The Michigan Public Service Commission (MPSC) is asking for public comment on a straw proposal that would punish utility companies whose customers experience repeated or lengthy power outages.
On Wednesday, the commission announced the straw proposal and the start of an audit that will look at the electric distribution systems of Consumers Energy and DTE.
The straw proposal includes different punishments and penalties for companies that have multiple power outages.
The proposal's potential incentives and disincentives are:
- Establishing penalties for utilities whose customers experience four or more sustained power interruptions per year
- Utilities would be penalized further for having customers experience 7 or more sustained power interruptions
- Utilities would be penalized if a circuit ranked in the top 10 worst-performing circuits for 3 or more years within the past 5 years
- Considering financial mechanisms connected to the time it takes utilities to restore power, including a particular focus on restoration timelines during major storms
“We share the public’s frustration with the number and duration of power outages, and particularly those who experience outages over and over again,” said MPSC Chair Dan Scripps. “By focusing on the places where improvement is needed most, we’re working to better connect the financial performance of the utilities with the experience of their customers. Today’s actions of offering a straw proposal that ties financial metrics to the duration of outages and the number of customers experiencing multiple outages each year is a significant step towards that goal.”
People have until 5 p.m. Sept. 22 to make comments on the proposal, and they should reference Case No. U-21400. The comments may be mailed to "Executive Secretary, Michigan Public Service Commission, P.O. Box 30221, Lansing, MI 48909" or emailed to mpscedockets@michigan.gov.
In the latest round of severe storms last week, more than 500,000 customers across Michigan lost power between DTE and Consumers Energy.
“Through the audit, the MPSC looks forward to a gaining a deeper understanding of the challenges that DTE Electric and Consumers face as we continue to experience increasingly frequent and severe storms so we can develop effective solutions” Commissioner Katherine Peretick said.
