SEMCO Energy to Study Effect of Choice Volumes on SOLR Function Under GCR Settlement

SEMCO Energy Gas Company will conduct an internal evaluation regarding its ability to perform as the Supplier Of Last Resort under the current Gas Customer Choice level of participation and future forecasts of choice volumes, under a settlement in SEMCO's gas cost recovery plan proceeding approved by the Michigan PSC yesterday (U-16483 et. al.).

The adopted settlement incorporated SEMCO's commitment to, "perform an internal evaluation regarding its ability to perform as the SOLR given current and future forecasted levels of GCC [choice] participation," and to provide the parties with the results of this evaluation upon completion.

"If the Company's internal evaluation determines that a modification to the Company's GCC [choice] program is necessary, the Company will address such a modification in a future tariff filing," SEMCO said.

The provision for the study in the settlement was in response to testimony from the Residential Ratepayer Consortium, which sought to require SEMCO to, "perform a study to establish an appropriate cap [on choice participation] that will assure it can continue to operate reliably."

SEMCO will also conduct a technical conference, to be organized by the Attorney General, to develop a better understanding among the parties of the company's storage and capacity assets in its former Battle Creek Division service area.

Under the settlement, the PSC authorized SEMCO Energy Gas Company to implement a 2011-2012 gas cost recovery (GCR) base factor of $5.4899 per dekatherm, effective with the next billing month.