Requires the public service commission to retain an independent auditor to conduct audits of private water utility companies prior to and after rate changes are approved by the public service commission.
Summary
This bill would amend the Public Service Law to require the Public Service Commission (PSC) to hire an independent, third-party auditor before approving any change by a private water utility company involving rates, charges, contracts, agreements, rules, regulations, privileges, or facilities related to service. The auditor would review the utility and provide written findings to the PSC before the commission acts on the proposed change.
If the PSC approves the change, the bill would also require a second independent audit one year after the change takes effect. The PSC would be required to publish the results of both audits on its website. The bill takes effect immediately.
Impact
The bill would add a new oversight requirement to the PSC’s review of private water utility rate and service changes, effectively creating a mandatory pre-approval and post-approval audit process. It would affect private water utility companies subject to PSC regulation, the PSC itself, and any customers impacted by rate or service changes. The measure does not change utility rates directly, but it would likely increase regulatory scrutiny, transparency, and administrative costs associated with utility filings and approvals.
Sentiment
No committee transcripts or recorded votes were provided, so there is no direct evidence of support or opposition from legislative debate. Based on the bill’s structure, it appears to be framed as a consumer-protection and accountability measure aimed at improving oversight of private water utilities. The absence of recorded controversy suggests the bill’s reception cannot be assessed from the available materials.
Contention
The main potential point of contention is the added cost and delay of requiring an independent audit before any PSC approval and again one year later, which utilities may view as burdensome. Supporters would likely emphasize transparency, independent review, and protection of ratepayers from unjustified charges or poor utility practices. Another possible issue is the scope of the audit requirement, which applies broadly to changes in rates, charges, contracts, rules, service, privileges, and facilities, potentially making the process more expansive than a rate-only review.
Public utilities: rates; public service commission issuing a report before approving a rate increase; require. Amends sec. 6a of 1939 PA 3 (MCL 460.6a).