for reso lutio n.
Rule 14. A disput e regar ding th e reasona bleness of an am ount recor ded on a ut ilit y’s finan cial recor d as a provision for it s un colle ctible expe nses or a disput e regar ding th e a ccura cy of th e am ount dep osited int o a ut ility’s fun d sha ll be resolved by th e comm ission after notice to th e ut ility an d an opportun ity for th e ut ility an d th e comm ission sta ff to submit comm ent s.
R 460 .2625 Disbu rsement of funds .
Rule 15. (1) A coope rat ive electr ic ut ilit y sha ll annua lly a llocat e all money from it s fun d to it s customers in proport ionat e am ount s based on each customer’s patr ona ge with th e coope rat ive. The money sha ll be paid to each customer in a ccor dan ce with th e coope rat ive’s capita l credit rotat ion policy.
(2) An investor -own ed ut ilit y sha ll annua lly disbur se money from it s fun d a ccor ding to th e followin g formu la :
(a) Twent y-five percent (25%) sha ll be reta ined by th e ut ilit y.
(b) Sevent y-five percent (75%) sha ll be contr ibut ed to th e Michigan clear air fun d of th e dep artm ent of environm enta l qua lit y.