| Through a detailed examination of the written orders issued by the Michigan Public Service Commission (MPSC) with regard to the Consumers Power Company and the Michigan Bell Telephone Company, a study of the utility regulatory policies of the MPSC is presented for the period from 1950 to the mid-1980's. The issue as to whether the main purpose of the Michigan utility regulation was to protect the financial integrity of Michigan utility companies or whether the purpose was to protect ratepayers against the abuses of the monopoly power of utility companies is examined. This study concludes that Michigan utility regulation has generally been biased towards insuring the financial viability of the utility companies. Those commissioners favoring large rate increases for utilities have used such non-traditional regulatory concepts as fair value rate base, accelerated depreciation, projected test years, and earnings erosion allowances to accomplish this goal.;The thesis that since the early 1970's, public utility regulation has become increasingly complex and conflictual is also examined. This dissertation generally agrees with this proposition, but notes that in Michigan, utility regulatory issues became more complex and conflictual as early as the mid-1960's. Utility regulation became more conflictual primarily due to the intervention of various ratepayer groups in utility rate proceedings. The Michigan Rate Payers Association appeared in Michigan utility rate proceedings in the late 1950's on behalf of residential customers. In the mid-1970's, business ratepayers appeared in utility proceedings as the Michigan Energy Users Group.;Also studied is the public controversy surrounding the construction of the Midland nuclear facility, and its eventual conversion into a natural gas generation facility. The dissertation concludes that the enormous cost increases for construction of this particular facility were primarily due to mismanagement of the project by the utility and its contractors, rather than to inadequacies of the regulatory process.;Also reviewed is the history of the Michigan Bell Telephone Company since the divestiture of the American Telephone & Telegraph system in 1984. Examined in detail are the issues of cross subsidization of some ratepayers groups by other classes of ratepayers, and between interstate and intrastate telecommunications services. |
