Legislation |
12/02 |
Public Act 634
of 2002 (effective 12/23/02). The legislation requires that an alternative
natural gas supplier doing business in Michigan be licensed by the
Public Service Commission (PSC) and directs the PSC to establish
licensing procedures. It also directs the PSC to develop standards
governing slamming and cramming by alternative suppliers. |
|
05/02 |
Consumer
Protection Legislation Proposed, House Bill 6039. The proposed
legislation would establish new protections for natural gas
customers and set provisions covering customer switching, billing,
marketer licensing requirements, minimum disclosure standards, and
customer release of information rights. The bill was sent to the
House Committee on Energy and Technology. No further action was taken. |
|
12/99 |
Unbundling
Legislation Proposed, House Bills 5201-5207. The proposed
legislation would allow all natural gas consumers to choose their
own gas suppliers. The bills also specify licensing requirements for
gas suppliers and establish rules and regulations for competitive
natural gas services. The bills are to be considered as a package
and would not take effect unless all are approved. Hearings on the
proposed legislation began before the House Committee on Energy and
Technology on January 20, 2000. No further action was taken by the legislature. |
Regulatory Actions |
10/07 |
Consumer Standards and Billing Practices Revised. The PSC revised its rules governing consumer standards and billing practices for residential natural gas and electric service to reflect industry and technological changes. According to the PSC, the rules provide customers with more service shut-off protections by clarifying responsibility for bills, prohibiting estimated meter reading, lowering deposit requirements during the winter, and giving customers more time to pay their bills. |
|
05/07 |
Companies Ordered to Provide 30-day Cancellation Notice to Small Commercial Customers (Case U-15215). The PSC adopted the consensus position reached during a collaborative meeting of utilities and other parties that there should be a 30-day cancellation notice to all customers that have 200 thousand cubic feet (Mcf) or less annual aggregated usage. |
|
02/07 |
Docket Opened to Investigate Customer Choice Tariffs (Case U-15215). The PSC opened a docket in response to
a request by Universal Gas and Electric Corp. for a
declaratory ruling regarding the need to provide a 30-day unconditional contract cancellation period to customers who purchase more than 2,000 Mcf of natural gas annually. The docket consolidated Universal's request with an investigation of customer choice tariffs. |
|
10/05 |
PSC Issues
Emergency Billing Rules (Case U-14668). The PSC set new rules
for utility billing during the 2005-2006 heating season (Nov-March).
It extended bill due-dates by 5 days, prohibits shutoffs for failure
to pay estimated bill by due date, and prohibits shutoffs for
customers 65 years old or older, or whose household income is no
more than 200 percent of the poverty level, provided the customer
pays monthly amount totaling 6 percent of estimated annual bill. |
|
06/05 |
License Granted
to WPS Energy Services (Case U-14554). The PSC approved WPS
Energy Services’ application to be licensed as an alternative gas
supplier. |
|
06/05 |
License Granted
to Direct Energy Services (Case U-14537). The PSC approved
Direct Energy Services’ application to be licensed as an alternative
gas supplier. |
|
03/05 |
License Granted
to Presque Isle Co-Op (Case U-14434). The PSC approved Presque
Isle Co-op’s application to be licensed as an alternative gas
supplier. |
|
10/04 |
License Granted
to Lakeshore Energy Services (Case U-14286). The PSC approved
Lakeshore Energy Services’ application to be licensed as an
alternative gas supplier. |
|
09/04 |
License
Granted to Peoples Energy Services (Case U-13694). The PSC
approved Peoples Energy Services’ application for a license as an
alternative gas supplier. |
|
06/04 |
License Approved
for Shell Energy Services (Case U-14162). The PSC approved Shell
Energy’s application to be licensed as an alternative gas supplier. |
|
03/04 |
Licenses
Approved for Proliance Energy, MidAmerican Energy, MXEnergy, and
Interstate Gas Supply (Cases U-14036, U-14055, U-14066, and
U-14075). The PSC approved applications of Proliance Energy,
MidAmerican Energy, MxEnergy, and Interstate Gas Supply to be
licensed as alternative gas suppliers. |
|
10/03 |
SEMCO and
Aquila-MGU GCR Plans Approved(Cases U-13622 and U-13550). The
PSC approved SEMCO’s Gas Recovery (GCR) Plan for April 2003-May 2004
and Aquila Networks-MGU plan for calendar year 2003. In both
dockets, the PSC rejected the Attorney General’s and Residential
Ratepayer Consortium’s (RRC) proposals to change from the current
roll-in refund method and return to the historical refund method
(HRM, or modified roll-in). The Attorney General had argued that HRM
is pro-competitive because it assesses the actual cost to customers
who used the gas, while the roll-in method of under-recoveries is
anti-competitive as customers would migrate to Choice to avoid
paying their share of underrecovered costs. The RRC wanted to create
a prior period gas cost charge for billing to any SEMCO customer who
chooses an alternative supplier. The PSC concluded that the
suggested recovery methods would “amount to an exit fee or cost for
leaving the GCR system, and therefore, would undermine Choice.” The
PSC may reconsider HRM when there are large numbers of Choice
customers in the LDCs’ service territories (currently no Choice
suppliers are in SEMCO’s or Aquila-MGU’s areas). |
|
07/03 |
License Granted
to Cornerstone Energy Marketing, Inc. (Case U-13823). The PSC
approved Cornerstone’s application to be licensed as an alternative
gas supplier (AGS). The company is the first to be licensed as an
AGS in Michigan since procedures were established in March 2003. |
|
03/03 |
PSC Sets
Licensing Procedures for Marketers (Case U-13694). Licensing
procedures were approved that apply to any one selling natural gas
at unregulated retail rates in the State and participating in
customer choice programs. Applicants must provide proof of the
necessary financial, technical, and managerial capabilities to
provide gas service and maintain an office in the State. A bond or
letter of credit ($100,000) will be required of all applicants that
have not demonstrated financial capability (BBB or better rating
from a major financial rating service). |
|
10/02 |
SEMCO Customer
Choice Program Expanded. Beginning October 1, 2002, up to 78,000
of SEMCO's residential customers and all of its nonresidential
customers may buy gas from a third-party supplier. On April 1, 2003,
another 39,000 residential customers may participate, and on April
1, 2004, all customers will be eligible. |
|
02/02 |
Permanent
Customer Choice Program Approved for Michigan Gas Utilities
(Aquila), Case U-13232. Beginning June 1, 2002, up to 14,000
residential customers and 1,300 general service customers may
participate in a voluntary customer choice program on a first-come,
first-served basis. On June 1, 2003, numbers increase to 28,000
residential and 2,600 general service customers and on June 1, 2004,
to 56,000 residential and 5,200 general service customers. All of
MGU's customers will be eligible to participate on June 1, 2005. |
|
02/02 |
SEMCO Customer
Choice Program Extended. PSC approved extension of SEMCO's
choice program under the same terrms for the ongoing pilot project.
The PSC had rejected the company's original request that rates be
fixed at about $5 per thousand cubic feet from April 1, 2002,
through March 31, 2005. |
|
12/01 |
Permanent
MichCon Choice Program Approved, Case U-13155. The Michigan
Public Service Commission (PSC) approved a permanent choice program
for MichCon gas customers. Beginning April 1, 2002, up to 440,000
customers can participate, and numbers increase to 660,000 on April
1, 2003. All of MichCon's gas customers will be able to participate
on April 1, 2004. Enrollment is for a 12-month period. If customers
switch back to MichCon they must remain with the utility for 12
months before choosing a new supplier. |
|
10/00 |
Consumers Energy
Company Choice Program Expanded. In October 2000, the PSC
approved expansion of Consumers' choice program, which operated as a
3-year pilot from April 1, 1998, through March 31, 2001. The cap on
the number of customers who can enroll in Consumers' program
increased to 600,000 in April 2001, to 900,000 in April 2002, and
will increase to all 1.6 million of the company's natural gas
customers in April 2003. |
|
08/99 |
MichCon Pilot
Choice Program Modified, Case U-12050. The Michigan Public
Service Commission (PSC) approved modifications to Michigan
Consolidated Gas Company's (MichCon) pilot choice program, changing
enrollment and solicitation procedures. The program's name was
changed from "MichCon Selects" to "Gas Customer Choice" to reduce
confusion with gas supplier plans. Customers will be given a 30-day
period to cancel a contract with a gas supplier, beginning 1 day
after the contract is signed. Contracts must be clear and include an
acknowledgment message that ensures customers know they are
switching gas suppliers. |
|
05/99 |
MichCon Budget
Billing Option, Case U-11913. The PSC ordered MichCon to provide
the budget billing option to all of its customers by the August 1999
billing cycle. As an alternative, MichCon may amend its customer
choice program to allow alternative natural gas suppliers to bill
customers directly. Currently, MichCon does not allow suppliers
participating in its choice program to bill customers. |
|
09/98 |
SEMCO Pilot
Choice Program Approved, Case U-11776. The PSC allowed SEMCO to
extend its aggregation transportation service (ATS) program to
21,000 residential customers in a 3-year pilot program to run from
April 1, 1999, through March 31, 2001. Up to 7,000 customers will be
eligible in the first year with another 7,000 in each of the
following 2 years. The pilot program freezes SEMCO's gas commodity
cost at $2.99 per Mcf for the 3 years. Customers will be required to
pay a balancing recovery charge of $0.25 per Mcf. |
|
10/00 |
Consumers Energy
Company Choice Program Expanded. In October 2000, the PSC
approved expansion of Consumers' choice program, which operated as a
3-year pilot from April 1, 1998, through March 31, 2001. The cap on
the number of customers who can enroll in Consumers' program
increased to 600,000 in April 2001, to 900,000 in April 2002, and
will increase to all 1.6 million of the company's natural gas
customers in April 2003. |
|
04/98 |
MichCon Pilot
Approved, Case U-11682. The PSC approved a 3-year pilot choice
program for customers of MichCon, with enrollment to begin January
1, 1999. Up to 75,000 customers will be eligible during the first
year and another 75,000 in each of the next 2 years for a total of
225,000. Customers who continue supply service from MichCon would be
charged a flat rate of $2.95 per Mcf over the 3 years compared with
the current rate of $3.17 per Mcf. The plan includes an incentive
for MichCon to lower its purchased gas costs and share some of the
savings with its customers. |
|
12/97 |
Consumers Energy
Pilot Approved, Case U-11599. The PSC approved a 3-year pilot
choice program that allows Consumers Energy customers to choose
their own gas supplier on a "first-come, first-served" basis,
beginning April 1, 1998. Up to 100,000 customers are eligible in
1998, 200,000 in 1999, and 300,000 in 2000. For those customers who
choose not to switch suppliers, Consumers Energy will continue to
provide bundled service with its gas commodity charges frozen at
$2.8364 per thousand cubic feet (Mcf). The company's monthly charges
and distribution rates will also remain unchanged during the 3-year
period. Customers choosing a new supplier who later change back to
Consumers Energy will not be eligible for the flat commodity rate
and would pay the higher of $2.8364 per Mcf or the current market
price. |
|
10/97 |
Transportation
Service Approved for SEMCO's Business Customers, Case U-11220.
The PSC approved expansion of SEMCO's aggregation transportation
service program to allow the company's business customers the
opportunity to choose their own gas supplier. Previously the program
was targeted toward larger commercial and industrial customers. |