Michigan Public Service Commission
 Headquarters in Lansing | |
| Commission overview | |
|---|---|
| Formed | 1939 |
| Jurisdiction | State of Michigan |
| Headquarters |
7109 W. Saginaw Highway Lansing MI |
| Commission executives |
|
| Parent department | Michigan Department of Licensing and Regulatory Affairs |
| Website | Official website |
The Michigan Public Service Commission (MPSC) is a regulatory agency which regulates public utilities in the state of Michigan, including electric power, telecommunications, natural gas and transportation services. The MPSC's headquarters are located in Lansing, Michigan.
Mission
The mission of the MPSC is to grow Michigan's economy and enhance the quality of life of its communities by assuring safe and reliable energy, telecommunications, and transportation services at reasonable rates.[1]
Commissioners
The MPSC is composed of three members appointed by the Governor with the advice and consent of the Senate. Commissioners are appointed to serve staggered six-year terms. No more than two Commissioners may represent the same political party. One commissioner is designated as chairman by the Governor.
John D. Quackenbush was appointed by Governor Rick Snyder to serve as Chairman of the MPSC on Sept. 15, 2011. His term ends July 2, 2017.
Norman J. Saari was appointed by Governor Rick Snyder to serve on the MPSC on July 22, 2015. His term ends July 2, 2021.
Sally A. Talberg was appointed by Governor Rick Snyder to the Michigan Public Service Commission on July 3, 2013. Her term ends July 2, 2019.[2]
History
The Michigan Legislature established the Michigan Railroad Commission in 1873 to regulate railroad rates and the conditions of the services provided. The Commission was expanded to a three-member body in 1909 to regulate rail and electric rates and conditions of service. The Michigan Railroad Commission’s was expanded to include telephone service in 1911.
The Michigan Railroad Commission was abolished in 1919 and replaced by the Michigan Public Utilities Commission, which initial consisted of five members. Those members each served four year terms. Public Act 419 of 1919 provided the MPUC with the authority to regulate steam and natural gas, the regulation extended to water carriers (ferry services) in 1921. Public Act 9 of 1929 expanded the regulatory ability of MPUC to natural gas pipelines, petroleum pipeline regulation was granted through Public Act 16 of 1929, and motor carries became regulated as a result of Public Act 254 of 1933.
The Michigan Public Utilities Commission was abolished in 1939 and the Michigan Public Service Commission MPSC was established, a five-member panel with each member serving a five-year term. The Legislature reduced the body to a three-member panel in 1947, with members serving staggered six-year terms. At that time, the Legislature imposed the first political restrictions on Commission members since the Railroad Commission had been abolished. MPSC members were prohibited from serving as officers or committee members of any political party organization. In 1951, the Legislature passed Public Act 275, which required that not more than two Commissioners may represent a single political party.
The MPSC first established Gas Safety Standards in 1957, prescribing safety requirements for pipeline facilities used to transport natural gas. In 1969, the Legislature passed Public Act 165, providing for enforcement and penalties. Periodic revisions and updates over the past forty years have kept Michigan's code current with federal and state legislative requirements and safety standards.
Water utilities came under MPSC jurisdiction through Public Act 19 of 1967. Commission jurisdiction over these utilities was repealed by Public Act 246 of 1995.
In 1968, the MPSC assumed duties over administration and enforcement of the size, weight, and load of motor carriers from the Department of State Highways. Executive Order 1982-1 transferred the Motor Carrier Enforcement Division to the Department of State Police. The Michigan Legislature amended the Motor Carrier Act in 1982, removing certain constraints on competition and permitting motor carriers to raise or lower rates without Commission approval. The Commission maintained regulatory authority over the rates and services of motor carriers of household goods.
Governor James J. Blanchard merged the Energy Administration of the Michigan Department of Commerce with the MPSC, through Executive Order 1986-17, with the intent to strengthen the regulatory and non-regulatory energy planning, policy and program capabilities for Michigan. The merger also consolidated Michigan's responsibility for energy-related programs within the MPSC.
In 1991, the Michigan Legislature passed the Michigan Telecommunications Act (MTA), in an effort to improve opportunities for economic development and promote customer choice. The MTA, amended in 1995, 1997, 2005 and 2011 significantly revamped the MPSC's role in telecommunications regulation. For example, the MPSC no longer regulates the rates for local telecommunications services, and instead competition from both intra- and intermodal technologies governs the local service marketplace. Approximately 200 companies have been granted licenses to provide basic local telephone service in Michigan, and as of December 2010, there were approximately 210 Commission-approved interconnection agreements in effect between AT&T Michigan and its competitors and 121 Commission-approved interconnection agreements between Frontier North and Frontier Midstates (f/k/a Verizon North and Verizon North Systems) and its competitors.
A number of changes occurred at the MPSC in 1996. The Commission implemented a new organizational structure, initiated as a result of recommendations by Governor John Engler, designed to streamline operations and improve the competitiveness of Michigan's utility industries. Through the reorganization, the Commission consolidated the functions of six existing divisions into three operating divisions - electric, natural gas and communications. Additionally, Governor John Engler transferred the energy program functions from the MPSC to the Department of Consumer and Industry Services, formerly the Department of Commerce. The Department created a State Energy Office to administer these programs.
Since the late 1990s unprecedented changes in utility regulation have occurred in Michigan. The Commission continues its support for greater customer choice in the electric, natural gas and telecommunications industries and increased reliance on market forces to support that choice. Natural gas customer choice programs were approved for the four largest natural gas companies in Michigan, Aquila Networks - MGU, Consumers Energy Company, Michigan Consolidated Gas Company, and SEMCO Energy Gas Company, and more than 350,000 Michigan customers have already begun exercising their right to choose an alternate natural gas supplier. The Commission also approved a phase-in of customer choice programs for customers of Detroit Edison and Consumers Energy companies.
Michigan's Customer Choice and Electricity Reliability Act (2000 PA 141) took effect in June, 2000. This new law directed the MPSC to issue orders that gave all customers of Michigan's investor-owned utilities the ability to choose an alternative electric supplier, starting in January 2002. (Michigan member/customer-owners of cooperative electric distribution companies and customers of municipal electric utilities are on different implementation schedules.) This legislative action culminated a process of electric utility industry restructuring that the MPSC had already been working on for several years. Michigan's electric industry was restructured so that the generation and supply of electricity became open to competitive suppliers. The electric transmission and distribution businesses remain under a regulated monopoly utility structure. This law defined a new type of entity, called "alternative electric supplier" ("AES"), and gave the MPSC authority to license them.
On Oct. 6, 2008, Governor Jennifer M. Granholm signed Public Act 286 and Public Act 295, which gave Michigan a comprehensive energy policy for the 21st century. This set a goal of 10 percent renewable energy standard and last until 2015. The commission made a grant to start up Michigan Saves nonprofit to issue energy efficiency loans.[3]
References
- ↑ MPSC - About the MPSC
- ↑ Members of The Commission
- ↑ Balaskovitz, Andy (March 22, 2016). "How a 'green bank' could have a $3 billion impact in Michigan". Midwest Energy News. RE-AMP. Retrieved March 24, 2016.