Public utilities: rates; separate rate class for large-load customers; require. Amends 1939 PA 3 (MCL 460.1 - 460.11) by adding sec. 10ii.

SB 1047 creates a new rate class for large energy users, specifically targeting data centers, to ensure they do not shift costs to residential and small business customers. The bill requires these facilities to sign long-term contracts with electric utilities that include a minimum monthly charge based on their potential usage, even if they consume less power. Additionally, the legislation mandates that large energy users pay for all costs they cause, such as new power lines and generation, and must provide collateral or a letter of credit to guarantee these payments. To further protect the grid, the bill also requires these facilities to participate in demand response programs, source 90% of their electricity from clean energy, and pay a significant application fee.