20250219_C368172_33_368172.Opn.Pdf

CourtMichigan Court of Appeals
DecidedFebruary 19, 2025
Docket20250219
StatusUnpublished

This text of 20250219_C368172_33_368172.Opn.Pdf (20250219_C368172_33_368172.Opn.Pdf) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
20250219_C368172_33_368172.Opn.Pdf, (Mich. Ct. App. 2025).

Opinion

If this opinion indicates that it is “FOR PUBLICATION,” it is subject to revision until final publication in the Michigan Appeals Reports.

STATE OF MICHIGAN

COURT OF APPEALS

PHIL FORNER, UNPUBLISHED February 19, 2025 Petitioner-Appellant, 11:32 AM

v No. 368172 Public Service Commission CONSUMERS ENERGY COMPANY, LC No. 00-021232

Respondent-Appellee,

and

MICHIGAN PUBLIC SERVICE COMMISSION,

Appellee.

Before: GADOLA, C.J., and CAMERON and ACKERMAN, JJ.

PER CURIAM.

Petitioner Phil Forner appeals as of right the order of the Michigan Public Service Commission (MPSC) dismissing his complaint against respondent Consumers Energy Company (Consumers). We affirm.

I. FACTS

Consumers is a public utility that offers both electric and natural gas services in Michigan, referred to as a regulated electric utility and a regulated gas utility. Consumers also offers unregulated “value-added products or services” (VAPS); one such service is the “Appliance Service Plan” (ASP). Customers who choose to enroll in the ASP pay a monthly subscription fee which covers certain equipment and appliance repairs.

Petitioner is a residential customer of Consumers’ electric utility. Petitioner challenges whether Consumers’ conduct regarding its ASP complied with what is known as the code of conduct provision of the Act governing the Public Service Commission, MCL 460.10ee.

-1- Formerly, the code of conduct provision was found at MCL 460.10a.1 The Legislature amended the statute by 2016 PA 341, creating MCL 460.10ee, which replaced former MCL 460.10a as the new code of conduct provision. The code of conduct provision governs how a utility may offer a value-added program, such as the ASP. In In re Application of Consumers Energy Co to Increase Rates, 339 Mich App 233, 244; 981 NW2d 525 (2021), this Court explained:

MCL 460.10ee(1) directs the Commission to establish a code of conduct governing the interplay between a [public] utility’s regulated and unregulated services. Regulated services are electric, steam, and natural gas utilities; unregulated services are value-added programs and services, which include appliance-service programs. MCL 460.10ee(16). The Commission duly promulgated a code of conduct addressing those issues. Mich. Admin. Code, R. 460.10101 to 460.10113. [Id.]

Consumers’ ASP uses Consumers’ electric utility’s monthly billing and payment processing system. Petitioner contends that MCL 460.10ee requires the ASP to compensate the electric utility directly for its use of those services. Petitioner contends that Consumers’ electric utility subsidized the ASP in 2018 and 2019 through the use of its billing and payment processing services, resulting in higher electric utility rates to its customers, and that as a result, he was improperly charged higher electric rates in violation of the code of conduct.

Petitioner initiated this action against Consumers alleging that in 2018-2019, Consumers’ ASP failed to pay the electric utility for the ASP’s proportional use of the billing and payment processing services, including postage, in violation of MCL 460.10ee(3), (8), (9), and (12). Petitioner also alleged that Consumers’ 2018 Report failed to delineate between ASP costs for the electric utility versus the gas utility, and that the report’s “Statement of Compliance” failed to certify that the electric utility was complying with MCL 460.10ee, which petitioner alleged violated MCL 460.10ee(15).

Petitioner has initiated essentially the same action against Consumers in the past, similarly alleging that Consumers’ ASP program was impermissibly using the billing and payment processing services of the electric utility without paying its proper allocation of costs for those services. Consumers responded to petitioner’s complaint in this case contending that the MPSC in prior proceedings between the parties had undertaken extensive review of the ASP Program in relation to Consumers’ regulated utilities. Consumers argued that although the Legislature moved the code of conduct provision from MCL 460.10a to MCL 460.10ee, the basic requirements on which petitioner based his complaint remained the same, and that the prior decisions of the MPSC continued to apply to the new code of conduct provision.

The MPSC’s Administrative Law Judge (ALJ) agreed that petitioner’s claims already had been determined by the MPSC in previous cases. The ALJ issued a proposal for decision recommending that the MPSC dismiss petitioner’s complaint, stating in pertinent part:

Mr. Forner’s complaint in the instant matter centers on claims that have been previously addressed by the Commission and reviewed by the Court of Appeals

1 MCL 460.10a remains, but now addresses other unrelated matters.

-2- and Michigan Supreme Court. Mr. Forner now raises these issues in the context of 2016 PA 341. As noted above, the Commission has found that 2016 PA 341 reorganized the language of MCL 460.10a (now MCL 460.10ee), but that the purpose of the statute remained the same and was clarified and strengthened by the adoption of 2016 PA 341. . . . Mr. Forner has not shown a substantive change in the language of the statute or the Code of Conduct, or a change in the cost allocation methodology employed by Consumers that would warrant revisiting previous Commission decisions addressing the same issues raised in this matter.

The ALJ noted that MCL 460.10ee did not substantively change any of the previous requirements, and that

[t]here was no evidence presented to show that circumstances have changed such that the formula used by Consumers to allocate costs to the ASP Program for use of the utility’s billing assets is obsolete or does not adequately allocate costs based on the proportional use by the ASP Program.

The ALJ concluded that petitioner did not meet his burden of showing that Consumers was improperly allocating the costs of payment processing for the ASP Program or that the electric utility was not properly compensated by the ASP. The ALJ also determined that petitioner had not presented evidence to refute Consumers’ evidence that including the ASP in the monthly billing did not increase postage. Accordingly, the ALJ concluded that there were no violations of MCL 460.10ee(8) and (9), and similarly that there were no violations of MCL 460.10ee(15) related to the VAPS reports.

Petitioner filed exceptions to the ALJ’s proposal for decision. Rejecting petitioner’s challenges, the MPSC dismissed petitioner’s complaint with prejudice. The MPSC determined that petitioner had “brought forth matters that the Commission considers to be settled,” and that the MPSC was unpersuaded that 2016 PA 341 “offers substantive changes to the extent that the Commission’s previous orders as discussed in this case are diminished or negated.” The MPSC reasoned:

The company’s accounting and allocation (method and calculation) for the ASP was approved in the February 9 order. The Commission’s decision was affirmed by the Court of Appeals and Mr. Forner’s request for reconsideration was denied. See, Forner v Pub Serv Comm and Consumers Energy Company, unpublished per curiam opinion of the Court of Appeals issued February 19, 2008 (Docket No. 270941) and Order of the Court of Appeals issued April 3, 2008 (Docket No. 270941). Thus, the Respondent has fulfilled the requirements of MCL 460.10ee(6)(c) that it “maintains separate books and records for the program.” The Commission finds no rule violation of MCL 460.10ee and no violation of the Code of Conduct in the Respondent’s choice to operate the ASP in the gas division or in the lack of a separate ASP operated in the electric division. Additionally, the Commission finds that the ALJ’s use of the word “utility” did not impede or obscure his contextual meaning in the PFD.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In Re Complaint of Rovas Against Sbc
754 N.W.2d 259 (Michigan Supreme Court, 2008)
In Re Consumers Energy Co.
756 N.W.2d 253 (Michigan Court of Appeals, 2008)
Consumers Power Co. v. Public Service Commission
596 N.W.2d 126 (Michigan Supreme Court, 1999)
In Re MCI Telecommunications Complaint
596 N.W.2d 164 (Michigan Supreme Court, 1999)
Rovas v. SBC Michigan
482 Mich. 90 (Michigan Supreme Court, 2008)
In re Consumers Energy Co.
279 Mich. App. 180 (Michigan Court of Appeals, 2008)
In re Consumers Energy Co.
291 Mich. App. 106 (Michigan Court of Appeals, 2010)

Cite This Page — Counsel Stack

Bluebook (online)
20250219_C368172_33_368172.Opn.Pdf, Counsel Stack Legal Research, https://law.counselstack.com/opinion/20250219_c368172_33_368172opnpdf-michctapp-2025.