Legislation: H.B. 5524 (Michigan)

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Last modified on February 12, 2015.

EZFeed Policy

Place Michigan

Applies to States or Provinces Michigan
Name Legislation: H.B. 5524 (Michigan)
Policy Category Other Policy
Policy Type Generating Facility Rate-Making, Renewables Portfolio Standards and Goals
Affected Technologies Biomass/Biogas, Coal with CCS, Concentrating Solar Power, Energy Storage, Fuel Cells, Geothermal Electric, Hydroelectric, Hydroelectric (Small), Natural Gas, Nuclear, Solar Photovoltaics, Wave Energy, Wind energy
Active Policy Yes

Implementing Sector State/Province

Program Administrator Michigan Public Service Commission
Primary Website http://www.legislature.mi.gov/documents/2007-2008/publicact/pdf/2008-PA-0286.pdf

Last Review 2014-09-15

Information Source http://www.nei.org/resourcesandstats/documentlibrary/newplants/reports/statusupdatestatelegislationandregulationssupportingnuclearplantconstruction


This bill was part of a package of energy bills that enacted regulatory reform, a renewable portfolio standard, renewable tax credits and an energy optimization program. Regulatory reform is addressed in H.B. 5524, including the creation of a certificate of necessity for large capital investments, which will support construction of nuclear plants.

Utilities can apply for and receive a certificate of necessity for assets costing $500 million or more prior to construction or purchase that allows the MPSC to predetermine the prudence of the investment (including explicitly the need for the asset and the appropriateness of the fuel choice).The MPSC may allow interest payments on capital work in progress to be passed through in rates during construction for projects granted certificates of necessity. Equity used during construction shall be recognized and treated as allowance for funds used during construction, which means an accrued rate of return on the equity and the principal equity will be applied to rates when the asset is operational.


Authorities (Please contact the if there are any file problems.)

Authority 1: PA 286 of 2008