Michigan PSC Approves Revised Bypassable Surcharges/Credits at Detroit Edison, Consumers

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January 21, 2011

Bundled commercial and industrial customers of Detroit Edison in the greater than or equal to 15 kW classes will be subject to a bypassable surcharge of 0.0965¢/kWh during February to recover an over-refund previously paid to these customers relating to the reconciliation of the Regulatory Asset Recovery Surcharge, a bypassable cost paid only by non-shopping customers (U-16263).

Three other bundled customer classes will receive a credit in the February billing cycle related to over-collections of the Regulatory Asset Recovery Surcharge.  

Customers on Rate D7 and large customer contracts will receive a credit of 1.3658¢/kWh.

Commercial and industrial customers in the less than 15 kW classes will receive a credit of 0.1227¢/kWh.

Residential customers will receive a credit of 1.9985¢/kWh.

No credits will be paid to retail open access customers since such customers avoid the Regulatory Asset Recovery Surcharge.

The Regulatory Asset Recovery Surcharge (RARS) mechanism recovers clean air compliance costs and similar items.

Consumers Energy Security Costs
The Michigan PSC approved a refund to Consumers Energy customers taking bundled service relating to an over-collection of bypassable enhanced generation security costs paid by bundled customers under a prior order in Case U-14126.  

A total of nearly $1.4 million is to be refunded to customers taking bundled service as of the February 2011 billing cycle (consistent with the Commission's recent decision regarding self-implemented rates which held that customers who leave bundled service are not owed refunds for any over-charges they may have paid while taking bundled service prior to taking competitive supply).  

Specific credits per rate class are available on page 8 of the Commission's order; the credit is in the range of 0.04¢/kWh to 0.05¢/kWh depending on class.

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