DEPARTMENT OF CONSUMER AND INDUSTRY SERVICES

                         PUBLIC SERVICE COMMISSION

                  UNCOLLECTIBLES ALLOWANCE RECOVERY FUNDS


(By authority conferred on the public service commission by section 4 of 2000 
PA 322, section 7 of 1909 PA 106, section 5 of 1919 PA 419, sections 4 and  6 
of 1939 PA 3, and sections 3, 9,  and  231  of  1965  PA  380,  MCL  285.304, 
460.557, 460.55, 460.4, 460.6, 16.103, 16.109, and 16.331) 


                        PART 1.  GENERAL PROVISIONS


R 460.2601   Application of rules.
   Rule 1.  These rules apply to every  electric  and  gas  utility  that  is 
subject to the jurisdiction of the public service commission.

  History: 2001 AACS.


R 460.2602   Definitions.
   Rule 2. As used in these rules:
(a) "Commission" means the Michigan public service commission.
(b) "Cooperative electric utility" means an electric utility organized  as  a 
cooperative corporation under 1931 PA 327, MCL 450.1 et seq.
(c) "Fund" means the uncollectibles allowance recovery fund.
(d) "Utility" means a person, firm, corporation, cooperative, association, or 
other agency which is subject to the jurisdiction of the commission and which 
distributes  and  sells  electricity  or  natural  gas  to  the  public   for 
residential use. 

  History: 2001 AACS.



                PART 2. UNCOLLECTIBLES ALLOWANCE RECOVERY FUND


R 460.2621  Uncollectibles allowance recovery fund.
  Rule 11.  A  utility  shall  establish  and  administer  an  uncollectibles 
allowance recovery fund.

  History: 2001 AACS.


R 460.2622  Annual deposits.
   Rule 12.  A utility shall annually deposit into its  fund  the  difference 
between the uncollectible provision as recorded in  the  utility's  financial 
records for 1999, less the provision as recorded on the  utility's  financial 
records in each subsequent fiscal year.

  History: 2001 AACS.


R 460.2623  Notice of deposit.
   Rule 13. Not less than 30 days after the close  of  the  utility's  fiscal 
year, the utility shall inform the commission of the amount of money that the 
utility recorded on its financial records for that year.

  History: 2001 AACS.


 R 460.2624  Disputes; procedure for resolution.
   Rule 14. A dispute regarding the reasonableness of an amount recorded on a 
utility's financial record as a provision for its uncollectible expenses or a 
dispute regarding the accuracy of the amount deposited into a utility's  fund 
shall be resolved by the commission  after  notice  to  the  utility  and  an 
opportunity for the utility and the commission staff to submit comments.

  History: 2001 AACS.


R 460.2625  Disbursement of funds.
   Rule 15.  (1) A cooperative electric utility shall annually  allocate  all 
money from its fund to its customers in proportionate amounts based  on  each 
customer's patronage with the cooperative.  The money shall be paid  to  each 
customer in accordance with the cooperative's capital credit rotation policy. 
   (2)  An investor-owned utility shall annually disburse money from its fund 
according to the following formula:
   (a) Twenty-five percent (25%) shall be retained by the utility.
   (b) Seventy-five percent (75%) shall be contributed to the Michigan  clean 
air fund of the department of environmental quality.

  History: 2001 AACS.