FOR IMMEDIATE RELEASE Dec. 6, 2019
Media Contact: Matt Helms 517-284-8300
Customer Assistance: 800-292-9555
Michigan.gov/MPSC
Twitter
LANSING, Mich. — The Michigan Public Service Commission today approved a $19.9 million rate increase for SEMCO Energy Gas Co., which the utility will use to replace aging gas mains and initiate an infrastructure reliability improvement program (Case No. U-20479). The utility had sought a rate increase exceeding $38 million.
A residential customer using an average of 100 ccf of natural gas will see an increase of $6.10 (9.2%) on their monthly bill. The increase includes a 75-cent rise in the monthly customer charge to $12.25.
As part of the agreement, SEMCO Gas agrees to add a residential income assistance program for low-income customers with an enrollment target of 10,500 customers who would receive a monthly credit of $12.25, equal to the monthly customer charge, and a low-income assistance credit program, capped at 2,000 customers who would receive a monthly credit of $30.
In addition, SEMCO agrees that, in its next general rate case, the utility will propose removing fees charged to low-income customers to have their service reconnected in the event of a service shutoff.
SEMCO Gas, which serves about 300,000 customers across the southern Lower Peninsula and the Upper Peninsula, last received approval for a rate increase in January 2011.
The current settlement factors in all impacts of corporate tax cuts from the 2017 federal Tax Cuts and Jobs Act. SEMCO Gas agrees not to seek another general rate increase before Jan. 1, 2023.
More on Michimich.com
The revenue increase represents an overall capital structure with 54% common equity, with the understanding that the company will move toward a 50/50 capital structure in its next general rate case. The settlement reflects an authorized rate of return on common equity of 9.87%.
UPPER PENINSULA POWER CO. ORDERED TO RELEASE RECORDS IN DISPUTE OVER BILL SURCHARGES
The MPSC ruled against Upper Peninsula Power Co. (UPPCo) in an ongoing dispute over surcharges on customer bills that the consumer advocacy group Citizens Against Rate Excess (CARE) argues should be refunded to customers based on a prior court decision (Case No. U-20150). In April 2018, CARE filed a complaint alleging UPPCo had imposed unlawful surcharges on residential customers related to a revenue decoupling mechanism, a ratemaking mechanism designed to reduce a utility's dependence on sales of its energy commodity, enabling growth of energy efficiency measures. CARE also sought a copy of a memorandum between UPPCo and Enbridge Energy, which earlier had reached a settlement agreement in a dispute over the surcharges related to the revenue decoupling mechanism. In its ruling today, the MPSC denied a request for summary disposition by UPPCo and ordered the utility to release the memorandum to CARE, subject to a protective order.
MPSC APPROVES 22 CONSUMERS ENERGY POWER PURCHASE AGREEMENTS
The MPSC gave the green light to 22 power purchase agreements between Consumers Energy Co. and entities that are qualified facilities under the federal Public Utility Regulatory Policies Act (Case No. U-20604). Consumers made the application for the approvals as a result of a settlement the Commission approved in September in Case No. U-20615 that resolved rights and obligations under PURPA between Consumers and numerous developers of proposed solar facilities in the utility's interconnection queue. The 22 power purchase agreements, each of which spans a 20-year term, represent 95 MW of the 170 MW of full avoided cost PPAs identified in Case No. U-20615.
More on Michimich.com
MPSC APPROVES HOME RULE RETURN REQUEST BY PRESQUE ISLE ELECTRIC & GAS CO-OP AND TOWNSHIP OF ALLIS
The MPSC today approved a joint petition by Presque Isle Electric & Gas Co-op and the Township of Allis in northern Michigan to return the township to home rule so that Allis and Presque Isle will jointly establish rates, charges, terms and conditions for natural gas service under a franchise agreement no longer subject to regulation by the MPSC (Case No. U-20653). Presque Isle was the last cooperative utility in the state with rates regulated by the MPSC.
To look up cases from today's meeting, access the E-Dockets filing system here.
To watch a livestream of the MPSC's meetings, click here.
For information about the MPSC, visit www.Michigan.gov/MPSC, sign up for one of its listservs, or follow the Commission on Twitter.
DISCLAIMER: This document was prepared to aid the public's understanding of certain matters before the Commission and is not intended to modify, supplement, or be a substitute for the Commission's orders. The Commission's orders are the official action of the Commission.
Media Contact: Matt Helms 517-284-8300
Customer Assistance: 800-292-9555
Michigan.gov/MPSC
LANSING, Mich. — The Michigan Public Service Commission today approved a $19.9 million rate increase for SEMCO Energy Gas Co., which the utility will use to replace aging gas mains and initiate an infrastructure reliability improvement program (Case No. U-20479). The utility had sought a rate increase exceeding $38 million.
A residential customer using an average of 100 ccf of natural gas will see an increase of $6.10 (9.2%) on their monthly bill. The increase includes a 75-cent rise in the monthly customer charge to $12.25.
As part of the agreement, SEMCO Gas agrees to add a residential income assistance program for low-income customers with an enrollment target of 10,500 customers who would receive a monthly credit of $12.25, equal to the monthly customer charge, and a low-income assistance credit program, capped at 2,000 customers who would receive a monthly credit of $30.
In addition, SEMCO agrees that, in its next general rate case, the utility will propose removing fees charged to low-income customers to have their service reconnected in the event of a service shutoff.
SEMCO Gas, which serves about 300,000 customers across the southern Lower Peninsula and the Upper Peninsula, last received approval for a rate increase in January 2011.
The current settlement factors in all impacts of corporate tax cuts from the 2017 federal Tax Cuts and Jobs Act. SEMCO Gas agrees not to seek another general rate increase before Jan. 1, 2023.
More on Michimich.com
- Michigan: MSHDA Board establishes $2M modular home program, announces nearly $150M in rental housing bond sales and approves pursuit of Mobility Voucher Demonstration program
- Michigan: M-24 project in northern Oakland County expected to be complete in early December
- Michigan: MDARD podcast series sheds light on hemp exports, invasive species, more
- Michigan: AG Nessel Files Brief in Support of States' Authority to Regulate Price-gouging
- 6-Year Old First-Time Author Kai Mahalyn Tampol
The revenue increase represents an overall capital structure with 54% common equity, with the understanding that the company will move toward a 50/50 capital structure in its next general rate case. The settlement reflects an authorized rate of return on common equity of 9.87%.
UPPER PENINSULA POWER CO. ORDERED TO RELEASE RECORDS IN DISPUTE OVER BILL SURCHARGES
The MPSC ruled against Upper Peninsula Power Co. (UPPCo) in an ongoing dispute over surcharges on customer bills that the consumer advocacy group Citizens Against Rate Excess (CARE) argues should be refunded to customers based on a prior court decision (Case No. U-20150). In April 2018, CARE filed a complaint alleging UPPCo had imposed unlawful surcharges on residential customers related to a revenue decoupling mechanism, a ratemaking mechanism designed to reduce a utility's dependence on sales of its energy commodity, enabling growth of energy efficiency measures. CARE also sought a copy of a memorandum between UPPCo and Enbridge Energy, which earlier had reached a settlement agreement in a dispute over the surcharges related to the revenue decoupling mechanism. In its ruling today, the MPSC denied a request for summary disposition by UPPCo and ordered the utility to release the memorandum to CARE, subject to a protective order.
MPSC APPROVES 22 CONSUMERS ENERGY POWER PURCHASE AGREEMENTS
The MPSC gave the green light to 22 power purchase agreements between Consumers Energy Co. and entities that are qualified facilities under the federal Public Utility Regulatory Policies Act (Case No. U-20604). Consumers made the application for the approvals as a result of a settlement the Commission approved in September in Case No. U-20615 that resolved rights and obligations under PURPA between Consumers and numerous developers of proposed solar facilities in the utility's interconnection queue. The 22 power purchase agreements, each of which spans a 20-year term, represent 95 MW of the 170 MW of full avoided cost PPAs identified in Case No. U-20615.
More on Michimich.com
- Powerstage Sports Nutrition Launches New Supplements Brand for the Athlete in All of Us!
- Guinness and Carhartt to Release New Collection This Fall
- BASfest Now a Hybrid Building Automation Education Tour
- Hillside Terrace Allowed Visitation for Residents and Their Families
- Empowered Flower Girl to celebrate girls who transform the world in honor of International Day of the Girl
MPSC APPROVES HOME RULE RETURN REQUEST BY PRESQUE ISLE ELECTRIC & GAS CO-OP AND TOWNSHIP OF ALLIS
The MPSC today approved a joint petition by Presque Isle Electric & Gas Co-op and the Township of Allis in northern Michigan to return the township to home rule so that Allis and Presque Isle will jointly establish rates, charges, terms and conditions for natural gas service under a franchise agreement no longer subject to regulation by the MPSC (Case No. U-20653). Presque Isle was the last cooperative utility in the state with rates regulated by the MPSC.
To look up cases from today's meeting, access the E-Dockets filing system here.
To watch a livestream of the MPSC's meetings, click here.
For information about the MPSC, visit www.Michigan.gov/MPSC, sign up for one of its listservs, or follow the Commission on Twitter.
DISCLAIMER: This document was prepared to aid the public's understanding of certain matters before the Commission and is not intended to modify, supplement, or be a substitute for the Commission's orders. The Commission's orders are the official action of the Commission.
0 Comments
Latest on Michimich.com
- Michigan: MPSC seeks recommendations for updated integrated resource planning to consider Gov. Whitmer's goals to reduce emissions
- Absentee ballots mailed today, early voting begins in Michigan
- Michigan: Drivers risk tickets after license, vehicle registration extension expires Sept. 30
- Michigan: I-75 lane shift requires northbound single-lane closures in Oakland County
- Michigan: AG Nessel Joins Coalition Supporting Federal Court Order Shutting Down Dakota Access Pipeline
- Michigan: Westbound I-94 closed I-696 - Conner Street; westbound I-696 lane closures M-3 to M-97 this weekend
- EZClaim Launches Its New Payment Processing Feature, EZClaimPay
- Alpine Air Products — Your One-Stop-Shop For All Your Indoor Air Purification Needs
- Kellogg Company Significantly Reduces Food Loss and Organic Waste
- Criminal Defense Attorney Daniel T. Geherin Discusses "Probable Cause Conference" in Michigan
- Pioneer Bank Opts for Indoor Air Quality Upgrades Amid Pandemic Concerns
- Utopia p2p Releases CRP (Crypton) cryptocurrency on Crypto Exchanges
- CEO Coaching International Provides Clients Value through Powerful Weekly Virtual Networking Events on Zoom
- Brookside Equity Partners Makes Minority Investment in Advanced Solutions International (ASI)
- OncoBeta GmbH and Australian Nuclear Science and Technology Organisation sign Letter of Intent to establish manufacturing site in Australia
- Patton Announces the World's Smallest, Lowest-Cost eSBC for SoHo and SME
- Orphaned Fawns Get New Lease on Life on Consumers Energy Land in Southeast Michigan
- Michigan: M-50 resurfacing project in Brooklyn underway
- NotMISpecies: New webinar series explores Michigan's efforts to prevent and respond to invasive species
- NotMISpecies: New webinar series explores Michigan's efforts to prevent and respond to invasive species