Public utilities: rates; use of actual cost for setting utility rates; require. Amends sec. 6a of 1939 PA 3 (MCL 460.6a).

SB 1031 requires Michigan public utilities to use actual historical costs rather than projected future costs when the Public Service Commission sets electricity, gas, or steam rates. The bill mandates that the commission must review rate applications within 30 days and ensures customers receive proper notice and a hearing before any rate increases are approved. Additionally, it introduces a process for gas utilities to request immediate partial rate relief and establishes specific rules for refunding customers if proposed rates are later reduced. These changes aim to make the rate-setting process more transparent and grounded in verified past expenses instead of estimates.