Michigan Sets Expedited Review of Polar Vortex-Driven Hike in Consumers GCR Factor
March 18, 2014 Email This Story Copyright 2010-13 EnergyChoiceMatters.com
Reporting by Karen Abbott • email@example.com
The Michigan PSC set an expedited schedule to consider Consumers Energy Company's request for authority to immediately increase its gas cost recovery (GCR) factor.
Consumers' base GCR had previously been proposed at $4.3962 per thousand cubic feet (Mcf) for the 12-month period ending March 31, 2015.
On Feb. 28, 2014, the company filed an amended application seeking a base GCR factor of $5.5750 per Mcf. In its Feb. 28 filing, the utility noted the "significant, unanticipated increases in the market price for natural gas as a result of the Polar Vortex phenomena, extended periods of colder-than-normal weather occurring in Michigan and elsewhere in the United States and associated significant increases in demand for natural gas and natural gas send-out."
On March 7, 2014, Consumers and PSC Staff filed a joint motion for a temporary order approving the amended GCR factor for use in the April 2014 billing month, and for immediate consideration. The joint motion indicated that the price of natural gas on the NYMEX had increased significantly and unexpectedly above the levels that existed at the time of the original filing in December, and that, if the originally-proposed GCR factor were adopted, it would result in an underrecovery for the 2014-2015 GCR year of approximately $185 million.
The PSC did not grant approval of the sought temporary order